HomeMy WebLinkAbout07.Att. 1 Final Draft Proposed FY 2022-23 Budget BUDGET
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FY 2022 - 23 BUDGET
BOARD OF DIRECTORS
OF
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A,
1
Et
Top Row: Barbara D. Hockett, Mariah N. Lauritzen, Michael R. McGill
Bottom Row: Tad J. Pilecki, David R. Williams (Board President)
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
CerrtraI San Finance Division,5019 Imhoff Place, Martinez,CA 94553,925-228-9500
To view or download an electronic version,visit http://www.centralsan.org
TEM
i
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�}CENTRA!_SAN
-dqmbUKTW COh"A COSTA 3.M IAI1 DdWI
VISION , MISSION ,
6llt, VALUES
OUR MISSION
To protect public health and the environment
OUR VISION
To be an industry-leading organization known for environmental stewardship,
innovation. and delivering exceptional customer service at responsible rates
OUR VALUES
PEOPLE COMMUNITY PRINCIPLES LEADERSHIPAND
Respect customers Collaborate with Be truthful and COMMITMENT
and employees water sector honest Promote a passionate
Work effectively partners Be fair,kind,and and empowered
and efficiently as a Foster community friendly
workforce
team relationships Take ownership and Encourage continuous
Celebrate our Be open,transparent, responsibility growth and
successes and and accessible development
learn from our Understand service Inspire dedication and
challenges level expectations top-quality results
i Provide a safe and
I healthful environment
4
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GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRFSFNTF,D TO
Central Contra Costa Sanitary District
California
For the Fiscal Year Rcginning
July 01, 2021
ox� P. AMA:u
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, 2021. 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..................................................................................................................................................31
Financial Overview
FinancialOverview..........................................................................................................................................................35
Financial Planning Policies
FiscalPlanning Policies....................................................................................................................................................37
FiscalReserves Policy......................................................................................................................................................37
Basisfor Budgeting.........................................................................................................................................................38
Debt Management and Continuing Disclosure Policy....................................................................................................41
InvestmentPolicy...........................................................................................................................................................41
CurrentFinancial Plan.....................................................................................................................................................42
Operations and Maintenance.........................................................................................................................................43
Capital.............................................................................................................................................................................43
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........................................................................................................59
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..........................................................................................................................................71
Impact of Capital Improvement Budget on Ongoing Operations and Maintenance Budget.........................................74
ReserveProjections........................................................................................................................................................74
DebtService....................................................................................................................................................................79
Historical Long-Term Spending Trends...........................................................................................................................80
Long-Range Financial Planning.......................................................................................................................................82
Operating Departments
OperatingDepartments..................................................................................................................................................87
AdministrationDepartment...........................................................................................................................................88
Engineering and Technical Services Department.........................................................................................................127
OperationsDepartment................................................................................................................................................151
Self-Insurance Program
Self-Insurance Program ................................................................................................................................................175
Capital Improvement Program
Capital Improvement Program.....................................................................................................................................183
Ten-Year Capital Improvement Plan
Ten-Year Capital Improvement Plan.............................................................................................................................291
Debt Program
DebtProgram................................................................................................................................................................307
Supplemental Financial Information
SupplementalFinancial Information ............................................................................................................................313
Glossary and Acronyms
Terms, Definitions,Acronyms, and Abbreviations Used in Budget Document............................................................321
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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) 2022-23 combined Operations and Maintenance (0&M) and Capital Improvement Project (CIP)
budget. 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.
This year, Central San celebrated 75 years of service to our community. Over the decades, Central San
has seen tremendous changes, from the growing population of our service area, to advances in
wastewater treatment technology, to the strengthening of environmental standards and requirements.
Today, we collect and clean more than 13 billion gallons of wastewater every year and serve 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, our Permit
Counter, as well as award-winning public outreach and student educational programs. These services
will continue to receive the resources 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 providing
the level of service for which our customers are accustomed. 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
Over the past two years, the COVID-19 pandemic has
underscored the centrality of public health to our
communities, economy, and way of life. Throughout this
challenging period, Central San has continued to provide
essential wastewater collection and cleaning services without
interruption.
Through ingenuity and innovation, we also have developed
new ways to safely meet the needs of our customers. We
implemented enhanced safety protocols and contactless `�-
Cvllccn
procedures for our Permit Counter and HHW facilities, and
developed virtual school education and public outreach '
programs, including an interactive 75th Anniversary virtual
experience. Through our participation in COVID-19 regional monitoring and research efforts, we have
supported the emerging science of wastewater-based epidemiology to help public health officials track
and respond to the virus.
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The unprecedented events of the pandemic have impacted budgets and revenues for special districts
across the state, and Central San is no exception. To help recover some of the unexpected expenses
related to our pandemic response, Central San applied for and received nearly $1 million in state
funding through California's Independent Special District Relief Fund. We are continuing to monitor
these expenses and expect to submit a claim for additional COVID-related costs to the Federal
Emergency Management Agency once the disaster declaration ends.
Acknowledging our Accomplishments
Despite the challenges, the past fiscal year has been a very successful one at Central San. We joined an
elite club of public agencies that have fully funded employee pensions by successfully paying off an
outstanding pension Unfunded Actuarially Accrued Liability (UAAL) of$70.8 million, which we
anticipate will save about $15 million in interest costs through 2029. We also marked our 24th
consecutive year of 100% compliance with our National Pollutant Discharge Elimination System Permit,
qualifying for the Platinum Peak Performance Award from the National Association of Clean Water
Agencies (NACWA)—a record achieved by fewer than 20 of the NACWA member agencies.
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. Some of the significant accomplishments under
each of the seven goals in the Strategic Plan include:
` ■ CUSTOMER AND COMMUNITY
• Continued providing essential •
services without interruption
during the COVID-19 pandemic
while protecting employees, the
public, and the environment.
• Reopened Permit Counter to the ' ' Fiscal Year
public and implemented a 2021-22
scheduling system on the website GOALS
for customers to book •'
appointments with staff. •
• Developed digital learning Pipe
Protectors program and served
5,800 students with a hands-on,
science-based curriculum that was
presented via online learning
formats.
• Developed an award-winning, interactive customer experience website to support
the celebration of Central San's 75th Anniversary.
• Oversaw approximately 70,000 visits to the HHW Collection Facility and
Residential Recycled Water Fill Station by residents, small businesses, reuse
customers, retail partners, and fill station users.
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■ ■ ENVIRONMENTAL STEWARDSHIP
Maintained eligibility for the NACWA Peak Performance Award Platinum status for
the 24t" consecutive year, recognizing 100% compliance with Central San's
wastewater discharge permit.
• Responded to 14 sanitary sewer overflows and achieved the lowest-ever recorded
volume of overflows.
• Collected approximately 2,200,000 pounds of hazardous waste and gave away
over 222,000 pounds of reusable products.
• Collected approximately 4,000 pounds of pharmaceuticals.
• Distributed 235 million gallons of recycled water.
• Continued efforts to augment the region's water supply through the proposed
Refinery Recycled Water Exchange.
• Completed the first year of operation of the Dublin San Ramon Services District
(DSRSD) and East Bay Municipal Utility District Recycled Water Authority (DERWA)
Temporary Wastewater Diversion, which, from June 21, 2021, through September
10, 2021, diverted approximately 58 million gallons of wastewater from Central
San to DSRSD to produce recycled water to meet DERWA's peak summer irrigation
demand.
• 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
California Environmental Quality Act (CEQA) environmental review process for the
project.
• Worked with the Board of Directors to pursue policy efforts at the state and
national levels that promoted pollution prevention, producer responsibility and
proper wipes labeling.
• Began a new initiative to consider Net Zero Energy as it relates to greenhouse gas
emissions and how it may apply at Central San.
FISCAL RESPONSIBILITY
• Paid off Central San's pension unfunded liabilities and substantially reduced the
other post-employment benefits (OPEB) unfunded liabilities, achieving a projected
savings of over $15.0 million over the remaining seven-year term of the debt.
• Compiled a claim for and secured reimbursement of$996,000 from the State
Special District COVID-19 Relief fund.
• Completed execution of State Revolving Fund (SRF) loan agreement in the amount
of$173.1 million for the Solids Handling Facility Improvements Project.
• Achieved 21 consecutive years of receiving the Government Finance Officers
Association (GFOA) Certificate of Achievement for Excellence in Financial
Reporting.
• Achieved four consecutive years of receiving the GFOA Distinguished Budget
Presentation Award, for the FY 2020-21 Budget.
• Completed annual Benchmarking Study based on the American Water Works
Association (AWWA) Utility Benchmarking framework, soliciting involvement from 34
California agencies.
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■ WORKFORCE DEVELOPMENT
• Launched Central San's Diversity, Equity, and Inclusion (DEI) initiative.
• Kicked off the fourth cycle of the BOOST Mentorship Program and the third
Supervisory Academy.
• Began offering the Career Development Program, which provides career coaching
and job shadowing to employees.
• Held virtual State of the District meetings between the General Manager and each
department to update employees on current issues and receive feedback.
• Adopted successor Memoranda of Understanding (MOU) with the bargaining
units.
• Administration Department, Engineering Department, Plant Operations Division,
and Plant Maintenance Division achieved zero lost workdays.
GOAL FIVE INFRASTRUCTURE RELIABILITY
• Replaced or rehabilitated over six miles of pipes in Danville, Walnut Creek, Lafayette,
Martinez, Pleasant Hill, and Orinda.
• Constructed major renovations at various Pumping Stations in Orinda and Moraga
and at the Recycled Water Filter Plant.
• Constructed the Outfall Renovation project and Safety Phase 5,which added external
emergency exit stairs outside the four-story Solids Conditioning Building.
• Completed the Asset Management Plan.
• Conducted phishing prevention training exercises and Cybersecurity Awareness
training for all staff.
' INNOVATION AND OPTIMIZATION
• Maintained Optimizations Program to commit to efficiency, effectiveness, and
continuous improvement by tracking and reporting progress.
• Initiated development of the Strategic Optimization and Innovation Initiative in
the Operations Department.
• Continued ongoing optimization and improvement of the new enterprise resource
planning (ERP) software, including the following:
o Launching the Career and Performance module with an improved
performance evaluation process.
o Completing the budget process utilizing the new Enterprise Performance
Management (EPM) software.
o Rolling out a user-friendly online budget monitoring tool for managers/
budgeteers to monitor their divisional detail budgets.
o Utilizing Oracle integrated Smart-View reporting technology to develop the
Annual Comprehensive Financial Report financials for first time.
• Continued development and implementation of the Central San Smart initiative.
• Kicked off Phase 1 of the Information Technology (IT) Strategic Plan.
• Began a six-month pilot project to test new tertiary membrane filtration to
improve recycled water production.
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AGILITY AND ADAPTABILITY
• Continued to modify operations to maintain a safe working environment, while
maintaining essential services and high-quality customer service during the
pandemic.
• Allowed employees to work from home when possible– based on their job duties
and ability to remote work effectively–to help reduce community spread and
keep essential employees safe.
• Implemented, enforced, and continued to develop a COVID-19 Exposure
Prevention Plan.
• Secured COVID-19 testing resources for employees and conducted contact tracing
for all positive cases.
• Procured on-site COVID-19 "peace of mind" testing for employees.
• Implemented Central San's vaccine mandate.
• Continued participation in wastewater-based epidemiology studies with California
Department of Public Health, UC Berkeley, and Contra Costa County Health
Services.
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 2022-23 Budget will allow us to build upon our successes and meet
our goals as outlined in our two-year Strategic Plan—the road map for our budgeting process. I want
to thank the 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 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. Accordingly, this
proposed budget represents our commitment to serving them with excellence while providing the
highest value, now and into the future.
.. ''
%A.J b �.
Roger S. Bailey
General Manager
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About Central San
Established in 1946, Central San is located about 30 miles northeast of San Francisco and provides
wastewater services for nearly 500,000 residents and more than 3,000 businesses in central
Contra Costa County. This service territory covers 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.
5ulsu"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
headquarters
Central San by the numbers
-r • Serves nearly 500,000 residents and more than 3,000 businesses in central
;. Contra Costa County
Y° • Maintains over 1,500 miles of sewer pipelines and 18 pumping stations to
carry wastewater to our regional treatment plant in Martinez
-i/ • 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 over 2 million pounds of household hazardous waste per year, and
strives to reuse or recycle about 90% of those materials
• Collects more than 5,000 pounds of unwanted medications per year
• Achieves an average 3.9 out of 4.0 customer satisfaction rating for sewer emergency response (as
of Q2 in FY 2021-22)
• Serves more than 6,000 students through school education programs every year
• Welcomes more than 500 participants to treatment plant tours and speakers bureau presentations
per year
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Community Profile
For over 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 keycrossingoint '.
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 AR
Concord, is working on converting a former Naval �
_tom
Weapons Station into a Community Reuse Project, AN I - _
which will include parks, housing, office, retail, and
the restoration of Mt. Diablo Creek. Central San is
proud to be part of the effort to make the project as
sustainable as possible by supplying recycled water
for irrigation in this development.
In recent years, the population of the
service area has boomed, partially due to
t its accessibility to San Francisco and
Silicon Valley via public transit. Most of
the population of Contra Costa County
lies along the busy 1-680 corridor that
connects the North Bay to Silicon Valley.
As shown in the following tables, the area
in which Central San operates is a
growing community to whom this agency
is honored to provide its core services,
including educational messaging to instill
the environmental values foundational to
Central San as an organization.
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Service Area Population (Last Ten Years)
As of January 1 Inside District Concord/Clayton TotalServed %Change
2010 319,377 135,378 454,755 -0.32%
2011 321,800 133,600 455,400 0.14%
2012 3 26,900 134,200 461,100 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 342,149 141,480 483,629 -2.15%
2021 344,254 140,541 484,795 0.24%
Population by Community (2010, 2020, 202 1)
As of January 1.201h As of January 1,2020 As of January 1,2021
Clayton 10,936 11,337 11,268
Concord 124,442 130,143 129,273
Danville 43,110 43,876 43,906
Lafayette 24,206 25,604 25,358
Martinez* 21,078 20,913 21,834
Moraga 14,701 16,946 16,820
O ri nda 17,799 19,009 19,078
Pleasant Hill 33,384 34,267 34,133
San Ramon * 51,099 68,824 63,659
Walnut Creek 65,443 70,860 71,317
Unincorporated Contra
48,557 41,850 48,149
Costa County**
Total Service Area 454,755 483,629 484,795
Contra Costa County Total 1,073,055 1,156,530 1,153,854
* 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, 2020)
HouseholdCommunity Average Income Average Household
Income
2019 2020
Alamo* $239,545 $248,167
Clyde *, ^ $82,944 $85,854
Clayton ** $157,768 $153,607
Concord ** $89,564 $92,706
Danville $160,808 $167,827
Lafayette $178,889 $188,140
Martinez *** $107,328 $109,994
Moraga $140,378 $152,788
Orinda $223,217 $231,230
Pacheco*, ^ $72,383 $74,922
Pleasant Hill $118,947 $125,573
San Ramon $160,783 $167,345
Walnut Creek $105,948 $108,689
Service Area Total (Excluding
Concord** &Clayton**),Weighted by $142,181 $149,428
Population
Source: US Census Data(https://www.census.gov/quickfacts)
* Included in"Unincorporated Contra Costa County"population line item in previous table.
*Estimated using Concord income growth rate,as Census data for 2020 not available.
** Not included in service territory,Central San provides wastewater treatment and HHW services through a
wholesale contract.
***Portions of Martinez are in service territory for collection and treatment,and all of Martinez is provided with
HHW services.
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Ten Largest Customers by Sewer Service Charge (FY 2020-21)
Customer • . Operating Revenue
City of Concord* $15,048,782 1 16.44%
Contra Costa County General Services $740,223 2 0.80%
First Walnut Creek Mutual $537,700 3 0.58%
Park Regency Apartments $504,872 4 0.55%
Second Walnut Creek Mutual Apartments $424,500 5 0.46%
John Muir Health $362,718 6 0.39%
Sunvalley Shopping Center** $339,061 7 0.37%
St. Mary's College Contract $242,777 8 0.26%
Branch Creek Vista Apartments $226,400 9 0.24%
San Ramon Unified School District $215,229 10 0.23%
Total $18,642,262 20.15%
* Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton
**Located in Concord,but in the Central San service territory for wastewater collection and treatment
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Sewer Service Charge Billings by Type (2021)
User Group Parcels* 2020-21 Sewer Service Charge %of Total
Billings
Residential 113,527 $81,485,212 79.7%
Mixed Use 2,102 7,744,489 7.6%
Office 1,033 2,602,370 2.5%
Food Service 182 1,502,700 1.5%
Hotel/Motel 23 1,313,2115 1.3%
Industrial/Permitted 13 798,641 0.8%
Skilled Nursing 42 759,758 0.7%
Schools 147 668,595 0.7%
Businesses 384 767,428 0.8%
Recreation/Entertainment 203 857,044 0.8%
Automotive/Car Wash 246 714,510 0.7%
Market/Supermarket 40 582,635 0.6%
All Other User Groups 492 2,870,182 2.8%
Partial Year Charges 296,337
Prior Year Adjustments (72,682)
Total 118,434 102,481,734 100%
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Largest Employers in Contra Costa County (2021)
Employers Estimated Employees 2021
of Total County Employment
Chevron Corporation 10,000+ 2.01%
Kaiser Permanente 10,000+ 2.01%
Bio-Rad Laboratories 1,000-4,999 0.63%
John Muir Medical Center 1,000-4,999 0.63%
La Raza Market 1,000-4,999 0.64%
USS-POSCO Industries 1,000-4,999 0.64%
All Others 466,700 93.58%
Total 498,700 100%
Source:County of Contra Costa,California,California Annual Financial Report for June 30,2021,Statistical Section,principal employers
excludes government employers
Economic Statistics for Contra Costa County (Since 2010)
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 11.0%
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 $97,550,344 $84,614 3.2%
2020 1,152,333 $106,318,748 $92,264 13.4%
2021 1,153,854*** N/A N/A 6.4%
* Source:U.S. Department of Commerce,Bureau of Economic Analysis,"CAINCI"figure.
https://a pps.bea.gov/iTable/iTa ble.cfm?req id=70&step=l&acrdn=7#reqid=70&step=l&acrd n=7
**Source:State of California Employment Development Department,annual calendar figure in 2010 future dates are as of June.
https://data.edd.ca.gov/Labor-Force-and-U nemplovment-Rates/Loca I-Area-U nemplovment-Statistics-LAUS-Contra-Cos/2fxf-v95v
***Source:California Department of Finance,Demographic Research Unit and local agency service records
June 16, 2022 Regular Board Meeting Agenda Packe13 Page 76 of 771
Page 28 of 341
Organizational Structure
Central San is governed by a Board of Directors (Board) 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 291 budgeted Development
full-time employees. The budget for Services
FY 2022-23 is proposed at 294
positions.
This team of employees is led by a _®
General Manager, three Department
Directors, and 11 Division Managers.
The chart above 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.
i
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Page 29 of 341
Budgeting Calendar, Process, and Spending Authorities
The budget development process for FY 2022-23 started midway through FY 2021-22 with updates to
the Ten-Year Financial Plan and a review of the potential impacts of the COVID-19 pandemic on Central
San costs and revenues. Board discussion of these matters took place on March 24, 2022. Board
guidance on these matters was used in the budget development during this period, and through the
preparation of the budget book in April.
The budget was developed through an iterative process. Initial budget proposals were input into the
new Oracle budgeting module and the results were then reviewed by the General Manager and
discussed with the relevant Directors and division manager. After several rounds of refinement and
changes, the numbers were compiled and presented in the budget book which was finalized in April
and provided to the Board in early 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 2021-22 is the second 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 2022-24 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 2019 and a public hearing on
proposed rate adjustments in April 2019. 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 increases across all customer classes of 5.25%, 5.25%, 4.75%, and 4.75%. Annual public
hearings were to be conducted for years two through four to determine if lesser rate adjustments are
possible. Following the aforementioned financial planning workshop on March 24, 2022, a public
hearing was held on whether or not to stay the course for the FY 2022-23 SSC rates, which would
incorporate the 4th and final of the previously Board-approved 4-year rate increases. The Board
concurred with staff and voted unanimously to leave the previously approved FY 2022-23 rates in
place.
With the expiration of the currently in place four-year SSC rate schedule in July 2024, Central San
intends to conduct a cost-of-service study to develop SSC rates for FY 2023-24 and beyond. Pursuant
to forecasts included in the Ten-Year Financial Plan discussed at the March 24, 2024 Financial Planning
workshop, it is anticipated that modest and gradual rate increases will be necessary to address future
operational and capital improvement program needs. Consistent with prior year strategies, Central
June 16, 2022 Regular Board Meeting Agenda Packe15 Page 78 of 771
Page 30 of 341
San will strive to maintain the appropriate balance of funding sources between ongoing SSC revenues,
reserves, and debt financing to ensure the stability of SSC rates through years where capital spending is
expected to significantly ramp up. In accordance with the law, any proposed increases to future SSC
rates will be preceded by public outreach, Proposition 218 hearings, and public Board financial
planning workshops.
A diagram summarizing the budget and rate development process is provided below.
JULY-OCTOBER
Identify Key Financial Issues
- . , Place Prior Year SSC on Tax Roll
*Conduct Board of Directors I.. i BER-JANUARY
Meetings,Workshops,and Board Calculate Administrative Overhead
aeel
7rh
• _ _
• • .•. 1 •• • • •ssMMm
: •• • ••
. .
1JAN -MARCrf —mw,
1 •• ' •
-Conduct-Conduct Public Hearings I-Adopt Final Budget
:•. • • Directors'
Direction
-Prepare •••
Conduct Proposition
Outreach
A calendar of key intersecting events during the process for the FY 2022-23 budget is provided below,
comprised of activities from two of the three 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.
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Page 31 of 341
Key Strategic Plan, Budget, and Rate Setting Events for FY 2022-23 Budget
Date Budget Rate Setting
January 2022 N/A N/A
February 2022 Departments/divisions develop and submit N/A
operating budget proposals
General Manager reviews operating budget March 24: Board Rate Workshop
March 2022 (Review of Financial Plan including
with departments/divisions updates to the Ten-Year CIP and CIB)
Draft operating budget finalized with
departments/divisions
Board Meeting to review potential
April 2022 changes to previously adopted rates for
Draft Ten-Year Capital Improvement Plan (CIP) FY 2022-23
finalized by Department of Engineering and
Technical Services
Draft Operating Budget presented to the
Finance Committee and the Board
May 2022 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 2022 Public Hearing on adoption of final budget and Developer-Related Fees, Rates,and
Charges
Public participation has been 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.
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Page 32 of 341
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. As discussed elsewhere in this document, due to consideration of a potential debt financing
transaction that may take place in the summer of June 2022 (which is not reflected in this document),
a budget amendment may be proposed to reflect the effects of this transaction on funding sources,
and other impacts to the Operations & Maintenance, Capital, and Debt Service budgets.
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 33 of 341
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 by the remaining balance of the applicable contingency account.
3 Bid protests and rejection of all bids must go to the Board except for 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 34 of 341
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 35 of 341
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 2022-24 Strategic Plan and reports FY 2021-22 strategic
accomplishments and performance (based on information available during the publication of this book
in spring 2022), as well as objectives for FY 2022-23. The FY 2020-21 performance against the metrics
included in each of the divisions' sections is measured against the same targets for FY 2021-22, which
are included in the FYs 2020-22 Strategic Plan.
The development of the FYs 2022-24 Strategic Plan began with the Board's re-adoption of Central San's
Mission and adoption of revised Vision, Values, and Goals in the summer of 2021. These updates
emphasized the agency's commitment to the environment, innovation, optimization, and continuous
improvement.
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 across the organization. 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:
June 16, 2022 Regular Board Meeting Agenda Packe$}Page 84 of 771
'.•- • •
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 37 of 341
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 2022-24 Strategic Plan goals, as follows:
ResponseKey Budget PriorityJ6, 1111111111111 Primary
GOALONE
CUSTOMER AND COMMUNITY
Provide exceptional service
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, 75th
infrastructure and meet regulatory anniversary customer experience,
requirements Pipeline community newsletter, and
social media engagement
ENVIRONMENTAL STEWARDSHIP
Meet regulatory requirements,promote sustainability,and
identify and reduce contributions to climate change
Evolving regulatory Anticipate changing regulations and plan for Proactive participation with regulatory
requirements alternatives to maintain reliability and meet agencies as part of the Solids Handing
requirements Facilities Improvements Projects
Maintaining a sustainable Partner with agencies to find creative water Continue exploring partnerships with
water supply solutions benefiting the region and state,and Contra Costa Water District(CCWD),
identify ways to maximize cost-effective Santa Clara Valley Water District(Valley
resource recovery and sustainability Water)and San Francisco Public Utilities
Commission (SFPUC)to advance the
Refinery Recycled Water Exchange
Project to utilize recycled water at
nearby refineries in place of raw Delta
water to increase the amount of drinking
water available to the community,and
collaborate with East Bay Municipal
Utility District(EBMUD)on a potable
reuse study.
WORKFORCE DIVERSITY AND DEVELOPMENT
Recruit,educate,empower,and retain a workforce from diverse backgrounds
6 A 70
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 so Central San may become a preferred conferences,and professional
employer association memberships to inspire
continuous education and improvement
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Page 38 of 341
GOVERNANCE AND FISCAL RESPONSIBILITY
Uphold integrity,transparency,and wise financial management
in an effective governing model
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
SAFETY AND SECURITY
Provide a safe,secure,and healthful workplace that foresees and addresses threats im
Protecting the safety and Increase security at the treatment plant to Projects to construct and provide safety
security of both people and address increased contractor and upgrades and to contract with a
assets construction activity,and implement an consultant to help develop and
Information Technology(IT) Master Plan with implement the IT Master Plan
cybersecurity in mind
OINFRASTRUCTURE RELIABILITY M1
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 Facilities Improvements and
levels of capital spending Filter Plant and Clearwell Improvements
GOALSEVEN4 INNOVATION AND AGILITY
Optimize operations for continuous improvement,and remain flexible and adaptable
System optimization and Continue to champion and initiate projects Continued launch of the Treatment Plant
utilization of Big Data through the Central San Smart initiative to Strategic Innovation and Optimization
optimize operations, improve asset Initiative.Other optimizations include
management, increase energy efficiency and the Steam and Aeration Blower Systems
safety,and reduce facility management costs Project to evaluate efficiency options for
one of the major energy sources of the
treatment process.
Smart initiative projects include
optimization of treatment plant asset
handover process and development of
an asset health indicator tool.
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 39 of 341
Financial Overview
Central San uses an enterprise fund to account for its operations. The primary activities of the
aggregate enterprise fund are further segmented into four funds and three other ancillary 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 (property taxes) and a portion of Sewer Service Charge (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 2022-23,
the Capital Projects budget will be funded through current year rate collections (cash funded), and
State of California Revolving Fund (SRF) loan proceeds for Phase 1 of 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 is used to track self-insurance reserves and related
investment earnings as well as costs of insurance premiums and claims not covered by Central
San's insurance policies. 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 SIF. As outlined in detail in
the Self-Insurance Program section, the SIF contains two "sub-funds" for budgeting and tracking
different types of self-insured losses. Sub-Fund A ($1.5 million targeted level) tracks general and
automobile liability losses, while Sub-Fund C ($7.5 million targeted level) tracks losses related to
emergencies or catastrophic events. Maintaining self-insured retentions and reserves helps to
reduce Central San's insurance premium expense.
• Debt Service Fund—This fund accounts for activity associated with the payment of Central San's
long-term debt. Central San's current debt includes Revenue Refunding bonds issued in September
2018 to refund previously existing 2009 bonds, and Certificates of Participation issued in 2021 to
finance a portion of capital program expenditures for FY 2020-21 and FY 2021-22 and help facilitate
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Page 40 of 341
the payoff of Central San's outstanding pension UAAL. Central San's property 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 Board approval.
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. This fund was largely liquidated in June 2021, with nearly
$12.8 million being used to help finance the payoff of the outstanding balance of Central
San's pension UAAL totaling approximately $70.8 million.
• 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
Board adopted an OPEB Funding Policy (BP 042) in September 2020 establishing a target to
achieve full funding (100%funded level) by meeting the actuarially determined
contributions (ADC) contribution requirements specified by an independent actuary
(currently Bartel &Associates). As of July 1, 2021, the OPEB UAAL had a remaining closed
amortization period for 14 years, scheduled to be fully paid off in FY 2033-34. 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 annual comprehensive 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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Page 41 of 341
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 2021-22 to increase the Self-Insurance Catastrophic
Loss/Emergency Reserves level from $5.0 million to $7.5 million. 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, 2022, and June 30, 2023.
• O&M Fund—Working capital reserves, the Board has set a target of five months (5/12 or
approximately 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 financed with debt.
• SIF Reserves—The Board has set a target of three times the annual retention ($500,000), for a total
of$1.5 million for its auto and general liability risk program. In addition, as noted previously, to
help mitigate the financial impacts and maintain uninterrupted service in the event of an
emergency or catastrophic event, Central San maintains an additional Emergency Fund Reserve
balance of$7.5 million.
• 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. 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, an addition contribution of$2.15 million of available monies from the FY 2019-20
financial close, and an additional contribution of$2.7 million from the FY 2020-21 financial close.
As of June 30, 2022, the fund is projected to have a balance of$7.46 million. 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 employs proprietary fund accounting, reporting actual expenses
and revenues 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. Also, while the annual budget emphasizes sub-fund budgetary projections and results, the
annual comprehensive financial report emphasizes actual financial results reported in a consolidated
enterprise fund format.
Central San's accounts and transactions are tracked on a full accrual basis for year-end financial
reporting, 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 annual comprehensive 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 annual comprehensive 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.
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 issuance premiums/discounts Excluded Included
Debt service principal payments Included Excluded
Debt proceeds Included Excluded
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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.
Budget Amendments
In August 2021, the Board adopted amendments to the 0&M and debt service budgets to reflect
the pay-off of the CCCERA pension plan UAAL. A borrowing transaction in June 2021 produced
funding for the capital program and freed up funds that were used to pay off the pension plan
UAAL. As a result, O&M spending for FY 2021-22 and future years was to be reduced, while debt
service was increased. The budget amendment reflected this reallocation and change in spending
authorization in these funds. The following table provides a comparison of FY 2021-22 adopted
versus amended budgets:
Table 1a— FY 2021-22 Adopted Versus Amended Budget
AmendedFY 2021-22 Budget
Fund Adopted
Operations and Maintenance(O&M) $90,974,103 $79,520,131 ($11,453,972) -12.6%
Sewer Construction 107,955,000 108,000,000 - -
Debt Service 2,511,227 12,891,059 10,379,832 413.3%
Self-Insurance 1,285,000 1,285,000 - -
Total Budget $202,725,330 $201,651,190 ($1,074,140) -0.5%
Given the significance of this change, the remainder of this budget document shows the FY 2021-22
budget, as amended in comparison to FY 2022-23 for a more useful apples-to-apples comparison of
budgeted line items.
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. The table below shows the status of past or current year
budget expenditures that were approved or are proposed for regulatory accounting treatment. No
additional items are proposed for regulatory accounting expenditures beyond two years which were
proposed in the FY 2021-22, and which continue to be budgeted for in the proposed budget, while the
first item in the table is no longer needed.
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ProposedBudget Year
Initially Budgetary Treatment Budgetary Treatment
Expenditure 046
1. Extraordinary waste FY 2021-22 This item is withdrawn. The revised Solids Handling Facility
hauling costs during Improvements Project does not anticipate the need for temporary
the construction of solids hauling related to a furnace shutdown. Accordingly, no
the Solids Handling extraordinary hauling costs are anticipated,and regulatory accounting
Facility Improvements treatment is no longer relevant.
Project(District
Project(DP) 7348)
2. Development of a FY 2021-22 Recovered through O&M costs in Expenditures of$1,137,700 were
five-year IT Strategic the years incurred, FY 2021-22 budgeted in the capital budget for
Plan (DP 8240, part of and FY 2022-23. DP 8240. The IT Strategic Plan
IT Development) project commenced in March
2022. The project will be funded
in FY 2021-22 with rate revenues.
3. Enhanced security FY 2021-22 Recovered through O&M costs in Expenditures of$100,000 per
staffing while the years incurred, FY 2021-22 year growing at 3%annually over
significant Capital through FY 2025-2026. the next five FYs are budgeted in
Projects are underway the capital budget for DP 7354—
(DP 7348 and others) Treatment Plant Security
Improvements. These costs were
included in the CIP for years
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 property 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.
No additional regulatory accounting expenditures are contemplated for the FY 2022-23 budget. Two of
the three expenditures proposed as part of the FY 2021-22 budget are contemplated to still be needed
and warrant regulatory accounting treatment. The table below shows the status of past or current
year budget expenditures that were approved or are proposed for regulatory accounting treatment.
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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, prudent, and limited use of debt to finance Central San's capital
improvement program. Central San has primarily applied a pay-as-you-go philosophy while capital
expenditures were stable from year to year but has occasionally (including in 1994 and 2009) used
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, with the
goal that over a ten-year period the amount of funding needed for ongoing pipeline replacement is to
generally be collected through SSC rates, capacity fees, and/or property taxes, while debt may be used
to cover the level of funding needed for the remaining portion of the capital program.
Currently, Central San is repaying 2018 Revenue Bonds and 2021 Certificates of Participation. As of
June 30, 2021, total outstanding debt associated with infrastructure improvements was $66.1 million,
to be reduced to $55.7 million by June 30, 2022, through regularly scheduled debt service principal
payments. As noted in the "Debt" section of this document, borrowings under a SRF loan are
anticipated to begin in FY 2021-22 for Phase 1 of the Solids Handling Facilities Improvements Project.
Debt service for this loan will commence when the project is finalized, and accordingly, amortization of
this loan is not yet projected in this document. However, no repayments will be due in FY 2022-23.
Staff is also working on a potential 2022 bond offering which may fund a portion of FY 2022-23's
capital expenditures. A budget amendment to reflect the impact of this offering may be proposed if
the issuance proceeds.
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 1.0x (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 0&M plus tax revenues/total debt service) are adhered to.
Central San's Debt Service Coverage Ratio is strong, attributable to minimal current debt service
obligations following a mostly pay-as-you-go capital financing philosophy. This favorable coverage
ratio is a factor in Central San's very strong AAA and Aa1 credit ratings issued by Standard & Poor's and
Moody's, respectively.
Investment Policy
Central San's investment policy, BP No. 005—Statement of Investment Policy, last revised in October
2021, is based on state law and prudent money management principles. All investments are in
accordance with this policy and Sections 53646 and 53601 of the California Government Code.
Through a formal agreement, Central San is currently a voluntary pooled participant with the Contra
Costa County Treasury, allowing them to act as Central San's Treasurer. The County invests all Central
San's 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 and Pension
Prefunding Trusts, which are governed by separate specific investment guidelines also approved by the
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Board of Directors. The investment policy is reviewed by the Board annually, and its priorities, in order
of importance, 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 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 OPEB Trust adopting a
"moderate" investment strategy, and the Pension Prefunding Trust adopting a "moderately
conservative" investment strategy. With respect to both trusts, U.S. Bank is the Trustee, HighMark
Capital is the Investment Manager, and Public Agency Retirement Services is the Trust Administrator
and Consultant. As of February 28, 2022, the OPEB Trust had a balance of$83.3 million, a decrease
from $84.6 million on June 30, 2021. This reduction is largely attributable to market turmoil stemming
from heavy international sanctions imposed on Russia following the invasion of Ukraine in February
2022. The impact to Central San's OPEB Trust was both sudden and significant, demonstrated by the
fact that the Trust reported a market value of$87.8 million on December 31, 2021. At this point, it is
still unclear what long-term implications, if any, this crisis will have on the OPEB Trust or Central San's
investment strategy moving forward. Staff is continuing to monitor the situation and confer with
investment advisors, who at the moment still urge a long-term investment strategy avoiding any
sudden overreactions to circumstances that may ultimately be short-term volatility.
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 had the option of making 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 were made through
budgeted contributions, or supplemental contributions following the publication of unexpected
favorable year-end budget variances. These supplemental contributions in addition to initial seed
monies resulted in the Pension Trust growing to a balance of approximately $12.7 million as of
May 31, 2021. In June 2021, the bulk of the Pension Prefunding Trust balance was liquidated to assist
in the full pay-down of the outstanding pension UAAL liability reported by CCCERA. While a residual
balance of less than $0.1 million currently remains, the trust is still open and can be utilized in the
future at the discretion of the Board.
Current Financial Plan
Central San has a ten-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
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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 24, 2022 Board Financial
Planning Workshop. The updated financial plan for FY 2022-23, reflecting results prior to the
completion of the FY 2022-23 proposed budget, estimated 0&M spending at $84.1 million and capital
spending at $108.0 million. The original financial plan adopted as the basis for the four-year rate
increase estimated FY 2022-23 0&M spending at $101.2 million and capital spending at $116.3 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 0&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 24, 2022 Board Financial Planning
Workshop presentation available on the Central San website.
A revised summary financial plan reflecting the FY 2022-23 assumptions for the O&M budget not
available at the time of the March 24 Board Financial Planning Workshop is provided in the Financial
Summary section of this budget book, illustrated in Table 15. The approved FY 2022-23 budget will
be used as a baseline for future years' planning.
Capital
The Ten-Year CIP was rolled forward one year, increasing from $926.8 million to $1,080.8 million over
this ten-year timeframe. The revised plan is stated in current (2022) dollars and attempts to address
capital improvement needs stemming from major drivers including: (1) increasing capacity demands
driven by new development, (2) existing as well as new regulatory requirements, (3) replacement of
aging infrastructure, and (4) ongoing sustainability. This updated ten-year plan was presented to the
Board at a public meeting on March 24, 2022, and reflects a detailed assessment of Central San's
latest needs, expected project timing, and a careful balance between revenues, reserves and debt to
limit volatility and ensure stability of customer rates. The Capital Improvement program section of
this budget book provides detail about the FY 2022-23 capital budget and the Ten-Year CIP.
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Page Intentionally Blank
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Financial Summary
The FY 2022-23 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, optimizing capacity, and complying with regulatory requirements. The FY 2022-23
budget also complies with the Financial Policies discussed in the previous section.
Central San's total budget for FY 2022-23 is $213.5 million, including net contributions to reserve,
representing an increase of$11.9 million (5.9%), compared to the prior year's budget of$201.7 million.
Changes by individual spending category are summarizes as follows:
• The O&M fund budget is $85.0 million, an increase of$5.5 million (6.9%) over the prior year
budget of$79.5 million, as amended. The FY 2021-22 O&M budget was initially adopted by the
Board in June 2021 with a budget of$91.0 million. As described in the Financial Planning Policies
section previously, the Board subsequently approved a FY 2021-22 budget amendment in
September 2021 to reflect the payoff of the pension plan's unfunded actuarially accrued liability
(UAAL) in June 2021, a financing transaction executed after the adoption of the FY 2021-22
budget. Given the significance of this change, FY 2021-22 O&M budgeted expenditures
throughout this budget book reflect the amended, rather than adopted, budget.
• The Sewer Construction fund budget is $91.0 million, a decrease of$17.0 million (-15.7%) from
the prior year budget of$108.0 million. Budgeted expenditures for this fund include capital
outlays for the treatment plant, collection system, recycled water, and general improvements
capital programs of the multi-year Capital Improvement Program.
• The Debt Service fund budget is $13.3 million, an increase of$0.4 million (2.8%) over the prior
year budget, as amended. Budgeted expenditures for this fund include debt service associated
with the 2018 Revenue Refunding Bonds as well as the 2021 Certificates of Participation.
• The Self-Insurance Fund (SIF) budget is $2.2 million, an increase of$0.9 million (68.9%) over the
prior year budget. Budget expenditures for this fund include the costs of premiums and
estimated losses based on historical actual experiences.
Table 1b - FY 2022-23 Total Budget
Expenditures
Fund FY 2020-21 FY i to Budget
Budget Actual* Budget" Budget Variance Variance
Operations and
Maintenance(0&M) $90,666,338 $83,283,099 $79,520,131 $85,019,046 $5,498,915 6.9%
Sewer Construction 88,024,000 69,610,843 107,955,000 90,976,000 (16,979,000) -15.7%
Debt Service 2,517,605 2,522,405 12,891,059 13,251,922 360,863 2.8%
Self-Insurance 1,153,500 1,395,142 1,285,000 2,170,000 885,000 68.9%
Total Appropriations 182,361,443 156,811,488 201,651,190 191,416,968 (10,234,222) -5.1%
Contribution to Reserves - 62,013,846 - $22,119,932
Total Funding Uses $182,361,443 $218,825,334 $201,651,190 $213,536,900 $11,885,710 5.9%
*Actuals for the O&M fund exclude the pension UAAL payoff totaling$70,763,669,which is considered an extraordinary item.
This has been backed out of this table and reported separately in other O&M budget tables as its inclusion would distort the
comparability between fiscal years. Total FY 2020-21 expenditures including this extraordinary item were$227,575,157.
**As amended by the Board in September 2021.
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Sources of Funds
The sources of funds (revenues) for FY 2022-23 are shown in Figure 1. A comparison of the major
revenue sources for FY 2022-23 and two prior years is shown in Figure 2.
Figure 1 — Total Funding Sources — FY 2022-23 Proposed Budget
FY 2022-23 Total Budgeted Funding Sources of$213,536,900
Capacity Fees, All Other Revenue
$4,579,000 Sources,$5,616,906
Tax Revenue,
$21,584,000
City of
Concord, _
$25,100,000
Sewer Service
Charges,
$114,657,006
Debt Proceeds,.
$42,ODD,DDD
Figure 2 - Total Funding Sources - Three-Year Budget Comparison
FY 2020-21 FY 2021-22 FY 2022-23
$182,361,443 $201,651,190 $213,536,900
Sources of Funds
$12D,a0gU06
$100,000,000
$84,000,000
$40,000,000
$20,000,400
leg g.. ■
Sewer Service Debt Proceeds City of Concord Tax Revenue Capacity Fees Use of Reserves All Other Revenue
Charges Sources
■FY 20-21 Budget ■FY 21-22 Budget ■FY 22-23 Budget
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The SSC is the largest source of revenue for FY 2022-23 at $114.7 million, followed by City of Concord
cost-sharing revenue at $25.1 million, property taxes at $21.6 million, and Capacity Fees at $4.6
million. All other sources of revenue, excluding draws on reserves and debt proceeds, are $5.6 million.
Non-revenue sources of funds for FY 2022-23 include expected borrowing of$42.0 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 residential and non-residential customer in Central San's service
area pays an SSC. 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 basis for the charge is the strength and volume of the
wastewater discharged, and customers are assigned to various classes for billing purposes. SSCs
rates 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 burden 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 non-residential customers were down in 2021 due to pandemic impacts.
As 2021 water consumption is the basis for commercial SSC charges, this is projected to translate to
a reduction in commercial SSC revenues by approximately $0.9 million.
• 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. The FY 2022-23 budget assumes property tax growth of 3.0% over
FY 2021-22 projected actual revenue.
• 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
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upcoming year. Pumped Zone Fees are collected specifically to cover pumping infrastructure costs
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 residential unit equivalents 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 the Finance and Right-of-Way Divisions 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 (NPDES) 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 2022-23.
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.
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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
• 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$42.0 million to fund the Capital
Improvement Budget for FY 2022-23 is shown in Table 13.
Tables 2a, 2b, 2c, 2d show the overall funding sources of Central San and how those funding sources
are applied to each sub-fund for the proposed FY 2022-23 budget, the FY 2021-22 budget, projected
actuals for FY 2021-22 and actual FY 2020-21 results.
Table 2a—Allocation of Funds — FY 2022-23 Budget
Funding Sources AS IS W15 I Self- Debt Service FY 2022-23
FY 2022-23 Budget Insurance Budget
Sewer Service Charge $47,162,407 $65,832,492 $1,662,101 $- $114,657,000
City of Concord 17,600,000 7,500,000 - - 25,100,000
Property Tax Revenue - 8,332,078 - 13,251,922 21,584,000
Capacity Fees-Gravity - 4,445,000 - - 4,445,000
Capacity Fees- Pumped Zone 134,000 134,000
HHW Reimbursement 1,048,000 - - - 1,048,000
Recycled Water 445,000 - - 445,000
Other Revenue Sources Including:
Permit& Inspection Fees 1,799,500 - - - 1,799,500
Lease Rental Income 740,000 - - 740,000
Stormwater/Pollution Prevention 415,000 - - - 415,000
Investment Income 262,000 140,000 47,400 - 449,400
Developer Fees - 403,000 - - 403,000
Other 291,000 1,000 25,000 - 317,000
Total Other Revenue Sources 3,507,500 544,000 72,400 - 4,123,900
Subtotal Funding Sources prior to
Reserve Draws and Loan Proceeds 69,762,907 86,787,570 1,734,501 13,251,922 171,536,900
Debt Proceeds - - - 42,000,000 42,000,000
Interfund Transfer(Capital
Reimbursement) - 42,000,000 - (42,000,000) -
Use of/(Contribution to) Reserves 15,256,139 (37,811,570) 435,499 - (22,119,932)
Total Funding Sources* $85,019,046 $90,976,000 $2,170,000 $13,251,922 $191,416,968
*Excluding total net contributions to reserves of$22.1 million,total funding sources budgeted for FY 2022-23 are$213.5 million,which is
the amount presented in Table 1b,Figure 1,and Figure 2.
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Table 2b -Allocation of Funds - FY 2021-22 Budget
Sewer Service Charge $96,331,829 $10,035,739 $1,576,419 $- $107,943,987
City of Concord 15,445,534 8,700,914 - 24,146,448
Tax Revenue - 6,940,168 - 12,891,059 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 1,894,400 - - - 1,894,400
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 - 296,000 - - 296,000
Other 316,000 1,600 25,000 - 342,600
Total Other Revenue Sources 3,495,400 616,600 75,000 - 4,187,000
Subtotal Funding Sources prior to
Reserve Draws and Loan Proceeds 116,681,763 32,243,421 1,651,419 12,891,059 163,467,662
Debt Proceeds - - - 34,120,000 34,120,000
Interfund Transfer(Capital
Reimbursement) - 68,572,325 - (68,572,325) -
Use of(or Contribution to)
Reserves (37,161,632) 7,139,254 (366,419) 34,452,325 4,063,528
Total Funding Sources $79,520,131 $107,955,000 $1,285,000 $12,891,059 $201,651,190
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Table 2c—Allocation of Funds — FY 2021-22 Projected
� . QVII
Sewer Service Charge $98,870,433 $10,279,620 $1,576,419 $- $110,726,472
City of Concord 15,900,000 8,700,000 - - 24,600,000
Tax Revenue - 8,082,740 - 12,873,260 20,956,000
Capacity Fees-Gravity - 4,316,000 - - 4,316,000
Capacity Fees-Pumped Zone 130,000 130,000
HHW Reimbursement 1,018,000 - - - 1,018,000
Recycled Water 432,000 - - 432,000
Other Revenue Sources Including:
Permit&Inspection Fees 1,820,700 - - - 1,820,700
State COVID Special District Relief 996,096 - - - 996,096
Lease Rental Income 743,000 - - - 743,000
Stormwater/Pollution Prevention 410,000 - - - 410,000
Investment Income 114,000 136,000 19,200 20,000 289,200
Developer Fees - 391,000 - - 391,000
Other 288,579 99,742 25,000 - 413,321
Total Other Revenue Sources 4,372,375 626,742 44,200 20,000 5,063,317
Subtotal Funding Sources prior to
Reserve Draws and Loan Proceeds 120,592,808 32,135,102 1,620,619 12,893,260 167,241,789
Debt Proceeds - - - 14,500,000 14,500,000
Interfund Transfer(Capital
Reimbursement) - 49,880,443 - (49,880,443) -
Use of(or Contribution to)
Reserves (43,309,267) 984,455 (261,598) 35,380,443 (3,889,067)
Total Funding Sources $77,283,541 $83,000,000 $1,359,021 $12,893,260 $177,852,722
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Table 2d —Allocation of Funds — FY 2020-21 Actual
WNT Toll
$102
Sewer Service Charge $72,325,341 $30,156,394 $- $- ,481,734
City of Concord 15,002,567 10,064,155 - - 25,066,722
Tax Revenue - 17,697,471 - 2,511,211 20,208,682
Capacity Fees-Gravity - 5,223,516 - - 5,223,516
Capacity Fees-Pumped Zone 219,733 219,733
HHW Reimbursement 1,054,840 - - - 1,054,840
Recycled Water 538,943 - - - 538,943
Other Revenue Sources Including:
Permit&Inspection Fees 2,176,156 - - - 2,176,156
Lease Rental Income 742,726 - - - 742,726
Stormwater/Pollution Prevention 415,115 - - - 415,115
Investment Income 143,256 245,740 42,203 11,194 442,392
Developer Fees 321,099 321,099
Other 1,316,988 29,816 586,872 - 1,933,676
Total Other Revenue Sources 4,794,240 596,655 629,075 11,194 6,031,163
Subtotal Funding Sources prior to
Reserve Draws and Loan Proceeds 93,715,931 63,957,923 629,075 2,522,405 160,825,334
Debt Proceeds - - - 58,000,000 58,000,000
Interfund Transfer(Capital
Reimbursement) - 23,467,951 - (23,467,951) -
Use of(or Contribution to) Reserves (10,432,832) (17,815,032) 766,067 (34,532,049) (62,013,846)
Total Funding Sources $83,283,099 $69,610,842 $1,395,142 $2,522,405 $156,811,488
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Sewer Service Charge
Tables 3 and 4 show the SSC for FY 2022-23 compared to the prior four fiscal year's rates for residential
and non-residential customers. Rates for FY 2019-20 to FY 2022-23 were approved by the Board after
a public hearing on April 18, 2019, through the adoption of a four-year rate ordinance. Since then,
multiple financial workshops have been held (November 4, 2019; March 12, 2020; December 17, 2020;
March 25, 2021; and March 24, 2022) 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 21, 2022, the Board deliberated on whether to adjust the previously adopted rates
for FY 2022-23. The Board did not adopt changes, allowing the rates to go into effect for July 2022.
Table 3 —Approved Annual SSC-Residential
Customer Type FY 2018-19 FY 2019-20 FY 2020-21* FY 2021-22 FY 2022-23
$629 legal rate,
Single Family Residence $567 $598 while$598 $660 $690
collected
Other Residences—Apartments,
Condominiums, Duplexes, $596 legal rate,
Second Living Units, Mobile $549 $566 while$566 $625 $654
collected
Homes
Effective Date 1 07/01/18 1 7/01/19 1 7/01/20 1 07/01/21 1 07/01/22
*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 2020-21.
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
User Group Description Combined FY 2020-21* FY 2021-22 FY 2022-23
Strength Limits
Low Non-residential uses not listed below(no Up to 350 mg/I $6.56 $6.87 $7.20
food service)
Food service without Type 1 hood,
Medium-Low shared water meter with less than 50% 351 to 700 mg/I $8.05 $8.43 $8.83
food service
Medium Shared water meter with 50%or greater 701 to $10.09 $10.57 $11.07
food service 1,000 mg/I
Food service with Type 1 hood,
supermarkets, hotels and motels with 1,001 to
Medium-High $11.26 $11.79 $12.35
food service,shared water meters with 1,300 mg/I
bakery
Mortuaries, bakeries, restaurants with Greater than
High grinders or emulsifiers, breweries with 1,300 mg/I $14.92 $15.63 $16.37
Best Management Practices permit
Minimum Annual
$596.00 $625.00 $654.00
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 FY 2020-21* FY 2021-22* IFY 2022-23
Schools
Schools-Daycare, Preschool, University(per hundred
$6.56 $6.87 $7.20
cubic feet)
Schools-Elementary(per student) $7.82 $8.19 $8.58
Schools-Intermediate and High School (per student) $15.45 $16.18 $16.95
Industrial Permit(including food processing)
Wastewater Flow(per hundred cubic feet) $5.08 $5.32 $5.57
Biological Oxygen Demand (BOD) (per 1,000 pounds) $1,342.00 $1,406.00 $1,473.00
Total Suspended Solids(TSS)(per 1,000 pounds) $701.00 $734.00 $769.00
Fixed $98.61 $103.29 $108.20
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/I 351 to 700 mg/I 701 to 1,000 mg/1 1,001 to 1,300 mg/l Over 1,300 mg/l
Std.Commercial 0 ,Food Supermarkets Bakeries
Delicatessens(No Food Service)
Restaurants with
Churches Yogurt Shops Restaurants . e
L Mixed-Use Womb
>50%Food
Schools:Daycare, Ice Cream Shops Hotels with Food Breweries,Restaurants
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 increases from 31.6% in FY 2021-22 to 57.4% in FY 2022-23. The
FY 2021-22 allocation of SSC to Capital was temporarily lower than typical due to the payoff of the
pension UAAL balance in June 2021 necessitating a higher-than-normal allocation of SSC to the O&M
fund in FY 2020-21 and FY 2021-22. Accordingly, the allocation of the SSC to the O&M fund decreases
from 66.9% in FY 2021-22 to 41.1% in FY 2022-23, which is more in line with the historical O&M to
Capital fund split.
Table 5 —Allocation of Sewer Service Charges
FY r
2020-21 Mpg2020-21 0IIIJIL1
Budget Actual Budget Budget
To O&M $44,527,762 44.0% 72,325,341 70.6% $72,259,337 1 66.9% $47,162,407 41.1% ($49,169,422)
To Capital 56,673,402 56.0% 30,156,394 29.4% 34,108,232 31.6% 65,832,492 57.4% 55,796,753
To Self-
Insurance - - - - 1,576,419 1.5% 1,662,101 1.4% 85,682
Total
Collected $101,201,164 100.0% $102,481,734 100.0% $107,943,987 100.0% $114,657,000 100.0% $6,713,013
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 2022-23 and FY 2023-24 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.
Table 5 also shows a direct allocation of SSC to the self-insurance fund to restore the self-insurance
fund balance to the required $9.0 million level. This change in the Self-Insurance funding in
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methodology was implemented in FY 2021-22, with the replenishment in years prior to that being
accomplished through the 0&M fund as an inter-fund expenditure. The direct allocation of SSC is the
preferred ongoing method as it is more transparent and avoids the perception of double-counted
expenditures that can be caused by inter-fund transfers.
Uses of Funds
The uses of funds (expenditures and contributions to reserves) for FY 2022-23 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 2022-23 financial workshop on March 24, 2022.
Figure 3 - Total Funding Uses - FY 2022-23 Budget
Contribution to
Reserves,
Self-Insurance, $22,119,932
$2,170,000 -` -
Debt Service,_
$13,251,922
Operations&
Maintenance,
$85,019,046
Sewer Construction—_
$90,976,000 -
Total FY 2022-23 Budgeted Expenditures and Contributions of Reserves: $213,536,900
Figure 4 -Where the Money Goes
FY 2020-21 FY 2021-22 FY 2022-23
$182,361,443 $201,651,190 $213,536,900
Use of Funds
$116,666,666
$100,666,D66
$96,666,666
$86.666.666
$i6,660,D6D
$66,666,666
$56,666,D6D
$46,664,666
$36.666.666
$20,666,666
$10,006,666
$-
Operations&Maintenance Sewer Construction Debt Service Self-Insurance Contribution to Reserves
■FY 20-21 ■FY 21-22 ■FY 22-23
Budget Budget Budget
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Operations &Maintenance Budget Overview
Excluding the draw from reserves, total O&M revenue for FY 2022-23 is projected to be $69.8 million,
compared to the FY 2021-22 amended budget amount of$116.7 million, as shown in Table 6.
Table 6 - FY 2022-23 Budgeted 0&M Revenues Budgetto
Account Description FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget Percent
Budget Actual Budget Projected Budget Variance Variance
Revenue
P -1111-
Sewer Service Charge $44,527,762 $72,325,341 $96,331,829 $98,870,433 $47,162,407 ($49,169,422) -51.0%
Concord SSC 15,760,000 15,002,567 15,445,534 15,900,000 17,600,000 2,154,466 13.9%
Permit&Inspection Fees 2,022,400 2,176,156 1,894,400 1,820,700 1,799,500 (94,900) -5.0%
HHW Reimbursement 1,064,000 1,054,840 977,000 1,018,000 1,048,000 71,000 7.3%
Lease Rental Income 719,000 742,726 715,000 743,000 740,000 25,000 3.5%
Recycled Water 482,000 564,699 432,000 432,000 445,000 13,000 3.0%
Stormwater/Pollution
Prevention 390,000 415,115 390,000 410,000 415,000 25,000 6.4%
Investment Income 190,000 143,256 180,000 114,000 262,000 82,000 45.6%
State Funding - - - 996,096 - -
Other 277,000 1,291,232 316,000 288,579 291,000 (25,000) -7.9%
Total Revenue $65,432,162 $93,715,931 $116,681,763 $120,592,808 $69,762,907 ($46,918,856) -40.2%
O&M revenue decreased by$46.9 million, or 40.2%x, due primarily to the following:
• For FY 2021-22, the allocation of SSC to O&M was significantly increased to finance the Board-
approved payoff of the outstanding balance of the pension plan UAAL in June 2021 totaling $70.8
million. The accompanying significant reduction in SSC allocated to the Sewer Construction fund in
FY 2021-22 was offset by the issuance of Certificates of Participation yielding $58 million in
proceeds with a true interest cost of 0.38% compared to the 7.0% discount rate charged on the
pension UAAL by Central San's pension administrator.
• 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 $17.6 million in
FY 2022-23, increasing in correlation with to the increase in budgeted treatment and other
operating costs eligible for reimbursement.
As shown in Table 7, total 0&M expenses are projected to be $85.0 million in FY 2022-23, an increase
of$5.5 million from the $79.5 million FY 2021-22 budget, as amended. This figure includes the costs
for Central San to deliver essential services including wastewater collection, wastewater treatment,
HHW collection, and recycled water production and distribution. The budget continues to provide
funding for strategic initiatives and key activities. Table 7 and Figure 5 show the FY 2022-23 O&M
Budget by expense category.
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Table 7 - FY 2022-23 Budgeted O&M Expenditures and Contribution to / (Draw from)
Reserve
DescriptionBudgetto FY 2022
FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Percent 23Account Budget Actual Budget Projected Budget Variance LPercent
Variance f Tot 11
of Total
A.Salaries&Wages
A.Salaries&Wages $39,543,191 $37,072,780 $39,711,391 $39,394,948 $42,748,849 $3,037,457 7.6% 50.3%
B.Benefits
B.Benefits&Cap
0/H Credit 11,545,173 10,754,822 12,688,724 12,389,994 12,312,215 (376,509) -3.0% 14.5%
Salary&Benefits(Active
Employees) $51,088,364 $47,827,602 $52,400,115 $51,784,942 $55,061,063 $2,660,948 5.1%
C.OPEB and Pension UAAL and Additional Contributions
C.Pension UAAL $12,126,016 $11,787,320 $56,845 101,817 59,784 2,938 5.2% 0.1%
C.OPEB UAAL 2,451,000 2,479,231 1,260,000 1,260,000 1,320,000 60,000 4.8% 1.6%
C.Additional UAAL
Contributions 1,250,000 1,250,000 1,250,000 1,250,000 - (1,250,000) -100.0% 0.0%
Total UAAL Costs $15,827,016 $15,516,551 $2,566,845 $2,611,817 $1,379,784 ($1,187,062) -46.2% 1.6%
Total Labor-Related
Costs(A+B+C) $66,915,380 $63,344,153 $54,966,960 $54,396,759 $56,440,847 $1,473,887 2.7%
D.Other O&M Expenses now
D.Purchased
Property Services 6,334,577 5,751,355 5,926,840 6,054,253 6,850,450 923,610 15.6% 8.1%
D.Other Purchased
Services 6,305,477 4,160,807 6,934,841 4,575,485 7,893,758 958,917 13.8% 9.3%
D.Supplies&
Materials 9,466,300 8,738,404 10,512,734 11,072,643 12,406,002 1,893,268 18.0% 14.6%
D.Other Expenses 1,644,604 1,188,379 1,178,756 984,400 1,427,990 249,234 21.1% 1.7%
**Total Other O&M $23,750,958 $19,838,946 $24,553,171 $22,686,781 $28,578,199 $4,025,029 16.4% 33.6%
Total Expenditures
Before Transfers&
Extraordinary Items $90,666,338 $83,183,099 $79,520,131 $77,083,541 $85,019,046 $5,498,915 6.9% 100.0%
Pension UAAL Payoff 70,763,669 -
Interfund Transfer
(Self Insurance) 100,000 200,000
Total O&M Expenditures $90,666,338 $154,046,768 $79,520,131 $77,283,541 $85,019,046 $5,498,915 6.9%
Contribution to/(Draw
From)Reserves (25,234,176) (60,330,837) 37,161,632 43,309,267 (15,911,021)
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Figure 5 - FY 2022-23 Budgeted O&M Expenditures by Category
Supplies&Materials,_ Other Expenses,1.7%
14.696
Other
Purchased Salaries&
Services,x.396_ Wages,
56.3%
1
Purchased
Property
Services,aa%"
i
OPER UAAL,
1.696
Pension_!
UAAL,0.1% Employee Benefits,
14.5%
Variances in the Operations &Maintenance Budget
O&M costs overall increase from FY 2021-22 to FY 2022-23 by$5.5 million or 6.9%. Figure 6 illustrates
the historical trend of each the major budgetary expense categories.
Figure 6 - 0&M Cost Comparison by Year
545,004,000
540,000,0 C^
$35,040,=
530,000,000
$25,000,000
520,OD0,000
$15,000,000
510,4DD,ODD
55,000,004so Nei Nal III
Salaries& Employee Perssion URAL OPEB URAL Additional Fvrrhased Cther Svpplies& Cther Expenses
Wages Benefits UAAL Property Purchased Materials
Contributions Services Services
■FY 20-21 Budget w FY 20-21 Actual ■FY 21-22 Budget ■FY 21-22 Projection ■FY 22.23 Budget
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The following provides an analysis of each of the major 0&M Budget expense categories shown in
Table 7 and illustrated in Figures 5 and 6 previously. The labels (A-D) correspond to the assigned
letters shown in Table 7.
A. Salaries &Wages
Budgeted salaries & wages are $42.7 million in FY 2022-23, compared to $39.7 million in
FY 2021-22, representing an increase of$3.0 million, or 7.6%. This expense category makes up
50.3% of the overall FY 2022-23 0&M Budget, a slight uptick from 49.9% in the prior year budget.
This incorporates a 5.0% cost of living adjustment (COLA) for full-time permanent employee
salaries effective April 2022 reflecting the February 2021 to February 2022 Bay Area consumer
price index (CPI) in accordance with employee labor agreements. The budget also assumes a COLA
of 3.75%for April 2023, which is the ceiling CPI rate allowable per the labor agreements currently
in place. This growth figure also incorporates step increases and longevity pay increases for eligible
employees, including those currently on payroll as well as anticipated new hires. Lastly, projected
Salaries & Wages assumes a vacancy factor of 3%, which is consistent with the prior year and
generally in-line with trends over the past 1-2 years.
B. Employee Benefits
Employee benefits decreased slightly from $12.7 million in FY 2021-22 to $12.3 million in
FY 2022-23. The employee benefits expense category is reported net of capitalized administrative
overhead. The table below provides additional details on employee benefits showing the gross
amount employee benefits prior to reductions for capitalized administrative overhead:
Table 7a — Benefits and Capitalized Overhead Detail
rFY � �
Budget Budget Budget Budget Budget
Variance Variance(%)
Benefits for Active Employees $16,628,569 $17,208,723 $17,930,895 $722,172 4.2%
Capitalized Admin Overhead (5,083,396) (4,520,000) (5,618,681) (1,098,681) 24.3%
Total Employee Benefits, Net of
Capitalized Admin Overhead $11,545,173 $12,688,724 $12,312,215 ($376,509) -3.0%
Excluding the capitalized administrative overhead credit, benefits for active employees is
comprised of healthcare costs, workers' compensation costs, payroll taxes, normal costs for
pension and OPEB, and a benefit vacancy factor estimate. These costs were $17.2 million in the
FY 2021-22 budget and rise to $17.9 million in the FY 2022-23 budget, which represents a 4.2%
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.
• Health (CaIPERS Medical)— Using known premium rates in effect for calendar year 2022, the
budget incorporates a 5.3% base plan premium increase for the first half of FY 2022-23 ending
December 2022. This same growth rate is assumed for second half of FY 2022-23.
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• Pension (Normal Cost)—The pension plan normal cost contribution rate, paid to CCCERA, is
decreasing slightly by 0.08% for legacy employees to 16.88% effective July 1, 2022. The normal
cost rate is increasing slightly by 0.22%for Public Employees' Pension Reform Act (PEPRA)
employees to 11.46% effective July 1, 2022. The defined pension normal cost contribution
rate changes incorporate numerous factors pertaining to participant demographics, actuarial
assumptions, and investment performance.
• Dental— Using known dental rates in effect for calendar year 2022, the budget incorporates a
3.8% premium increase for the first six months of FY 2022-23 ending December 2022. This
same growth rate is assumed for the next six months of FY 2022-23 ending June 2023.
• Vision— Using known dental rates in effect for calendar year 2022, the budget
incorporates a 3.8% premium increase for the first six months of FY 2022-23 ending
December 2022. No rate increase is assumed for the following six months ending
June 2023.
• Long-Term Disability— No rate increases are being assumed for this benefit category, which is
in alignment with rates over the past two years.
• Employee Assistance Program— No rate increase is anticipated for this benefit category in
FY 2022-23.
• Workers' Compensation—A 5% rate increase was assumed for budget purposes as the actual
rates have not been finalized. Following adjustments for the prior year experience
modification factor, the FY 2021-22 growth assumptions for workers' compensation were
proven to be slightly too conservative. Accordingly, the FY 2022-23 growth rate uses the
actual FY 2021-22 rate as a base which was lower than projected in the budget. This has
resulted in some modest budgetary savings in this expense category.
• Life Insurance— No rate increases are being assumed for this benefit category, which is in
alignment with rates over the past two years.
• OPEB (Normal Cost) - For improved financial planning and transparency purposes, the total
budgeted cost for retiree health, dental, life and vision premiums are split between its "normal
cost" and "UAAL" components of the actuarially determined contribution (ADC) calculated by
Central San's independent OPEB actuary, Bartel & Associates. The normal cost component of
OPEB, which is considered an active employee cost (not UAAL), is projected to decrease
slightly from $2.1 million in FY 2021-22 to $2.0 million in FY 2022-23. See Tables 4-6 in the
Supplemental Financial Information for additional disclosures on OPEB.
The Capitalized Administrative Overhead rate (shown in Table 7A), a credit given for capital work to
the O&M Budget for administrative overhead and non-productive work hours (i.e., vacation, sick,
holidays, etc.), is increasing from $4.5 million to $5.6 million in FY 2022-23. Despite a reduction in
the Board-approved Administrative Overhead and Benefits Rate for FY 2022-23, an increase in
employee time expected to be charged to capital projects (18.3% of total labor overall, compared
to 15.7% in the prior year) has resulted in an increase to the capitalized administrative overhead
component of benefits. Several divisions, including Capital Projects, Planning & Development
Services and Plant Maintenance, anticipate increases in time spent on capital projects in
FY 2022-23.
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
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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 2022-23, the total estimated cost of retiree health premiums is $4.6 million, reflecting a 7.4%
increase from the $4.3 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 again
$3.3 million in FY 2022-23. OPEB costs are "capped" as any costs above the ADC ceiling are eligible
for reimbursement from the OPEB trust. Per the Fiscal Reserves Board Policy (BP 017), "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 approximately $1.3
million from the OPEB trust for the pay-as-you-go cost more than the ADC is anticipated
immediately following the close of FY 2022-23. It should be noted that reimbursing excess OPEB
"pay-go" 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 UAAL cost component of OPEB is remaining steady at $1.3 million in FY 2022-23.
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 $1.3 million higher than the ADC in FY 2022-23. Accordingly, there is no required OPEB trust
payment to fully satisfy the ADC in FY 2022-23. Despite this same condition existing in the prior
year, last year's budget still included a $1.25 million supplemental trust contribution to be directed
towards either pension or OPEB at the discretion of the Board, which was subsequently directed to
the OPEB trust. Given that the most recent GASB 75 OPEB actuarial report showed OPEB Plan's
funded status was 99.16% (on a market value basis) as of June 30, 2021, and in consideration other
budget priorities and cost pressures, an additional discretionary trust contribution is not included in
the FY 2022-23 budget.
As mentioned previously, the Board authorized the payoff of Central San's outstanding pension
UAAL in June 2021 totaling approximately $70.8 million. This was financed, in part, by utilizing
accumulated balance of the Pension Prefunding Trust ($12.8 million), as well as allocating SSC that
would have otherwise gone to the capital program. In lieu of SSC, given the historically low interest
rate environment, Central San's Facilities Financing Authority successfully issued certificates of
participation (COPS) generating proceeds of$58 million to finance a portion of CIB expenditures in
FY 2020-21 and FY 2021-22. The COPS were issued with a true interest cost of 0.38%, compared to
the significantly higher discount rate of 7.0% charged on the UAAL by CCCERA. Accordingly, the
pension UAAL paid to CCCERA was essentially eliminated in FY 2022-23, except for a small
administrative recovery component of less than $0.1 million.
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As noted previously, next year's budget no longer includes an additional contribution toward either
pension or OPEB obligations given the funded status of both plans. To the extent that budget
savings are available with the completion of both FY 2021-22 and FY 2022-23, the Board may
choose to direct part of the savings toward additional unfunded liabilities funding.
D. All Other O&M Expenses
The remaining O&M non-labor expenses total $28.6 million in FY 2022-23, reflecting an increase of
16.4% over the prior year's budget. Additional information is included in the individual division
budgets. The areas of most significant change include the following:
• Purchased Property Services—This expense category, which includes purchased services
attributable to property that is owned or used by Central San (i.e., repairs & maintenance,
hauling, security, cleaning, etc.) is reporting an increase of$0.9 million or 15.6%. Nearly three-
quarters of this increase stems from three divisions: Plant Maintenance, Plant Operations, and
Risk Management. The increase in Plant Maintenance is attributable to pumping stations
activities, with additional contracted maintenance costs associated with new grinders at the
Moraga pumping station as well as new generator maintenance at the Moraga and Orinda
Crossroads pumping stations. The increase in Plant Operations is caused by significant
increases in sludge hauling anticipated during FY 2022-23. Lastly, the increase in this expense
category in the Risk Management function is caused by the division adding a second full-time
24/7 security guard to patrol Central San's treatment plant facility.
• Other Purchased Services—This expense category, which includes professional, technical, and
administrative services, is increasing by approximately $1.0 million or 13.8%. Over 90% of this
variance is due to increases in the Office of the Secretary of the District, Information
Technology, and Environmental and Regulatory Compliance divisions. The increase in the
Office of the Secretary of the District is primarily driven by anticipated service from the County
Elections office for the upcoming General Election in November 2022. The Information
Technology division anticipates an overall increase in contracted support and training costs
related to the recently implemented cloud-based ERP system. Lastly, the Environmental and
Regulatory Compliance division has included new monies for an as-needed contract for a health
and risk assessment and other related items required by Bay Area Air Quality Management
District (BAAQMD) Rule 11-18.
• Supplies & Materials—This expense category includes supplies and materials consumed in
operations necessary to provide services including but not limited to utilities &fuel (i.e.,
electricity, natural gas, landfill gas, water, gasoline, etc.), chemicals (i.e., lime, polymer,
hypochlorite, etc.) and general supplies. This line item is increasing by $1.9 million, or 18.0%.
The Plant Operations division is responsible for the bulk (82%) of this increase, attributable to
significant price increases in natural gas and electricity (PG&E), petroleum-based chemicals
such as lime and polymer, and landfill gas. Beyond historically high national inflation levels, the
Ukraine-Russia conflict is causing extreme volatility in oil prices, which impacts both the cost of
producing as well as transporting certain chemicals used in the wastewater treatment process.
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• Other Expenses—This expense category reports other less-significant expense types than those
listed separately and described previously. The Other Expense category includes costs such as
trainings & meetings, employee memberships, and other miscellaneous costs. Overall, this
expense category is increasing by approximately$0.2 million, or 21.1%, largely due to increases
expected in training & meeting costs as well as a reporting change in how credit card fees are
presented in FY 2022-23 as expenses rather than an offset to revenues.
During the COVID-19 pandemic, there was a significant increase in merchant card payment
transactions from customers following the implementation of online payment capabilities.
Prior to FY 2022-23 merchant card fees, being relatively immaterial (less than $30,000 total),
were reported as an offset of revenues and therefore did not appear as a budgeted annual
expenditure. As customer preferences have largely shifted to this more convenient paperless
payment method, it is expected that online merchant card fees will become a permanent part
of ongoing operations warranting their separate disclosure as a budgeted expense. For FY
2022-23, with an estimated increase of approximately 5%, total merchant card fees are
budgeted at $110,000.
While projected costs for training & meetings are expected to fall well short of the budget in
FY 2021-22, this is largely considered non-recurring as many conferences were transitioned to
less expensive virtual formats or were cancelled altogether in the first half of FY 2021-22 due to
precautionary measures taken to combat the spread of COVID-19. In FY 2022-23, staff largely
anticipates a return to normal for many on-site trainings and conferences. The projected
increase in trainings and meetings is largely attributable to training for new hires as well as
succession planning efforts with existing staff, with nearly 60% of the increase pertaining to
Plant Operations Department staff. The following table summarizes budgeted costs for
training, conferences, and meetings for FY 2022-23 as well as the previous two fiscal years.
Table 8 — Technical Training, Conferences, &Meetings*
DepartmentFY 2020-21 FY 2021-22 FY 2022-23 Budgetto Percent
.•
Variance
Executive Governance" $75,250 $90,200 $95,350 $5,150 5.7%
Administration Department 133,750 114,250 160,200 45,950 40.2%
Engineering and Technical Services
Department 159,350 165,750 162,225 (3,525) -2.1%
Operations Department 146,725 170,025 245,350 75,325 44.3%
Total $515,075 $540,225 $663,125 $122,900 22.7%
* Includes tuition and professional expense reimbursements.
**Includes Board,Secretary of the District,and Office of the General Manager. Additional details for each of these three sub-functions is
provided in the Operating Departments section of the budget book.
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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
PY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget to Budget Percent
Budget Actual Budget Projected Budget Variance Variance
Executive Governance*
Office of the General
Manager $1,501,579 $916,275 $1,171,228 $1,045,191 $1,070,246 ($100,982) -8.6%
Office of the Secretary of the
District 998,779 1,410,669 846,215 662,219 1,242,671 396,456 46.9%
Board of Directors 564,029 379,830 436,726 280,177 465,295 28,569 6.5%
Subtotal $3,064,387 $2,706,774 $2,454,169 $1,987,587 $2,778,212 $324,043 13.2%
Administration
Office of the Director of
Finance&Administration $579,032 $677,453 $616,754 $616,748 $649,271 $32,516 5.3%
Finance 2,256,811 1,885,911 1,807,021 1,876,939 2,008,642 201,621 11.2%
Human Resources/Retirees/
Safety" 8,958,488 9,083,607 7,999,453 8,602,358 7,131,543 (867,910) -10.8%
Purchasing and Materials
Services 2,006,169 1,616,487 1,748,276 1,732,376 1,861,104 112,828 6.5%
Risk Management 1,628,463 1,504,751 1,074,459 913,489 1,274,845 200,386 18.6%
Communications Services and
Intergovernmental Relations 2,128,081 1,842,315 1,932,181 1,704,861 2,155,358 223,177 11.69/o
Information Technology 4,527,320 4,448,653 4,722,904 4,403,474 5,202,579 479,675 10.2%
Subtotal $22,084,363 $21,059,177 $19,901,049 $19,850,245 $20,283,342 $382,293 1.9%
Engineering and Technical Services
Office of the Director of
Engineering&Technical
Services $1,132,683 $655,572 $905,205 $904,416 $890,095 ($15,109) -1.7%
Planning and Development
Services 7,447,765 5,953,043 5,891,208 5,406,804 6,241,012 349,805 5.9%
Capital Projects 883,170 (249,712) 26,686 (781,021) (831,774) (858,460) 3216.9%
Environmental and
Regulatory Compliance 9,159,765 1 8,894,178 8,056,928 7,923,212 8,909,033 852,104 1 10.6%
Subtotal $18,623,383 $15,253,080 $14,880,026 $13,453,412 $15,208,366 $328,340 2.2%
Operations 6.
Office of the Director of
Operations $1,035,340 $468,114 $612,429 $796,554 $1,232,151 $619,722 101.2%
Collection System Operations 14,916,566 13,704,367 12,865,365 12,956,494 13,480,048 614,683 4.8%0
Plant Operations 3,811,530 14,019,184 12,350,601 13,554,244 14,871,590 2,520,988 20.4%
Plant Maintenance 15,659,478 13,934,615 14,845,741 13,345,934 15,468,121 622,380 4.2%
Recycled Water Program 1,471,290 2,037,788 1,610,750 1,139,070 1,697,217 86,467 5.4%
Subtotal $46,894,204 $44,164,068 $42,284,886 $41,792,296 $46,749,126 $4,464,240 10.6%
Total Departmental Expenses
Before Extraordinary Item&
Transfers $90,666,338 $83,183,099 $79,520,131 $77,083,541 $85,019,046 $5,498,915 6.9%
Pension LIAAL Payoff 70,763,669 -
Transfers to Self-Insurance
Fund 100,000 200,000
Total O&M Expenses $90,666,338 $154,046,768 $79,520,131 $77,283,541 $85,019,046 $5,498,915 6.9%
*Previously reported as part of Administration Department in prior year budgets. Updated now to better reflect the rollup structure of
Central San's chart of accounts.
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Figure 7 - O&M Budget by Function
$35,000,549
$30,000,006
$25,000,000
$20,900,000
$15,000,000
$10,000,000
$5,000,004
$a 1A
_. ..- .r
Engineering& Collection system Recycled Water
Executive Governance Administration Plant Operations"
Technical Services Operations' Program'
A4 FY 20-21 Budget $3,064,387 $22,084,363 $18,623,383 $14,916,566 $30,505,348 $1,471,290
sy FY 21-22 Budget $2,454,159 $19,901,049 $14,880,026 $12,865,365 $27,608,771 $1,610,750
.1 FY 22-23 Budget $2,778,212 $20,283,342 $15,208,366 $13,480,048 $31,571,861 $1,697,217
*Function shown separately given significance of service and for comparability with prior year budgets.
**Includes Office of the Director of Operations,Plant Operations,and Plant Maintenance functions.
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 5.6% (spending was 94.4% of budget) over the last five
years with variances averaging 4.0% since FY 2004-05 (last 18 years). Chart "actual" reflects projection
for FY 2021-22.
Figure 8 - Historic O&M Budget versus Actual Spending, in Millions (Multi-Year Trend)
$160 - 100.096
$90
$80 — 95.096
$70
90.6°6
$60
$50 95.0°
$40
$30 80.046
$20 75.0%
$10
$0 70.0%
c
kyti° FST° ti° �y F��9 �° ky v° ti° �yti° ��-D P
IIIIIIIII�Budget iiiiiiiiiiiiiiiiiiiiiiiAttual Achievernent%
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Staffing, Salaries, and Benefits (Costs included in both O&M and Sewer Construction)
As summarized in Table 10, total labor, benefit, and UAAL related costs increased by approximately
$3.9 million, or 6.0%, from $65.2 million in FY 2021-22 to $69.1 million in FY 2022-23. Refer to Tables
1-6 in the Supplemental Financial Information for additional budgeted labor and benefits line-item
details.
Total salaries and benefits for active employees, excluding UAAL, are budgeted at $67.7 million in
FY 2022-23, including both the O&M Fund and the Sewer Construction Fund, compared to $62.6
million in FY 2021-22, a $5.1 million (8.1%) increase. UAAL costs for pension and OPEB (which relate to
both active employees and retirees) are $1.4 million, down from $2.6 million in FY 2021-22. This
reduction is largely attributable to there not being an additional OPEB or pension prefunding trust
contribution in FY 2022-23, whereas in FY 2021-22 there was a $1.25 million contribution budgeted.
Major factors affecting overall salaries and benefits include the following:
• Cost-of-living adjustments effective April 2022 based on provisions per memoranda of
understanding (MOUS)/ personnel resolutions with each bargaining unit of 5.0%, and an
estimated placeholder of 3.75%for April 2023.
• Step (5%) and longevity (2.5%) increases for applicable full-time permanent employees.
• The addition of three new permanent FTE positions, resulting in an increase of the permanent
headcount from 291 to 294 (see "Staffing Changes" section).
• Attrition of over 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$1.3 million lower
than estimated pay-as-you-go retiree premiums in FY 2022-23.
• A projected FTE vacancy factor of 3%.
• A significant reduction in the employer UAAL contribution rate paid to CCCERA following the
pension UAAL payoff in June 2021 coinciding with the issuance of the 2021 COPS.
The next several tables show various levels of detail regarding labor costs. Table 10 summarizes all
labor-related costs across two sub-funds. Additional tables in the Supplemental Financial Information
section at the end of this budget document provide additional detail about salary and benefit costs.
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Table 10 — Total Labor Costs Summar
11M FY 2022-23 Budget Operations& Sewer Total
Maintenance Construction
Active Employees
Budgeted Full-Time Employee Positions* 261.1 32.9 294.0
Budgeted Salaries&Wages $42,748,849 $5,398,050 $48,146,899
Budgeted Benefits 17,930,895 1,616,927 19,547,822
Capitalized Admin Overhead ** (5,618,681) 5,618,681 -
Benefits After Capitalized Administrative Overhead $12,312,215 $7,235,608 $19,547,822
Total Costs Active Employees $55,061,063 $12,633,658 $67,694,721
UAAL/Unfunded Liabilities&Additional Contributions
OPEB UAAL $1,320,000 $- $1,320,000
Pension UAAL 59,784 6,436 66,220
Total Unfunded Liabilities $1,379,784 $6,436 $1,386,220
Total Labor Related Costs $56,440,847 $12,640,094 $69,080,941
Fr
• .
Active Employee Costs
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 17,208,723 1,446,927 18,655,650
Capitalized Administrative Overhead** (4,520,000) 4,520,000 -
Benefits After Capitalized Administrative Overhead 12,688,724 5,966,927 18,655,650
Total Costs Active Employees 52,400,115 10,231,077 F 62,631,192
UAAL/Unfunded Liabilities&Additional Contributions
OPEB UAAL 1,260,000 - 1,260,000
Pension UAAL/Additional Trust Contributions 1,306,845 5,925 1,312,770
Total Unfunded 2,566,845 5,925 2,572,770
Total Labor-Related Costs $54,966,960 $10,237,002 $65,203,962
* Estimated allocation of full-time employees between Sewer Construction and O&M.
** Consists of indirect costs associated with non-productive hours and Administrative Overhead.
Budgeted Full-Time Equivalents
Table 11 shows full-time equivalent employee totals for the time periods indicated. The Year-End
Actual figures represent actual staffing as of June 30, 2021. In addition to 294 budgeted full-time
equivalent (FTE) positions, the General Manager has the ability to hire up to five additional
"transitional" positions at any given time to backfill positions vacated due to an extended leave of
absence or as necessary to properly address succession planning. The costs associated with these
positions are funded through vacancy savings. Table 12 shows the positions by bargaining unit and
division.
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Table 11 - Budgeted Full-Time Equivalents
FY 2020-21 FY 2021-22 FY 2022-23
BudgetYear-End Actual Budget
Regular Employees
(Excluding Recycled Water Employees) 274.0 291.0 294.0
Limited Duration Employees
District Temporary Employees 13.0 11.0 18.0
Fill Station Attendants 3.0 2.0 5.0
Summer Students 12.0 12.0 15.0
Interns 18.0 13.0 14.0
Table 12 - Full-Time Equivalent Positions by Bargaining Unit and Division
OperationsAdministration Engineering
Local One 21.0 40.0 106.0 166.0
Management
25.0 51.0 32.0 108.0
Support/Confidential Group
Management 4.0 4.0 4.0 11.0
Unrepresented 5.0 1.0 1.0 7.0
Total by Department 55.0 96.0 143.0 294.0
Staffing Changes
During 2015, a staffing and organizational studyM was completed for Central San. The study
recommended that Central San hire a consultant to conduct a classification study, which was
completed in 2017, to ensure that Central San's classification structure was appropriate, and
employees were working within their job classifications. The Organization and Staffing Plan ultimately
recommended the addition of four positions to the then 287 budgeted positions, resulting a headcount
of 291 at that time. Commencing in FY 2020-21 and continuing through FY 2021-22, the budgets
included funds for implementing changes arising from an internal classification completed by the
Human Resources & Organizational Development Division. All changes arising from this classification
study were implemented by the close of FY 2021-22, with any changes to titles and compensation
being approved by the Board prior to implementation.
Overall, staffing is budgeted in FY 2022-23 at 294 full-time equivalent positions, which is three
positions higher than the prior year's budget. As noted previously, this budget includes funds for three
additional permanent full-time employees. One of the new FTEs included in the budget is for an
Engineering Assistant in the Planning & Development Services Division, which will be integral to the
day-to-day administration of Central San's RUE customer database. The second new FTE included in
this budget is for an Innovation & Optimization Program Manager in the Office of the Director of
Operations cost center, which will be essential for operational business process review and
optimization implementations (Subject to meet and confer process). The third new FTE included in the
Report is available here: https://www.centralsan.org/post/Organization-and-Staffing-Plan.
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budget is for an Electrical Technician in the Plant Maintenance Division that will specialize in high
voltage electrical projects.
Position changes within and between departments and/or divisions from the prior year's budget are
summarized as follows:
• Office of the General Manager
o Administrative Assistant transferred to the Planning & Development Services Division
• Office of the Secretary of the District:
o Administrative Services Supervisor position deleted, and Records Program Administrator
position added
o Senior Administrative Technician retitled to Administrative Services Assistant
• Human Resources & Organizational Development Division:
o Safety Officer retitled to Environmental Health and Safety (EHS) Program Administrator
o Operations Safety Specialist retitled to Environmental Health and Safety (EHS) Specialist
• Finance Division:
o Two Finance Administrators retitled to Accounting Supervisors
• Purchasing & Materials Services Division:
o Deletion of one Contract and Procurement Specialist and addition of a Lead Contract
and Procurement Specialist
• Environmental & Regulatory Compliance Division:
o Superintendent retitled to Environmental Compliance Program Administrator
o Household Hazardous Waste Supervisor retitled to Household Hazardous Waste (HHW)
Program Administrator
o Laboratory Superintendent retitled to Laboratory Program Administrator
o Senior Chemist retitled to Supervising Chemist
o Administrative Services Assistant position transferred to the Laboratory from Plant
Operations
• Planning & Development Services Division:
o Engineering Assistant position added (increased total budgeted headcount of Central
San by one FTE)
o Administrative Services Assistant position transferred from the Office of the General
Manager
o Cancel an Engineering Assistant and add a Lead Engineering Assistant.
• Office of the Director of Operations:
o Innovation & Optimization Program Manager position added (increased total
budgeted headcount of Central San by one FTE, subject to meet and confer
process.)
o Transfer Administrative Assistant from Plant Maintenance Division
• Collection System Operations Division:
o Vehicle Maintenance and Equipment Maintenance Supervisor reclassified to
Maintenance Supervisor
o Senior Administrative Assistant retitled to Administrative Services Assistant
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• Plant Maintenance Division:
o Vacant Utility Worker canceled, and Lead Maintenance Crew Member added
o Electrical Technician position added (increased total budgeted headcount of Central San
by one FTE)
o Transfer Administrative Assistant to Office of the Director of Operations
• Plant Operations Division:
o Administrative Assistant position transferred to the Environmental & Regulatory
Compliance Division (Laboratory)
o Cancel a Control Systems Technician and add a Utility Systems Engineer.
o Cancel a Senior Plant Operator and add a Plant Operator to reflect turnover at the
senior level.
Capital Improvement Budget
As shown in Table 13, Sewer Construction Fund funding sources, including debt proceeds, are
projected to increase by $28.0 million (27.7%), from $100.8 million in FY 2021-22 to $128.8 million in
FY 2022-23. This increase is largely attributable to an increased allocation of SSC compared to the prior
year. In the prior year, the O&M fund's payoff of the pension UAAL resulted in a significant but non-
recurring decrease in SSC allocated to the Sewer Construction Fund. Following the replenishment of
0&M fund reserves to minimum working capital levels per the Fiscal Reserve Policy in FY 2021-22, the
proportion of SSC being allocated to the Sewer Construction fund is returning to normal levels in
FY 2022-23. Additionally, the City of Concord reimbursement is projected to decrease by $1.2 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 2022-23. 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. $42.0 million of borrowing from the SRF is anticipated to fund the Solids Handling
Facilities Improvements Project in FY 2022-23.
The $91.0 million budget does not include the anticipated carryforward from FY 2021-22, which will be
communicated to the Board after the close of the current fiscal year. The FY 2022-23 capital budget is
decreasing by $17.0 million (15.7%) from the prior year, largely resulting from the deferral of
significant components of the large solids handling facilities improvements project to future years
following the project's Board-recently approved pivot in project scope from using incineration to
digestion for solids handling over the coming years.
Consistent with the prior year, only 90% of the budgeted capital spending authority will be funded
from current rates and loan proceeds. The difference between capital spending authority and the
funding amount is assumed to be "caught up" in the outer years of the Ten-Year Financial Plan. This
treatment is consistent with the annual goal of spending at least 90% of the budgeted sewer
construction funding, as well as generally consistent with a multi-year average of actual spending as a
percentage of budget.
Central San is projected to contribute approximately$46.9 million to capital reserves during
FY 2022-23 with revenues and bond proceeds exceeding expenditures by that amount. Accordingly,
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the Working Capital Reserves of the Sewer Construction fund are projected to significantly exceed the
minimum requirement per the Fiscal Reserves policy. 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 $135.7 million, unadjusted for cash flow carryforward of inflation, in FY 2025-26 (see Table
15). The Working Capital Reserves of the Sewer Construction Fund are also elevated due to the
anticipated carry forward discussed two paragraphs above.
Table 13 provides a summary of the projected FY 2022-23 Sewer Construction Fund revenues
and expenditures. Further program and project-specific budget details are included in the Capital
Improvement Program section.
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Table 13 - Sewer Construction Fund Revenues and Expenditures
Mau-
venu
Sewer Service Charges $56,673,402 $30,156,394 $10,035,739 $10,279,620 $65,832,492 $55,796,753 556.0%
Property Taxes 15,940,000 17,697,471 6,940,168 8,082,740 8,332,078 1,391,910 20.1%
Capacity Fees 6,262,000 5,443,249 5,950,000 4,446,000 4,579,000 -1,371,000 -23.09/o
Investment Income 293,500 245,740 319,000 136,000 140,000 -179,000 -56.1%
Reimbursements
City of Concord 15,300,000 10,064,155 8,700,914 8,700,000 7,500,000 -1,200,914 -13.8%
Developer Fees&Charges 483,000 321,099 296,000 391,000 403,000 107,000 36.1%
Other 1,000 29,816 1,600 99,742 1,000 -600 -37.5%
Total Revenue $94,952,902 $63,957,923 $32,243,421 $32,135,102 $86,787,570 $54,544,149 169.2%
Loan&Bond Pr
2021 COPs Reimbursements - 22,619,557 34,452,325 35,380,443 - (34,452,325) -100.0%
SRF Loan Reimbursements 3,000,000 - 34,120,000 14,500,000 42,000,000 7,880,000 23.1%
Total Revenue and Debt
Proceeds $97,952,902 $86,577,480 $100,815,746 $82,015,545 128,787,570 27,971,824 27.7%
Expenditures
Treatment Plant Program 32,334,000 18,809,902 45,230,000 30,000,000 39,981,000 (5,249,000) -11.6%
Collection System Program 40,165,000 37,195,846 39,795,000 35,000,000 36,850,000 (2,945,000) -7.4%
General Improvements
Program 3,925,000 5,305,340 3,830,000 2,500,000 3,795,000 (35,000) -0.9%
Recycled Water Program 9,100,000 8,299,754 16,600,000 15,500,000 8,715,000 (7,885,000) -47.5%
Contingency 2,500,000 - 2,500,000 - 1,635,000 (865,000) -34.6%
Total Expenditures $88,024,000 $69,610,842 $107,955,000 83,000,000 90,976,000 (16,979,000) -15.7%
Carryforward 20,571,770 - 38,984,928 63,939,928
Total Expenditure
Authority $108,595,770 $69,610,842 $146,939,928 $146,939,928 $90,976,000 ($55,963,928) -38.1%
Sewer Construction Funds Available
Projected Revenue and Debt
Proceeds 97,952,902 86,577,480 100,815,746 82,015,545 128,787,570
Capital Expenditures 88,024,000 69,610,842 107,955,000 86,316,900 90,976,000
Less:Adjustment for 90%
Spending Factor - - (10,795,500) - (9,097,600)
Contribution to Reserves 9,928,902 16,966,638 3,656,246 (4,301,355) 46,909,170
Anticipated Cash Funded
Capital Expenditures - 28,587,175 1 36,436,457 1 39,878,400
* Projection as of March 2022.
**The FY 2022-23 budget amount does not include any carryforward from past fiscal years;the Board will be notified of any
carryforward amount after the close of the current fiscal year.
***Reserve calculation assumes difference between FY 2021-22 budget and projected spending will be spent in FY 2022-23 or future
years.
June 16, 2022 Regular Board Meeting Agenda Packe13 Page 126 of 771
Page 78 of 341
Impact of Capital Improvement Budget on Ongoing Operations &Maintenance Budget
Central San's Capital Improvement Budget and the extent to which FY 2022-23 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 2022-23 Capital Improvement
Budget, these effects are largely expected to be minimal with one exception. The project most likely to
have significant impacts on future O&M costs is the Solids Handling Facilities Improvement Project, as
that project now contemplates transitioning away from using incinerators for solids handling to
digesters. This is a significant change from Central San's long-standing treatment process and will
undoubtedly change the amount and nature of in-house labor, contracted services, and materials &
supplies, the extent of which is unknown at this time. The revised project is currently undergoing
significant planning and design revisions, which will include an assessment of its impact to ongoing
future operations. To the extent that this and other future capital projects will have 0&M budgetary
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
will 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 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. Fiscal reserves are adjusted annually based on changes in the targeted
reserve balance calculations, and the FY 2022-23 budget incorporates the full funding of minimum
required reserves by the close of the fiscal year pursuant to the Fiscal Reserves Policy. The following
are the various reserve targets met in the FY 2022-23 budget:
• O&M Fund Working Capital Reserve Target—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 Working Capital Reserve Target—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.
• Self-Insurance Fund (SIF) Reserve Target—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$7.5 million in the SIF. In total, these two components constitute the total
reserve target of$9.0 million.
Table 14 presents a summary of Central San's current reserve balance projections compared to the
Board Policy (BP) targets. The O&M, Sewer Construction, and Self-Insurance funds are all projected to
close FY 2022-23 with reserve levels above minimum levels stipulated in the Fiscal Reserves Policy. 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 SSC, as
documented in Table 5 of this Financial Summary section. Absent other actions, to the extent that the
0&M fund has more reserves than are required under the policy, that sub-fund would receive a lower
allocation of SSC.
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The following is a summary of reserve projections for the 0&M, Sewer Construction, and Self-
Insurance Reserves included in the FY 2022-23 budget:
• As anticipated with the Board-authorized payoff of the pension UAAL in June 2021 and
corresponding issuance of the 2021 COPs, O&M fund reserve levels were temporarily below the
policy-required levels on June 30, 2021. This was rectified by the Board through a budget
amendment reallocating the SSC split between the 0&M and Sewer Construction funds necessary
to augment O&M reserves back to normal levels. Consequently, by June 30, 2022, O&M reserves
are expected to be above minimum reserve policy levels by approximately $17.5 million. Pursuant
to the Fiscal Reserves Policy, these June 30, 2022 O&M reserves above policy-required levels are
systematically drawn down through the SSC split in FY 2022-23, providing additional SSC for Capital
Improvement Budget. As such, as outlined in Table 14, the O&M fund is projected to close
FY 2022-23 with a working capital reserve of$37.6 million, precisely the minimum policy-level
amount.
• Given higher than anticipated unspent CIB appropriations rolling over into FY 2021-22, Sewer
Construction fund working capital reserves are expected to be well over the policy-specified
minimum levels as of June 30, 2022. Accordingly, there is a projected decrease in Sewer
Construction reserves in FY 2022-23 as progress is made on unspent project appropriations from
the prior year. The Sewer Construction fund is projected to close FY 2022-23 with a working capital
reserve of$72.7 million, exceeding minimum working capital reserves by $29.4 million.
• The Self-Insurance fund is projected to close FY 2022-23 with a reserve of$9.0 million, equal to the
minimum working capital reserves set by Board policy. This incorporates additional
Board-approved transfers of O&M reserves following favorable FY 2020-21 budget variances
totaling $2.7 million during FY 2021-22.
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 million
from the FY 2019-20 closeout to this fund in the fall of 2020. Thereafter, the Board directed an
additional $5.2 million from the FY 2020-21 closeout of this fund in the fall of 2021.
Following a FY 2021-22 Board-approved transfer of$2.5 million in funds to the Self-Insurance fund,
the Rate Stabilization Fund Reserve Account is projected to close FY 2021-22 with a balance of
$7.46 million. 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
o Draw downs to meet targeted debt service coverage levels necessary
• Pension Prefunding Trust Fund — Following the pension UAAL payoff in June 2021, this trust is
expected to have a minor residual balance of less than $0.1 million as of June 30, 2022. While the
trust assumes a long-term average target return of 5.14%, given the current interest rate
June 16, 2022 Regular Board Meeting Agenda Packep5 Page 128 of 771
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environment and significant global market uncertainty stemming from the current Russia-Ukraine
crisis, the budget only projects modest returns of 2.0% in FY 2022-23 to remain conservative.
While no additional contributions are budgeted in FY 2022-23 to the trust, it will remain active to
allow for maximum flexibility to hedge against any unexpected, but possible, resurfacing of the
pension UAAL in future years.
• OPEB Trust Fund—This trust is projected to close FY 2021-22 with a reserve of$86.6 million,
inclusive of investment returns and an anticipated OPEB reimbursement to Central San of
approximately$1.0 million. The trust and most recent OPEB actuarial report currently assume a
long-term average target return of 5.75%. Given that Central San's ADC amounts include payments
towards the UAAL, and in consideration of the favorable funding position of the OPEB plan, no
additional accelerated contributions are budgeted in FY 2022-23 to the trust. Conversely, OPEB
plan pay-go retiree premium costs are expected to exceed the ADC requirement by approximately
$1.3 million, which is budgeted to be reimbursed from the trust consistent with the prior year
budget. Following investment returns and this OPEB premium cost reimbursement, the trust is
projected to close FY 2022-23 with a reserve of approximately$90.2 million.
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
PMMW Fund(Capital)
O&M Fund Construction Fund Totals
Actual Balance as of June 30,2021* $14,772,986 $90,691,699 $6,473,901 $111,938,586
Projected Balance as of June 30, 2022 52,882,253 89,707,244 9,435,499 152,024,996
Projected Balance as of June 30,2023** 37,626,114 72,676,486 9,000,000 119,302,600
Change year over year (15,256,139) (17,030,758) (435,499) (32,722,396)
Reference: Table 7 Table 13 Self-Insurance See Figure 3
Table 1
Percentage change year over year -28.8% -19.0% -4.6% -21.5%
Ending balance Funds were set
at 6/30/21 is aside in
below policy- Recent years to
Explanation required level be used toward
due to pension the funding of
UAAL payoff. future year's
Capital Budgets
Comparison to Policy Target-Start of Budget Year
50%of following 3 times
5/12 of annual
Policy Target following year's Year's Capital
l deductible of
O&M Budget fundedd CCapital Budget $500,000 plus
$7.5 million
Reserve Policy Target end of
June 30,2022 $35,424,602 $24,488,000 $9,000,000 $68,912,602
Amount Over/(Under) Minimum Reserve
Target at June 30,2022 $17,457,651 $65,219,244 $435,499 $83,112,394
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of
June 30,2023 $37,626,114 $43,235,552 $9,000,000 $89,861,666
Amount Over/(Under)Minimum Reserve
Target at June 30,2023** $- $29,440,934 $- $29,440,934
*Reserve calculations subject to close of financial results for the year and may differ from projection.
**Net of FY 2021-22 CIB carryforward of$63.9 million. Projected reserves at 6/30/2023 would be this amount higher when including the
carryforward.
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Page 82 of 341
Table 14 - Reserve Projections (continued)
Actual Balance as of June 30, 2021 $4,760,000 $47,121 $84,607,283
Projected Balance as of June 30, 2022 7,460,000 48,064 86,549,429
Projected Balance as of June 30, 2023 7,460,000 49,025 90,226,021
Change Year Over Year - 961 3,676,592
Reference:
Percentage Change Year Over Year 0.0% 2.0% 4.2%
Assumes long-term
Trust largely return of 5.75%and
Explanation Planned Transfer liquidated in June reimbursements of
from O&M. 2021 with pension pay-go costs in
UAAL payoff excess of ADC to
0&M fund
Comparison to Policy Target-Start of Budget Year
Policy Target N/A N/A N/A
Reserve Policy Target end of June 30,2022 N/A N/A N/A
Projected Balance less Reserve Policy Target at
June 30,2022 $7,460,000 $48,064 $86,549,429
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of June 30,2023 N/A N/A N/A
Projected Balance less Reserve Policy Target at
June 30,2023 $7,460,000 $49,025 $90,226,021
June 16, 2022 Regular Board Meeting Agenda Packep8 Page 131 of 771
Page 83 of 341
Debt Service
As noted previously, current debt service expenditures include outstanding payments on 2018
Revenue Refunding Bonds and the 2021 Certificates of Participation (COPS). Central San's total
principal debt service for FY 2022-23 is $10.75 million, compared to $10.45 million in the prior year.
Additional details on budgeted debt service are included in the Debt Program Section. Figure 9 depicts
all existing debt payments for Central San.
Figure 9 — Debt Service Payment Schedule (Existing Debt, Excluding SRF)
S 14,066,660
$12,006,0 } Ml Principal
IM Interest
$10,000,660
$8,606,000
$6,006,000
$4,000,000
$2,060,066
$0
1 2 0. 't5 Tb :Ls Tl9 3a
Regarding future debt issuance plans, while the large Solids Handling Facilities Improvements Project,
financed primarily by SRF loan proceeds, was slated to commence construction in FY 2021-22, the pivot
of this project's scope towards digesters has affected the timeline and funding sources of this project
significantly. While a portion of this project will continue to be financed with the SRF loan, the total
amount assumed to be financed by SRF has been significantly reduced from $173.4 million assumed in
last year's budget to $98.5 million. This SRF debt will have a term of 30 years, an interest rate of
0.90%, and payback is assumed to commence in FY 2026-27. However, as the project is still in
progress, the debt service schedule for the SRF loan transaction has not been finalized and is therefore
not included in the chart below. The SRF loan, along with any other future debt issuances, if any,
would add to this debt profile.
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Page 84 of 341
Historical Long-Term Spending Trends
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 2020-21). As illustrated in the chart below, the payoff of the pension
UAAL in June 2021 resulted in a noteworthy 12.3%year-to-year decline in the O&M budget
commencing in FY 2021-22. This was achieved by swapping the pension UAAL charges budgeted in the
O&M fund (charged as a percentage of payroll by Central San's pension administrator) with fixed
low-interest (0.38%) debt service of the 2021 COPS budgeted in the Debt Service fund.
Figure 10a - Long-Term 0&M Spending Trend
$146,400,406
$94,446,066
$76,400,00{7
$54,044,066
$46,006,044
$34,044,044 —
$26,ff44,ff00 —
$14,ff 46,ff00
4
Budget Actual
The following chart provides a long-term trend of O&M budgeted spending which includes the 2021
COPS debt service commencing in FY 2021-22. As the pension UAAL expenditures have been
constructively swapped for lower interest fixed debt service, this chart provides a more accurate
apples-to-apples comparison of historical O&M spending.
June 16, 2022 Regular Board Meeting Agenda Packe$p Page 133 of 771
Page 85 of 341
Figure 10b - Long-Term Budgeted O&M Spending Trend &Projection (with 2021 COPS Debt
Service)
$106,000,000
$90,0D0,0o0 -
$sa,00a,000
$70,DOD,000
$50,00D,000
$50,000,000
$40,006,Oo0 -
$3 o,OOD,00O
$20,ow poo
$1%000 000
$-
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o,y,d'
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4� 4°� 4{� "-p "-p " 4�� ".6
■Budget ❑UAAL DL ht(Budgeted)
Sewer Construction (Capital)
Capital spending has been ramping up significantly since FY 2016-17, with spending projected to
average $113.6 million per year over the next decade (in 2022 dollars). Over the past 10 years, actual
spending (including projected spending for FY 2021-22) has been $430.7 million, while budgeted
spending (called "estimated expenditures" prior to FY 2017-18) was $509.2 million.
June 16, 2022 Regular Board Meeting Agenda Packe$1 Page 134 of 771
Page 86 of 341
Figure 11 - Infrastructure Investments Over Past Ten Years: $430.7 million
sl laD
$i00.0
-
.0
Se0.0 S
570.0 $fifi
$40.0
$50.0 $45 '2 - .G
yn J.8 54-D
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590.0 �'� gg St74'
$30.
32.3 533 5�
529.6 50;�
530.0 $20,0 5269
_ $25. R $12.2 $15.7
$D.8
$20.0 52.0
58.9 $37,2
$10.3 58.7 535-00
$10.0 $20-8 $20.3 $19.9
9112 $i4.5 $1655
$O.D
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�p1213 F�Zp131Q F��p�A.15 Fs Zp�S 16 Zp�61� xp�7-1F �p14s19 ��Lp�g Lp F�Zp�fl 21 p�,EOedl
�Collection System Program �9�1•�a`
Treatment Plant Program
Recycled Water Program
General Improvements Program
Long-Range Financial Plans
Each year of Central San's budgeting process includes long-range financial planning covering a ten-year
outlook. This section describes the assumptions used in the Ten-Year Financial Plan, including
forecasts for Central San's projected operating and capital fund revenues and expenses accounting for
anticipated service area population growth, inflation, capital investment requirements, and other
factors.
Strategic Plan
Central San's Strategic Plan includes various goals, including relationships to workforce development,
environmental stewardship, and infrastructure reliability, which have been considered when
developing the Ten-Year Financial Plan.
Revenue Forecast
The following is a summary of key assumptions related to the most significant revenue categories
included in Central San's latest ten-year financial forecast.
• Sewer Service Charges- FY 2022-23 is the final year of a four-year rate cycle approved by Central
San's Board of Directors at the conclusion of a Proposition 218 process in 2019. Central San
anticipates completing an updated Cost of Service study prior to proposing rates for FY 2023-24
and future years. Approximately 15-20% of annual SSC revenue is earned on a consumption basis.
As a result of COVID-related impacts to customers in these rate classes, Central San saw a reduction
in consumption-based revenue beginning in FY 2021-22 and is projecting that consumption will
June 16, 2022 Regular Board Meeting Agenda Packe$2 Page 135 of 771
Page 87 of 341
return to pre-COVID levels between FY 2023-24 and FY 2024-25. Additionally, the projected sewer
service revenues shown in the Ten-Year Financial Plan are also based on estimated future year
revenue requirements and rates which are not finalized until approved by the Board.
• Property Tax Revenues—Central San receives a share of the 1% countywide tax assessed by the
County of Contra Costa on properties within its District boundary. This tax is based on the assessed
value of property (net of any exemptions or other adjustments) as determined by the county
Auditor-Controller's Office. Consistent with national housing trends associated primarily with the
COVID pandemic, property values (i.e., home values) and sales rates in the Contra Costa region
have increased dramatically in recent years. This has resulted in annual increases in excess of 5%
per year. However, Central San anticipates this growth rate will return to a more traditional 2%to
5% annual increase in future years. Property Tax Revenues are included within the Non-Operating
Revenue category in Table 15.
• 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
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 residential unit equivalents anticipated to be
subject to such fees. Capacity Fee revenues are included within the Capital Revenue category in
Table 15.
• Concord Cost-Sharing—Since the 1970s, Central San has participated in a cost-sharing agreement
with the City of Concord to treat the wastewater for customers in the cities of Concord and
Clayton. Charges to Concord represent its flow-proportionate share of Central San's operating and
capital expenditures and debt service related to wastewater treatment. Recent years have shown
a slight decrease in the relative share of Concord's flow compared to Central San's total inflows, a
trend which is anticipated to continue. Additionally, Concord's share of capital expenditures and
any associated debt service is more directly related to expenditures in the Treatment Plant and
Recycled Water capital program areas. As planned spending in these areas changes in proportion
to total capital spending, Concord capital revenues are anticipated to adjust in a similar direction.
Revenues from the Concord Cost-Sharing arrangement are included within both the Operating and
Capital Revenues categories, as applicable, in Table 15.
• Loan & Debt Proceeds— In 2020, Central San received initial approval from the State Water Board
for a low-interest loan in support of a capital improvement project related to its Solids Handling
Facility, and the loan agreement was finalized in 2021. Loan proceeds are anticipated for Phase 1a
of this project through FY 2025-26. The ten-year plan includes similar proceeds for additional
capital projects at levels consistent with the corresponding project's cash flow requirement for
each fiscal year. Loan and Debt Proceed are included in the Capital Revenues category in Table 15.
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• Other Revenues— In addition to the revenues noted above, Central San also collects a variety of
miscellaneous operating and non-operating revenues related to development and inspection costs,
hazardous waste collection, recycled water, stormwater/pollution prevention, leases, and other
miscellaneous activities as well as interest and investment-related revenues. Although these
revenues are generally anticipated to increase at a rate of 2-3% per year, since many of these fees
are designed simply to recover the cost of providing the associated services, they are not expected
to contribute significantly to improvements in Central San's net position or year-end balances.
Other Revenues are included in both the Non-Operating and Capital Revenues categories in Table
15 as appropriate.
Expense Forecast
The following is a summary of key assumptions related to the two major expense categories included
in Central San's latest ten-year financial forecast.
• Operating Costs - Central San's operating costs include the cost of operation and maintenance
expenses, self-insurance expenses, and debt service. Annual increases to O&M costs in the next
ten years are estimated to range between 3.3% and 5.5% per year, depending on the cost category
and spending item. Forecasts for these expenses are based on the following assumptions:
o Salaries & Wages expenses will increase consistent with the terms of current labor
agreements (Memoranda of Understanding).
o Individual benefit expenses are each escalated in one of three general ways: based on a
change on the prior year, as a percent of some other expense (such as salaries or
pensionable salaries), or to some other known/projected amounts (specifically OPEB/UAAL-
related expenses).
o Assumed annual 4% inflation for general expenses for two fiscal years, dropping to 3%
thereafter, with higher assumptions in the near-term for chemical and utility costs.
o Self-insurance costs are driven primarily by insurance premium expenses.
o Debt service for existing projects is based on existing repayment schedules; for anticipated
debt issuances, interest rates and repayment terms vary by the type of financing instrument
proposed and are based on current assumptions of rates in effect when the debt is likely to
be issued.
• Capital Costs—Capital cash flows are based on an annual review of projects required to
meet Central San's operational and regulatory requirements. This review results in a multi-
year Capital Improvement Plan with individual project costs determined for each fiscal year.
Annual project amounts are escalated to account for inflation in future years and adjusted
to match anticipated spending requirements.
Reserve Requirements
As described previously and disclosed in detail in Table 14, in addition to the expenses noted above,
Central San's Board has established year-end fund reserve policies in order to ensure that adequate
cash is available to meet anticipated cash requirements. These requirements have been included in
the ten-year financial plan but differ from those in Table 14 due to timing and other factors.
June 16, 2022 Regular Board Meeting Agenda Packe84 Page 137 of 771
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Ten-Year Financial Plan Summary
Combining the estimated Operating and Capital costs with reserve requirements determines each fiscal
year's revenue requirement. Applying anticipated annual revenues identifies any shortfalls requiring
additional revenue or overages to be reserved for future capital spending. To determine these
amounts, Central San uses a sewer service rate design model that includes the following core
assumptions:
• Projected fund balances available at the beginning of the fiscal year and any revenues received
during the year are available for use by that fund. The main exception to this is funds held in
Rate Stabilization Reserve Accounts within the Running Expense and Sewer Construction funds.
The funds in these accounts are internally restricted and cannot be used without Board
approval.
• Actual expenses and revenues will match projected amounts (i.e., no year-end surplus or
deficit).
• Any year-end remaining fund balances outside of the Sewer Construction Fund will be
reallocated to Sewer Construction for future capital requirements.
• Property tax revenues received are applied first against debt service expenses and reserve
requirements with any remaining amounts restricted to fund current and future capital costs.
• Capital Projects is generally assumed to spend 90% or less of its annual cash flow requirement
in any given year, with the balance deferred to the following fiscal year and escalated.
The rate design model also helps to ensure that the planning process adheres to existing fiscal policies
and debt covenant requirements regarding debt issuance and coverage, as outlined in the Financial
Planning Policies section previously. Core policy assumptions complied with in the ten-year financial
plan include the following:
• Not more than 60% of the overall CIP shall be financed with debt (BP-029).
• Central San 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 (BP-029).
• 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
(BP-029).
• Central San shall target a debt service coverage level of at least 2.Ox or greater for financial
planning and ratemaking purposes (BP-029).
• Net Revenues (Gross Revenues excluding capacity fees and after payment of Operations and
Maintenance (0&M) Costs) plus Tax Revenues are to be at least 125% of debt service in a fiscal
year (bond covenants).
• 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 (2018 covenant).
Table 15 identifies estimated values for each category of revenue and expense and overall funding
balances based on Central San's current budget and the assumptions noted previously.
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Table 15 - Ten-Year Financial Plan Summary in millions
Beginning Reserves* $129.2 $137.8 1 $141.9 $154.1 $153.1 $137.1 1 $124.8 1 $129.6 1 $138.1 1 $157.5
Revanuas
Sewer Service charges $114.7 $124.7 $133.2 $138.9 $144.8 $151.1 $157.7 $165.5 $174.0 $183.3
Other Operating&Capital 73.6 72.4 90.9 106.0 67.4 86.1 85.8 87.1 95.8 91.0
Non-Operating Revenues 24.2 25.8 26.7 27.5 28.3 28.9 29.6 30.5 31.4 32.5
Total Revenues $212.5 $222.9 $250.8 $272.4 $240.4 $266.1 $273.1 $283.1 $301.3 $306.8
xpenses
Operating Expenses:
Operations $45.1 $47.9 $50.2 $52.6 $55.1 $57.5 $60.0 $62.6 $65.3 $68.0
Recycled Water Program 1.7 1.7 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4
Engineering&Technical
Services 15.2 15.9 17.0 18.1 19.3 20.4 21.6 22.8 24.0 25.3
Administrative and General 23.1 24.9 25.9 27.0 28.1 29.2 30.3 31.4 32.6 32.5
Self Insurance 2.2 2.3 2.5 2.6 2.8 3.0 3.2 3.4 3.6 3.9
Total Operating Expenses $87.2 $92.6 $97.3 $102.1 $107.2 $112.1 $117.1 $122.3 $127.8 $132.1
Capital Expenses:
Treatment Plant $40.0 $68.5 $78.6 $98.9 $71.2 $75.7 $72.3 $72.1 $84.9 $62.1
Collection System 36.9 43.8 40.4 30.3 30.4 28.4 28.4 28.4 28.4 28.9
Recycled Water 8.7 3.8 4.3 2.4 9.3 9.8 5.4 0.3 0.3 0.3
General&Other 5.4 4.3 4.0 4.1 4.1 4.1 4.1 4.1 4.1 4.1
Total Capital Expenses
(Gross) $91.0 $120.4 $127.3 $135.7 $115.0 $118.0 $110.2 $104.9 $117.7 $95.5
Net Cash Flow Adjustments** 12.5 (3.4) 4.9 25.8 17.7 32.0 29.3 38.3 29.2 46.3
Total Adjusted Capital
Expenses $103.5 $117.0 $132.2 $161.5 $132.7 $150.0 $139.5 $143.2 $146.9 $141.8
Debt Service:
Existing(Revenue Bonds,
COPS) $13.2 $9.2 $8.8 $9.0 $9.3 $9.1 $4.5 $1.9 $- $
New/Planned(including
2021 SRF) - - 0.4 0.7 7.2 7.2 7.2 7.2 7.2 7.2
Total Debt Service $13.2 $9.2 $9.2 $9.7 $16.5 $16.3 $11.6 $9.1 $7.2 $7.2
Total Expenses $203.9 $218.7 $238.6 $273.4 $256.4 $278.3 $268.3 $274.6 $281.9 $281.1
Reserves qp
Year Ending Reserve
Requirements* $99.0 $99.1 $114.8 $133.7 $134.5 $122.9 $124.2 $121.4 $123.0 $122.8
Ending Funds Available 137.8 141.9 154.1 153.1 137.1 124.8 129.6 138.1 157.5 183.2
Funds Available Over/(Under)
Requirement $38.8 $42.8 $39.2 $19.4 $2.6 $2.0 $5.4 $16.7 $34.4 $60.3
*Reserves differ from reserve projections shown in Table 14 as the long-term cash flow assumes full spending of the FY 2021-22 O&M and self-insurance
fund budgets and distributes unspent CIB rollover into future fiscal years differently. Additionally,targeted reserves also include the following year's debt
service for cash flow purposes,which is not a mandatory policy requirement.
**Net Cash Flow Adjustments represents the amount required to escalate the present value of planned capital expenses to future years'values accounting
for projected inflation and anticipated spending rates.
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Operating Departments
On a day-to-day basis, the following three Operating Departments at 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 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; strategic
accomplishments in FY 2021-22; performance against the FYs 2020-22 Strategic Plan key metrics in
FYs 2020-21 and in FY 2021-22 as of Q2; and operating budget needs. For final FY 2021-22 strategic
performance data, please refer to the FY 2021-22 Strategic Plan Annual Report after its publication in
fall 2022. The total operating budget for FY 2022-23 is $85 million, a $5.5 million or 6.9% increase over
the $79.5 million budget for FY 2021-22.
w
. 1
r
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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. Central San's strategic planning and
benchmarking efforts are overseen by the Director of Finance and Administration.
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
o Board of Directors
• HR and Organizational Development
,y
• Office of the Director of Finance &Administration
• Communication Services and Intergovernmental -
Relations --�
• Finance
• Information Technology (IT) -
• Purchasing and Materials Services
• Risk Management
1
l
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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 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 Central San directly overseen by the General Manager.
The agencywide FY 2021-22 accomplishments and performance, as well as the FY 2022-23 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, as well as the budgeted Internal Auditor.
FY 2021-22 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• 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,John Muir Health,
and the California African American Water Education Foundation 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.
• Presented Strategic Plan Annual Report to the Board.
• Began planning the next in-person Central San Academy session, for which 79
applications have been received.
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ENVIRONMENTAL STEWARDSHIP
Continued efforts to augment the region's water supply through the proposed
Refinery Recycled Water Exchange and the request from the Dublin San Ramon
Services District (DSRSD) - East Bay Municipal Utility District Recycled Water Authority
(DERWA) to divert flow from the San Ramon Pumping Station to create recycled
water.
FISCAL RESPONSIBILITY
• Worked strategically with the office of the Director of Finance and Administration and
the Board to pay off Central San's pension unfunded liabilities and substantially reduce
the other post-employment benefits (OPEB) unfunded liabilities.
• Worked with full-time dedicated internal auditor to improve controls and processes,
including the auditor's design audit of the payroll system, IT security audit, and
Accounts Payable audit.
• 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 State of the District meetings with each department to update employees
I�7
on current issues and receive feedback.
• Provided direction to the negotiating team which resulted in the adoption of successor
memoranda of understanding with the bargaining units.
• Met frequently with bargaining unit representatives to maintain open communication
and resolve issues early.
GOAL INNOVATION AND OPTIMIZATION
11 ,
QMaintained 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.
• Initiated development of the Strategic Optimization and Innovation Initiative in the
Operations Department.
AGILITY AND ADAPTABILITY
• Modified operations to maintain a safe working environment, while maintaining
■ essential services and high-quality customer service during the pandemic.
• Allowed employees to work from home where possible— based on their job duties
and ability to remote work effectively—to help reduce community spread.
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FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY i • 2021-22 Performance
Performance as of •
Participants in citizens academy, >_3533 iAr N/A
Central San Academy per Session ' ' (2022 Session Not Yet Held)
Awards or Recognitions Received >_10 13 :O; 6 ;�;
Completed Optimizations >_20 20 �Hr 5 ;��
Productivity >_95% >95% �A; >95% i�;
■
FY 2022-23 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 Maintain open and frequent communication with the individual Board Members.
Represent Central San's best interests in involvement with industry associations and
Build Neighborhood and advocacy groups regionwide,statewide, nationwide,and worldwide.
Industry Relationships
i Continue to work toward the fruition of the Refinery Recycled Water Exchange,an
innovative partnership between Central San, Contra Costa Water District,and Valley
Be a Partner in Regional Water to supply recycled water to neighboring refineries,or other potential users
Development of Local Water such as East Bay Mud (EBMUD)or San Francisco Public Utility Commission (SFPUC).
Supply
Continue to meet regularly with labor bargaining unit representatives and division
Engage Employees and workgroups to maintain an open channel of communication,and address workplace
Conduct Labor Relations in a issues in a timely manner.
Transparent,Effective,and
Collaborative Environment
Retain Skilled Workers by Continue to gauge ways and means to make Central San a preferred employer.
Investing in Resources and
Opportunities for All
Employees to Grow and Thrive
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Promote and Uphold Ethical
Behavior,Openness,and Continue the development of the internal audit function with workplans presented
Accessibility annually and internal audit reports presented to the Board.
Maintain Financial Stability
and Sustainability
MW Continue to inspire performance,efficiency,and effectiveness through the
Implement Optimizations Program,the Central San Smart initiative,fulfillment of the Strategic
Organization-Wide Plan,and an employee recognition program.
Optimization
Budget Overview by Expense Cate or
Account Description FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budget Variance Budget
Budget Actual Budget Projection Budget M Variance
Salaries&Wages $815,472 $569,608 $701,216 $663,295 $641,609 ($59,607) -8.5%
Employee Benefits 270,585 156,216 260,517 318,271 234,246 (26,270) -10.1%
Unfunded Liability Contributions 257,072 138,740 1,095 972 1,000 (95) -8.7%
Purchased Property Services - 1,311 600 - - (600) -100.0%
Repairs&Maintenance 364 600 (600) -100.0%
Rentals - 947 - - - -
Purchased Professional,Technical 80,000 8,097 106,200 15,861 81,200 (25,000) -23.5%
&Other Services
Professional Services 50,000 8,097 19,200 15,861 69,200 50,000 260.4%
Technical Services 30,000 - 12,000 - 12,000 - 0.0%
Other Purchased Services - - 75,000 - - (75,000) -100.0%
Supplies&Materials 7,800 6,172 9,000 1,902 11,000 2,000 22.2%
Utilities&Fuel - 64 - - - - -
General Supplies 7,800 6,108 9,000 1,902 11,000 2,000 22.2%
Other Expenses 70,650 36,131 92,600 44,889 101,190 8,590 9.3%
Memberships 45,900 34,376 46,900 29,190 49,390 2,490 5.3%
Training&Meetings 20,750 1,194 35,700 7,976 39,800 4,100 11.5%
Miscellaneous Other 4,000 561 10,000 7,723 12,000 2,000 20.0%
Total Expenses $1,501,579 $916,275 $1,171,228 $1,045,191 $1,070,246 ($100,982) -8.6%
Personnel Requirements
FY 2020-21
Regular Status Employees Year-End FY 2021-22 FY 2022-23
Actual
General Manager 1.0 1.0 1.0
Administrative Assistant 1.0 1.0 -
Executive Assistant 1.0 1.0 1.0
Internal Auditor 1.0 1.0 1.0
Senior Administrative Technician 1.0 - -
Total 5.0 4.0 3.0
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Budget Modifications and Contributions to Key Priorities
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 2022-23 is approximately $1.1 million, an overall decrease of 8.6%from prior year's budget. This
decrease is attributable to Salaries & Wages and Employee Benefits categories where one
Administrative Assistant position was transferred to Planning & Development Services Division. This
decrease offsets an agency-wide cost-of-living adjustment. Supplies and Materials in increasing
modestly as employees return to the office as well as Other Expenses as employees return to in-person
travel for trainings.
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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 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 2021-22 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Conducted three California Voting Rights Act (CVRA) Public Hearings to update the
by-area elections data with the 2020 Census data for Central San.
• Coordinated Board Self-Evaluation Workshop, Financial Planning Workshop, and
annual review of Board Member compensation and benefits.
• Facilitated adoption of the following new policies: Buffer Management Properties;
Board Liaison and Representatives; Board Compensation, Benefits, and Expense
Reimbursement; Regulatory Accounting; and Deferred Compensation Plan.
• Coordinated meetings for Board Liaisons with representative cities and agencies.
• Provided Records Program services to all departments, including indexing over
76 new records boxes transferred to storage, creating and printing over 700 new file
folder labels, and delivering over 143 boxes requested from storage.
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 nine Board policies.
M
WORKFORCE DEVELOPMENT
• Scheduled Board Member attendance at workshops on Ethics Compliance and
Harassment Prevention.
• Staff attended California Clerks Association, California Special Districts Association,
and Board Secretary Conferences.
NMIAGILITY AND ADAPTABILITY
• Modernized the Board Meeting Room with the addition of multiple video cameras
to improve transparency, upgrades to the electronic systems to accommodate
mobile devices, and replacement of projector screens with monitors.
• Converted all Board meetings and committee meetings to virtual meetings.
• Held bid openings remotely and live online.
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FYs 2020-22 Strategic Targets and Performance
This division is not responsible for the completion of any metrics in the FYs 2020-22 Strategic Plan.
FY 2022-23 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2022-23
ED
Develop procedures for onboarding a new Board Member.
Provide
High-Quality Customer Service
toObtain electronic posting system for agendas and public hearing notices.
Encourage and Facilitate
Public Participation
L919YAWATIVI
Complete project with the Information Technology Division to optimize use of
■ electronic records to improve processes throughout Central San and develop
Implement Organization-Wide an E-Records Master Plan.
Optimization
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Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $483,201 $523,898 $575,220 $420,195 $525,443 ($49,777) -8.7%
Employee Benefits 160,700 203,781 148,837 135,973 192,692 43,856 29.5%
Unfunded Liability Contributions 165,473 210,791 754 616 786 32 4.2%
Purchased Property Services 24,850 22,282 24,850 11,547 18,000 (6,850) -27.6%
Repairs&Maintenance 9,850 10,471 9,850 1,245 2,000 (7,850) -79.7%
Rentals 15,000 11,811 15,000 10,302 16,000 1,000 6.7%
Purchased Professional,Technical& 132,000 435,292 59,000 72,949 468,200 409,200 693.6%
Other Services
Professional Services 50,000 60,656 50,000 19,406 48,000 (2,000) -4.0%
Technical Services 6,000 2,350 6,000 1,000 4,000 (2,000) -33.3%
Other Purchased Services 76,000 372,286 3,000 52,543 416,200 413,200 13773.3%
Supplies&Materials 11,000 5,942 16,000 6,315 15,000 (1,000) -6.3%
General Supplies 11,000 5,942 16,000 6,315 15,000 (1,000) -6.3%
Other Expenses 21,555 8,683 21,555 14,625 22,550 995 4.6%
Memberships 4,555 4,068 4,555 4,654 5,000 445 9.8%
Training&Meetings 14,500 2,714 14,500 7,659 15,550 1,050 7.2%
Miscellaneous Other 2,500 1,901 2,500 2,312 2,000 (500) -20.0%
Total Expenses $998,779 $1,410,669 $846,215 $662,219 $1,242,671 $396,456 46.9%
Personnel Requirements
FY 2020-21
EmployeesRegular Status
Actual
Administrative Services Assistant - - 1.0
Administrative Services Supervisor 1.0 1.0 -
Assistant to the Secretary of the District 1.0 1.0 1.0
Records Program Administrator - - 1.0
Secretary of the District 1.0 1.0 1.0
Senior Administrative Technician 1.0 1.0 -
Total 4.0 4.0 4.0
FY 2020-21
d Duration Employees
Actual
Temporary Senior Administrative Technician - 1.0 -
Total 1.0 -
Budget Modifications and Contributions to Key Priorities
The Office of the Secretary of the District assures the ongoing flow of information to and from the
Board of Directors, facilitating policy direction and oversight. The Office of the Secretary of the
District's Operating Budget for FY 2022-23 is $1.2 million, $0.4 million or 47% increase from last year's
budget. The increase is attributable to an election year for the Board of Directors in November 2022 in
the category Purchased Professional, Technical & Other Services.
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Board of Directors
OVERVIEW
The Board of Directors (Board) is a five-member governing body which represents the needs and
interests of Central San's customers. It provides oversight to Central San by setting policy direction;
establishing governing ordinances and rules; ensuring accountability; providing resources; bargaining
collectively with unions; managing Executive Management staff; and attending to lawsuits, real estate
acquisitions, and high-level Human Resources (HR) issues. Each member is elected to a four-year term.
In addition to twice-monthly meetings, Board Members serve on individual committees to review
matters within their purview for recommendation to the full Board. They also act as liaisons to specific
agencies and cities served by Central San, meeting with officials and presenting to town and city
councils as needed to provide customer service and represent Central San and its ratepayers.
Budget Overview by Expense Category
Y ZO-Zi J1rFY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
rA"Count DI.riptil.aFF.Budget Actual Budget Projection Budget Budget Budget
r Variance($) Variance(%)
Salaries&Wages $54,650 $57,924 $54,650 $58,000 $66,600 $11,950 21.9%
Employee Benefits 106,229 66,738 82,426 76,754 83,045 619 0.8%
Purchased Professional,Technical 350,000 245,737 250,000 104,791 266,000 16,000 6.4%
&Other Services
Professional Services 100,000 235,687 250,000 89,768 250,000 - 0.0%
Other Purchased Services 250,000 10,050 - 15,023 16,000 16,000 -
Supplies&Materials 5,150 - 5,150 480 5,150 - 0.0%
General Supplies 5,150 5,150 480 5,150 0.0%
Other Expenses 48,000 9,431 44,500 40,152 44,500 0.0%
Memberships - 260 500 200 500 0.0%
Training&Meetings 40,000 9,171 40,000 38,952 40,000 0.0%
Miscellaneous Other 8,000 - 4,000 1,000 4,000 - 0.0%
Total Expenses $564,029 $379,830 $436,726 $280,177 $465,295 $28,569 6.5%
Budget Modifications and Contributions to Key Priorities
The Board of Directors' Operating Budget for FY 2022-23 is approximately $0.5 million, reflecting an
increase of 6.5%from prior year's budget. This increase is attributable to the inclusion of good
governance consulting services in FY 2022-23. The budget also reflects an increase in labor costs for
Board members stipends due the election year.
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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; agencywide
training; organizational development; engagement efforts; and all payroll functions.
The Safety workgroup is overseen by the Human Resources (HR) and Organizational Development
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 2021-22 Strategic Accomplishments
WORKFORCE DEVELOPMENT
MO • Launched Central San's Diversity, Equity, and Inclusion (DEI) initiative.
• Developed and launched the Career Development Program to offer career coaching
and job shadowing to employees.
• Managed the third cycle and kicked off the fourth cycle of the BOOST Mentorship
Program.
• Began the third Supervisory Academy.
• Re-initiated quarterly HR @ Your Service trainings with topics on cybersecurity
awareness, pension benefits, and deferred compensation.
• Developed and launched the Clarifier Speaker Series to engage employees on
Central San's activities and achievements.
• Completed negotiations for successor Memoranda of Understanding for all
bargaining groups.
• Continued the biannual Supervisors' Summit to discuss items of interest and receive
brief refreshers on policies and procedures.
• Held virtual Q&As on Central San-wide policies and procedures, including the new
performance appraisal process.
• Continued the Employee Recognition Events program to allow managers to
acknowledge extraordinary achievements.
• Implemented and developed training materials for enhanced performance appraisal
process, focusing on career coaching and development.
• Conducted ethics training for all employees.
• Offered financial webinars educating employees on budgeting, investment,
retirement, and other topics related to managing money.
• Offered wellness seminars on topics related to physical and mental health.
• Continued to meet with Local One and Management Support/Confidential Group
Labor Management Committees quarterly and tracked action items for completion.
• Held ongoing HR and union representative/employee meetings.
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• Held the second Externship Program virtually for 22 college students and recent
graduates nationwide, with presentations by staff from across Central San.
• Continued coordinating with other agencies and BAYWORK to support development
of the regional workforce.
• District Safety Committee Safety Suggestions were acted on in less than 60 days.
• Administration and Engineering Departments had zero lost workdays.
• Plant Operations and Maintenance Division had zero lost workdays.
• Collection System Operations Division worked 280 continuous days without a lost-
time incident.
■ INNOVATION AND OPTIMIZATION
• Administered the Optimizations Program, including tracking achievements for the
next Innovations Fair.
• Produced and presented the Optimizations Program Annual Report to the Board.
• Continued to refine the new ERP payroll system.
• Configured, tested, launched, and troubleshooted the new ERP Career and
Performance module.
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.
• Implemented, enforced, and continued to develop a COVID-19 Exposure Prevention
Plan.
• Secured COVID-19 testing resources for employees and conducted contact tracing
for all positive cases.
• Procured on-site COVID-19 "peace of mind" testing for employees.
• Implemented the Central San's vaccine mandate.
• 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.
FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY • • 2021-22 Performance
Performance as of •
.• . Average Time
to Fill Vacancy <60 Days 70.9 Jr 49.5 Days "H;
(From Request to Hire)
6.8% 3.6%
(incl. retirees)
Turnover Rate at or Below (incl. retirees)<7 8°/ "or
Industry Average o o ' r
2.2% 2.2%
(excl. retirees) (excl. retirees)
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>_15 Hours
.. . Average Annual Training Per Full-Time
■� Hours(External and Internal Equivalent 13.7 ;A; 7.1 Hours/FTE* ;�;
Training) Employee Hours/FTE*
(FTE)
N/A
(45 participants served 4.5%increase in
Participation in Annual Increase by participants served ;U�
1�0 at a Wellness Clinic
�!IAWLWellness Expo 10%Each Year offered in lieu of the compared to 2021 , r
Expo) Wellness Clinic
Internal Promotions(Excludes 47.1% : rr ° i r
-of 1 ]25% ■�r 75/0 , r
irAWN Entry-Level Positions)
■� Formal Grievances Processed Zero(0) Zero(0) J r Zero(0) ;�,
100%
.•
Performance Evaluations Completion of r + r
Completed on Time Annual 91.3% 1 r 70% 1 r
Performance
Evaluations
Employee Injury and Illness '1 r , r
,g <-4.0 0.73 J r 2.26 4 �
Lost Ti me I ncident Rate
Requested personal
protective equipment(PPE) 100% 100% :o; 100% ;O;
provided
Requested safety
improvements 100% 100% 11 r 100% 1 r
■ to the workplace fulfilled
Employees trained on . r , r
■
COVID-19 prevention 100% 100% 'i r 100% i r
* Performance may have been affected by travel restrictions and event postponements due to COVID-19.Hours reported may not reflect
all training hours. A centralized learning management system will improve reporting capability in the future.
FY 2022-23 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
Conduct succession planning for District Counsel.
Recruit from a Diverse Pool of Qualified Applicants
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Continue to work collaboratively with bargaining units to
Engage Employees and Conduct Labor Relations in a resolve workplace issues in their early stages and prevent
Transparent,Effective,and Collaborative formal grievances.
Environment
Continue to hold the third Supervisory Academy and cycle 4 of
the Mentorship Program.
Continue offering the Career Development Program and
Retain Skilled Workers by Investing in Resources and supporting employees enrolled in the program.
Opportunities for All Employees to Grow and Thrive Investigate additional cost-effective benefits to offer to
employees.
Maximize employee safety by continuously updating and
implementing the COVID-19 Exposure Prevention Plan to
mirror changing guidelines.
Work closely with Management and staff to ensure employee
safety and continuity of operations during the pandemic.
Ensure contractors comply with COVID-19 safety standards
when working in the Treatment Plant.
rel Increase visibility in job worksite and facility inspections and
�• contractor project oversight/design reviews.
Reduce and Eliminate Risks of Injury or Illness
Continue monitoring safety metrics, including both leading
and lagging indicators to identify trends(incident reports,first
aids only, near misses, inspection findings,etc.).
Continue involvement in the design,planning,and safety
oversight of construction projects.
Update the public address system in the Treatment Plant and
CSO for effective communication during emergencies.
n■ Implement a learning management system.
Implement
Organization-Wide Optimization
June 16, 2022 Regular Board Meeting Agenda Packgto-1Page 154 of 771
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Budget Overview by Expense Category (Includes Human Resources, Retirees, Safety
0
Salaries&Wages $2,131,990 $1,931,332 $2,125,016 $2,518,022 $2,398,961 $273,945 12.9%
Employee Benefits 1,903,305 2,243,645 2,378,810 2,655,408 2,489,635 110,825 4.7%
Unfunded Liability 4,116,343 74,895,431 2,511,927 2,512,095 1,322,187 (1,189,740) -47.4%
Contributions
Purchased Property Services 114,950 96,807 98,450 101,950 109,450 11,000 11.2%
Repairs&Maintenance 75,700 65,575 80,700 80,700 80,700 - 0.0%
Hauling&Disposal 12,000 19,951 17,500 17,500 25,000 7,500 42.9%
Security 27,000 11,281 - 3,500 3,500 3,500 -
Cleaning 250 - 250 250 250 - 0.0%
Purchased Professional,
Technical&Other Services 536,150 563,418 737,900 678,880 650,960 (86,940) 11.8%
Professional Services 122,500 179,677 177,500 178,500 178,500 1,000 0.6%
Technical Services 34,000 79,335 60,000 95,000 75,000 15,000 25.0%
Other Purchased Services 379,650 304,406 500,400 405,380 397,460 (102,940) -20.6%
Supplies&Materials 101,000 99,874 107,500 100,500 113,000 5,500 5.1%
General Supplies 101,000 99,874 107,500 100,500 113,000 5,500 5.1%
Other Expenses 54,750 16,769 39,850 35,504 47,350 7,500 18.8%
Memberships 10,300 5,617 9,950 9,450 9,950 - 0.0%
Training&Meetings 37,450 7,462 21,550 21,204 31,550 10,000 46.4%
Miscellaneous Other 7,000 3,690 8,350 4,850 5,850 (2,500) -29.9%
Total Expenses $8,958,488 $79,847,276 $7,999,453 $8,602,358 $7,131,543 ($867,910) -10.8%
Personnel Re uirements
FY 2020-21
Regular Status Employees Year-End FY 2021-22 FY 2022-23
�& Actual
Human Resources&Organizational Development Manager 1.0 1.0 1.0
Human Resources Analyst 2.0 3.0 3.0
Management Analyst 1.0 1.0 1.0
Environment, Health,and Safety Program Administrator 2.0 1.0 1.0
Environment, Health,and Safety Specialist 1.0 1.0 1.0
Administrative Services Assistant 3.0 2.0 2.0
Total 10.0 9.0 9.0
Am[ FY 2020-21
d Duration Employeesi
N� Actual
Temporary Human Resources Analyst - - 1.0
Temporary Administrative Services Assistant 1.0 - 1.0
Total 1.0 - 2.0
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Budget Modifications and Contributions to Key Priorities
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 2022-23 is $7.1 million, reflecting
an 10.8% decrease from prior year's budget. The budget decrease is attributable to an assumed
vacancy factor of 3% and the capping of other post-employment benefits (OPEB) contributions at the
actuarially determined contribution (ADC) amount in FY 2021-22. Budgeted Salaries & Wages reflects
an increase due to the limited duration of a Human Resources Analyst. 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 $500,000 for Accrued Compensated Absences Expenses and $600,000
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 "Unfunded Liability Contributions") 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 2022-23, the total estimated cost of retiree health premiums is
approximately$4.6 million, reflecting a 7.4% increase from the approximate $4.3 million budgeted
in the prior year. However, given the strong funded position of Central San's OPEB Plan, budgeted
OPEB costs are once again proposed to be capped at the ADC, which has remained relatively low at
$3.3 million in FY 2022-23. OPEB costs are "capped" as any costs above the ADC ceiling are eligible
for reimbursement from the OPEB trust.
• Unfunded Liability Contributions 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 $1.3 million higher than the ADC in FY 2022-23. Accordingly, there is no required
OPEB trust payment to fully satisfy the ADC in FY 2022-23. Despite this same condition existing last
year, the prior year's budget still included a $1.25 million supplemental trust contribution to be
June 16, 2022 Regular Board Meeting Agenda Packqto-3Page 156 of 771
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directed towards either pension or OPEB at the discretion of the Board, which was subsequently
directed to the OPEB trust by the Board. Given that the most recent GASB 75 OPEB actuarial report
showed OPEB Plan's funded status was 99.16% on a market valuation basis as of June 30, 2021, and
in consideration other budget priorities and cost pressures, an additional trust contribution is not
included in the FY 2022-23 budget.
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 2022-23 budget assumes a 3.0%vacancy factor, consistent with 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 year, the Administration Department continued to provide its operations and services
while complying with evolving County and State health orders as the COVID-19 pandemic continued
into a second year. Many Administration Department staff teleworked during the pandemic
continuing through FY 2021-22 to accomplish their responsibilities.
In FY 2020-21, much of the work under the Office of the Director of Finance &Administration related
to completing the replacement of the enterprise resource planning (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. During
FY 2021-22, staff continued to work through the issues to optimize and make the best use of the new
system. Information Technology and Engineering staff continued to support the implementation of a
new permitting system, which is now scheduled to go-live during FY 2022-23. A June 2021 debt
offering for capital projects allowed funds to be freed up and used to pay down the outstanding
pension liability of$70.8 million. COVID-19 related cost impacts have been tracked for applying for
reimbursements from Federal and State funds. Nearly$1 million was obtained from an October 2021
application for special district funding from the State; additional funds are expected to be received
from a Federal Emergency Management Agency (FEMA) application at the end of the pandemic. This
office now also oversees the coordination of Strategic Planning efforts as well as the Benchmarking
Study.
To avoid duplicative material, the FY 2021-22 Strategic Accomplishments and performance against the
key metrics, as well as the FY 2022-23 Strategic Objectives, for the Director of Finance &
Administration are embedded within the sections of the individual divisions and programs overseen by
the Director.
This office's staffing budget includes the administrative staff supporting the Director of Finance and
Administration.
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Budget Overview by Expense Category
PY"20-21 FFY 720-2�1 FY 21-22 FY 21-22 FY 22-23 Budget Budget
Budget Actual Budget Projection Budget Variance($) Variance(%)
Salaries&Wages $382,081 $463,341 $483,997 $484,416 $512,703 $28,706 5.9%
Employee Benefits 100,557 97,263 128,606 130,042 133,170 4,564 3.5%
Unfunded Liability Contributions 86,869 114,562 751 519 797 46 6.1%
Supplies&Materials 1,000 1,808 1,000 1,050 1,050 50 5.0%
General Supplies 1,000 1,808 1,000 1,050 1,050 50 5.0%
Other Expenses 8,525 479 2,400 721 1,550 (850) -35.4%
Memberships 925 - 350 550 550 200 57.1%
Training&Meetings 7,100 479 1,550 149 500 (1,050) -67.7%
Miscellaneous Other 500 - 500 22 500 - 0.0%
Total Expenses $579,032 $677,453 $616,754 $616,748 $649,271 $32,516 5.3%
Personnel Requirements
11111111111111F FY 2020-21
gular Status Employees Year-End FY 2021-22 FY 2022-23
Actual
Director of Finance &Administration 1.0 1.0 1.0
Administrative Services Assistant 1.0 1.0 2.0
Senior Administrative Technician - 1.0 -
Total 2.0 3.0 3.0
Budget Modifications and Contributions to Key Priorities
The Office of the Director of Finance & Administration Operating Budget for FY 2022-23 is $0.65
million, reflecting a 5.3% increase over the prior year budget. The increase is primarily attributable to
Salaries & Wages, agency-wide cost-of-living adjustment, and increases due to step advancements.
Budgeted Other Expenses category has increased due membership fees.
June 16, 2022 Regular Board Meeting Agenda PackQtic)6Page 159 of 771
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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 Central
San departments.
FY 2021-22 Strategic Accomplishments
GOALONE CUSTOMER AND COMMUNITY
• Launched and promoted an interactive 75th Anniversary Experience website.
• Created a virtual Pollution Prevention Awards presentation for Sustainable Contra Costa.
• Raised awareness for recycling cooking oil at HHW by broadcasting a public service
announcement on local cable networks, which reached customers in Central San's
service area over 150,000 times.
• Supported Central San's redistricting process through coordinating community outreach
and promoting public workshops.
• Provided strategic outreach coordination with sister agencies to increase customer
engagement, including partnering with Contra Costa Water District on student education
programming and East Bay Municipal Utility District on virtual plant tours and the 751h
Anniversary Experience.
• Served thousands of students, both virtually and in-person,with Central San's Pipe
Protectors program, a hands-on, science-based curriculum for elementary schools.
• Produced 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 two issues of the Pipeline newsletter(including a special 75th
Anniversary edition)to inform customers about major infrastructure projects and share
pollution prevention information.
• Led Central San's advocacy efforts at the national, state, and local levels.
• Managed Central San's drone program to capture photographs and videos of
facilities for education, outreach, and operational assessments.
• Received 2021 Innovation Award from the Municipal Information Systems
Association of California and the 2021 Community Engagement and Outreach Project
of the Year from the California Water Environment Association for the 75th
Anniversary Experience.
• Received national Public Communication & Outreach Award from the Water
Environment Federation for Pipe Protectors school education program.
• Designed new maintenance access cover as part of a beautification and outreach
project to coincide with 75th anniversary.
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ENVIRONMENTAL STEWARDSHIP
• 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.
• Provided outreach on redistricting efforts in line with SB 594 and proper wipes labeling
legislation AB 818.
• Delivered final legislative advocacy report as well as ongoing legislative reports.
• 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.
• Pre-started coordination on advocacy for 2022 session with CSDA, California Association
of Sanitation Agencies (CASA), and regional water and wastewater advocacy leads.
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.
• Continued to provide virtual treatment plant tours, speakers bureau, and student
education programs, thereby maintaining Central San's levels of outreach and
education during COVID-19 restrictions.
• Provided regular updates at Board meetings on the pandemic and its impacts on
Central San.
• Produced monthly Lateral Connection employee newsletter in digital magazine
format to keep employees informed and engaged, even while working remotely.
FYs 2020-22 Strategic Targets and Performance
Goal Metric FYs 2020-22 FY 2020-21 FY 2021-22 Performance
Target Performance as of •
Students Served by , r . F
Educational Programs ?6,000 21,673 ;�; 5,347 ;�;
Participants in Plant/ HHWCF
Tours and Central San >_500 783 ;�; 348 11 r
Presentations
® Participants in N/A
Citizens Academy, >_35 33 (2022 Session
Central San Academy Not Yet Held)
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FY 2022-23 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
Invest in programs to inform the public and students of
the need to fund necessary infrastructure improvements
to maintain Central San's level of service and protect
public health and the environment through the Central
San Academy, student education programs,tours,
No publications, and more.
Promote Initiatives to Advance Affordable and
Equitable Access to Services 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.
Continue to expand outreach with residential and
commercial customers, legislators, elected officials, and
sister agencies to grow and maintain relationships and
Build Neighborhood and Industry Relationships advocate for the interests of Central San's customers.
Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
Account Description Budget Actual Budget Projection Budget Budget Budget
Salaries&Wages $784,189 $792,515 $817,232 $815,951 $885,235 $68,003 8.3%
Employee Benefits 194,341 231,107 216,045 230,427 205,514 (10,530) -4.9%
Unfunded Liability Contributions 248,971 263,203 1,174 1,354 1,269 94 8.0%
Purchased Property Services 1,000 577 1,000 857 1,000 - 0.0%
Repairs&Maintenance 1,000 577 1,000 530 600 (400) -40.0%
Hauling&Disposal - - - 327 400 400 -
Purchased Professional,Technical& 786,000 494,298 777,500 574,142 925,500 148,000 19.0%
Other Services
Professional Services 6,500 4,928 6,500 5,541 6,500 - 0.0%
Technical Services 263,500 247,376 263,500 263,500 280,000 16,500 6.3%
Other Purchased Services 516,000 241,994 507,500 305,101 639,000 131,500 25.9%
Supplies&Materials 62,050 51,937 67,050 52,218 68,160 1,110 1.7%
General Supplies 62,050 51,937 67,050 52,218 68,160 1,110 1.70
Other Expenses 51,530 8,678 52,180 29,911 68,680 16,500 31.6%
Memberships 21,280 6,810 21,980 19,844 21,980 - 0.0%
Training&Meetings 26,250 1,603 26,200 6,140 42,700 16,500 63.0%
Miscellaneous Other 4,000 266 4,000 3,927 4,000 - 0.0%
Total Expenses $2,128,081 $1,842,315 $1,932,181 $1,704,861 $2,155,358 $223,177 11.6%
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Personnel Requirements
IFY 2020-21
EmployeesRegular Status
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 2020-21
ActualLimited Duration Employees Year-End IFY 2021-22 IFY 2022-23
Graphic Design Summer Student 1.0 1.0 1.0
Intern 1.0 1.0 1.0
Total 2.0 2.0 2.0
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 2022-23 is $2.2 million, reflecting an increase of approximately 11.6%
over the prior year budget of$1.9 million. Changes contributing to this budget increase are due to an
upcoming Proposition 218 customer notice and legislative advocacy assistance. 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 accounting/financial transactions related to cash and
investments, long-term debt, accounts receivable, accounts payable, payroll/benefits, 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 Annual Comprehensive Financial Report (ACFR), 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 2021-22 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Received GFOA's Certificate of Achievement for Excellence in Financial Reporting
Award for the 21St consecutive year for the FY 2019-20 ACFR.
• Received the GFOA Distinguished Budget Presentation Award for the
4t" consecutive year for the FY 2021-22 Budget.
•' FISCAL RESPONSIBILITY
• Contributed an additional $2.7 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 approximately $6.5 million and $1.0 million
respectively.
• Fully funded the Other Post-Employment Benefits (OPEB) actuarially determined
contribution (ADC) of$3.3 million, with an estimated $1.3 million of that going
towards the paying down of the unfunded actuarial accrued liability (UAAL). Per
the latest GASB 75 Actuarial Report, the OPEB plan reported a healthy funded
status of 99.2% as of the fiscal year ended June 30, 2021.
• With leadership and direction from the Director of Finance &Administration,
designed and executed a successful refinancing of the pension plan's UAAL debt,
achieving a true interest cost of approximately 0.38% versus the 7.0% discount rate
assumed by the pension plan administrator. Savings to Central San are projected
to be approximately$2 million annually or $15 million in total over the remaining
7-year term of the debt.
• Compiled claim for and secured reimbursement of$996,000 from the State special
district COVID-19 relief fund.
• Began plans to finance new scope of Solids Handling Facility Improvements.
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• Brought FY 2020-21 pre-audit year-end variances to Board, authorizing an
additional $5.21M contribution to the 0&M Rate Stabilization Account (RSA), then
transferred $2.51M from the RSA to the Self-Insurance fund.
• 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 an unmodified ("clean") audit opinion and zero reported material
weaknesses or significant deficiencies in internal controls as part of the annual
financial audit.
INNOVATION AND OPTIMIZATION/AGILITY AND ADAPTABILITY
• Completed the budget process utilizing new Enterprise Performance Management
(EPM) software.
+ • Rolled out user-friendly online budget monitoring tool through Oracle Planning
Budgeting Cloud Service (PBCS) for managers/budgeteers to monitor their
divisional detail budgets.
• Utilized Oracle integrated Smart-View reporting technology to develop ACFR
financials for first time.
• Continued ongoing optimization and improvement of the recently implemented
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 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 employees.
FYs 2020-22 Strategic Targets and Performance
Goal Metric FY 2020-21 FY 2021-22 Performance
Performance as of •
SSC less than average
of Bay Area agencies
Service Affordability
SSC plus Ad Valorem
tax less than average Target Met ;A; Target Met iAi
Maintained 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 Moody's Aa1 (Moody's) Aa1 (Moody's) �� Aa1 (Moody's)
Credit Ratingsatings
Debt Service >-2.0 27.9 Projected to be
Coverage Ratio >2.0 ' '
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Actual Reserves as a 45.6%(O&M)
100.0% 278.7%(Sewer Construction) Projected � �
Percentage of Target Reserves X100% ' '
Operating Favorable O&M
Expenditures as a ?95% 91.7%* ; r spending variance ; r
Operating Budget
Percentage of
May Exceed 59'0
Reported Material
Weaknesses or
Significant Deficiencies r , r
in Internal Controls as Zero (0) Zero (0) ;�r Zero(0} :or
Part of Annual Financial
Audit
Increase in costs to
the O&M budget0% 0% ; ; 0% ;
Page 118 of 341
Following post-implementation and subsequent troubleshooting and
refinement of the state-of-the-art ERP and EPM systems, conduct extensive
staff training to improve efficiency and usefulness of accounting, budgeting,
Engage Employees and and financial reporting function.
Conduct Labor Relations in
a Transparent, Effective, Seek feedback from staff on improvement of long-standing accounting and
and Collaborative administrative protocols to align with new streamlined paperless processes and
Environment ERP capabilities.
Continue to deliver relevant and reliable financial reports to decision makers,
Promote and Uphold including monthly financial overviews, robust quarterly financial packets, the
Ethical Behavior, Openness, ACFR, and the annual Budget.
and Accessibility
EEMGM
Develop and execute a high-quality budget,and ensure costs are managed within
to
the confines of Board-adopted budgetary constraints.
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.
Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
Account Description Budget Actual Budget Projection Budget Budget Budget
Salaries&Wages $1,144,873 $997,313 $1,037,047 $1,065,833 $1,180,906 $143,859 13.9%
Employee Benefits 379,502 307,227 405,381 366,144 411,483 6,102 1.5%
Unfunded Liability Contributions 340,336 297,229 1,593 1,329 1,553 (39) -2.5%
Purchased Property Services 1,000 - 1,000 500 1,000 - 0.0%
Repairs&Maintenance 1,000 - 1,000 500 1,000 0.0%
Purchased Professional,Technical&
361,600 274,995 334,600 322,013 278,500 (56,100) 16.8%
Other Services
Professional Services 170,500 82,433 116,600 115,600 127,500 10,900 9.3%
Technical Services - - - - - - -
Other Purchased Services 191,100 192,562 218,000 206,413 151,000 (67,000) -30.7%
Supplies&Materials 10,000 2,388 8,400 4,200 4,200 (4,200) -50.0%
Utilities&Fuel - 202 - - -
General Supplies 10,000 2,185 8,400 4,200 4,200 (4,200) -50.0%
Other Expenses 19,500 6,760 19,000 116,920 131,000 112,000 589.5%
Memberships 2,400 3,327 2,000 1,650 2,000 - 0.0%
Training&Meetings 16,500 2,236 16,000 7,270 17,500 1,500 9.4%
Miscellaneous Other 600 1,197 1,000 108,000 111,500 110,500 11050.0%
Total Expenses $2,256,811 $1,885,911 $1,807,021 $1,876,939 $2,008,642 $201,621 11.2%
June 16, 2022 Regular Board Meeting Agenda Packgt1-4Page 167 of 771
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Personnel Requirements
FY 2020-21
=Nq regular Status . .yees Year-End FY 2i2022-23
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
FY 2020-21
d Duration Employees
Actual
Temporary Accountant 1.0 - -
Temporary Accounting Technician 1.0 1.0 -
Temporary Senior Internal Auditor - - -
Total 2.0 1.0 -
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 to 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.
The Finance Division Operating Budget for FY 2022-23 is $2.0 million, an increase of 11.2%from the
prior year budget. Salaries & Wages increased includes agency-wide cost-of-living adjustment as well
as any step advancements employees may be eligible for. The Other Expenses category saw a
significant increase due to budgeting of credit card and online fees associated with payments. Central
San saw an increased use of credit card and online payments due to the ongoing pandemic.
June 16, 2022 Regular Board Meeting Agenda Packgtl-5Page 168 of 771
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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 agencywide using technology.
FY 2021-22 Strategic Accomplishments
• , CUSTOMER AND COMMUNITY
• Awarded Municipal Information Systems Association of California (MISAC) Award
for Quality in IT Practices.
• INFRASTRUCTURE RELIABILITY
• Replaced and upgraded major data storage systems in data centers.
• Improved security with Advanced Threat Protection tools.
• Conducted phishing prevention training exercises for all staff.
• Provided Cybersecurity Awareness training to all staff.
GOAL SIX INNOVATION AND OPTIMIZATION
11 ,
-0-
• Kicked off Phase 1 of IT Master Plan.
• Completed implementation of all ERP modules and continued supporting and fine-
tuning of system and staff training.
• Completed upgrades and improvements to Board Room Audio/Visual Systems.
• Implemented new RF-Smart Warehouse Barcoding and Inventory Management
tools.
• Implemented new video security software used throughout Central San facilities.
Npii AGILITY AND ADAPTABILITY
• Replaced legacy phone system with modern Microsoft Teams based system.
• Expanded technology, including adding phone-calling capability to Microsoft Teams,
and swiftly acquired laptops to support teleworking during the COVID-19 pandemic.
FYs 2020-22 Strategic Targets and Performance
Goal Target FY • 2021-22 Performance
Performance as of •
Information System °
Outages Affecting Normal 100% Uptime 100/
;�r 100% Uptime i r
Business Operations Uptime
Data Backup and Zero(0) 1 minor ;�' Zero(0)
' Recovery Lost Data data loss incident ■ r Lost Data ' r
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FY 2022-23 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2022-23
.. .
MA
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
Protect Personnel and Assets from other threats.
Threats and Emergencies
Replace desk phones with new digital phones equipped with advanced mobile
and collaboration features.
■
Improve and Modernize Operations Explore options to replace billing system.
through Technology and
Efficiency Measures Complete District-wide IT Master Plan.
Budget Overview by Expense Category
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budget Budget
Budget
�B.d�g e t Actual Budget Projection Variance($) Variance
Salaries&Wages $1,758,890 $1,585,976 $1,795,621 $1,598,341 $1,862,029 $66,408 3.7%
Employee Benefits 695,355 425,443 729,608 641,788 709,136 (20,472) -2.8%
Unfunded Liability Contributions 574,924 532,512 2,653 2,437 2,638 (15) -0.6%
Purchased Property Services 1,294,101 1,655,116 879,530 1,387,667 895,720 16,190 1.8%
Repairs&Maintenance 1,294,101 1,655,116 879,530 1,387,667 895,720 16,190 1.8%
Purchased Professional,Technical& 56,500 7,789 576,496 5,241 841,265 264,769 45.9%
Other Services
Professional Services 6,500 4,940 6,500 5,141 6,500 - 0.0%
Technical Services 50,000 2,849 569,996 100 834,765 264,769 46.5%
Supplies&Materials 121,500 229,665 711,796 747,106 843,692 131,896 18.5%
Utilities&Fuel 112,000 151,817 142,000 127,380 142,000 - 0.0%
General Supplies 9,500 77,848 569,796 619,726 701,692 131,896 23.1%
Other Expenses 26,050 12,153 27,200 20,893 48,100 20,900 76.8%
Memberships 500 1,547 1,650 230 1,650 - 0.0%
Training&Meetings 24,950 10,170 24,950 18,498 44,950 20,000 80.2%
Miscellaneous Other 600 436 600 2,165 1,500 900 150.0%
Total Expenses $4,527,320 $4,448,653 $4,722,904 $4,403,474 $5,202,579 $479,675 10.2%
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Personnel Requirements
WNEW
02
FY 20
. .
Actual
Information Technology Manager 1.0 1.0 1.0
Information Technology Supervisor 2.0 2.0 1.0
Project Manager/Business Analyst 1.0 1.0 2.0
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
FY 2020-21
ON&LimitedEmployees Year-End FY 2021-22 IFY 2022-23
Actual
Temporary Information Technology Project Manager - - 1.0
Total - - 1.0
Budget Modifications and Contributions to Key Priorities
The Information Technology Division Operating Budget for FY 2022-23 is $5.2 million, reflecting an
increase of 10.2% 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 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.
Other Expenses category saw an increase due to staff returning to in-person trainings and the ongoing
trainings associated with the Oracle Cloud Fusion ERP system.
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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 2021-22 Strategic Accomplishments
'' • CUSTOMER AND COMMUNITY
r • Processed over 250 procurement requests.
• 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.
• Continued providing Maintenance staff with inventory usage reports to aid in
budgeting and planning.
a' FISCAL RESPONSIBILITY
• Made significant progress in reducing the number of Annual Contracts and Blanket
Purchase Orders older than five years and with an annual spend greater than
$25,000 from eleven two years ago to one this year.
• 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.
• Procured request to stock items for Maintenance and assigned newly acquired items
to the associated Plant Asset Database.
• Continued to review inventory reorder points with Maintenance to ensure proper
inventory stocking levels for plant assets.
• Continued to collaborate with Maintenance Staff to identify and remove obsolete
spares and equipment in a continuous effort to decrease inventory carrying costs.
M■ ' • ' WORKFORCE DEVELOPMENT
��� Implemented business process changes, cross-training, and redistribution of work
� to strategically ensure that procurement resources are being utilized efficiently.
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INNOVATION AND OPTIMIZATION
• Began migrating contract documents into Laserfiche, providing a secure electronic
storage location while also giving staff the ability to search and access contract
documentation.
• 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
the COVID-19 pandemic.
• Completed the first full fiscal year with the new Oracle ERP and planned for further
enhancements of the new system.
• Implemented the Oracle Warehouse Management System,which also included
updating Warehouse labels with the latest barcode symbology QR codes. The barcode
inventory program fully automates all issues, receipts, and inventory cycle counts.
AGILITY AND ADAPTABILITY
• Continued to meet various urgent requests for procurements related to the COVID-
■■ 19 pandemic such as testing and workplace modifications.
• Ensured adequate and sufficient stock levels for required personal protective
equipment(PPE) supplies to accommodate all Central San staff despite the shortages
and sourcing challenges during the pandemic.
FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY 2020-21 FY 2021-22 PerformancePerformance as of •
Metric no longer needed since
Difference in Inventory Value all the data now resides in one
database in Oracle,as opposed
r, in Purchasing Database vs. �1% 0.62% 'Ur to the two databases in the
Value Submitted to
Accounting previous HTE software,which
required a monthly
reconciliation.
Accuracy of Physical
! Inventory Count >_95% 98.9% � ; 97% "H;
vs. Book Value
Average time to Execute
Engineering Agreements Data not yet ��►
<_2 weeks
from Complete Package available in Oracle 6 working days
Submittal or Board Approval
Requested PPE provided 100% 100% i r 100%
■
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FY 2022-23 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
Ensure that all "request to stock"submittals are
reviewed and decided upon within three business days.
maContinue to be a valuable resource by assisting
Deliver High-Quality Customer Service Maintenance and Plant staff with ad hoc inventory
needs, including partnering with Maintenance on
storeroom best practices and methods.
Continue to promote open competition and equal
tol opportunity for qualified suppliers and service providers
Promote and Uphold Ethical Behavior,Openness,and by successfully soliciting and awarding high-level service
Accessibility and commodity-based contracts.
Maintain a physical inventory accuracy count rate of
95%on all inventory class items (A, B, and C), supplies,
Maintain Financial Stability and Sustainability and equipment.
Assist in relocating the Solids Building inventory to new
Execute Long-Term Capital Renewal and Replacement location.
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 records storage.
Implement Organization-Wide Optimization Continue refining the use of the ERP software to
improve procedures, align with industry best practices,
and develop new administrative procedures to
document the updated processes.
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Budget Overview by Expense Category
ff PY20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budget Budget
Account Descripti B. '.'
.1. 9 Budget Actual Budget Projection Budget Variance($) Variance
Salaries&Wages $1,108,279 $998,751 $1,178,139 $1,162,781 $1,275,227 $97,088 8.2%
Employee Benefits 437,676 234,199 445,394 474,814 479,493 34,099 7.7%
Unfunded Liability Contributions 333,314 306,465 1,405 1,533 1,485 80 5.7%
Purchased Property Services 21,000 356 6,000 7,541 6,000 - 0.0%
Repairs&Maintenance 20,000 - 5,000 5,000 5,000 0.0%
Hauling&Disposal - - - 150 - -
Rentals 1,000 356 1,000 1,000 1,000 0.0%
Cleaning - - - 1,391 - -
Purchased Professional,Technical& 77,000 27,596 87,000 57,072 67,000 (20,000) -23.0%
Other Services
Professional Services 36,000 27,596 36,000 36,072 36,000 0.0%
Technical Services 40,000 - 50,000 20,000 30,000 (20,000) -40.0%
Other Purchased Services 1,000 - 1,000 1,000 1,000 - 0.0%
Supplies&Materials 14,000 53,355 15,438 17,235 17,000 1,562 10.1%
General Supplies 14,000 53,355 15,438 17,235 17,000 1,562 10.1%
Other Expenses 14,900 (4,235) 14,900 11,400 14,900 - 0.0%
Memberships 3,700 3,700 3,700 3,700 0.0%
Training&Meetings 10,500 10,500 7,000 10,500 0.0%
Miscellaneous Other 700 (4,235) 700 700 700 - 0.0%
Total Expenses $2,006,169 $1,616,487 $1,748,276 $1,732,376 $1,861,104 $112,828 6.5%
Personnel Requirements
2020-21
Employees
Actual
Purchasing and Materials Manager 1.0 1.0 1.0
Senior Buyer 2.0 2.0 -
Senior Materials Coordinator 2.0 2.0 2.0
Buyer 1.0 1.0 -
Lead Contract and Procurement Specialist - - 1.0
Contract and Procurement Specialist - - 2.0
Materials Services Supervisor 1.0 1.0 1.0
Materials Coordinator 1.0 1.0 1.0
Total 8.0 8.0 8.0
FY 2020-21
d Duration Employees
Actual
Temporary Senior Buyer 1.0 - -
Temporary Inventory Specialist - 1.0 1.0
Temporary Materials Coordinator 1.0 1.0 1.0
Warehouse Summer Student 1.0 - -
Temporary Administrative Services Assistant - - 1.0
Total 3.0 2.0 3.0
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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 2021-22, the Purchasing and Materials Services Division
continued to refine newly implemented 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 2022-23 is $1.9 million, which
represents an increase of 6.5% 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 2022-23 budget also includes two temporary workers in the inventory warehouse and an
Administrative Services Assistant to help alleviate the temporary expanded workload arising from
several new initiatives. Pursuant to a classification study completed in FY 2021-22, Buyers were
reclassified to Contract and Procurement Specialists, better reflecting their roles and responsibilities.
Additionally, in FY 2022-23 the budget incorporates the deletion of one of those positions, and the
addition of a new Lead Contract and Procurement Specialist, intended to improve the operational
structure and processes. New initiatives for which the additional resources are needed, include:
ongoing troubleshooting and refining of the new ERP and higher volume of inventory management
needs arising from the solids handling capital project.
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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 2021-22 Strategic Accomplishments
FISCAL RESPONSIBILITY
• Compiled claim for and secured reimbursement of$996,000 from the State special
district COVID-19 relief fund.
• Managed claims aggressively to reduce costs and facilitate resolution, resulting in an
average cost per overflow claim of$6,941.
• Continued to debrief after losses to identify and implement preventive measures.
• Updated insurance requirements for goods and services contracts.
• Coordinated the Enterprise Risk Management program, maintained the strategic risk
inventory and provided semi-annual reports to the Board.
• Implemented EBIX, a certificate management platform to increase compliance and
reduce cost.
INFRASTRUCTURE RELIABILITY
• Scoped high priority Security Master Plan items into a capital project for implementation.
• 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.
Np; AGILITY AND ADAPTABILITY
Maintained and Updated Pandemic Response Plan and presented to the Board.
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FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY 2020-21 FY 2021-22 Performance
Performance as of •
Workers'Compensationr 11 ■
KOR Experience Modifier <_1.0 1.10 ;
Page 130 of 341
Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $305,518 $290,399 $314,792 $272,729 $330,885 $16,092 5.1%
Employee Benefits 126,307 112,971 135,496 129,399 138,813 3,318 2.4%
Unfunded Liability Contributions 101,438 100,756 472 467 497 25 5.4%
Purchased Property Services 430,000 368,459 465,000 445,000 629,000 164,000 35.3%
Repairs&Maintenance 45,000 4,355 10,000 10,000 10,000 - 0.0%
Security 385,000 360,210 455,000 434,000 619,000 164,000 36.0%
Rentals - 3,894 - 1,000 - - -
Purchased Professional,Technical& 179,000 53,768 85,000 28,131 73,000 (12,000) -14.1%
Other Services
Professional Services 51,000 18,089 45,000 13,131 21,500 (23,500) -52.2%
Technical Services 88,000 5,799 - - 6,500 6,500 -
Other Purchased Services 40,000 29,880 40,000 15,000 45,000 5,000 12.5%
Supplies&Materials 19,000 25,387 54,000 26,564 83,650 29,650 54.9%
Utilities&Fuel 10,500 24,966 35,000 24,000 67,000 32,000 91.4%
General Supplies 8,500 421 19,000 2,564 16,650 (2,350) -12.4%
Other Expenses 467,200 553,010 19,700 11,200 19,000 (700) -3.6%
Insurance&Risk Management 450,000 550,000 - - - - -
Memberships 3,200 1,912 3,200 2,950 3,500 300 9.4%
Training&Meetings 11,000 - 13,500 8,000 12,500 (1,000) -7.4%
Miscellaneous Other 3,000 1,098 3,000 250 3,000 - 0.0%
Total Expenses $1,628,463 $1,504,751 $1,074,459 $913,489 $1,274,845 $200,386 18.6%
Personnel Requirements
FY 2020-21
EmployeesRegular Status
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 2022-23 is $1.3 million, reflecting an increase
of 18.6%from the prior year's budget. The increase in Purchased Property Services is attributable to
the increase in budgeted security services by adding one additional security guard and extending 24/7
security monitoring services to address heightened security concerns along Central San's Treatment
Plant perimeter. The increase in Supplies and Materials is attributable to the expanding radio station
system with East Bay Regional Communications System Authority.
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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 (GIS) data. 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
7.4
bji
# g
Ai
Q r`
June 16, 2022 Regular Board Meeting Agenda Packgt2-7Page 180 of 771
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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, Planning and Development Services Divisions and the Resource Recovery
Program. Staff from these divisions also 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 service for Central San's customers
including the permit counter, development inspections, design and construction of infrastructure
projects, operating the Household Hazardous Waste Collection Facility (HHWCF), 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, household hazardous waste, and pharmaceutical collection programs. This
office was responsible for replacing or rehabilitating over six miles of pipes in Danville, Walnut Creek,
Lafayette, Martinez, Pleasant Hill, and Orinda with a 100% customer satisfaction rating (as of March
31, 2022); constructing major renovations at various Pumping Stations in Orinda and Moraga and
Central San's Recycled Water Filter Plant; in addition to completing other projects, such as the Outfall
Renovation project, and Safety Phase 5, which added external emergency exit stairs outside Central
San's four-story Solids Conditioning Building at the treatment plant; and striving to prevent hazardous
waste from entering local waterways through collection at the HHWCF. 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 2021-22 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2022-23 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, except for 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 recycled water projects which enable Central San to
help augment the region's water supply through partnering opportunities and expansion of recycled
water use, reducing reliance on non-renewable energy through cost-effective alternative methods
June 16, 2022 Regular Board Meeting Agenda PackgL)�8Page 181 of 771
Page 133 of 341
such as the Solar Energy Project on the Lagiss Property, and leveraging data to improve operations by
becoming a smart utility. The Resource Recovery Program also leads Central San's sustainability
efforts, including a new initiative to consider Net Zero as it relates to greenhouse gas emissions and
how it may apply at Central San. 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 2021-22 Strategic Accomplishments - Resource Recovery Program
ENVIRONMENTAL STEWARDSHIP
`; • 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 California
Environmental Quality Act(CEQA) environmental review process for the project.
Pending completion of CEQA mitigation measures, construction and start-up are
anticipated in FY 2022-23.
• Continued leading the Refinery Recycled Water Exchange Project to augment the
region's water supply and executed Amendment No. 3 to the memorandum of
understanding (MOU)to extend the expiration date to June 30, 2022.
• Developed Guiding Principles for Satellite Water Recycling Facility Projects for Board
approval.
• Initiated the effort to define Net Zero and how it will apply at Central San.
' INNOVATION AND OPTIMIZATION
• Held regular 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
update of the IT Master Plan to ensure integration with Central San's existing software
platforms and IT support.
FYs 2020-22 Strategic Targets and Performance - Resource Recovery Program
Goal Metric Target FY 2020-21 FY 2021-22 Performance
Performance as of •
kWh (kilowatt hour)of >_18 million kWh
` Electricity Produced by per Year ■ r , r
Cogeneration Using (Reported as a 22.7 million kWh ;�� 23.0 million kWh 4 r
Natural Gas Rolling Average)
.. 11'
kWh of Solar Power
>_220,000 kWh
Produced at CSO and the per Year 272,000 kWh 4LA
�r 271,000 kWh 4�r
HHWCF (Reported as a
Rolling Average)
June 16, 2022 Regular Board Meeting Agenda Packgt29Page 182 of 771
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kWh of Solar Power
.. >_2.5 million kWh
Produced by a New Solar Construction and start-up of the solar array are
Array Near the (Reported as a anticipated in FY 2022-23
' Rolling Average)
Treatment Plant Campus
.• On hold pending
Projects initiated under >3 4 IAS coordination with the
Central San Smart IT Master Plan
FY 2022-23 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:
Goal/StrategyObjective
For Central San's solar vendor(REC Solar/Duke Energy)to complete
construction of a cost-effective 1.75 MW solar energy project and
Identify and Advance Sustainability Initiatives, for Central San to begin purchasing solar energy under its PPA.
Including Reducing Energy Usage and Emissions
• Continue coordination with the IT Master Plan and commence at
■
Implement the least three projects as part 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 Recover r Program)
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount DeVariance($) Variance I%)
scription Budget Actual Budget Projection Budget Budget Budget&Wages $658,616 $418,227 $626,298 $670,512 $640,633 $14,335 2.3%
Employee Benefits 161,191 -65,844 166,624 179,010 137,170 (29,454) -17.7%
Unfunded Liability Contributions 204,462 205,560 1,155 974 1,210 55 4.8%
Purchased Professional,Technical 86,000 80,400 86,100 37,120 86,000 (100) -0.1%
&Other Services
Professional Services - 86 - - - -
Technical Services 80,000 80,314 80,100 34,472 80,000 (100) -0.1%
Other Purchased Services 6,000 - 6,000 2,648 6,000 - 0.0%
Supplies&Materials - 5,266 2,550 199 1,050 (1,500) -58.8%
General Supplies 5,266 2,550 199 1,050 (1,500) -58.8%
Other Expenses 22,414 11,963 22,477 16,600 24,032 1,555 6.9%
Memberships 914 3,741 847 1,949 1,932 1,085 128.1%
Training&Meetings 21,500 6,226 21,500 14,251 22,000 500 2.3%
Miscellaneous Other - 1,996 130 400 100 (30) -23.1%
Total Expenses $1,132,683 $655,572 $905,205 $904,416 $890,095 ($15,109) -1.7%
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Personnel Requirements - Office of the Director of Engineering and Technical Services
FY 2020-21
EmployeesRegular Status
Actual
Administrative Services Supervisor 1.0 1.0 1.0
Director of Engineering&Technical Services 1.0 1.0 1.0
Total 2.0 2.0 2.0
Personnel Requirements - Resource Recovery Program
117 1 FY 2020-21
. . 2021-22 FY 2022-23
Actual
Engineering Assistant III 1.0 1.0 0.9
Program Manager 0.5 0.4 0.4
Total 1.5 1.4 1.3
Budget Modifications and Contributions to Key Priorities - Office of the Director of
Engineering and Technical Services (including Resource Recovery Program)
The Office of the Director of Engineering and Technical Services Budget for FY 2022-23 is $0.9 million,
reflecting a slight decrease from the prior year's budget of approximately 1.7%. This decrease is
primarily attributable to a slight increase in the wage and benefits transfer for staff efforts related to
the Recycled Water Program.
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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 2021-22 Strategic Accomplishments
4 . ' CUSTOMER AND COMMUNITY
• Received 100%customer satisfaction rating for the Walnut Creek Sewer Renovations,
Phase 14 construction project.
• Received 92%customer satisfaction rating for the Lafayette Sewer Renovations,
Phase 14 construction project.
• Received 100%customer satisfaction rating for the Danville Sewer Renovations,
Phase 3 construction project.
• Received 91%customer satisfaction rating for the Martinez Sewer Renovations,
Phase 6 construction project.
• Continued to coordinate construction projects with local jurisdictions and other
agencies to lessen construction impacts to the community.
• Completed urgent sewer replacements, including near and at the new Pleasant Hill
Library project to lessen impacts to the public and nearby residents.
ENVIRONMENTAL STEWARDSHIP
• Built and piloted a temporary tertiary membrane filter system and rebuilt a new filter
at the Filter Plant to determine the best technology to effectively produce Title 22
recycled water.
• Redesigned and ordered new air pollution control equipment at the wastewater
treatment plant to meet air regulatory requirements.
• Nearing completion of the Filter Plant and Clearwell project,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
• Replaced or rehabilitated over six miles of pipes in Alamo, Walnut Creek,
Lafayette, Pleasant Hill, and Orinda.
• Completed construction at various Pumping Stations in Orinda and Moraga and at
the treatment plant, including the Contractors Staging Improvements.
• Initiated major renovation for electrical equipment at Headworks and the Pump
and Blower Building to address reliability for pumping process flows and aeration
air systems.
• Continued to design infrastructure repair, replacement and improvements for the
collection system,treatment plant and other Central San facilities.
• Began re-design and bid documents for the Solids Handling Facility Improvements,
Phase 1A.
INNOVATION AND OPTIMIZATION
• Implemented online meetings and interactions to reduce travel, COVID risk and save
time and consultant costs.
• Continue improving Oracle projects for financial management and using ProCore
construction management software.
• Standardized Construction Inspection Reports used by outside consultants and
internal engineers and inspectors for efficiency,timeliness, and consistency.
• Continued with the Treatment Plant Asset Handover Process Optimization project to
improve communication and record keeping in the completion of capital projects.
VIGLAW14111101 AGILITY AND ADAPTABILITY
• Developed and enforced strict safety guidelines within all contracts for COVID-19
■ in compliance with federal, state, and local requirements.
• Continued to adapt as safety orders are revised and enforced.
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FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY • i2021-22 Performance
Performance as of •
Average customer satisfaction o o , r , r
>_95/0 ��; 90.10 J r
rating on construction projects 96.5/
Miles of sewers
® replaced or rehabilitated , r , r
>_6.0 8.7 miles ,�r 2.3 Miles ,Ar
' (focused on deteriorated ' r 11r
small diameter pipelines)
® Capital Expenditures as a ,Ar Tracking below 90% •or
Percentage of Capital Budgeted >_90% 64.11%* '
Cash Flow Including Carry Forward as of November 2021
Capital Expenditures as a
Percentage of Capital Budgetedo o * lUr Tracking below 90% , r
>_85/0 64.11/0
Cash Flow Including Carry Forward ' r as of November 2021 , r
(during pandemic)
Customer satisfaction levels** >_90% 94.9% Jr 88.6% r
■
* Lower spending was caused by delayed spending in the Treatment Plant Program due to shortages of materials and equipment delays.
Performance on the Goal 7 metrics will only be tracked in the event of a pandemic or natural disaster,in which case the target for this
metric will supersede the>_90%target of the same metric in Goal 5.
**This metric is to measure the maintenance of customer satisfaction levels during the pandemic. Performance is the average of
customer satisfaction ratings collection system emergency calls,construction projects,and permit counter interactions.
FY 2022-23 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
Successfully award and begin construction of the Solids Handling Facility Improvements
i Project,which will include air pollution control equipment needed to reliably comply with
Achieve Compliance in current air regulations.
All Regulations
s. Complete the construction of the Filter Plant and Clearwell Improvements-Phase 1A
Be a Partner in 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 UPCCAA to help streamline infrastructure replacement projects using
informal bidding and maintain a contractors list for projects under$200,000.
Maintain Financial
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 Facility Improvements.
el 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.
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Execute Continue to replace sewers in poor condition and respond to urgent or emergency sewer
Long-Term Capital repairs throughout the service area in a timely manner.
Renewal and
Replacement Program Replace sewers needing difficult or frequent maintenance to allow the Collection System
Operations Division to focus on other sewers and reduce sanitary sewer overflows.
Deliver projects on time and on budget using new construction management software,
Procore and Oracle.
Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $2,135,534 $1,609,432 $2,084,090 $1,846,262 $2,010,990 ($73,100) -3.5%
Employee Benefits (2,310,273) (2,528,587) (2,209,148) (2,715,105) (2,991,108) (781,960) 35.4%
Unfunded Liability Contributions 692,954 613,691 3,089 3,011 3,004 (85) -2.8%
Purchased Property Services 223,000 3,490 4,000 4,100 4,400 400 10.0%
Repairs&Maintenance 3,000 3,490 3,000 3,000 3,300 300 10.0%
Security 219,000 - - - - - -
Rentals 1,000 - 1,000 1,100 1,100 100 10.0%
Purchased Professional,Technical& 35,000 14,255 35,000 16,000 31,100 (3,900) -11.1%
Other Services
Technical Services 34,000 14,255 34,000 15,000 30,000 (4,000) -11.8%
Other Purchased Services 1,000 - 1,000 1,000 1,100 100 10.0%
Supplies&Materials 54,800 28,276 55,500 29,813 55,500 - 0.0%
Utilities&Fuel 21,600 19,326 22,300 9,832 22,300 0.0%
General Supplies 33,200 8,950 33,200 19,981 33,200 - 0.0%
Other Expenses 52,155 9,731 54,155 34,898 54,340 185 0.3%
Memberships 10,155 6,610 10,155 8,400 10,340 185 1.8%
Training&Meetings 41,000 3,081 43,000 26,498 43,000 - 0.0%
Miscellaneous Other 1,000 40 1,000 - 1,000 0.0%
Total Expenses $883,170 ($249,712) $26,686 ($781,021) ($831,774) ($858,460) -3216.9%
Note:The staff in this division charge times to 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
IFY 2020-211
Employeesgular Status
Actual
Administrative Assistant 2.0 2.0 2.0
Assistant Engineer(Staff Engineer) 5.0 6.0 6.0
Assistant Land Surveyor 2.0 2.0 2.0
Associate Engineer 7.0 8.0 8.0
Capital Projects Division Manager 1.0 1.0 1.0
Contracts Specialist 1.0 1.0 1.0
Engineering Assistant 2.0 4.0 4.0
Engineering Technician III 3.0 - -
Land Surveyor 1.0 1.0 1.0
Senior Engineer 3.0 3.0 3.0
Senior Engineering Assistant 1.0 - -
Utility Systems Engineer 1.0 1.0 1.0
Total 29.0 29.0 29.0
Employees11111111111111111111111111L IFY 2020-21
Lim ited Duration
Actual
Temporary Project Safety Officer - 1.0 1.0
Temporary Assistant Engineer - - 2.0
Temporary Senior Engineer - 1.0 1.0
Temporary Staff Engineer 2.0 - -
Temporary Utility Systems Engineer - 1.0 1.0
Summer Student 3.0 1.0 2.0
Intern 3.0 4.0 4.0
Total 8.0 8.0 11.0
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 costs for staff in this division are
charged to the projects that the group oversees and manages. The Capital Projects Division budget for
FY 2022-23 is ($0.8 million), reflecting a 3,216.9% 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
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primary driver for this division's overall budgeting decrease is the noteworthy increase in time
expected to be charged to the CIB in FY 2022-23 compared to the prior year. Overall, the projection of
capitalized labor to total labor of Central San is increasing from 15.7%to 18.3% or a 2.6% increase. As
the bulk of capitalized labor is attributed to the Capital Projects division and increase in the capitalized
admin overhead credit results in the division's budget being negative (revenue to the 0&M fund).
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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 Collection Facility (HHWCF) 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 2021-22 Strategic Accomplishments
0- ' CUSTOMER AND COMMUNITY
• Oversaw approximately 70,000 visits to the HHWCF and Residential Recycled Water Fill
Station by residents, small businesses, retail partners, and fill station users.
` ENVIRONMENTAL STEWARDSHIP
• Achieved 24t"year of continuous compliance with all National Pollutant Discharge
r Elimination System (NPDES)treatment plant permit requirements governing the
discharge of treated effluent to San Francisco Bay.
• Prepared and submitted renewal application for Treatment Plant NPDES permit.
• Completed pretreatment and stormwater inspections.
• Collected approximately 2,200,000 pounds of hazardous waste. (Quantities
estimated from quantities received through February 2022.) This is about 19% less
than the total collected last fiscal year, which was an all-time high at 2,700,000
pounds. The decrease is due to comparing last year's large spike in waste volumes
after reopening the HHWCF following the COVID-related pent-up demand in FY
2020-21.
• Gave away over 222,000 pounds of reusable products. Although less than the
average for normal years, this represents an increase over last year, as the Reuse
Room was closed due to COVID. (Quantities estimated from quantities received
through February 2022.)
• Collected approximately 4,000 pounds of pharmaceuticals.
• Maintained 2021 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.
• 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, Berkeley.
INFRASTRUCTURE RELIABILITY
• • Completed annual Basin A South soil cap seep repairs.
• Obtained regulatory permits for Outfall Monitoring Improvements Project.
• Obtained Bay Area Air Quality Management District(BAAQMD)Authority-to-Construct
permits for pumping stations improvements and coordinated start-up emissions testing.
INNOVATION AND OPTIMIZATION
• With assistance from Collection System Operations, set up automatic notifications
of Category One Overflows to the Lab and created a link between Cityworks and
GeoPortal.
DoiAGILITY AND ADAPTABILITY
• Participated in sample collection to advance wastewater-based epidemiology model for
COVID-19.
FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY • 2021-22 Performance
Performance as of •
IN-1 NPDES Compliance Zero(0) Zero(0)Violations 4 rrr Zero(0)Violations �a;
�����!! Violations
Zero(0) 1 Notice of • r , r
Title V Compliance Violations Violation (NOV)* ► Zero(0)Violations 4a;
' Recycled Water Zero(0) r
Zero(0)Violations ��; Zero(0)Violations i r
Title 22 Compliance Violations r
23,837 MT CO2e
<25,000 23,771 MT CO2e in Calendar Year
Anthropogenic GHG Emissions @ On Track to Meet r 2021. i9r
Metric Tons in Calendar Year ■ r ' r
k-At (Per Calendar Year) (MT)COze 2020
Target for Calendar
Year 2022.
June 16, 2022 Regular Board Meeting Agenda PackQ13-9Page 192 of 771
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RVIOLIUMMOIN Annual Environmental
' Compliance Inspections and 100% 100% ;�; 100% ;A;
ya Permitting Completed on Time
K HHW Management Zero(0) • * , r
Compliance Violations
Zero(0)Violations ;�; Zero(0)Violations 11 F
99.97%(Air)
99.99%(Air)
100%(Liquid) ■ 100%(Liquid) , r
Permit Compliance 100% ;�; ;�;
■ 98.48%
(Collection 97.29%(Collection
System)
System)
* NOV from Bay Area Air Quality Management District for emergency bypass damper opening due to PG&E power outage.
FY 2022-23 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
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 Nutrients Watershed Permit, Polychlorinated Biphenyls,and Mercury Watershed Permit).
Compliance in
All Regulations
Negotiate successful renewal of the NPDES Treatment Plant Permit.
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Budget Overview by Expense Category
W13' 0-2171F'FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
,�,escriptio Budget Budget
=w7
u get Actual Budget Projection Budget Variance($) Variance(%T_
Salaries&Wages $3,960,913 $3,748,688 $4,047,781 $3,885,534 $4,370,444 $322,663 8.0%
Employee Benefits 1,482,826 1,323,515 1,542,924 1,554,130 1,647,986 105,062 6.8%
Unfunded Liability Contributions 1,307,155 1,321,909 6,255 5,913 6,440 185 3.0%
Purchased Property Services 841,625 1,149,342 841,010 1,055,733 975,930 134,920 16.0%
Repairs&Maintenance 94,000 68,062 87,500 88,625 102,000 14,500 16.6%
Hauling&Disposal 701,425 1,034,575 701,500 901,228 801,500 100,000 14.3%
Security - 1,633 3,200 3,200 3,000 (200) -6.3%
Rentals 5,200 7,412 7,650 9,836 8,800 1,150 15.0%
Cleaning 41,000 1 37,660 41,160 52,843 60,630 19,470 47.3%
Purchased Professional,Technical 724,300 551,215 785,325 603,332 1,025,700 240,375 30.6%
&Other Services
Professional Services 6,000 23,086 9,525 7,500 10,000 475 5.0%
Technical Services 696,000 507,154 752,000 575,330 991,900 239,900 31.9%
Other Purchased Services 22,300 20,975 23,800 20,502 23,800 - 0.0%
Supplies&Materials 356,700 398,559 395,250 406,094 450,700 55,450 14.0%
Utilities&Fuel 12,700 16,335 12,700 17,200 17,200 4,500 35.4%
Chemicals - 1,767 - - - - -
General Supplies 344,000 380,456 382,550 388,894 433,500 50,950 13.3%
Other Expenses 486,246 400,951 438,383 412,477 431,833 (6,550) -1.5%
Memberships 434,671 381,227 389,808 384,596 381,658 (8,150) -2.1%
Training&Meetings 47,975 16,588 44,975 25,206 46,525 1,550 3.4%
Miscellaneous Other 3,600 3,136 3,600 2,675 3,650 50 1.4%
Total Expenses $9,159,765 $8,894,178 $8,056,928 $7,923,212 $8,909,033 $852,104
Personnel Requirements
FY 41111111rRegular Status 2020-21
Employees
Actual
Administrative Assistant 1.0 1.0 2.0
Assistant Engineer(Staff Engineer) 2.0 2.0 2.0
Associate Engineer 1.0 1.0 1.0
Chemist 6.0 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 Program Administrator 1.0 1.0 1.0
Household Hazardous Waste Program Administrator 1.0 1.0 1.0
Household Hazardous Waste Technician 3.0 3.0 3.0
Laboratory Program Administrator 1.0 1.0 1.0
Supervising Chemist 1.0 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Senior Environmental Compliance Inspector 2.0 2.0 2.0
Senior Household Hazardous Waste Technician 2.0 2.0 2.0
Total 29.0 29.0 1 30.0
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FY 2020-21
Limited Duration Employees Year-End FY 2021-22 FY 2022-23
Actual
Temporary Chemist 1.0 1.0 1.0
Temporary Household Hazardous Waste Customer Sorter - - -
Temporary Household Hazardous Waste Technician - 1.0 -
Laboratory Assistant Summer Student 2.0 1.0 1.0
Intern 1.0 1.0 1.0
Total 4.0 4.0 3.0
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 Division Operating Budget for FY 2022-23 is $8.9
million, a 10.6% increase over the prior year's budget. Salaries and Wages include the agency-wide
cost-of-living adjustment and increases due to step advancements. Purchased Property Services are
projected to increase due to an increase in hazardous waste hauling and disposal following full opening
of Central San's reuse room as well as an accompanying increase in cleaning services for uniform
services. The increase in technical services is primarily attributable to the addition of an as needed
contract for health and risk assessments and other new requirements related to the new BAAQMD rule
11-18.
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Planning and Development Services
OVERVIEW
This division provides development services, including right-of-way, property management,
development inspection, permit counter operations, and mainline plan review. This division leads
planning and applied research efforts including pilot studies to evaluate benefits of new technology
and solutions for Central San's operations and needs; manages the Zone 1 and commercial truck fill
recycled water programs; 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 2021-22 Strategic Accomplishments
'' ' CUSTOMER AND COMMUNITY
• Updated Chapters 5, 7, 9 and 11 of the District Code.
• Created the Applicant's Guide to Building Permit Review & Encroachment
Verification, which was distributed to customers and posted on the website.
• Reopened Permit Counter to the public after being closed for fifteen months due to
the County Health Ordinance and implemented a scheduling system on the website
for customers to book appointments with the Permit Counter staff.
• Implemented first year of two-year pilot for Septic to Sewer (S2S) Financing Program
to encourage single-family houses to connect to nearby sewer mains.
• Implemented an online recycled water customer quarterly self-monitoring reporting
program.
• Plan Review identified proposed and existing encroachments into sanitary sewer
easements. Most proposed encroachments were removed from the plans. Six were
authorized by the Board through Real Property Agreements, Common Use
Agreement, relinquishment, and an Encroachment Agreement. Ten were handled at
the staff level with Real Property Agreements as existing class 1/2 or proposed Class
1 encroachments.
ENVIRONMENTAL STEWARDSHIP
. Provided support to further the Refinery Recycled Water Exchange Project with
Contra Costa Water District (CCWD) and Valley Water.
• Provided support to complete the first dry season of raw wastewater diversion to
Dublin San Ramon Services District using the Dublin San Ramon Service District
{DSRSD}-EBMUD Recycled Water Authority (DERWA) Diversion Facility in San
Ramon.
• Completed a visioning effort to evaluate the benefits of the Institute for Sustainable
Infrastructure's Envision sustainable infrastructure framework.
• Continued to provide daily program management services for Central San's Zone 1
and Commercial Truck Fill recycled water programs.
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• Completed annual recycled water reports and other recycled water quality reporting
to the San Francisco Regional Water Quality Control Board, State Water Resources
Control Board, and Division of Drinking Water.
• Participated in Bay Area Clean Water Agencies (BACWA) Nutrient Strategy Team,
Nature-Based Solutions Steering Committee, and Nutrient Data Analysis Steering
Committee.
• Completed inspection for the Lower Walnut Creek Restoration Project and
coordination with Contra Costa County Flood Control to ensure protection of the
outfall that runs through project area.
FISCAL RESPONSIBILITY
• Completed execution of State Revolving Fund (SRF) loan agreement in the amount of
$173.1 million for the Solids Handling Facility Improvements Project.
• Completed paperwork and addressed questions from Federal Emergency
Management Agency (FEMA) for a $3.3 million grant for the Walnut Creek/Grayson
Creek Levee Project through Building Resilient Infrastructures and Communities
(BRIC) program. This project is a joint project with the Contra Costa County Flood
Control.
• Presented alternatives for Board input consistent with debt management policy,
fiscal reserve policy, CIP, and general ratemaking principles at the March 24, 2022
Financial Workshop and a Public Hearing on April 21, 2022.
• 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
• Completed Asset Management Plan.
• Began work on ITPipes multi-sensor inspection portal.
• Began identifying vulnerable assets related to climate change and developing
mitigation measures.
• Completed preliminary design for the Steam and Aeration Blower Systems
Renovations Project. Critical system support equipment will be replaced as part of a
capital project in progress.
• Completed preliminary design for the Aeration Basin Diffuser Replacement and
Seismic Upgrades Project. This project will replace diffusers which are critical to
meeting the NPDES permit and rehabilitate high-value assets such as aeration tanks
to prolong remaining useful life.
• Completed a comprehensive condition assessment for the Ultraviolet (UV)
Disinfection Replacement Project and UV Hydraulic Improvement Project. The new
UV system will be installed as part of a capital project in progress.
• Completed review of all structures in public right of way for Sewer Structure
Inventory Project which collected 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.
June 16, 2022 Regular Board Meeting Agenda Packgt4-4Page 197 of 771
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• Started Solids Handling Improvements, Phase 2 to reevaluate the selection and
phasing of biosolids facilities upgrades based on information, circumstances,
policies, and goals that have changed since the completion of the Comprehensive
Wastewater Master Plan in 2017.
• Completed the upgrade of existing CCTV software ITPipes desktop setup to the
newer ITPipes platform, including upgrades for the server and trucks, setting up
Contractor Portal services/syncing and data migration from ITPipes' existing dataset,
and upgrading to ITPipes Mobile in three CCTV units.
• Developed Recycled Water Inspection mobile application to conduct inventory of
meter, valve, hydrant, and sampling station locations with photos.
• Initiated Large Diameter Pipeline Inspection Project and completed maintenance
access hole inspections on critical interceptors.
• Kicked off preliminary design for the Recycled Water Distribution System Renovation
Project and conducted field inspections of valves and flow meters.
• Completed migration of Central San's pipeline risk and renovation model from
InfoMaster into Innovyze's new InfoAsset Planner software platform.
• Expanded InfoWorks ICM dynamic model to include Headworks structures and
piping and conducted scenario modeling.
• Initiated preliminary design for renovation or re-routing of a 39-inch interceptor as
part of the Large Diameter Renovation Program.
• Initiated 5-Year Collection System Master Plan Update.
• Worked collaboratively with Contra Costa Flood Control District to complete 35%
and 65%final design packages for the Walnut/Grayson Creeks Levee Improvements
Project.
INNOVATION AND OPTIMIZATION
• Co-authored a wastewater-based epidemiology journal article with UC Berkeley,
titled "Tools for interpretation of wastewater SARS-CoV-2 temporal and spatial
trends demonstrated with data collected in the San Francisco Bay Area," published
in Water Research X(Aug 2021).
• Co-authored a wastewater-based epidemiology manuscript for the American
Chemical Society with Stanford University, titled "Diurnal variability of SARS-CoV-2
RNA concentrations in hourly grab samples of wastewater influent during low
COVID-19 incidence".
• Completed pre-design of Steam and Aeration Blower System Improvements.
• Continued implementation of the Oracle enterprise resource planning (ERP)
Permitting and Community Development module.
• Installed, initiated start-up, and led operations, maintenance, and analyses for a six-
month pilot project testing new tertiary membrane filtration with three pressurized
membranes to improve recycled water production in lieu of renovating three
existing filters. The pilot project also includes testing a reverse osmosis membrane
downstream of the tertiary membranes for evaluating a potential refinery water
exchange alternative.
• Completed 12-month trial of two remote maintenance access hole monitoring
technologies in collaboration with CSO.
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• Initiated Asset Barcode Pilot to streamline the process of work order creation in the
computerized maintenance management system (CMMS) and to easily look up
asset information and its maintenance history.
• Initiated dashboard for trending information from bearing temperature and sound
inspections with the Mechanical Maintenance Shop.
• Optimized access to Asset Management Documents from Cityworks CMMS by
programmatically placing a hyperlink in Cityworks' work order comments which
links directly to a page where staff can review and open asset management
documents.
• Presented paper on "Painting the Full Picture: Condition Assessments upgraded to
Comprehensive Asset Evaluations" at the 2021 WEFTEC conference for a seminar
focused on Asset Management.
• Presented "Membrane filtration — Potential solution for Title 22 water reuse in low
SRT applications?" at California Water Environment Association (CWEA)
conference.
• Presented "Rate and Fee Structure to Support Large CIP" at CWEA conference.
• Presented at FME World Tour on "How do you get 30K photo attachments out of
ArcGIS Enterprise (or ArcGIS Online)?" and "Get Hooked on Webhooks with FME
Server Automation Tools for Your Enterprise."
AGILITY AND ADAPTABILITY
• Put additional controls in place for the reopening of the Lobby and Permit Counter
to customers.
• Continued participation with California Department of Public Health, UC Berkeley,
and Contra Costa County Health Services wastewater-based epidemiology studies,
collaborating with the Laboratory which led sampling efforts.
FYs 2020-22 Strategic Targets and Performance
Goal Metric FYs 2020-22 Target FY 2020-21 FY 2021-22 Performance
Performance as of •
Average Customer
Satisfaction Rating on o o 1 i o 1 r
Permit Counter
>_95.0% 94.8/0 i r 100% i r
Interactions
Sewer Service Charge(SSC)
Less Than Median of Bay Area
• Agencies i r i r
Service Affordability Target Met 11 r Target Met ;or
"AA Maintained SSC Plus Ad Valorem Tax Less
Than Average of Bay Area
Agencies
Large Diameter and
>_3 Miles Per Year for the Next Inspections have not yet begun but are expected to
Force Main 5 Years Starting in FY 2020-21 begin in FY 2022-23.
Condition Assessment
■ Reviews or Pilot Tests of
New and Promising >_3 6 ii 6 1 r
Technology
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Research Papers and >3 3 1 r 3 1 r
Findings Presented ■ ■
Customer Satisfaction >_90% 94.9% J r 88.6% i F
Levels* ' r "�
Requested Safety
� Improvements to the 100% 100% tiA; 100% ;�;
Workplace Fulfilled
*This metric is to measure the maintenance of customer satisfaction levels during the pandemic. Performance is the average of
customer satisfaction ratings collection system emergency calls,construction projects,and permit counter interactions.
FY 2022-23 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
Update and publish additional "Applicant Guides"to assist Development
wo Applicants, including some focused on the new Oracle web portal for online
Deliver High-Quality Customer Service applications/permitting.
•
Build Neighborhood and Industry Host a Sewer Summit Workshop for partner Cities and County.
Relationships
.• Develop an interactive web map for education outreach programs.
Educate on Pollution Prevention and Work with CCWD and the City of Concord to supply recycled water to the
Environmental Protection Concord Community Reuse Project.
Implement a pilot Envision initiative and submit a capital project to verify its
Identify and Advance Sustainability level of sustainability.
Initiatives,including Reducing Energy
Usage and Emissions
Submit SRF application for UV Disinfection Replacement Project and
UV Hydraulic Improvement Project.
Maintain Financial Stability and Monitor financial conditions to determine if economic conditions change
Sustainability enough to warrant recommendation and issuance of bonds to help fully fund
ten-year financial plan.
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Develop prioritization model for vertical assets and update Info Asset.
Manage Assets Optimally Implement the Large Diameter Pipe and Force Main Inspection and
condition assessment programs.
Complete planning study for Solids Handling Improvements, Phase 2
• project to reevaluate the selection and phasing of biosolids facilities
upgrades.
Execute Long-Term Capital Renewal Complete the Sanitary Sewer Management Plan 5-Year Update.
and Replacement Program Complete the 5-Year Update for the Collection System Wastewater Master
Plan.
Implement and train staff on the new Oracle permitting software.
[Cl•� Implement a public portal for Development applications with the Oracle
permitting software.
Implement Evaluate and review new Sewer Service Billing software to replace
Organization-wide Optimization SunGard.
Complete Tertiary Membrane Pilot and update Business Case Evaluation.
Budget Overview by Expense Category
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budget to Budget BudgettoAccount Description
Budget Actual Budget Projection Budget Variance Variance I%)
Salaries&Wages $4,329,561 $3,738,019 $4,112,974 $4,192,790 $4,704,522 $591,549 14.4%
Employee Benefits 573,751 290,251 640,464 397,431 544,421 (96,043) -15.0%
Unfunded Liability Contributions 1,459,773 1,286,717 6,344 6,460 7,099 755 11.9%
Purchased Property Services 33,400 43,671 54,800 77,493 70,000 15,200 27.7%
Repairs&Maintenance 28,400 15,786 28,800 70,361 60,000 31,200 108.3%
Rentals 5,000 24,860 20,000 7,150 10,000 (10,000) -50.0%
Cleaning - - - (18) -
Construction - 3,025 6,000 - - (6,000) -100.0%
Purchased Professional,Technical 760,942 391,508 771,525 475,249 611,200 (160,325) -20.8%
&Other Services
Professional Services 102,500 147,885 122,525 125,578 269,900 147,375 120.3%
Technical Services 544,500 111,668 524,500 127,139 140,800 (383,700) -73.2%
Other Purchased Services 113,942 131,954 124,500 222,532 200,500 76,000 61.0%
Supplies&Materials 211,800 186,225 220,100 216,933 226,400 6,300 2.9%
Utilities&Fuel 155,800 149,277 166,500 170,829 183,200 16,700 10.0%
General Supplies 56,000 36,948 53,600 46,104 43,200 (10,400) -19.4%
Other Expenses 78,538 16,651 85,000 40,449 77,370 (7,630) -9.0%
Memberships 22,813 13,616 22,225 28,521 20,170 (2,055) -9.2%
Training&Meetings 48,875 2,943 56,275 9,623 50,700 (5,575) -9.9%
Miscellaneous Other 6,850 92 6,500 2,305 6,500 - 0.0%
Total Expenses $7,447,765 $5,953,043 $5,891,208 $5,406,804 $6,241,012 $349,805 5.9%
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.
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Personnel Requirements
FY 2020-21
Employees
Actual
Administrative Assistant 1.0 1.0 2.0
Asset Management Program Administrator 1.0 1.0 1.0
Assistant Engineer 2.0 1.0 1.0
Associate Engineer 4.0 5.0 5.0
Construction Inspector 4.0 4.0 4.0
Development Services Supervisor 2.0 2.0 2.0
Engineering Assistant 8.0 7.0 7.0
Engineering Technician 1.0 - -
GIS Analyst 2.0 2.0 2.0
Lead Engineering Assistant - - 1.0
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 34.0 32.0 34.0
FY 2020-21
im d Duration Employees
Actual
Temporary Engineering Assistant - 1.0 4.0
Summer Student Intern 4.0 5.0 2.0
Intern 4.0 4.0 5.0
Total 8.0 10.0 11.0
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 2022-23 is $6.2 million, reflecting an
increase of approximately 5.9%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. Salaries
and Wages also reflects an increase due to an additional full-time employee in the permit counter and
the transfer of an Administrative Assistant position from the Office of General Manager's budget for
support in the lobby and permit counter area. Other Purchased Services increased due to the
implementation of new billing software for the permit counter, other software development for GIS,
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and services for the Cost-of-Service study needed with the expiration of the last year of a four-year
rate schedule in FY 2022-23.
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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 the operation 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 � .
~ N 1
z � F
, ry
R;
• Nip(
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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 vision, resources and
guidance needed to fulfill their missions.
Major accomplishments of the office of the Director of Operations in FY 2021-22 include achievement
of the lowest recorded Collection System Operations (CSO) overflow volume ever achieved; the 24th
consecutive annual National Association of Clean Water Agencies (NACWA) Platinum Peak Award,
recognizing 100% compliance with Central San's wastewater discharge permit; and the launch of the
Innovation and Optimization Strategic Initiative. In addition to the lowest CSO overflow volume ever
recorded, the CSO Division cleaned over 750 miles of sewers through the completion of 17,112 work
orders, via diligent and optimized cleaning schedules and methods. As Central San's most visible
employees, CSO continues to play the role of 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.
In support of Plant Operations' efforts in achieving the 24th NACWA Platinum Award, the Plant
Maintenance Division continues to promote additional trainings and certifications for staff, and to
implement testing programs and new technology tools, all to ensure that the more than 6,200
treatment plant assets are reliable and operating at their peak performance. The Plant Maintenance
Division is also continuing to advance the Asset Management Program with the implementation of
projects and systems to better control the capital project turnover phase of completed projects to
assure that the right spare parts are tracked and available for rapid deployment when needed.
The Plant Operations Division continues 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.
The FY 2021-22 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2022-23 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
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $584,505 $245,883 $371,156 $462,418 $667,757 $296,60 79.9%
Employee Benefits 198,824 74,922 94,444 196,210 257,167 162,723 172.3%
Unfunded Liability Contributions 201,761 58,086 579 726 1,026 447 77.2%
Purchased Professional,Technical& 12,000 2,928 50,000 53,300 153,600 103,600 207.2%
Other Services
Professional Services 5,000 - - - - - -
Technical Services 7,000 - 50,000 50,000 150,000 100,000 200.0%
Other Purchased Services - 2,928 - 3,300 3,600 3,600
Supplies&Materials 20,400 82,686 80,400 77,200 133,100 52,700 65.5%
Utilities&Fuel - 56,656 55,000 65,000 70,000 15,000 27.3%
General Supplies 20,400 26,029 25,400 12,200 63,100 37,700 148.4%
Other Expenses 17,850 3,610 15,850 6,700 19,500 3,650 23.0%
Memberships 1,200 87 1,200 700 1,400 200 16.7%
Training&Meetings 15,700 3,522 13,700 5,700 17,150 3,450 25.2%
Miscellaneous Other 950 - 950 300 950 - 0.0%
Total Expenses $1,035,340 1 $468,114 $612,429 $796,554 1 $1,232,151 1 $619,722 101.2%
Personnel Requirements
FY 2020-21
EmployeesRegular Status
Actual
Administrative Assistant 2.0 - 1.0
Administrative Services Supervisor 1.0 1.0 1.0
Innovation &Optimization Program Manager - - 1.0
Director of Operations 1.0 1.0 1.0
Total 4.0 2.0 4.0
IFY 2020-21
d Duration Employees
Actual
Summer Student(Administrative Assistant) - - 1.0
Total - - 1.0
Budget Modifications and Contributions to Key Priorities
The Office of the Director of Operations budget for FY 2022-23 is approximately$1.2 million, reflecting
an increase of 101.2%from the prior year's budget. This increase includes one new position being
budgeted in the Office of the Director of Operations for innovation and optimization projects, as well
as one new Summer Student position. One Administrative Assistant was transferred from the Office of
the Director of Operations to the Engineering and Technical Services Department in the Environmental
and Regulatory Compliance Division in FY 2021-22. This division receives substantial support from the
Administrative Assistant,justifying the transfer of the budgeted position for improved cost allocation
purposes.
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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 2021-22 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Responded to 1S3 customer service phone calls.
• Received and cleared over 15,718 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 14 sanitary sewer overflows.
r
• Achieved the lowest-ever recorded volume of overflows.
• Cleaned 382 miles of sewers. *
• Completed 8,643 work orders on schedule 98.3%of the time.
• Performed 20%of all cleaning work on "hotspots."
• Closed circuit televised 120 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 421 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
• Created an Easement Vehicle by re-purposing an existing field truck to
accommodate rodder hoses for easement maintenance.
• Began design and construction of demonstrators to show pipeline-cleaning tools in
action and to show the proper methods of turning cleaning tools in manholes.
• Sanitary sewer overflow volume estimator received the Innovation of the Year
award (first place) in Central San's Innovation Fair. The estimator allows CSO field
crews to estimate the volume of an SSO more accurately.
* (as of Q2)
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FYs 2020-22 Strategic Targets and Performance
FY 2020-21 FY 2021-22
Goal Metric Target Performance Performance
as of .
Average Onsite Response Time
for Collection System 34.4 . . , r
530.0 Minutes ��; 19.5 Minutes iA;
Emergency Calls, During Minutes
Working Hours
jgjj[M Average Onsite Response Time
EDfor Collection System 540.0 Minutes 34.0 Minutes ®r 31.1 Minutes i�i
Emergency Calls,After Hours
. Average Customer Service >3 g out of 4.0 3.73 out of 4.0 ,v r 3.92 out of 4.0 11 r
Rating for Emergency Calls
52.0 Spills per 1.43 Spills per 0.91 Spills per
Sanitary Sewer Overflows 100 Miles of 100 Miles of j�; 100 Miles of ;�;
Pipeline Pipeline Pipeline
��� y Spills to Public Water 53 2 ®; 2 �A;
Percentage of Spills ■ r , r
A� X500 Gallons
?95% 87.0% j * 78.57% ��r
' Pipeline Cleaning Schedules , ► ,
L& Completed on Time
?98% 99.36% ;A; 98.34% ;A�
On>_4%of
Pipelines o * ,�r ,�r
Pipeline Cleaning QA/QC 3.68/ ; 3.87%
r * ; r
LCI Cleaned on an
Annual Basis
Pipeline Cleaning QA/QC o96.03%*
>_98/ ;�r 94.33%* ;�r
Passing Rate
® Recycled Water Distribution
System Maintenance >_98% 100% 1 r 100% ;�;
Schedules Completed on Time
® Uptime for Vehicles and o a
Equipment 100/ 100/ i r 100%
4.86 standard 1.87 standard
Number of Sanitary Sewer <_1 standard deviation deviation
Overflows(during the last five (indicating ;a; (indicating ;af
years for the same time period) deviation reduced reduced
overflows) ** overflows) **
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Permit Compliance 100% 98.48% ;�; 97.29% ���
■
Customer satisfaction
levels
*** >_90% 94.9% ��; 88. 6% ���
* Performance may have been affected by modified working schedules to adhere to social distancing mandates due to COVID-19.
**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 when compared to the same time period over the
past five years,the standard deviation means the target was met and exceeded.
***This metric is to measure the maintenance of customer satisfaction levels during the pandemic. Performance is the average of
customer satisfaction ratings collection system emergency calls,construction projects,and permit counter interactions.
FY 2022-23 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
ma
Continue to respond quickly to emergency calls both during and after work hours.
Deliver
High-Quality Customer Service
' Continue to proactively and optimally clean sewers to prevent overflows.
Achieve Compliance in All
Regulations Optimize cleaning schedule frequencies and location of work orders.
Continue to use alternative diesel fuels for CSO vehicles, resulting in cleaner
Maintain Financial Stability and emissions, reduced maintenance,and improved reliability.
Sustainability
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Budget Overview by Expense Category
2 -21 rF 720-2ul FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
ICA,, ..t D.sllipti. 0 Budget Budget
"Budget Actual Budget Projection Budget Variance($) Variance
Salaries&Wages $6,948,805 $6,692,518 $7,025,730 $7,265,104 $7,474,111 $448,381 6.4%
Employee Benefits 3,035,416 2,755,494 3,072,122 3,240,084 3,189,221 117,099 3.8%
Unfunded Liability Contributions 2,190,179 2,193,746 10,283 20,884 10,787 50 4.9%
Purchased Property Services 657,501 592,713 651,300 646,900 660,400 9,100 1.4%
Repairs&Maintenance 407,500 384,790 419,000 439,000 449,000 30,000 7.2%
Hauling&Disposal 40,000 39,445 50,000 29,800 29,800 (20,200) -40.4%
Security 16,500 875 - 4,100 4,100 4,100 -
Rentals 78,501 85,481 78,500 75,000 78,500 - 0.0%
Cleaning 115,000 82,122 1 103,800 99,000 99,000 (4,800) -4.6%
Purchased Professional,Technical& 951,880 317,007 957,780 631,252 989,780 32,000 3.3%
Other Services
Professional Services 7,700 5,913 7,700 7,700 7,700 - 0.0%
Technical Services 907,180 286,107 912,080 554,580 912,080 - 0.0%
Other Purchased Services 37,000 24,987 38,000 68,972 70,000 32,000 84.2%
Supplies&Materials 1,092,850 1,130,826 1,095,450 1,122,643 1,105,450 10,000 0.9%
Utilities&Fuel 393,100 515,528 415,700 555,000 500,700 85,000 20.4%
General Supplies 699,750 615,298 679,750 567,643 604,750 (75,000) -11.0%
Other Expenses 39,935 22,063 52,700 29,627 50,300 (2,400) -4.6%
Memberships 17,235 12,866 17,200 15,200 15,700 (1,500) -8.7%
Training&Meetings 18,800 8,280 31,600 11,820 31,600 - 0.0%
Miscellaneous Other 3,900 918 3,900 2,607 3,000 (900) -23.1%
Total Expenses $14,916,566 $13,704,367 $12,865,365 $12,956,494 $13,480,048 $614,683 4.8%
Personnel Requirements
FY 2020-21
EmployeesV"%�egL lar Status i
Actual
Administrative Assistant 1.0 3.0 3.0
Administrative Services Assistant 1.0 1.0 1.0
Administrative Technician 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 18.0 18.0 18.0
Maintenance Crew Member 18.0 20.0 20.0
Maintenance Supervisor 4.0 4.0 5.0
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 Supervisor 1.0 1.0 -
Total 56.0 56.0 56.0
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Budget Modifications and Contributions to Key Priorities
The Collection System Operations Division budget for FY 2022-23 is $13.5 million, reflecting an increase
of 4.8% 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.
Purchased Professional, Technical and Other Services increased due to public agency fees increasing.
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Plant Maintenance
OVERVIEW
This Division is divided into three main areas: the treatment plant maintenance shops, the Pumping
Stations O&M staff, and the Reliability Engineering (RE) team. The treatment plant maintenance shops
are responsible for maintaining all mechanical, electrical, and instrumentation equipment and systems
for the treatment plant, laboratory, and all facilities at the Martinez campus as well as supporting
Pumping Station operations. It consists of five shops: Mechanical Maintenance, Machine, Electrical,
Instrumentation, and Buildings & Grounds. The RE team 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 2021-22 Strategic Accomplishments
•+ 9 ENVIRONMENTAL STEWARDSHIP
t_I 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 24th consecutive year.
• Continued ongoing tracking of energy usage.
• Began working with Pacific Gas and Electric(PG&E) on RAPIDS energy efficiency program.
• Continued to replace lighting and heating,ventilation, and air conditioning with newer,
more efficient fixtures and equipment at the Martinez campus.
■' WORKFORCE DEVELOPMENT
MOA, • 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 learning modules through the TPC training database.
• 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 obtained certifications in infrared,thermography, ultrasound, and other
technologies, as well as certifications as Mechanical, Electrical, and Instrument Technicians.
Some 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.
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GOAL FIVE INFRASTRUCTURE RELIABILITY
• Developed inspection templates for asset condition monitoring program's condition-based
and predictive-based technologies.
• Began identifying vulnerable assets related to climate change and developing mitigation
measures.
• 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).
• Completed 288 quality assurance/quality control (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 115 Planner updates which include improvements to PM program such as
updated asset information, improved standard operating procedures, improvements to
PM task effectiveness or efficiency.
• 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.
• 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
• Began pilot testing InfoAsset to replace InfoMaster to assist in the development of the
prioritization model for vertical assets.
• Initiated transition of digitizing Operator routes from paper to electronic process (joint
Mentorship Program project with CSO and Plant Operations staff).
• 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.
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•' AGILITY AND ADAPTABILITY
• Helped install engineering controls to working areas such as plexiglass barriers, hand
sanitizer dispensers,touchless faucets, 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.
FYs 2020-22 Strategic Targets and Performance
Goal Metric Target IFY 2020-21 FY 2021-22 Performance
Performance as of •
®
Safety-Prioritized Work Orders , r ■ r
y Jr
r� q
' Completed on Time 100% 93% ■ r 91% '' r
NOW Completed on Time H
Regulatory Title V Work Orders ° ° , r , r
100/ 93/ ; ; 90% 4 r
Planned Treatment Plant PM >_90% 94% ��r 92%
VON Completed on Time r ■ r
DJFI work orders completed >_35 14* ��; 7*
Twice-daily Cleaning of All ° ° ■ r ■ r
-� Restroom Facilities 100% 100/ ��r 100% i r
■
* Performance was affected by modified working schedules to adhere to social distancing mandates due to COVID-19.
FY 2022-23 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
OEM
Continue to apply the latest arc-resistant switchgear with arc-quenching devices to make it safer for
Reduce and staff to operate and service electrical equipment.
Eliminate Risks of
Injury or Illness
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
Optimally Utilize a repeatable and comprehensive approach to maintenance that optimizes asset lifecycle
based on reliability,cost,and criticality,including continuing to perform additional Reliability Centered
Maintenance,Root Cause Analysis,PM Optimization analysis,and Defect Elimination initiatives on
critical equipment and systems.
June 16, 2022 Regular Board Meeting Agenda PackQt6-lPage 214 of 771
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Drive the development of the Asset Centered Maintenance Program and integrate with analytics
for earliest warning of equipment degradation.
Continue to work on IT Master Plan and develop operational technologies such as the asset
health monitoring system,asset handoff process and tracking system,online condition
Implement monitoring program,analytics enhancements, RE tools,data management ecosystem,and
Optimizatis Wide
Organizationupdated asset management plan.
on
Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto Budgetto
Account Description Budget Actual Budget Projection Budget Budget Budget
Variance($) Variance I%)
Salaries&Wages $6,481,112 $6,293,708 $6,907,153 $6,489,773 $7,186,980 $279,826 4.1%
Employee Benefits 2,123,173 2,222,792 2,597,134 2,318,166 2,379,038 (218,097) -8.4%
Unfunded Liability Contributions 1,932,312 1,904,502 9,743 44,837 9,723 (19) -0.2%
Purchased Property Services 2,344,650 1,533,592 2,499,300 1,997,965 2,868,050 368,750 14.8%
Repairs&Maintenance 2,079,850 1,115,863 2,156,300 1,775,619 2,502,450 346,150 16.1%
Hauling&Disposal - 268 - - - - -
Security 3,300 37 3,300 - - (3,300) -100.0%
Rentals 84,500 166,822 119,700 81,995 122,600 2,900 2.4%
Cleaning 177,000 250,602 220,000 140,350 243,000 23,000 10.5%
Purchased Professional,Technical& 234,205 67,801 226,385 161,935 351,035 124,650 55.1%
Other Services
Professional Services - 7,120 - 6,300 101,000 101,000 -
Technical Services 204,900 26,444 197,000 113,750 216,150 19,150 9.7%
Other Purchased Services 29,305 34,237 29,385 41,885 33,885 4,500 15.3%
Supplies&Materials 2,453,050 1,856,676 2,512,050 2,230,814 2,479,700 (32,350) -1.3%
Utilities&Fuel 555,150 565,096 609,150 547,600 611,000 1,850 0.3%
Chemicals 200,000 170,919 200,000 200,000 200,000 - 0.0%
General Supplies 1,697,900 1,120,661 1,702,900 1,483,214 1,668,700 (34,200) -2.0%
Other Expenses 90,976 55,545 93,976 102,445 193,595 99,619 106.0%
Memberships 15,101 8,215 15,101 5,856 16,595 1,494 9.9%
Training&Meetings 74,075 31,226 77,075 50,589 153,000 75,925 98.5%
Miscellaneous Other 1,800 16,104 1,800 46,000 24,000 22,200 1233.3%
Total Expenses $15,659,478 $13,934,615 $14,845,741 $13,345,934 15,468,121 $622,380 4.2%
June 16, 2022 Regular Board Meeting Agenda PackqJ6-2Page 215 of 771
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Personnel Requirements
WIFY 020
. .
MENEWORegular Status Emlyees Year-End IFY 2021-22 FY 2022-23
Actual
Administrative Assistant - 1.0 -
Associate Engineer - - 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 5.0
Instrument Shop Supervisor 1.0 1.0 1.0
Instrument Technician 3.0 3.0 3.0
Lead Maintenance Crew Member 1.0 1.0 2.0
Machinist 2.0 2.0 2.0
Maintenance Planner 3.0 3.0 3.0
Maintenance Technician, Mechanical 9.0 9.0 9.0
Mechanical Supervisor 2.0 2.0 1.0
Painter 1.0 1.0 1.0
Plant Maintenance Division Manager 1.0 1.0 1.0
Plant Maintenance Superintendent 1.0 1.0 2.0
Pumping Stations Operator 6.0 6.0 6.0
Pumping Stations Supervisor 1.0 1.0 -
Senior Engineer 1.0 1.0 1.0
Staff Engineer - 1.0 1.0
Utility Systems Engineer 1.0 1.0 1.0
Utility Worker 7.0 7.0 6.0
Total 46.0 48.0 48.0
I= FY 2020-21
d Duration Employees
Actual
Temporary Utility Worker 1.0 2.0 3.0
Summer Student(Laborer) 10.0 5.0 7.0
Summer Student(Engineering Assistant) 1.0 - -
Intern 3.5 3.0 3.0
Total 15.5 10.0 13.0
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 2022-23 is $15.5 million, reflecting an increase of 4.2%
over the prior year's budget. Overall, labor costs remained fairly stable from prior year budget. The
primary driver for the increase in the Repairs & Maintenance category is the anticipated additional
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costs of two new grinders at Moraga Pumping Station and two new generators for Orinda Crossroads
and Moraga Pumping Stations.
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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 2021-22 Strategic Accomplishments
•' " CUSTOMER AND COMMUNITY
• Provided wastewater treatment service with no interruptions during the COVID-19
pandemic.
ENVIRONMENTAL STEWARDSHIP
• Maintained eligibility for the National Association of Clean Water Agencies
(NACWA) Peak Performance Award Platinum status for the 24t" consecutive year,
recognizing 100% compliance with the wastewater discharge permit.
• Improved reliability of Central San's Solids Conditioning Building by continuing to
upgrade 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 Pumping
Station Upgrades—Phase 1; 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.
• Continued ongoing development of 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.
` INNOVATION AND OPTIMIZATION
• Continued transition of digitizing Operator routes from paper to electronic process
(joint Mentorship Program project with CSO and Plant Maintenance).
• 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 2020-22 Strategic Targets and Performance
Goal Metric Target FY 2020-21 Performance FY 2021-22 Performance
as of •
Zero(0)
NPDES Compliance Zero(0)Violations 'I F Zero(0)Violations ;��
I Violations
Zero(0) 1 Notice of , r , r
Title V Compliance Violations Violation (NOV)* � � Zero(0)Violations ;�r
I
Recycled Water Title 22 Zero(0) , . , r
Compliance Violations
Zero(0)Violations ;�; Zero(0)Violations i r
23,837 MT COze
Anthropogenic GHG <25,000 23,771 MT COze ;Hr in Calendar Year 2021. qr
Emissions Metric Tons in Calendar Year
(Per Calendar Year) (MT)COze 2020 ' r On Track to Meet Target ' r
for Calendar Year 2022.
NMI W11TA 4 111
Permit Compliance 100% 99.97%(Air) :�: 99.99%(Air) J r
100%(Liquid) 100%(Liquid)
* NOV from Bay Area Air Quality Management District for emergency bypass damper opening due to PG&E power outage.
FY 2022-23 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 Compliance in All
Performance Award Platinum status.
Regulations
f�1
Recruit from a Diverse Pool
of Qualified Applicants
Perform succession planning successfully and appropriately staff the division to
Retain Skilled Workers by meet the challenges of any upcoming departures.
Investing in Resources and
Opportunities for All
Employees to Grow and
Thrive
• Continue to work with Engineering in the design, coordination, and
Manage Assets Optimally construction of projects effecting the treatment plant.
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Budget Overview by Expense Cate or
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $4,984,842 $5,154,092 $4,921,680 $5,045,153 $5,384,694 $463,014 9.4%
Employee Benefits 1,572,429 1,839,032 1,475,439 1,774,536 1,705,612 230,173 15.6%
Unfunded Liability Contributions 1,613,679 1,836,319 7,573 7,690 8,283 710 9.4%
Purchased Property Services 320,500 278,842 374,000 317,000 608,500 234,500 62.7%
Repairs&Maintenance 4,000 108 3,000 2,500 3,000 - 0.0%
Hauling&Disposal 261,000 194,752 288,000 231,000 510,000 222,000 77.1%
Rentals 500 3,707 5,000 3,500 3,500 (1,500) -30.0%
Cleaning 55,000 80,275 78,000 80,000 92,000 14,000 17.9%
Purchased Professional,Technical 681,700 607,765 726,829 694,500 766,000 39,171 5.4%
&Other Services
Professional Services - 3,942 5,129 6,000 6,000 871 17.0%
Technical Services 6,000 - 5,000 - 5,000 - 0.0%
Other Purchased Services 675,700 603,823 716,700 688,500 755,000 38,300 5.3%
Supplies&Materials 4,597,300 4,296,834 4,800,500 5,700,375 6,353,500 1,553,000 32.4%
Utilities&Fuel 3,253,800 2,834,855 3,355,000 4,084,000 4,320,000 965,000 28.8%
Chemicals 1,202,000 1,395,257 1,326,000 1,575,000 1,894,000 568,000 42.8%
General Supplies 141,500 66,722 119,500 41,375 139,500 20,000 16.7%
Other Expenses 41,080 6,299 44,580 14,990 45,000 420 0.9%
Memberships 11,830 8,467 10,330 9,700 11,000 670 6.5%
Training&Meetings 27,500 (2,708) 32,500 3,790 32,500 - 0.0%
Miscellaneous Other 1,750 541 1,750 1,500 1,500 (250) -14.3%
Total Expenses $13,811,530 $14,019,184 $12,350,601 $13,554,244 $14,871,590 $2,520,988 20.4%
Personnel Re uirements
IFY 2020-21
Regular Status Employees Year-End IFY 2021-22 FY 2022-23
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 5.0 8.0 9.0
Senior Engineer 1.0 1.0 1.0
Senior Plant Operator 16.0 13.0 12.0
Shift Supervisor 7.0 7.0 7.0
Utility Systems Engineer 2.0 2.0 3.0
Total 35.0 36.0 35.0
Budget Modifications and Contributions to Key Priorities
The Plant Operations Division provides Central San staff with 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 2022-23 is $14.9 million, reflecting a significant increase of$2.5
million or 20.4% increase over the $12.4 million budgeted in FY 2021-22. This increase is largely
attributable to increases in the Utilities & Fuel and Chemicals categories. The budgeted increase in
Utilities & Fuel pertains to volatility in energy and gas prices driven by inflation, supply chain issues
June 16, 2022 Regular Board Meeting Agenda PackQJ6-7Page 220 of 771
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arising from the pandemic, as well as the Russia-Ukraine crisis. The budgeted increase in Chemicals is
attributable to commodity price increases in polymer, lime, and hypochlorite which are increasing for
similar reasons as utilities and fuel. The Purchased Property Services category overall increased due to
Hauling and Disposal services costs. Labor costs overall are largely increasing due to the cost-of-living
adjustment and merit increases for eligible 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 and discussions with other regional water districts (including EBMUD and
SFPUC), a Satellite Water Recycling Facility and the Concord Community Reuse Project (the
redevelopment of the Concord Naval Weapons Station).
FY 2021-22 Strategic Accomplishments
ENVIRONMENTAL STEWARDSHIP
• Continued leading the Refinery Recycled Water Exchange Project to augment the
region's water supply and executed Amendment No. 3 to the Memorandum of
Understanding(MOU)to extend the expiration date to June 30, 2022. Central San and
Valley Water have extended the staff-level Cost-Sharing Agreement to jointly fund work
by Raftelis to June 30, 2022.
• Began talks with San Francisco Public Utilities Commission (SFPUC) as a potential
partner in the Refinery Recycled Water Exchange Project.
• Collaborated on the development of an MOU with East Bay Municipal Utility District
(EBMUD)to complete a potable reuse study.
• Developed Guiding Principles for Satellite Water Recycling Facility Projects for Board
approval.
• Continued collaborating with Contra Costa Water District (CCWD) and Valley Water to
complete a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange
Project as agreed upon in the MOU between the three agencies.
• Completed the first year of operation of the Dublin San Ramon Services District (DSRSD)
and East Bay Municipal Utility District Recycled Water Authority (DERWA)Temporary
Wastewater Diversion, which,from June 21, 2021,through September 10, 2021,
diverted approximately 58 million gallons of wastewater from Central San to DSRSD to
produce recycled water to meet DERWA's peak summer irrigation demand.
• In response to interest by several cities in Central San's service area, completed an
evaluation to determine the most cost-effective way to provide recycled water to
portions of the cities of Walnut Creek, Lafayette, Orinda, and the town of Moraga.
• Continued working with CCWD and the City of Concord to plan for recycled water
usage at the Concord Community Reuse Project.
• Distributed approximately 224 million gallons of recycled water to Zone 1.
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• Distributed approximately 5.5 million gallons of recycled water through the
Commercial Truck Fill Program.
• Distributed approximately 5.1 million gallons of recycled water through the
Residential Fill Station.
FYs 2020-22 Strategic Targets and Performance
Goal Metric Target FY 2020-21 Performance FY 2021-22 Performanceas of •
Recycled Water Title 22 Zero(0) .� �
Hr , r
Zero(0)Violations � � Zero(0)Violations ; �
Compliance Violations
Gallons of Recycled >240 Million 245 Million ,rr 117.6 Million J r
Water Distributed to Gallons Gallons* r Gallons** ' r
External Customers*
* Performance may have been affected by the Residential Recycled Water Fill Station being closed during the FY due to COVID-19.
**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),during which the FY target of>240 million gallons should be reached.
FY 2022-23 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/StrategyObiectiv s for FY 2022-2--
Continue working with CCWD,Valley Water, and SFPUC to advance the Refinery Recycled Water
Exchange Project.
Continue collaborating with DERWA to divert wastewater from Central San to DSRSD to produce
recycled water to meet DERWA's peak summer irrigation demand and supply recycled water to
�► the southern portion of Central San's service area.
Support Regional
Development of Continue working with CCWD and the City of Concord to plan for recycled water usage at the
Local Water Concord Community Reuse Project.
Supply Continue to support the development of a Satellite Water Recycling Facility at Diablo Country
Club,as needed.
Collaborate with EBMUD to complete a potable reuse study.
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Budget Overview by Program and Expense Category
Treatment includin Residential Fill Station, Satellite Water Recycling Facili--4" -21 r7udg.t to Budgetto
ty
FY"20 FY 20 2 22-
Account Description y 1- y Budget Budget
Budget Actual B dg Mtn B"d Variance($) Variance
Salaries&Wages $243,700 $524,587 $223,600 $226,740 $250,500 $26,900 12.0%
Employee Benefits 185,200 428,374 158,900 160,920 170,500 11,600 7.3%
Purchased Property Services 4,000 - 3,000 - 3,000 - 0.0%
Repairs&Maintenance 4,000 3,000 - 3,000 - 0.0%
Other Purchased Services 100,500 7,644 102,000 8,518 109,018 7,018 6.9%
Professional Services - 6,144 1,000 7,018 8,018 7,018 701.8%
Technical Services 100,500 1,500 101,000 1,500 101,000 - 0.0%
Supplies&Materials 310,000 275,384 333,000 327,000 429,000 96,000 28.8%
Utilities&Fuel 175,000 116,276 175,000 175,000 175,000 - 0.0%
Chemicals 132,000 159,108 156,000 152,000 252,000 96,000 61.5%
General Supplies 3,000 - 2,000 - 2,000 - 0.0%
Other Expenses 28,200 13,708 28,200 28,200 0.0%
Memberships 21,600 13,708 21,600 21,600 0.0%
Trainings&Meetings 6,600 - 6,600 - 6,600 0.0%
Total $871,600 $1,249,697 $848,700 $723,178 $990,218 $141,518 16.7%
Distribution (including Residential Fill Station, Satellite Water Recycling Facility)
.WI=' r. IFY 20-21-RF FY 20-21 2 -22 FY 21-22 py,212-213r Budget cqr Budget
t Budget
Budget Actual FB cige Projection Variance($) Variance(%)
Salaries&Wages $246,460 $436,571 $308,000 $251,100 $378,620 $70,620 22.9%
Employee Benefits 148,080 336,282 218,700 125,593 194,979 (23,721) -10.8%
Purchased Property Services 23,000 4,798 23,000 - - (23,000) -100.0%
Repairs&Maintenance 23,000 4,798 23,000 - - (23,000) -100.0%
Other Purchased Services 160,700 9,295 180,200 35,200 118,700 (61,500) -34.1%
Professional Services 14,000 9,295 72,000 - 72,000 0.0%
Technical Services 145,000 - 105,000 35,000 45,000 (60,000) -57.1%
Other Services 1,700 - 3,200 200 1,700 (1,500) -46.9%
Supplies&Materials 16,900 1,145 22,600 4,000 9,700 (12,900) -57.1%
General Supplies 16,900 1,145 22,600 4,000 9,700 (12,900) -57.1%
Other Expenses 4,550 - 9,550 - 5,000 (4,550) -47.6%
Trainings&Meetings 4,050 8,550 4,500 (4,050) -47.4%
Miscellaneous Other 500 - 1,000 - 500 (500) -50.0%
Total $599,690 $788,091 $762,050 $415,893 $706,999 ($55,051) -7.2%
Total Recycled Water
6.A.count Description FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23 Budget Budget
Budget Actual AL Budget Projection Budget Variance Variance(%)
Total $1,471,290 $2,037,788 $1,610,750 $1,139,070 $1,697,217 $86,467 5.4%
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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 2.0 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.
FY 2020-21
EmployeesRegular Status
Actual
Program Manager 0.5 0.6 0.6
Engineering and Technical Services* 0.9 0.9 1.0
Operations Department* 1.0 1.3 1.3
Total 2.4 2.8 2.9
*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.
FY 2020-21
Duration Employees Year-End FY 2021-22 FY 2022-23
Actual
Fill Station (Seasonal)Temporary 3.0 1.0 5.0
Intern 1.0 0.5 -
Total 4.0 1.5 5.0
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 2022-23 is $1.7 million, reflecting an increase of
5.4% 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 2022-23, 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 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budgetto %Expense Summary Actual Budget Projected .
.•
Variance
Treatment Plant O&M $1,249,697 848,700 723,178 990,218 141,518 16.7%
Treatment Plant Capital 7,938,424 16,250,000 13,631,937 7,850,000 (8,400,000) -51.7%
Distribution O&M 788,091 762,050 415,893 706,999 (55,051) -7.2%
Distribution Capital 231,485 250,000 219,350 365,000 115,000 46.0%
Total $10,207,697 $18,110,750 $14,990,357 $9,912,217 ($8,198,533) -45.3%
BudgetRecycled Water FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budgetto %
Revenue Summary Actual Budget Projected
Variance
Treatment Plant
(Wastewater Cost) $3,346,810 $7,171,125 $5,857,458 $3,514,985 ($3,656,140) -51.0%
Zone 1 Revenue 538,943 432,000 432,000 445,000 13,000 3.0%
Distribution
(Wastewater Cost) 2,667,061 4,234,826 3,514,018 2,527,870 (1,706,956) -40.3%
Residential Fill
(Wastewater Cost) 341,026 226,555 102,718 167,988 (58,567) -25.9%
Satellite
Reimbursement 25,756 103,500 - - (103,500) -100.0%
Recycled Water
Exchange
(Wastewater Cost) 166,758 142,911 99,341 160,837 17,926 12.5%
City of Concord
Reimbursement 3,121,343 5,799,833 4,984,822 3,095,537 (2,704,296) -46.6%
Total Combined
Revenue $10,207,697 $18,110,750 $14,990,357 $9,912,217 ($8,198,533) -45.3%
Wastewater Cost
per RUE $38.41 $72.12 $58.95 $37.83 ($34.29) -47.5%
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 increase in budgeted costs for
FY 2022-23, 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$445,000 is allocated entirely to Operations and Maintenance
(0&M). Furthermore, the $3,095,537 City of Concord Reimbursement is contained within and split
between the total 0&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).
No Satellite Reimbursements are budgeted in FY 2022-23. 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 2022-23
SIF Budget. The SIF revenue for FY 2022-23 is projected to be just over $1.7 million and expenses are
projected to be just under $2.2 million, a difference of approximately$0.4 million, which will be drawn
down from the closing projected reserve balance at June 30, 2022, to result in projected closing net SIF
reserve of$9,000,000 on June 30, 2023. The budgeted revenues include a direct allocation of just
under$1.7 million of Sewer Service Charge Revenue. Prior to FY 2021-22, allocations to Self-Insurance
were routed through the Operations and Maintenance (0&M) Fund to the SIF. However, that
approach caused the reported aggregate budgets to overcount this allocation, which was included as
an "expenditure" in the O&M fund, while the SIF also showed expenditures. Allocating Sewer Service
Charge directly to the SIF 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 exceeding 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 2022-23 of$9,400 with expenses of$755,000, resulting in
expenses exceeding revenues by$745,600. This difference will be transferred from Sub-Fund C 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.
Until FY 2021-22, this reserve was set at $5.0 million. During FY 2021-22, the Board increased the
targeted level to $7.5 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 2022-23 of$1,725,101 with total expenses of$1,415,000,
resulting in revenues exceeding expenses by $310,101. FY 2022-23 revenues includes an allocation of
Sewer Service Charge of$1,662,101, which the amount necessary to close FY 2022-23 with the
minimum policy-specified level of reserves of$7.5 million.
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Table 1 - SIF Summary Overview
2020-21 FY 2021-22 FY 2021-22 FY 2022-23
BudgetWBuWd Actual Budget Projected
Revenues
Sewer Service Charge $- $- $1,576,419 $1,576,419 $1,662,101
SIF Allocation from O&M Fund 450,000 550,000 - - -
Insurance Allocation from Household
Hazardous Waste 20,000 21,714 25,000 25,000 25,000
Subrogation Recovery - 15,158 - - -
Investment Income 112,050 42,203 50,000 19,200 47,400
Total Revenue 582,050 629,075 1,651,419 1,620,619 1,734,501
Expenses
Claims Adjusting 2,000 - 3,000 5,000 5,000
Insurance Consulting 6,500 - 7,000 5,000 5,000
Loss Payments 275,000 362,873 225,000 150,000 425,000
Legal Services 80,000 184,358 140,000 155,000 375,000
Technical Services 90,000 80,773 60,000 110,000 60,000
Insurance Premiums 700,000 767,138 850,000 934,021 1,300,000
Total Expenses 1,153,500 1,395,142 1,285,000 1,359,021 2,170,000
Revenue Over/(Under)Expenses (571,450) (766,067) 366,419 261,598 (435,499)
Projected Reserves
Beginning of Year 7,072,565 7,139,968 6,133,581 6,473,901 9,435,499
Reserves Transfer(O&M) - 100,000 - 2,700,000 -
End of Year Projected Reserves 6,501,115 6,473,901 6,500,000 9,435,499 9,000,000
Allocated Reserves
Actuarial Reserves-GASB-10(Fund A) 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Non-Actuarial Reserves-GASB-10
(Fund C) 5,001,115 4,973,901 5,000,000 7,935,499 7,500,000
Total Allocated Reserves $6,501,115 $6,473,900 $6,500,000 $9,435,498 $9,000,000
*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
BudgetAccount Description Budget Actual Budget Projected
Revenues
SIF Allocation from O&M Fund $- $126,885 $- $- $-
Subrogation Recovery - 1,582 - - -
Investment Income 24,900 9,736 10,000 4,200 9,400
Total Revenue 24,900 138,203 10,000 4,200 9,400
enses
Claims Adjusting - - - 5,000 5,000
Loss Payments 250,000 297,923 150,000 100,000 350,000
Legal Services 80,000 173,751 100,000 150,000 350,000
Technical Services 85,000 17,514 50,000 75,000 50,000
Total Expenses 415,000 489,189 300,000 330,000 755,000
Revenue Over Expense (390,100) (350,985) (290,000) (325,800) (745,600)
Projected Reserves
Projected Reserves-Beginning of Year 1,500,000 1,500,000 1,157,797 1,500,000 1,500,000
Transfer from Sub-Fund C 390,100 350,985 632,203 325,800 745,600
Total Reserves Projected End of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
* Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting.
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Table 3 - SIF - Sub-Fund C
Revenues
Sewer Service Charge $- $- $1,576,419 $1,576,419 $1,662,101
O&M Insurance Charge 450,000 423,115 - - -
Insurance Recovery from Household Hazardous
Waste Partners 20,000 21,714 25,000 25,000 25,000
Subrogation Recovery - 13,575 - - -
Investment Income 87,150 32,466 40,000 15,000 38,000
Total Revenue 557,150 490,871 1,641,419 1,616,419 1,725,101
Expenses
Claims Adjusting 2,000 - 3,000 - -
Insurance Consulting 6,500 - 7,000 5,000 5,000
Loss Payments 25,000 64,950 75,000 50,000 75,000
Insurance Premiums - 10,606 40,000 5,000 25,000
Technical Services 5,000 63,259 10,000 35,000 10,000
Insurance Premiums 700,000 767,138 850,000 934,021 1,300,000
Total Expenses 738,500 905,953 985,000 1,029,021 1,415,000
Revenue Over(Under) Expense (181,350) (415,082) 656,419 587,398 310,101
Projected Reserves
Beginning Reserves 5,572,565 5,639,968 4,975,784 4,973,901 7,935,499
Transfer(to)Sub-Fund A (390,100) (350,985) (632,203) (325,800) (745,600)
Reserves Transfer(O&M) - 100,000 - 2,700,000 -
Total Reserves Projected End of Year $5,001,115 $4,973,901 $5,000,000 7,935,499 $7,500,000
* 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
510,000,000
5 3,044,004
$8,000000 - .
$7,400,000
$5,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
51,000,400
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23
Budget Actual Budget Projection Budget
0Total Revenues ■Total Expenses ■End of Year Projected Reserves
Figure 2 - History of Loss Payment and Insurance Premiums
$1,400,000
$1.200.400
1,440,004
$800.004
S600,000
54GG,000
$200,000
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23
Budget Actual Budget Projection Budget
■Loss Paymerrts A Insurance Premiums
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Figure 3 - Reserves by Sub-Fund
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
4,000,WO
$3,000,000
$2,000,000
1,000,000 , ,
FY 20-21 FY 20-21 FY 21-22 FY 21-22 FY 22-23
Budget Actual Budget Projec-tion Budget
■Actuarial Reserves(Sub Fund A) ■Non-Actuarial Reserves (Seib 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 planned
for FY 2022-23. Additionally, Central San is exploring a debt issuance which may be used to fund a
portion of the FY 2022-23 CIB. If this debt issuance proceeds, a budget amendment for FY 2022-23 is
anticipated.
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Capital Improvement Budget Project Prioritization
The projects included in the FY 2022-23 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
z -E
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 2022-23 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 11, 2022, are shown below:
Projec
Irproject Number . -
Ranking
1 8253 COVID-19 Response GI 345
2 7328 Influent Pump Electrical Improvements TP 330
3 7348 Solids Handling Facility Improvements - Phase 1A TP 325
8436 Pump Station Upgrades - Phase 1 CS 325
100017 San Ramon Electrical Upgrades CS 325
6 7361 Filter Plant and Clearwell Improvements - Phase 1A RW 315
7 7375 Contractor Staging Improvements TP 305
8 100015 Electric Blower Improvements TP 295
9 8250 Enterprise Resource Planning Replacement GI 280
10 7369 Piping Renovation - Phase 10 TP 270
TBD Collection System Sewer Renovation - Phase 2 CS 270
8463 North Orinda Sewer Renovation— Phase 8 CS 270
8464 Martinez Sewer Renovation—Phase 7 CS 270
8465 Walnut Creek Sewer Renovation - Phase 15 CS 270
8466 Danville Sewer Renovation - Phase 4 CS 270
16 8443 Large Diameter Pipeline Inspection Program - Phase 1 CS 255
17 7364 Treatment Plant Safety Enhancement- Phase 5 TP 240
18 100001 UPCCAA Urgent Projects FY 2020-25 TP 235
19 TBD Control System Upgrades TP 230
20 7349 Steam &Aeration Blower Systems Renovations TP 225
21 100005 Cured-In-Place Pipe Blanket Contract (FY 2020-25) CS 215
22 100009 Hearth Replacements TP 210
7370 Annual Infrastructure Replacement FY 2019-25+ TP 210
7373 Fire Protection System - Phase 3 TP 210
25 7315 Applied Research & Innovations TP 200
100012 UV Disinfection Repl. & Hydraulic Improvements TP 200
8457 Pump Station Upgrades - Phase 2 CS 200
100032 Steam Renovations - Phase 1 TP 200
8517 Vehicle Replacement Program FY 2016-26 GI 200
30 100007 Large Diameter Renovation Program CS 190
100030 Solids Handling Facility Improvements— Phase 2 TP 190
100019 Aeration Basins Diffuser Repl. and Seismic Upgrades TP 190
33 8442 PS Equipment & Piping Replacement- Phase 2 CS 185
8444 Force Main Inspection Program - Phase 1 CS 185
8448 Maintenance Access Holes Modifications CS 185
8240 IT Development FY 2016-25 GI 185
TBD Easement Acquisition FY 2022-31 GI 185
38 100034 TP Safety Enhancement Program TP 170
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100008 Laboratory Roof& Seismic Upgrades TP 170
100004 Headquarters Office Building Exterior Repairs GI 170
8516 Equipment Acquisition GI 170
42 100023 Walnut Creek Sewer Renovation - Phase 16 CS 165
100024 South Orinda Sewer Renovation - Phase 9 CS 165
100025 Lafayette Sewer Renovation - Phase 15 CS 165
100011 Plant Electrical Replacement and Rehabilitation TP 165
100002 Filter Plant and Clearwell Improvements- Phase 1B RW 165
5991 Pleasant Hill Sewer Renovation - Phase 2 CS 165
48 100028 Collection System Master Plan Five-Year Update CS 160
100010 Air Conditioning and Lighting Renovations TP 160
50 100022 Wet Weather Basin Improvements TP 155
51 7341 Walnut Creek/Grayson Creek Levee Rehab TP 150
7363 Treatment Plant Planning TP 150
7366 ReW Distribution System Renovations Program RW 150
7368 Water Exchange Project RW 150
55 8450 Development Sewerage Support CS 145
8230 Capital Legal Services GI 145
57 100018 Outfall Monitoring Improvements TP 140
58 100029 Solar Project on Lagiss Property TP 135
100035 Technology Strategic Plan GI 135
100031 Community Development System Replacement GI 135
61 7357 Plant-Wide Instrumentation Upgrades TP 130
62 100033 Security Improvements Study FY 2021-25 GI 125
63 TBD Collection System Modeling Support FY 22+ CS 120
100006 Contractual Assessment District Project Financing CS 120
65 8419 Collection System Planning CS 115
TBD Orinda-Moraga PS Architectural Improvements CS 115
100003 Property Repairs and Improvements GI 115
68 TBD Fire Protection System— Phase 4 TP 110
69 100014 MRC Building Mods. and Maintenance Shops Improv. TP 105
70 100036 Zone 1 Recycled Water 2021+ RW 100
71 7371 Condition Assessment of Buried Pipelines TP 95
72 8447 Pumping Station Security Improvements CS 85
8251 Capital Improvement Program and Budget Improv. GI 85
74 8252 POB E.V. Charging Station GI 50
75 100027 Furnishings Replacement GI 35
TBD TBD Electrical Infrastructure Sub 90 TP TBD
TBD TBD Warehouse Seismic Upgrades TP TBD
TBD TBD Secondary Clarifier Improvements TP TBD
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Individual Project Drivers
Projects included in the CIP address one or more of the four major drivers for implementing capital
improvement projects: 1) Aging Infrastructure; 2) Regulatory; 3) Capacity; and 4) Sustainability. Most
project scopes include several project elements that address a range of drivers. Below is a description
for each of the four major drivers:
• Aging Infrastructure: This project driver describes projects required to maintain the performance
and reliability of existing assets to ensure reliable conveyance and treatment of wastewater.
Central San operates and maintains several billion dollars of assets, and several projects in each
program have been initiated or are in progress to meet replacement or rehabilitation infrastructure
needs. Most of the existing treatment plant facilities were constructed in the late 1970s and early
1980s following the passage of the Clean Water Act, and some of the collection system facilities
and piping were constructed as early as the 1940s and 1950s. Central San recognizes the need to
address aging infrastructure and has developed an Asset Management system.
• Regulatory: This project driver describes projects required to reliably comply with regulatory
requirements that are designed to protect human health and the environment, and includes
planning needed to anticipate potential future regulatory requirements. Regulatory drivers that
may trigger capital improvement projects include potential changes in future state and/or federal
water, air, and solids regulations. Potential regulatory drivers include: changes to existing final
effluent limits to address nutrients, selenium, contaminants of emerging concern, and others;
changes to California/National Toxics Rules, 303 (d) listed pollutants and micropollutants, and new
virus-based disinfection criterion; reductions in greenhouse gas emission Cap and Trade Program
thresholds; compliance with Federal 129 sewage sludge incineration rules, changes to air emission
limits, and solids handling/management and disposal regulations; recycled water, including
potential coordinated projects with water agencies on Title 22, indirect or direct potable reuse
opportunities; and collection system regulatory requirements such as the reduction of sewer
system overflows. Occasionally, improvements are also required to improve the reliability of
existing facilities to ensure 100% compliance with regulatory permits and to ensure protection of
human health and the environment.
• Capacity: This project driver describes projects required to increase capacity of existing facilities.
Capacity drivers that may trigger capital improvement projects include potential upgrades required
to mitigate hydraulic bottlenecks and increase capacity of existing facilities to accommodate
wastewater flows and loads. Projects that would be required to accommodate planned growth are
not included in the CIP.
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• 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.
Example of Project Driver(s)
Each project is described on the following pages. Project Drivers
Each project summary includes project name,
description, prioritization, purpose, operating
department impact and funding source, location, Aging Infrastructure Capacity
budgetary information, and 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) Regulatory Sustainability
displayed in gray.
4
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Capital Improvement Budget FY 2021-22 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 maintenance access holes, 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 8.0
miles of upcoming sewer replacement this fiscal year and coordinated the projects with city paving
programs and other utilities throughout the service area.
Sewer Replacement in a Residential Neighborhood and Aerial 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 Phase 1A 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 winter of 2022-23 with construction completion in 2025.
Safety projects include construction of the emergency external stairway for the Solids Conditioning
Building, which provides for employee safety for emergency egress.
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 and should be completed this fiscal year. The construction for the Flush Kleen
Pumping Station was completed last fiscal year.
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• Pump Station Upgrades— Phase 2: The construction will begin for the needed electrical and
mechanical equipment replacements at the Martinez, Maltby, and Fairview Pumping Stations.
Construction is expected to begin in late FY 2022-23. The construction of the pumping stations
may likely include additional phasing due to scope and to attract more bidders.
• Filter Plant and Clearwell Improvements—Phase 1A: 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 is well underway and is
expected to be completed this fiscal year.
• Steam and Aeration Blower Systems Renovation: Condition assessments are completed for the
steam and heat recovery systems at the treatment plant and several other areas in the aeration
system, as well as the associated electrical systems. Several projects have been identified as a
result and will be implemented in phases over time. The construction of the first phase, which
consisted of the installation of three electric blowers, is scheduled to be completed this fiscal year.
The second phase focused on the Aeration System is under design 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 Renovation, respectively.
• Solids Handling Facility Improvements:Three related solids projects were 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
(completed), and the Contractor Staging Improvements (nearing completion). The Solids Phase 1A
Project construction contract is expected to be awarded in FY 2022-23 as the main project was
downsized to only include the most critical items.
• Projects completed: Several projects are completed and will be closed this Fiscal Year and will no
longer be represented in the CIB. 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, as shown below by program:
Treatment Plant Program:
• PLC Systems Upgrades, District Project (DP) No. 7304
• Plant Control System 1/0 Replacement, DP No. 7339
• Ultraviolet Disinfection Upgrades, DP No. 7352
• Outfall Improvements— Phase 7, DP No. 7353
• Treatment Plant Security Improvements, DP No. 7354
Collection System Program:
• Collection System Modeling Support, DP No. 8449
• Collection System Sewer Renovation— Phase 1, DP No. 8451
• Martinez Sewer Renovation— Phase 6, DP No. 8458
• Lafayette Sewer Renovation— Phase 14, DP No. 8459
• Walnut Creek Sewer Renovation— Phase 14, DP No. 8460
• South Orinda Sewer Renovation — Phase 8, DP No. 8461
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FY 2022-23 Capital Improvement Budget
The CIB Budget to date is approximately $224.18 million. The budget needed for all ongoing and new
projects in FY 2022-23 is $90.98 million. The future year estimated budget for these projects is at
$602.35 million. Combined the total estimated budget for the identified projects in the FY 2022-23 CIB
is $917.51 million. The 2022 Ten-Year CIP is projected to be $1,135 million as shown below in Table 1:
Table 1 — FY-2022-23 CIB per Program
Budget-to-Date-4� FY 2022-23 Future FYs Total Estimated FY 2022
Budgets
Collection System $74,864,181 $36,850,000 $130,941,000 $242,655,181 $324,141,000
Treatment Plant 96,569,332 39,981,000 414,000,000 550,550,332 724,290,000
General Improvements 19,896,459 3,795,000 5,175,000 28,866,459 23,480,000
Recycled Water 32,854,000 8,715,000 34,884,000 76,453,000 44,777,000
CIB Contingency - 1,635,000 17,350,000 18,985,000 18,985,000
Totals: $224,183,972 $90,976,000 $602,350,000 $917,509,972 $1,135,673,000
The Budget to Date (1) above includes approximately 78% budget already spent for on-going projects.
ti ►Y � �4 ■
OL
'r
i
Constructing new steel storage tanks and replacing electrical gear under the Filter Plant and Clea rwelI
Improvements— Phase 1 Project
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FY 2022-23 Capital Improvement Budget Construction Commitments
As of April 30, 2022, the total construction commitments authorized by the Board in FY 2021-22 or
prior is $87.9 million and a total of$47.25 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 Fund (SCF) Budget,
$150 Commitments and Financial Capacity $150
$130 $130
1
$110 44 1 $110
1 1
$90 I 1 1 $90
0 1 l I 1
1 I I 1
$70 i i i $70
53.75
$50 86 j i 86 $50
1 I I 1
1 I I 1
$30 1 i $30
I I 1
I I 1
$10 $10
-$10 21/22 22/23 23/24 24/25 -$10
Fiscal Year
®Approved and Projected Budget per FY
Additional capacity with contemplated rate increases
(not yet approved)
k=Z 1 Remaining capacity with existing rates
�Committed already(contracted)
Existing SCF Revenue(includes growth in non-SSC revenue but no SSC rate increases)
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FY 2022-23 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 2022-23, the emphasis will be on
thirteen large projects (those projects over $2.0 million), which together account for$69.20 million or
76% of the total CIB for the year. Each major project budget is shown below:
1. Pump Station Upgrades
FY-2022-23 Budget: $11,900,000 Estimated total project cost: $47,950,000
Estimated completion date: FY 2025-26
.•
FY-2022-23 Budget: $9,410,000 Estimated total project cost: $89,410,000
Estimated completion date: FY 2026-27
Improvements
Estimated total project cost: $38,589,000
FY-2022-23 Budget: $7,600,000
Estimated completion date: FY 2022-23
0
Estimated total project cost: $61,300,000
FY-2022-23 Budget: $7,500,000 o
Estimated completion date: FY 2027-28
Estimated total project cost: $135,018,687
FY-2022-23 Budget: $5,000,000
Estimated completion date: FY 2025-26
Estimated total project cost: $17,500,000
FY-2022-23 Budget: $4,500,000
Estimated completion date: FY 2024-25
Blower7. Electric
FY-2022-23 Budget: $4,245,000 Estimated total project cost: $15,750,000
Estimated completion date: FY 2023-24
FY-2022-23 Budget: $3,740,000 Estimated total project cost: $5,200,000
Estimated completion date: FY 2023-24
n.
ZY-20:222-23 Budget: $3,600,000 Estimated total project cost: $5,100,000
FY-2022-23 Budget: $3,600,000
Estimated completion date: FY 2023-24
TIMIMMeMIMMEV
FY-2022-23 Budget: $3,500,000 Estimated total project cost: $68,480,000
Estimated completion date: FY 2027-28
FY-2022-23 Budget: $3,100,000 Estimated total project cost: $156,200,000
Estimated completion date: FY 2031-32
W—Martinez Sewer Renovation—Phase 7 AW
Estimated total project cost: $5,000,000
FY-2022-23 Budget: $2,500,000
Estimated completion date: FY 2022-23
meow 7-
Estimated total project FY-2022-23 Budget: $2,000,000 cost: $10,000,000
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 2 has started this year and its budget will be used
to fund the construction of the Walnut Creek Sewer Renovation— Phase 16, South Orinda Sewer
Renovation — Phase 9, and Lafayette Sewer Renovation— Phase 15, as well as future design and
construction budgets to Fiscal Year 2026-27.
• Steam and Aeration Blower Systems Renovation Project: Elements identified as part of the
condition assessment and will be completed in multiple projects as follows:
a. Phase 1 - Electric Blower Improvements
b. Phase 2 -Aeration Basins Diffuser Replacement and Seismic Upgrades
c. Phase 3 -Secondary Clarifier Improvements
d. Phase 4 -Steam Renovations Phase 1 and Phase 2 Projects
• The Filter Plant & Clearwell Improvements Phase-113 in the Recycled Water Program will be phased
to include the Electrical renovation required at the Filter Plant Facility as a separate project due to
the urgency of replacing electrical assets.
• The Pumping Station Upgrades Phase-2 in the Collection System Program will be split or slightly
phased based on the scope of work and to receive additional contractor interest. The new pumping
stations for Fairview and Maltby will be packaged and bid together and the electrical renovation
work at Martinez will be bid separately.
Modification of Scope or Budget:
• The Solids Handling Facility Improvements Phase-1 in the Treatment Plant Program was bid last
fiscal year and the project has been re-evaluated and scope reduced to include the most critical
items under the project. The project budget has decreased by approximately $48 Million and the
new scope, renamed to Phase 1A, will include new wet scrubbers, dewatering and cake pumps,
incinerator burners, and associated electrical and controls to those systems.
• Major project budgets were changed from last fiscal year, as shown below
Projects IFY 2021-22 IFY 2022-23
Pump Station Upgrades, Ph.2,
District Project(DP)8457 $38,950,000 $47,950,000
UV Disinfection Replacement and Hydraulic
Improvements, DP 100012 35,280,000 68,480,000
Aeration Basins Diffuser Replacement and Seismic 25,800,000 61,300,000
Upgrades, DP 100019
Steam Renovations, DP 100032 0 17,500,000
Steam and Aeration Blower Systems Renovations, 35,350,000 5,850,000
DP 7349
Solids Handling Facility Improvements, Phase 1A, 183,984,000 135,018,687
DP 7348*
Totals 1 $319,364,000 $336,098,687
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Renaming Projects:
• The Manhole Modification project in the Collection System Program has been renamed to
"Maintenance Access Cover Modifications".
• The Treatment Plant Safety Enhancements-Phase 5 has been renamed to the "Treatment Plant
Safety Enhancement Program" to account for a yearly allowance and budget for safety
improvements throughout the treatment plant.
Projects not included in FY 2021-22 CIB and initiated as contingency projects:
• Orinda — Moraga PS Architectural Improvements was initiated as a result of the Pumping Station
Upgrades Phase-1 construction. Improvements to the aesthetics of the Orinda Crossroads and
Moraga Pumping Stations is needed.
• The Community Development System Replacement and Solar Project on Lagiss Property were
included in Fiscal Year 2021-22.
Staffing for Large Capital Projects and Program
Since 2017, the annual capital improvements budget has steadily increased and has a ten-year
projection totaling over a billion dollars. The Capital Projects Division leads the efforts to implement
the large program and has reached its limits to support all the projects identified in the plan.
Therefore, additional support is needed especially for the larger and multi-year projects such as the
Solids Handling Facility Improvements Phase 1A, Aeration Basins Diffuser Replacement and Seismic
Upgrades, UV Replacement, and potentially other significant projects.
Therefore, future staffing for large projects will be supplemented by consultant engineers and or a
combination with project-based employees (5-year term). As for the collection system program that
uses in-house engineering and construction management, the planned sewer replacement is continual
with potential increases based on condition assessments. Staffing for the collection system will be re-
evaluated this fiscal year.
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.
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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.
Y
1
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CEQA Compliance Summary for FY 2022-23
COLLECTION SYSTEM PROGRAM
Exemption • Document Re
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 Maintenance Access Hole Modifications X
8450 Development Sewerage Support X
8457 Pump Station Upgrades—Phase 2 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 Upgrades X
100023 Walnut Creek Sewer Renovation—Phase 16 X
100024 South Orinda Sewer Renovation—Phase 9 X
100025 Lafayette Sewer Renovation—Phase 15 X
Planning is exempt; more information is needed
100028 Collection System Master Plan 5-Yr Update X on future aspects of this project to determine
appropriate CEQA documentation.
TBD Collection System Sewer Renovation—Phase 2 X
TBD Collection System Modeling Support FY 22+ X
100037 Orinda-Moraga PS Architectural Improvements X
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TREATMENT PLANT PROGRAM
7315 Applied Research and Innovations X
7328 Influent Pump Electrical Improvements 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
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 needed
7371 Condition Assessment of Buried Pipelines X 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&Seismic Upgrades X
100009 Hearth Replacements X
100010 Air Conditioning and Lighting Renovations X
100011 Plant Electrical Replacement and Rehabilitation X
100012 UV Disinfection Replacement and Hydraulic X
Improvements
100014 MRC Building Modifications and Maintenance X
Shops Improvements
100015 Electric Blower Improvements X
100018 Outfall Monitoring Improvements X
100019 Aeration Basins Diffuser Repl. &Seismic Upg. X
100022 Wet Weather Basin Improvements X
100030 Solids Handling Facility Improvements—Ph. 2 X
100032 Steam Renovations— Ph. 1 X
100034 TP Safety Enhancement Program X
TBD Fire Protection System—Phase 4 X
TBD Control System Upgrades X
TBD Secondary Clarifier Improvements X
TBD Warehouse Seismic Upgrades X
TBD Electrical Infrastructure Sub 90 X
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GENERAL IMPROVEMENTS PROGRAM
8230 Capital Legal Services X
8240 IT Development X
8250 ERP Replacement X
Capital Improvement Program and Budget Planning is exempt; more information is needed
8251 Improvements X on future aspects of this project to determine
appropriate CEQA documentation.
8252 POB EV 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
100027 Furnishings Replacement X
100029 Solar Project on Lagiss Property X
100033 Security Improvements FY 2021-25 X
Planning is exempt; more information is needed
100035 Technology Strategic Plan X on future aspects of this project to determine
appropriate CEQA documentation.
100031 Community Dev.System Replacement X
TBD Easement Acquisition FY 2022-31 X
RECYCLED WATER PROGRAM
Project No. Project Name Exemption
CEQA Document
7361 Filter Plant and Clearwell Improvements—Phase X
1A
7366 Recycled Water Distribution System Renovations X
Program
Planning is exempt; more information is needed
7368 Water Exchange Project X on future aspects of this project to determine
appropriate CEQA documentation.
100002 Filter Plant and Clearwell Improvements—Phase X
1B
100036 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 2022-23 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 financing 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:
• Reduction of impacts to customers/residents and communities.
• Results from Central San's InfoMaster° model and InfoAssets°, which is an advanced geographic
information system (GIS) 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 2022-23 Collection System Program Budget/Project Summar
Project Project Name Budget-to- FY 2022-23 Future Total
Number ..2ft D.
5991 Pleasant Hill Sewer Renovation- Phase 2 $1,460,000 $3,740,000 $- $5,200,000
8419 Collection System Planning 1,585,000 200,000 - 1,785,000
8436 Pump Station Upgrades-Phase 1 35,451,000 - - 35,451,000
8442 Pumping Station Equipment& Piping 564,000 206,000 - 770,000
Replacement-Phase 2
8443 Large Diameter Pipeline Inspection Program 1,795,000 - - 1,795,000
-Phase 1
8444 Force Main Inspection Program-Phase 1 1,125,000 - - 1,125,000
8447 Pumping Station Security Improvements 357,000 82,000 163,000 602,000
8448 Maintenance Access Cover Modifications 2,007,925 400,000 - 2,407,925
8450 Development Sewerage Support 4,032,316 927,000 3,708,000 8,667,316
8457 Pump Station Upgrades-Phase 2 5,950,000 11,900,000 30,100,000 47,950,000
8463 North Orinda Sewer Renovation-Phase 8 4,304,000 - - 4,304,000
8464 Martinez Sewer Renovation-Phase 7 2,500,000 2,500,000 - 5,000,000
8465 Walnut Creek Sewer Renovation-Phase 15 5,400,000 - 5,400,000
8466 Danville Sewer Renovation-Phase 4 1,500,000 3,702,000 - 5,202,000
100005 Cured-In-Place Pipe Blanket Contract 850,000 250,000 - 1,100,000
(FY 2021-25)
100006 CAD Project Financing 832,940 100,000 800,000 1,732,940
100007 Large Diameter Piping Renovation Program 2,000,000 - 15,000,000 17,000,000
100017 San Ramon Electrical Upgrades 700,000 1,213,000 - 1,913,000
100023 Walnut Creek Sewer Renovation- Phase 16 500,000 - - 500,000
100024 South Orinda Sewer Renovation-Phase 9 500,000 - 500,000
100025 Lafayette Sewer Renovation-Phase 15 500,000 - - 500,000
100028 Collection System Master Plan 5-Yr Update 750,000 850,000 - 1,600,000
TBD* Collection System Sewer Renovation- - 9,410,000 80,000,000 89,410,000
Phase 2
TBD* Collection System Modeling Support FY 22+ - 120,000 1,170,000 1,290,000
TBD* Orinda-Moraga PS Architectural 200,000 1,250,000 - 1,450,000
Improvements
Collection System Program Total: $74,864,181 $36,850,000 $130,941,000 $242,655,181
*New project in FY 2022-23 and number to be determined(TBD)
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Pleasant Hill Sewer Renovation- Phase 2 - District Project 5991
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 42 165
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- Phase 2 Project will replace or rehabilitate 6,500 feet of small
diameter sewers located in both public right-of-way and easements within the city of Pleasant Hill.
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): Pleasant Hill
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $183,000 $- $- $- $183,000
Design 527,000 40,000 - 567,000
Construction 750,000 3,700,000 - - 4,450,000
FY Total $1,460,000 $3,740,000 $- $- $5,200,000
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Collection System Planning— District Project 8419
Program Phase Ranking Score
Collection System Planning 65 115
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 InfoAssets°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 InfoAssets°sewer risk model and long-term sewer renovation need projections to
incorporate force main and large diameter sewer inspection results to develop long-term
renovation and ongoing condition assessment strategies
• Identify and evaluate promising technologies, optimizations, and pilots applicable to collection
system and pumping station operations
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Collection System and Pumping Stations
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $1,585,000 $200,000 $- $- $1,785,000
Design - - - -
Construction - - - - -
FY Total $1,585,000 $200,000 $- $- $1,785,000
June 16, 2022 Regular Board Meeting Agenda PackeWage 257 of 771
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Pump Station Upgrades - Phase 1 - District Project 8436
Program Phase Priority Rank Ranking Score
Collection System Construction 3 325
Purpose:
To address aging infrastructure and reliability needs at the Moraga, roject 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 pumping stations has
identified several structural, mechanical, electrical, � ����
and instrumentation improvements. An Arc Flash
Study has also identified several improvements that '
are required at these pumping stations.
Description:
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
Crossroads
• Replace wet weather diesel engine driven pumps
with electric motors at Moraga and Orinda Crossroads
• Add new backup generators and automatic transfer switch improvements at all three sites
• Recondition or replace pumps, valves, and gates
• Repair/recoat piping and concrete
• Replace major electrical/controls, 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
• Coordinate with the City of Orinda, Town of Moraga, and others
• Update PG&E Services and entry panels
Operating Department Impact and Funding Source:
The impacts on the operating budgets are similar for labor, however, new grinders will add costs for
maintenance. Project expenditures are funded from Capital Revenues.
Location(s): Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $450,000 $- $- $- $450,000
Design 3,200,000 - - - 3,200,000
Construction 31,801,000 - - - 31,801,000
FY Total $35,451,000 $- $- $- $35,451,000
June 16, 2022 Regular Board Meeting Agenda Pack(2to.5Page 258 of 771
Page 210 of 341
Pumping Station E ui ment and Pi in Re 1acement- Phase 2 - District Project 8442
Program Phase Priority Rank Ranking Score
Collection System Construction 33 185
Purpose:
Project Drivers
To replace or recondition failed and obsolete pumps, piping,
valves, and other pumping station equipment and to provide Aging Capacity
proper emergency response equipment and critical spare parts at Infrastructure
pumping stations.
Regulatory Sustainability
Drivers:
This ongoing project replaces aging equipment and piping in
poor condition at the pumping stations.
Additionally, emergency response equipment and critical spare
parts are identified to improve resiliency and reliable r�
operations during emergency conditions, power failures, and s
severe wet weather.
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 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - -
Construction 564,000 206,000 - 770,000
FY Total $564,000 $206,000 $- $- $770,000
June 16, 2022 Regular Board Meeting Agenda Pack(L?ID6Page 259 of 771
Page 211 of 341
Large Diameter Pipeline Inspection Program— Phase 1 — District Project 8443
Program Phase Priority Rank Ranking Score
Collection System Planning 16 255
Purpose:
To assess the condition of large diameter trunks and interceptors Project
and confirm the timing for renovation needs. Aging Capacity
Infrastructure
Drivers:
Central San owns 76 miles of wastewater trunks and interceptors Regulatory sustainability
ranging from 24 inches to 102 inches in diameter. The typical
lifespan of large sewers ranges from 50 to 150 years depending on
pipe material, hydraulic, operating, and environmental conditions.
Nearly half of Central San's large sewers are over 50 years old and ,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 2022-23 FY 2023-24 Future FYs Total
Planning $1,795,000 $- $- $- $1,795,000
Design - - -
Construction - - - -
FY Total $1,795,000 $- $- $- $1,795,000
June 16, 2022 Regular Board Meeting Agenda Packel&7Page 260 of 771
Page 212 of 341
Force Main Inspection Program — Phase 1 — District Project 8444
Program Phase Priority Rank Ranking Score
Collection System Planning 33 185
Purpose:
To assess the condition of force mains and confirm the timing for Project
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 pumping stations have a lower risk and will be inspected in the future
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $1,125,000 $- $- $- $1,125,000
Design - - - -
Construction - - - -
FY Total $1,125,000 $- $- $- $1,125,000
June 16, 2022 Regular Board Meeting Agenda Packq?ID$Page 261 of 771
Page 213 of 341
Pumping Station Security Improvements — District Project 8447
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 72 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 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 pumping stations will be implemented under this project or related projects.
Some improvements may be implemented in collaboration with other programs. In general,
recommendations include:
• Increased surveillance and intrusion detection
• Access control improvements
• Perimeter fencing repair
• Increased signage and other miscellaneous security improvements
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Related Projects: Include Moraga, Orinda, Flush Kleen, and Martinez projects
Location(s): Pumping Stations
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 131,000 - - - 131,000
Construction 226,000 82,000 82,000 81,000 471,000
FY Total $357,000 $82,000 $82,000 $81,000 $602,000
June 16, 2022 Regular Board Meeting Agenda Pack(2�a9Page 262 of 771
Page 214 of 341
Maintenance Access Cover Modifications — District Project 8448
Program Phase Priority Rank Ranking Score
Collection System Construction 33 185
Purpose:
To replace, repair, or raise maintenance access hole covers and top Project Drivers
blocks to match roadway elevations in coordination with pavement Aging Capacity
restoration 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 maintenance
access covers or rodding inlets which can be in paved
roadways, public right-of-way, and private roadways
throughout the entire service area. Continual replacement
of maintenance access covers or repairing top blocks are
needed on a yearly basis as the system ages or the roadways
are rebuilt.
Description:
k
This project will fund the replacement or raising of _
maintenance access hole 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 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - - -
Construction 2,007,925 400,000 - - 2,407,925
FY Total $2,007,925 $400,000 $- $- $2,407,925
June 16, 2022 Regular Board Meeting Agenda Pack(tl-oPage 263 of 771
Page 215 of 341
Development Sewerage Su ort— District Project 8450
Program Phase Priority Rank Ranking Score
Collection System Construction 55 145
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 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - -
Construction 4,032,316 927,000 927,000 2,781,000 8,667,316
FY Total $4,032,316 $927,000 $927,000 $2,781,000 $8,667,316
June 16, 2022 Regular Board Meeting Agenda Pack(2ti-lPage 264 of 771
Page 216 of 341
Pump Station Upgrade - Phase 2 - District Project 8457
Prio
Collection System Construction 25 200
Purpose:
To address aging infrastructure and reliability needs at the ect Drivers
Martinez, Fairview, and Maltby Pumping Stations. Aging Capacity
Infrastructure P y
Drivers:
A comprehensive condition assessment of the pumping stations Regulatory Sustainability
has identified several structural, mechanical, electrical, and
instrumentation improvements. An Arc Flash Study has also
identified several improvements required at these stations.
Description:
r
The following are major elements included in the project:
• Replace corroded steel dry pits with new wet wells at the ,f z
Fairview and Maltby Pumping Stations -
• Replace backup generators and instrumentation
• Rehabilitate or replace flow meters
• Recondition or replace pumps, valves, and gates
• Repair/recoat piping and concrete
• Replace major electrical/controls, including Arc Flash Study
recommendations
• Replace worn control panels and seismically brace control panels and electrical cabinets
• Improve safety devices such as replacement of gas detection systems and eye wash stations
• Evaluate force mains at each pumping station
Operating Department Impact and Funding Source:
The impacts on the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues. Fairview and Maltby will be bid separate as Phase 2A and Martinez as Phase 213
due to the scope of the projects and to attract more bidders.
Location(s): Martinez, Fairview, and Maltby Pump Stations
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $150,000 $- $- $- $150,000
Design 3,900,000 - - - 3,900,000
Construction 1,900,000 11,900,000 17,500,000 12,600,000 43,900,000
FY Total $5,950,000 $11,900,000 $17,500,000 $12,600,000 $47,950,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t12Page 265 of 771
Page 217 of 341
North Orinda Sewer Renovation- Phase 8 - District Project 8463
L Priority Rank Ranking Score
Collection System Construction 10 270
Purpose:
To replace and renovate small diameter sewers within the Project Drivers
southern portion of the City of Orinda, unincorporated Orinda, and Aging Capacity
the Town of Moraga.
Infrastructure P y
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. a
More than 300 miles of the small diameter sewers in the
i'
collection system were constructed prior to 1956. The _
methods and materials of construction used at that time do not1
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, minimize the number of overflows, limit the
quantity of rainfall entering the collection system, and 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
10,000 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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 410,000 - - 410,000
Construction 3,794,000 - - - 3,794,000
FY Total $4,304,000 $- $- $- $4,304,000
June 16, 2022 Regular Board Meeting Agenda PackJt13Page 266 of 771
Page 218 of 341
Martinez Sewer Renovation— Phase 7 — District Project 8464
Program Phase Priority Rank Ranking Score
Collection System Construction 10 270
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, 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 Martinez Sewer Renovation - Phase 7 Project will replace or rehabilitate up to approximately
4,500 feet of small diameter sewers primarily along Alhambra Ave., and 1,500 feet of trunk sewers on
Alhambra Ave.
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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 600,000 - - - 600,000
Construction 1,800,000 2,500,000 - - 4,300,000
FY Total $2,500,000 $2,500,000 $- $- $5,000,000
June 16, 2022 Regular Board Meeting Agenda Packer-4Page 267 of 771
Page 219 of 341
Walnut Creek Sewer Renovation — Phase 15 — District Project 8465
Program Phase Priority Rank Ranking Score
Collection System Construction 10 270
Purpose:
To replace and renovate small diameter sewers within the Project
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
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 ' 4
of service provided to customers.
Description:
The Walnut Creek Sewer Renovation- Phase 15 Project will replace or rehabilitate up to approximately
9,800 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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 600,000 - - 600,000
Construction 4,700,000 - - - 4,700,000
FY Total $5,400,000 $- $- $- $5,400,000
June 16, 2022 Regular Board Meeting Agenda Pack(2tl-5Page 268 of 771
Page 220 of 341
Danville Sewer Renovation — Phase 4 — District Project 8466
Mm"Kilority Rank Ranking Score
Collection System Construction 10 270
Purpose:
ect Drivers
To replace and renovate small diameter sewers within the
town of Danville or nearby areas. 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. .{ IZZ
:. :
More than 300 miles of the small diameter sewers in the •` �
collection system were constructed prior to 1956. The
gJ y,` ✓® 4 Y��M1
methods and materials of construction used at that time do t '
not currently perform well and are the source of over 90% of :«i
,1
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,`
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 Danville Sewer Renovation - Phase 4 Project will replace or rehabilitate approximately up to 9,200
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): Danville
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - 500,000
Construction 900,000 3,702,000 - 4,602,000
FY Total $1,500,000 $3,702,000 $- $- $5,202,000
June 16, 2022 Regular Board Meeting Agenda PackOHPage 269 of 771
Page 221 of 341
Cured-in-Place Pipe Blanket Contract 2020-2025 — District Project 100005
Collection System Construction 21 215
Purpose:
Use cured-in-place pipe (CIPP) technology to repair any urgent roject Drivers
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 : �7
that will allow Central San to use a contractor to perform urgent F L.
CIPP work. '
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
ALr
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $ $-
Design 150,000 - 150,000
Construction 700,000 250,000 950,000
FY Total $850,000 $250,000 $- $- $1,100,000
June 16, 2022 Regular Board Meeting Agenda Packeft7Page 270 of 771
Page 222 of 341
Contractual Assessment District Project Financing— District Project 100006
Program Phase Priority Rank Ranking Score
Collection System Construction 63 120
Purpose: Project Drivers
To provide a financing mechanism for the extension of public
sewers into areas that are currently served by septic tanks, Aging Capacity
referred to as Contractual Assessment Districts (CADS), or other Infrastructure
financing authorized by the Board of Directors.
Regulatory Sustainability
Drivers:
In certain instances, the cost to extend public sewers into an area
serviced by septic tanks can be an extreme financial burden for one ,
owner or even a small group of owners. Central San developed the
CAD Program to address this financial burden. The CAD process �r13
provides a means to finance the cost of sewer improvements over
time at a fixed interest rate. The CAD assessments are placed on
the customers' property tax bills each year until the entire amount
is reimbursed to Central San. Each CAD is presented to the Board
of Directors for approval. '
Description: `s ,
This project will provide funding for potential CADS or other
options. Items which may be financed include:
• Central San's permit application, inspection, and related fees
• Any 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 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - -
Construction 832,940 100,000 100,000 700,000 1,732,940
FY Total $832,940 $100,000 $100,000 $700,000 $1,732,940
June 16, 2022 Regular Board Meeting Agenda PackOHPage 271 of 771
Page 223 of 341
Large Diameter 3iping Renovation Program— District Project 100007
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 30 190
Purpose:
Project Drivers
To plan for and design large diameter trunk and interceptor
replacement projects for collection system sewers that are near Aging Capacity
the end of their useful lives. The implementation of the repairs
Infrastructure P y
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 pipelines under District Project 8443.
J
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 2022-27).
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 2022-23 FY 2023-24 Future FYs Total
Planning $400,000 $- $- $- $400,000
Design 600,000 - - - 600,000
Construction 1,000,000 - 3,000,000 12,000,000 16,000,000
FY Total $2,000,000 $- $3,000,000 $12,000,000 $17,000,000
June 16, 2022 Regular Board Meeting Agenda Pack0179Page 272 of 771
Page 224 of 341
San Ramon Electrical Upgrades — District Project 100017
Program Phase Priority Rank Ranking Score
Collection System Construction 3 325
Purpose:
Replace and or upgrade electrical equipment which are at the end Project Drivers
of their useful life expectancy. Aging Capacity
Infrastructure
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
n i
co d tions.
Description:
'1
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 must 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 pumping 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
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 200,000 - - 200,000
Construction 500,000 1,213,000 - - 1,713,000
FY Total $700,000 $1,213,000 $- $- $1,913,000
June 16, 2022 Regular Board Meeting Agenda Packel!2OPage 273 of 771
Page 225 of 341
Walnut Creek Sewer Renovation — Phase 16 — District Project 100023
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 42 165
Purpose:
To replace and renovate small diameter sewers within the Project
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,
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 ' 4
service provided to customers.
Description:
The Walnut Creek Sewer Renovation- Phase 16 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. Construction budget will be transferred from the Phase 2 Collection System
Renovation Program at time of award.
Location(s): Walnut Creek
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 450,000 - - 450,000
Construction - - - - -
FY Total $500,000 $- $- $- $500,000
June 16, 2022 Regular Board Meeting Agenda Packel!2-lPage 274 of 771
Page 226 of 341
South Orinda Sewer Renovation— Phase 9 — District Project 100024
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 42 165
Purpose:
Project Drivers
To replace and renovate small diameter sewers within the
southern portion of the City of Orinda, unincorporated Orinda, and Aging Capacity
the Town of Moraga.
Infrastructure P y
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 needfor 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, 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 South Orinda Sewer Renovation— Phase 9 Project will replace or rehabilitate up to approximately
11,000 feet of small diameter sewers located in both public right-of-way and easements within the
southern portion of the city of Orinda, 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. Construction budget will be transferred from the Phase 2 Collection System
Renovation Program at time of award.
Location(s): Orinda and Moraga
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 450,000 - - 450,000
Construction - - - - -
FY Total $500,000 $- $- $- $500,000
June 16, 2022 Regular Board Meeting Agenda Packet2-2Page 275 of 771
Page 227 of 341
Lafayette Sewer Renovation— Phase 15 — District Project 100025
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 42 165
Purpose:
ect Drivers
To replace and renovate small diameter sewers within the city and
unincorporated areas of Lafayette. Aging Capacity
Infrastructure P y
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory sustainability
that range in age from new to more than 100 years old. Some of
the pipe segments are at or near the end of their useful lives
as evidenced by their need for frequent maintenance, high s,
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 �" r
methods and materials of construction used at that time do [iy
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, 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 Lafayette Sewer Renovation— Phase 15 Project will replace or rehabilitate up to approximately
13,000 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. Construction budget will be transferred from the Phase 2 Collection System
Renovation Program at time of award.
Location(s): Lafayette
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 450,000 - - - 450,000
Construction - - - - -
FY Total $500,000 $- $- $- $500,000
June 16, 2022 Regular Board Meeting Agenda Pack(212-3Page 276 of 771
Page 228 of 341
Collection System Master Plan Five -Year Update — District Project 100028
Program Phase Priority Rank Ranking Score
Collection System Planning 48 160
Purpose: iect Drivers
To update the 2017 Comprehensive Wastewater Master Plan
(CWMP) that determines the future direction, capital improvement Aging
needs, and priorities for Central San's collection system's needs.
Infrastructure Capacity
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 wastewater Y
cemmicA ieeanna,osm
and planning for future rehabilitation or replacement is essential.
Description: ILI
• The Collection System (CS) Master Plan was one component of the
2017 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 continue to review pump stations including Bates Boulevard, San
Ramon, Clyde, and Concord Industrial, Acacia, and Wagner Ranch Pump Station.
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 2022-23 FY 2023-24 Future FYs Total
Planning $750,000 $850,000 $- $- $1,600,000
Design - - - -
Construction - - - - -
FY Total $750,000 $850,000 $- $- $1,600,000
June 16, 2022 Regular Board Meeting Agenda Packel!2-4Page 277 of 771
Page 229 of 341
Collection System Sewer Renovation —Phase 2 — District Project TBD
Program Phase Priority Rank Ranking Score
Collection System Planning/Design/Construction 10 270
Purpose:
To plan and initiate design for additional sewer replacement Project Drivers
projects for collection system sewers that are near the end of their Aging
useful life. Infrastructure Capacity
Drivers: Regulatory Sustainability
Central San's collection system includes 1,540+ miles of gravity
sewers and over 37,000 maintenance access holes. Pipeline sizes
range from 4 inches to 102 inches in diameter, and pipe
materials vary throughout the system. 60.000.000
Continual replacement will provide the best possible 60.DW.000
protection against sewer service overflows (SSOs). The 40,000,000
InfoMaster° sewer replacement risk model was developed
to prioritize the timing for sewer replacement and to -i 30•°00.000
a
develop a risk-based sewer replacement program. To meet U 20,9(10,000
increase replacement rates in years 20-50, this program
ramps up the replacement rate. The first five years, Phase 10.000,000
1, replaced up to 35 miles, an average of 7.0 miles per year.
Phase 2 will continue a similar pace with a slight increase to ^ N N N ^ N ^ N r. N ^ N N N ^ N r. N 2 N
N N N M N N N N N N N N N N N N N ❑ ❑ N
❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ r
NN
approximately 8.0 miles per year for the next five years. NNNN N N N N N N N N N N N N N N
ForewdtYear
Replacement for years ten through twenty, Phase 3, in the
CIP will be re-evaluated under the Collection System Master Plan update.
Description:
This project is for pipeline selection planning and some preliminary design work for new sewer
replacement projects. Additional sewer replacement projects will be developed and may be split into
individual projects for final design and construction.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues. This program will fund all sewer renovation projects until Fiscal Year 2026-27.
Location(s): Entire Collection System
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $200,000 $600,000 $800,000
Design - - 2,000,000 6,000,000 8,000,000
Construction - 9,410,000 17,800,000 53,400,000 80,610,000
FY Total $- $9,410,000 $20,000,000 $60,000,000 $89,410,000
June 16, 2022 Regular Board Meeting Agenda Pack(L?125Page 278 of 771
Page 230 of 341
Collection System Modeling Support FY 22+ — District Project TBD
Program Phase Priority Rank Ranking Score
Collection System Planning 63 120
Purpose:
To maintain and update the InfoWorks° hydrodynamic collection Project
system model. Aging
Infrastructure Capacity
Drivers:
A new InfoWorks° ICM hydrodynamic collection system model was sustainability
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 model is used for several critical
Central San operations such as evaluating sewer capacities, I 1
identifying capacity deficiencies, developing sewer sizing
criteria, evaluating impacts from increased flows due to
development and special discharges, evaluating re-routing
options, and providing hydraulic grade line information that !
could be helpful during emergencies or for sewer renovation
work.
Description:
The following are major elements included in the project:
• Complete 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 level monitors or smart
manhole covers.
• Continue to support development and capital project modeling requests
Operating Department Impact and Funding Source:
This project will have a minor impact on the operating budget due to software costs. Project
expenditures are funded from Capital Revenues and some costs are reimbursed through permit fees.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $120,000 $125,000 $1,045,000 $1,290,000
Design - - - - -
Construction - - - - -
FY Total $- $120,000 $125,000 $1,045,000 $1,290,000
June 16, 2022 Regular Board Meeting Agenda Pack(2126Page 279 of 771
Page 231 of 341
Orinda — Moraga PS Architectural Improvements — District Project 100037
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 65 115
Purpose:
To provide architectural improvements to the Moraga, OrindaProject
Crossroads, and Flush Kleen Pumping Stations. Aging Capacity
Infrastructure
Drivers:
These pumping stations have just been upgraded and are in both Regulatory Sustainability
residential and highly visible commercial areas. Making these
architectural improvements will help Central San's infrastructure
blend in with the surrounding neighborhoods.
Description: ,mac
Staff will evaluate the following:
• Improving the outside storage facility at Moraga Pumping m
Station ,
• Installing an A-frame roof at Orinda Crossroads PumpingV.
Station �
• Replacing a segment of the perimeter fence with CMU at Orinda Pumping Station
• Enclosing and building a canopy at Flush Kleen Pumping Station
• Other miscellaneous improvements to match the surrounding environment
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 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 200,000 50,000 - 250,000
Construction - 1,200,000 - - 1,200,000
FY Total $200,000 $1,250,000 $- $- $1,450,000
June 16, 2022 Regular Board Meeting Agenda Packet2jPage 280 of 771
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Page Intentionally Blank
June 16, 2022 Regular Board Meeting Agenda Pack(212-gPage 281 of 771
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Capital Improvement Budget - Treatment Plant Program
The following are the major points of emphasis for the FY 2022-23 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 Influent Pump Electrical Improvements, Electric Blower
Improvements, and Piping Renovation Phase 10, 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,
Phase 1A, which includes solids dewatering equipment replacement (feed pumps, centrifuges, cake
pumps), wet scrubber, as well as associated electrical, instrumentations, and incinerator controls
improvements.
The final design of the Ultraviolet (UV) Disinfection Replacement will begin and has been merged with
the UV Hydraulic Project.
The Steam and Aeration Blower Systems Renovations (Steam Project) has concluded its condition
assessment of the 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 Improvements, design of the Aeration
Basins Diffuser Replacement and Seismic Upgrades Project, and the final design of the Steam System
Improvements.
Other aging infrastructure projects include the Laboratory Roof& Seismic Upgrades Project, 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, Phase 1A Project.
Safety and security improvements will continue under this subprogram. The Solids Conditioning
Building and multiple hearth furnaces are being re-evaluated. The design of the UV Disinfection
Replacement will be implemented to make sure the treatment plant can reliably meet the disinfection
June 16, 2022 Regular Board Meeting Agenda Pack(2!29Page 282 of 771
Page 234 of 341
National Pollutant Discharge Elimination System (NPDES) effluent permit requirements. The existing
activated sludge process, which includes the aeration basins, continues to be evaluated and
improvements to the aeration diffusers are planned soon. New diffuser systems will help provide
oxygen to the biological system to ensure adequate oxygen transfer for a more reliable process.
Capacity(Expansion Projects)
There are no projects in FY 2022-23 that include expansion of the treatment plant. However, there
are projects such as the UV Disinfection Replacement, Hydraulic Improvements, and the Aeration
Diffuser Project that will address internal bottlenecks and degrading systems to reach design
capacities. Projects like the Influent Pump Electrical and Electric Blower Improvements will increase
back-up capacity to match current operating and wet weather scenarios for reliability.
Sustainability (Resiliency and Energy Projects)
Under this subprogram, the Walnut Creek/Grayson Creek Levee Rehab and Wet Weather Basin
Improvements will address climate change and flooding concerns while the Air Conditioning and
Lighting Project will replace equipment in poor condition with high efficiency models to save energy.
11AIM
All projects in the treatment plant program are summarized, including past and planned expenditures,
in the following Table 3:
June 16, 2022 Regular Board Meeting Agenda PackeOiDPage 283 of 771
Page 235 of 341
CIB Table 3 — FY 2022-23 Treatment Plant Program BudgetPro'ect Summar
Project Project Name Budget-to-Date FY2022-23 Future Total
Number FYs by Project
7315 Applied Research&Innovations $1,657,274 $300,000 $400,000 $2,357,274
7328 Influent Pump Electrical 8,160,000 1,426,000 - 9,586,000
Improvements
7341 Walnut Creek/Grayson Creek 1,050,000 1,500,000 1,000,000 3,550,000
Levee Rehab
7348* Solids Handling Facility 34,518,687 5,000,000 95,500,000 135,018,687
Improvements-Phase 1A
7349 Steam Aeration & Blower Systems 5,350,000 500,000 - 5,850,000
Renovations
7357 Plant-Wide Instrumentation 1,421,000 - - 1,421,000
Upgrades
7363 Treatment Plant Planning 2,100,000 200,000 - 2,300,000
7364 Treatment Plant Safety 1,180,000 - - 1,180,000
Enhancement-Phase 5
7369 Piping Renovation-Phase 10 5,450,000 - - 5,450,000
7370 Annual Infrastructure 3,605,000 1,000,000 2,000,000 6,605,000
Replacement FY 2019-25
7371 Condition Assessment of Buried 500,000 - - 500,000
Pipelines
7373 Fire Protection System-Phase 3 1,100,000 - - 1,100,000
7375 Contractor Staging Improvements 5,008,371 - - 5,008,371
100001 25 CCAA Urgent Projects FY 2020- 1,200,000 600,000 1,200,000 3,000,000
100008 Laboratory Roof&Seismic 950,000 500,000 - 1,450,000
Upgrades
100009 Hearth Replacements 500,000 - 500,000 1,000,000
100010 Air Conditioning and Lighting 1,250,000 - - 1,250,000
Renovations
100011 Plant Electrical Replacement and 600,000 400,000 1,350,000 2,350,000
Rehabilitation
100012 UV Disinfection Replacement and 2,980,000 3,500,000 62,000,000 68,480,000
Hydraulic Improvements(100013)
100014 MRC Building Modifications and 750,000 750,000 600,000 2,100,000
Maintenance Shops Improvements
100015 Electric Blower Improvements 9,150,000 4,245,000 - 13,395,000
100018 Outfall Monitoring Improvements 789,000 - - 789,000
Aeration Basins Diffuser
100019 Replacement and Seismic 2,300,000 7,500,000 51,500,000 61,300,000
Upgrades
100034 TP Safety Enhancement Program 200,000 300,000 1,950,000 2,450,000
100022 Wet Weather Basin Improvements 700,000 600,000 600,000 1,900,000
June 16, 2022 Regular Board Meeting Agenda Pack(Y&lPage 284 of 771
Page 236 of 341
Project Project Name Budget-to-D. FY2022-23 Future Total
Number FYs by Project
100030 Solids Handling Facility 3,600,000 3,100,000 149,500,000 156,200,000
Improvements—Phase 2
100032 Steam Renovations, Phase 1 500,000 4,500,000 12,500,000 17,500,000
TBD** Fire Protection System—Phase 4 - 860,000 - 860,000
TBD** Control System Upgrades - 200,000 800,000 1,000,000
TBD** Secondary Clarifier - 2,000,000 8,000,000 10,000,000
Improvements—Phase 1
TBD** Warehouse Seismic Upgrades - 500,000 1,500,000 2,000,000
TBD** Electrical Infrastructure Sub 90 - 500,000 23,100,000 23,600,000
Treatment Plant Program Total: $96,569,332 $39,981,000 $414,000,000 $550,550,332
*Project 7348 has been revised and renamed to Phase 1A(Reduced scope project)
**New project in FY 2022-23 and number To Be Determined(TBD)
June 16, 2022 Regular Board Meeting Agenda Pack(Y&2Page 285 of 771
Page 237 of 341
Applied Research &Innovations – District Project 7315
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Pre-Construction 25 200
Purpose: I Project Drivers
To implement applied research projects that evaluate promising
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 I
compared to conventional technologies. Innovations in y
equipment and instrumentation that may be beneficial will -,
be considered. I I
Prior to implementing any major renovations for nutrient
removal or converting solids handling technologies, staff will
evaluate the feasibility of emerging technologies and - 1—
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 (MABR), aerobic granular sludge
(AGS), 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 2022-23 FY 2023-24 Future FYs Total
Planning $1,657,274 $300,000 $400,000 $- $2,357,274
Design - - - - -
Construction - - - -
FY Total $1,657,274 $300,000 $400,000 $- $2,357,274
June 16, 2022 Regular Board Meeting Agenda PackOa3Page 286 of 771
Page 238 of 341
Influent Pump Electrical Improvements — District Pro'ect 7328
iPriority Rank Ranking Score
Treatment Plant Construction 2 330
Purpose:
To address aging electrical components of the influent pumps and Project Drivers
improve reliability. Aging Capacity
Infrastructure P Y
Drivers:
The Influent Pump Facility is critical to operations. During wet Regulatory Sustainability
weather, some of the pumps convey wastewater to the holding
basins. Without the pumps, wastewater cannot be treated or
stored in the basins. The influent pump motors are in a dry pit
room below grade that is susceptible to flooding. A leak in the
piping or flooding of the connected tunnels could potentially i
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' programmable logic controllers (PLCs) and I
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 wet well 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)
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 910,000 - - 910,000
Construction 7,150,000 1,426,000 8,576,000
FY Total $8,160,000 $1,426,000 $- $- $9,586,000
June 16, 2022 Regular Board Meeting Agenda PackeWage 287 of 771
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Walnut Creek/Grayson Creek Levee Rehab — District Project 7341
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 51 150
Purpose:
To reduce the risk of flood damage to the treatment plant by Project Drivers
raising levees through a project led by the Contra Costa County Aging Capacity
Flood Control and Water Conservation District (FCD). Infrastructure
Drivers: Regulatory Sustainability
The treatment plant site is bordered by Walnut and
Grayson Creeks with levees that were built by the FCD and
US Army Corps of Engineers and are currently owned and
maintained by the FCD. Overtopping of the levees could
catastrophically disable treatment plant operations, result in
significant facility damage, negatively impact the
environment due to discharge of untreated sewage, and
impair the local economy. In 2007, the FCD implemented an
interim flood control measure to desilt 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.
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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 100,000 - - 300,000
Construction 750,000 1,400,000 1,000,000 - 3,150,000
FY Total $1,050,000 $1,500,000 $1,000,000 $- $3,550,000
June 16, 2022 Regular Board Meeting Agenda PackO35Page 288 of 771
Page 240 of 341
Solids Handling Facility Improvements — Phase 1A— District Project 7348
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 3 325
Purpose:
To rehabilitate and replace the sludge dewatering centrifuges, Project
cake pumps, and furnace air pollution control equipment. Aging
Infrastructure Capacity
Drivers:
The existing furnaces have significant remaining useful life; Regulatory 5
E"Ift
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. A more efficient wet scrubber and other air pollution j
control improvements will be needed to reliably comply with
current and future air regulations. >�q.
Additional elements will be implemented in future phases to
address the Solids Conditioning Building that houses the furnaces, ,
cogeneration unit, and other critical equipment that do not meet
current seismic standards, and electrical and control systems r'�s
associated with this equipment will not need to be replaced during
the project but under future phases. y; r
Description:
The following are major elements included in the project:
• Improvements to Emergency Sludge Loadout Facility and Blending Tanks (already constructed).
• Replace wet scrubber with a new Venturi scrubber capable of waste heat boiler bypass.
• Replace centrifuges and cake pumps.
• Upgrade furnace burners.
• 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 2022-23 FY 2023-24 Future FYs Total
Planning $1,000,000 $ $ $ $1,000,000
Design 15,000,000 - - - 15,000,000
Construction 18,518,687 5,000,000 28,000,000 67,500,000 119,018,687
FY Total $34,518,687 $5,000,000 $28,000,000 $67,500,000 $135,018,687
June 16, 2022 Regular Board Meeting Agenda Pack(2la6Page 289 of 771
Page 241 of 341
Steam and Aeration Blower Systems Renovations — District Project 7349
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Design 20 225
Purpose:
To evaluate the existing steam system, waste heat recovery, steam Project
turbines, electrical power distribution system, and secondary treatment Aging
systems, and to plan and preliminary design of future projects. Infrastructure Capacity
Drivers:
Central San's energy recovery system uses waste heat from the Regulatory Sustainability
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. r
Although it is advantageous to recover waste heat for producing r'
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.
1 �
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 electric blowers to supplement and/or replace the existing electric
blower(Currently in construction under DP 10015).
• Evaluate modifications to existing aeration tanks and the activated sludge system, including the hydraulics
(Currently in design under new project DP 100019).
• Evaluate modifications to existing secondary clarifiers and associated return-activated sludge and waste-
activated sludge feed systems (New project this year).
• 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:
Project expenditures are funded from Capital Revenues. This project's original total budget was approx. $63 M
and had been transferred to fund projects stated above. Each project addresses impacts to the operating fund.
Location(s): Pump and Blower Building, Solids Conditioning Building,Aeration Basins, Electrical Power
Distribution System, Primary/Secondary Facilities, and other Treatment Plant Areas
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $3,000,000 $- $- $- $3,000,000
Design 2,350,000 500,000 - - 2,850,000
Construction - - - - -
FY Total $5,350,000 $500,000 $- $- $5,850,000
June 16, 2022 Regular Board Meeting Agenda Packel3-7Page 290 of 771
Page 242 of 341
Plant-Wide Instrumentation Upgrades — District Project 7357
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 61 130
Purpose:
ject Drivers
To install new instrumentation for improved monitoring, control, '
and optimization of Central San facilities. Aging capacity
Infrastructure
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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 290,000 - - - 290,000
Construction 1,031,000 - - 1,031,000
FY Total $1,421,000 $- $- $- $1,421,000
June 16, 2022 Regular Board Meeting Agenda Pack(21agPage 291 of 771
Page 243 of 341
Treatment Plant Planning— District Project 7363
Program Phase Priority Rank dIIIIIIIII& Ranking Score
Treatment Plant Planning 51 150
Purpose:
To complete evaluations for upcoming regulatory requirements, roject Drivers
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 _ a
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 2022-23 FY 2023-24 Future FYs Total
Planning $2,100,000 $200,000 $- $- $2,300,000
Design - -
Construction - - - - -
FY Total $2,100,000 $200,000 $- $- $2,300,000
June 16, 2022 Regular Board Meeting Agenda Packel3r9Page 292 of 771
Page 244 of 341
Treatment Plant Safely Enhancement— Phase 5 — District Project 7364
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 17 240
Purpose:
To enhance treatment plant safety through identification of safety Project Drivers
concerns, repairs, and capital improvements. Aging Capacity
Infrastructure P y
Drivers:
Central San and the treatment plant have proactive safety Regulatory Sustainability
programs that are administered by separate committees.
These committees are responsible for addressing safety
concerns at the treatment plant as identified by staff and
to respond to regulatory requirements. Often this
response will require construction of a capital project.
The first three phases of this project addressed various
safety repairs and improvements.
Description: 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): Solids Conditioning Building
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 - - - 100,000
Construction 1,080,000 - - - 1,080,000
FY Total $1,180,000 $- $- $- $1,180,000
June 16, 2022 Regular Board Meeting Agenda Packe4pPage 293 of 771
Page 245 of 341
Piping Renovation- Phase 10 - District Project 7369
Program Phase Priority Rank dIIIIIIIII& Ranking Score
Treatment Plant Construction 10 270
Purpose:
t Drivers
To inspect, rehabilitate, and replace above-grade and below-grade
piping and related systems at the treatment plant. Aging Capacity
Infrastructure
Drivers: him
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 7
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. r
• � 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):Treatment Plant
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 600,000 - - - 600,000
Construction 4,800,000 - 4,800,000
FY Total $5,450,000 $- $- $- $5,450,000
June 16, 2022 Regular Board Meeting Agenda PackJ*1Page 294 of 771
Page 246 of 341
Annual Infrastructure Replacement— District Project 7370
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 22 210
Purpose:
To fund ongoing rehabilitation and replacement of wastewater Project
treatment plant assets. This program will be continued until Aging Capacity
FY 2024-25. A new project will be set at that time. Infrastructure
Drivers: Regulatory Sustainability
The treatment plant consists of over 4,400 assets with a range of
ages. The majority of existing treatment plant equipment
was installed around 40 years ago. Over time, equipment,
piping systems, and other assets require rehabilitation or
replacement to continue with Central San's high level of _
service, reliable management, and treatment of wastewater.
Some of the improvements to be funded from this project
were identified as part of condition assessments. Ongoing -
condition assessments will be needed to confirm the timing
for other rehabilitation and replacement work.
Description:
Rehabilitation and replacement work will be packaged into +
projects that are scoped and funded from this program.
Examples include:
• Roof replacement program, including the treatment plant warehouse and standby power facility.
• 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.
• Refurbishment of 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):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 450,000 100,000 100,000 100,000 750,000
Construction 3,055,000 900,000 900,000 900,000 5,755,000
FY Total $3,605,000 $1,000,000 $1,000,000 $1,000,000 $6,605,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t*2Page 295 of 771
Page 247 of 341
Condition Assessment of Buried Pipelines — District Project 7371
Program Phase Priority Rank Ranking Score
Treatment Plant Planning 71 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
treatment plant 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 '~Y
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 T
necessary bypassing operations and perform condition 1j
assessments of these pipes, some of which are over 40 years old. Y
These pipelines are critical for Central San operations and =
rehabilitation, or replacement may be required in the coming
years.
-
Description:
This project includes the following major elements:
• Develop a prioritized condition assessment plan for buried piping systems and difficult to access
piping or channels.
• Bypass pumping and piping as required.
• Field inspection of buried or submerged piping systems and channels.
• Identify and develop recommended rehabilitation or replacement needs.
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $500,000 $- $- $- $500,000
Design - - - - -
Construction - - - - -
FY Total $500,000 $ $ $ $500,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t43Page 296 of 771
Page 248 of 341
Fire Protection System — Phase 3 — District Project 7373
Program Phase Priority Rank dIIIIIIIII& Ranking Score
Treatment Plant Construction 22 210
Purpose:
To upgrade or replace the treatment plant fire protection roject Drivers
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
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 =a
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 (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): Plant Operations Buildings
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 250,000 - - - 250,000
Construction 850,000 - - - 850,000
FY Total $1,100,000 $- $- $- $1,100,000
June 16, 2022 Regular Board Meeting Agenda Packelz4Page 297 of 771
Page 249 of 341
Contractor Sta in Im rovements - District Project 7375
Program Phase Priority Rank 41111111111111111& Ranking Score
Treatment Plant Construction 7 305
Purpose: ReEnLroject Drivers
To increase security by organizing and preparing the treatment
plant for several large future projects, such as the Solids Handling Aging capacity
Facility Improvements Phase 1A and Filter Plant and Clearwell Infrastructure
Improvements— 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 4
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 on 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:
No impacts to the operating budgets. Project expenditures are funded from Capital Revenues. Fees
for the RV receiving station may occur in the future.
Location(s):Treatment Plant
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 350,000 - - 350,000
Construction 4,608,371 - - - 4,608,371
FY Total $5,008,371 $- $- $- $5,008,371
June 16, 2022 Regular Board Meeting Agenda Pack(�45Page 298 of 771
Page 250 of 341
UPCCAA Urgent Projects FY 2020-25 — District Project 100001
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 18 235
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 works 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):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 200,000 100,000 100,000 100,000 500,000
Construction 1,000,000 500,000 500,000 500,000 2,500,000
FY Total $1,200,000 $600,000 $600,000 $600,000 $3,000,000
June 16, 2022 Regular Board Meeting Agenda PackPage 299 of 771
Page 251 of 341
Laboratory Roof and Seismic Upgrades - District Project 100008
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 38 170
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 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 150,000 50,000 - - 200,000
Construction 800,000 450,000 - 1,250,000
FY Total $950,000 $500,000 $ $ $1,450,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t4-7Page 300 of 771
Page 252 of 341
Hearth Replacements - District Project 100009
iPr ority Rank Ranking Score —
Treatment Plant Construction 22 210
Purpose:
Continue to maintain the operable Multiple Hearth Furnaces Project
(MHFs) inside the Solids Conditioning Building. Aging Capacity
Infrastructure
Drivers:
The MHFs are an essential process equipment for the handling and Regulatory Sustainability
disposal of the solids from the treatment process. The Plant
Maintenance Division for the Operations Department has been
monitoring the hearths within the MHFs. Based on the most
recent inspection, replacement of two hearths and possibly
up to three is recommended (one hearth replacement in —_
MHF No. 1 and possibly up to two in MHF No. 2). _ 1:3 -_
Description: -
This project will be performed by a specialty contractor with
the experience needed to rebuild brick and masonry in an _ ��-
existing incinerator. Work includes, but is not limited to, the
following: FM -
• 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
1111W A
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - -
Construction 500,000 - 500,000 - 1,000,000
FY Total $500,000 $- $500,000 $- $1,000,000
June 16, 2022 Regular Board Meeting Agenda Pack"Page 301 of 771
Page 253 of 341
Air Conditioning and Lighting Renovations- District Project 100010
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 48 160
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. Several air conditioning units at the treatment plant
campus have reached the end of their useful lives. 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 lives) 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 and Plant Operations
Buildings
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 150,000 - - 150,000
Construction 1,100,000 - - 1,100,000
FY Total $1,250,000 $ $ $ $1,250,000
June 16, 2022 Regular Board Meeting Agenda Pack(�49Page 302 of 771
Page 254 of 341
Plant Electrical Replacement and Rehabilitation — District Project 100011
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 42 165
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, ts'uN
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 improvements to be funded from this project were
identified as part of a condition assessment. Ongoing condition
assessments will be needed to confirm the timing of other
rehabilitation and replacement work.
Description:
The electrical switchgear throughout the treatment plant was installed in the 1970s and has been well
maintained using preventive techniques, such as thermographic imaging to identify potential problems
and correct them prior to failure. 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):Treatment Plant Electrical Substations
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 100,000 50,000 50,000 100,000 250,000
Construction 500,000 350,000 400,000 800,000 2,100,000
FY Total $600,000 $400,000 $450,000 $900,000 $2,350,000
June 16, 2022 Regular Board Meeting Agenda Packe650Page 303 of 771
Page 255 of 341
UV Disinfection Replacement and Hydraulic Improvements — District Project 100012
Program Phase Priority Rank Ranking Score
Treatment Plant Design 25 200
Purpose:
To replace the existing ultraviolet (UV) disinfection system and Project Drivers
increase hydraulic capacity of the UV disinfection system. Aging Capacity
Infrastructure P y
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. .d i_/
New UV disinfection systems are as much as 10-times more
powerful, 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 that limit the flow that can be treated under wet
weather conditions.
Description:
This project includes the evaluation of the following major elements:
• Combine the UV Replacement and Hydraulic Improvements projects scope and budgets.
• 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 2022-23 FY 2023-24 Future FYs Total
Planning $1,800,000 $- $- $- $1,800,000
Design 1,180,000 3,500,000 1,300,000 - 5,980,000
Construction - - 1,200,000 59,500,000 60,700,000
FY Total $2,980,000 $3,500,000 $2,500,000 $59,500,000 $68,480,000
June 16, 2022 Regular Board Meeting Agenda Packe&lPage 304 of 771
Page 256 of 341
MRC Building Modifications and Maintenance Shops Improvements — DP 100014
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 69 105
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 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.
• Improve 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): Maintenance Buildings
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 150,000 50,000 - - 200,000
Construction 600,000 700,000 600,000 1,900,000
FY Total $750,000 $750,000 $600,000 $- $2,100,000
June 16, 2022 Regular Board Meeting Agenda Packe&2Page 305 of 771
Page 257 of 341
Electric Blower Improvements — District Project 100015
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 8 295
Purpose: Project Drivers IL
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
the 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 on
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:
• Demolish the existing electric blower system.
• Procure and install three new high-efficiency 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:
Increased maintenance costs for the two additional blowers and associated equipment, including
additional costs for new filters. Project expenditures are funded from Capital Revenues.
Location(s): Treatment Plant— Pump and Blower Building
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 1,300,000 - - - 1,300,000
Construction 7,750,000 4,245,000 - - 11,995,000
FY Total $9,150,000 $4,245,000 $- $- $13,395,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t 3Page 306 of 771
Page 258 of 341
Outfall Monitoring Improvements — District Project 100018
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 57 140
Purpose:
To repair and replace existing inclinometers and leveling Project Drivers
monuments on the Outfall to meet regulatory requirements. Aging Capacity
Infrastructure P y
Drivers:
Central San's NPDES Permit requires proper operation and Regulatory sustainability
maintenance of the outfall pipeline that discharges treated final
effluent to Suisun Bay. Every five to ten years, the 3.5 mile, 72-
inch reinforced concrete outfall pipeline built in 1958 is drained �•u`
and inspected to verify pipeline alignment and condition of the J
pipeline and seals. As part of the 2019 Outfall Improvements
Project, over 1,500 pipe joints were inspected, repairs were made, 40i
and a new access structure was constructed.
Description:
The last inspection of the outfall was in 2019 and this project will
include elements outside of the Outfall that was not completed during the previous phase:
• Coordinate and obtain all other necessary permits.
• Repair and replacement of inclinometers and leveling monuments.
Operating Department Impact and Funding Source:
This project will not have an impact to the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s):Treatment Plant, Martinez, and Suisun Bay
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 110,000 - - - 110,000
Construction 679,000 - - - 679,000
FY Total $789,000 $ $ $ $789,000
June 16, 2022 Regular Board Meeting Agenda Packet -4Page 307 of 771
Page 259 of 341
Aeration Basins Diffuser Replacement and Seismic Upgrades - District Project 100019
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 30 190
Purpose: Project Drivers
To replace the existing aeration tanks' diffusers to increase
aeration system performance and optimize the activated sludge Aging Capacity
process.
Infrastructure P y
Drivers: Regulatory Sustainability
Recently, the existing aeration system has not been able to reliably
maintain 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 operational
parameter for activated sludge settleability and compaction. The M;
increase in the SVI has in turn, led to concerns over the ability to
consistently meet NPDES discharge limitations. While Central San -_
continues to meet NPDES discharge permit limits, further
deterioration in performance of the aeration system will cause
more challenges over time, which also leads to poor settleability in
the secondary clarifiers and impacts the performance of the UV
disinfection system.
Description:
This project will include mechanical rehabilitation/replacement, concrete repairs, and structural
seismic improvements to prolong the remaining useful life of the aeration basins and diffuser systems.
Replace all diffusers and 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. In
addition, the large aeration underground valves will be replaced, which will allow for inspection of the
aeration headers at a future time. The valve replacement will also include a concrete structure box to
allow for access and maintenance.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues. Due to the limited and seasonal work anticipated, this project is likely to be
phased in separate construction contracts.
Location(s): Treatment Plant—Aeration Basins
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $200,000 $- $- $- $200,000
Design 2,100,000 1,500,000 - - 3,600,000
Construction - 6,000,000 14,500,000 37,000,000 57,500,000
FY Total $2,300,000 $7,500,000 $14,500,000 $37,000,000 $61,300,000
June 16, 2022 Regular Board Meeting Agenda Pack(2l55Page 308 of 771
Page 260 of 341
Wet Weather Basin Improvements — District Project 100022
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 50 155
Purpose: Project Drivers
To reduce the risk of flood damage to the treatment plant by
improving the wet weather basins, berms, and levees. Aging Capacity
Infrastructure P y
Drivers:
The treatment plant uses a series of earthen basins that are used Regulatory Sustainability
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" 'Y t: L A
working order to avoid limiting the flexibility and handling of wet
weather flows. There are no other options than conveying -
wastewater to the holding basins. ALAa
tiuuti
Description: >
Due to the critical nature of the treatment plant facilities, aNr
reliable wet weather basins system is critical as plant operations
divert screened sewer and primary effluent when the downstream capacity is exceeded. The 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, and capacity.
• 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.
• Increase basin volume and continue evaluating or predesign of future pumping station.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues. Project will be coordinated with the Walnut Creek-Grayson Creek Levee project.
Location(s): Wet Weather Basins
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 200,000 - - - 200,000
Construction 500,000 600,000 600,000 1,700,000
FY Total $700,000 $600,000 $600,000 $ $1,900,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t56Page 309 of 771
Page 261 of 341
Solids Handlin Facility Improvements - Phase 2 - District Project 100030
MAW Ranking Score
Treatment Plant Planning 30 190
Purpose:
To determine the future approach for solids handling and disposal Drivers
at the wastewater treatment plant. Aging
Infrastructure Capacity
Drivers:
Central San incinerates wastewater solids using one of two Regulatory Sustainability
multiple hearth furnaces (MHFs). A condition assessment of the
MHFs indicated that they have a remaining life of 20 years or more
and have adequate capacity; however, improvements to
support facilities would be required to keep the MHFs �►
operational as is currently being addressed under Phase 1A.
Central San also operates a natural gas cogeneration turbine to Central S..Tet.etPlant nayouunarge
offset power demands and produce steam to energize on-site m�
wuequipment. The existing turbine will eventually require Incinerator and/or
Ash Disposal and/or
replacement and, depending on power demands or regulatory Optima l5elids Handling ether Beneficial geuse
Facilities
requirements, would be upgraded to a more efficient turbine.
Due to the higher than anticipated costs for the Solids Handling Facility Improvements Project,
planning for the Phase 2 has commenced sooner in order to make sure that Central San's plan on solids
is the most optimal and cost effective for the needs of the treatment plant facilities.
Description:
The project will evaluate and plan the optimal alternative(s) for long-term solids handling and disposal
which may include, but are not limited to, new solids processing and energy recovery facilities,
anaerobic digesters, new biogas cogeneration system, fluidized bed incinerators, or other thermal
treatment technologies.
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): Solids Conditioning Building and surrounding areas
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $3,600,000 $1,600,000 $- $- $5,200,000
Design - 1,500,000 2,500,000 7,000,000 11,000,000
Construction - - - 140,000,000 140,000,000
FY Total $3,600,000 $3,100,000 $2,500,000 $147,000,000 $156,200,000
June 16, 2022 Regular Board Meeting Agenda Packe&7Page 310 of 771
Page 262 of 341
Steam Renovations - Phase 1 - District Project 100032
Program Phase Priority Rank Ranking Score
Treatment Plant Design 25 200
Purpose:
To repair and/or replace critical components for the existing steam MonLroject Drivers
system, waste heat recovery, and steam turbines as identified Aging
through detailed condition assessments. Infrastructure capacity
Drivers:
Regulatory Sustainability
Central San's energy or heat recovery and steam systems are
critical processes that require to be reliable and to be in service 24
hours a day, every day of the week. These systems overall are in good
shape, however, there are some related equipment and system
components that require replacement and upgrades based on findings of a i
recent condition assessment and evaluation conducted under the Steam
and Aeration Renovations Project, District Project 7349. In order to
continue reliable and safe operations of the systems, a project is needed to
address all the critical and near-term items for systems relating to steam
and heat recovery.
Description:
Several major scope items include the following:
• Address safety-related improvements for the boiler feedwater and blowdown sampling
equipment.
• Modify the boiler chemical system.
• Replace boiler and deaerator feedwater pumps, and waste steam exchangers.
• Modify the hot water heat reservoir system.
• Piping modifications, and replacement of piping, valves, steam traps, and other system
components.
• Preliminary evaluation of steam turbine power generation system.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Solids Conditioning Building, Tunnels, and Pump and Blower Building.
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 500,000 3,000,000 - - 3,500,000
Construction - 1,500,000 8,000,000 4,500,000 14,000,000
FY Total $500,000 $4,500,000 $8,000,000 $4,500,000 $17,500,000
June 16, 2022 Regular Board Meeting Agenda Pack(2l5$Page 311 of 771
Page 263 of 341
Treatment Plant Safely Enhancement Program - District Project 100034
Program Phase Priority Rank Ranking Score
Treatment Plant Design 38 170
Purpose:
To enhance treatment plant safety through identification of safety Project Drivers
concerns, repairs, and capital improvements. Aging Capacity
Infrastructure P y
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. tea- --_._-
The next phase of this project addresses various safety
repairs and improvements. ,
Description:
This program type of project will budget an annual _
amount and include treatment plant facility
improvements for safety. Once projects are identified -
and designed, phases will be released. The next phase of
the program will be the sixth project. The program will also fund safety related assets and 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):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 200,000 - - 150,000 350,000
Construction - 300,000 300,000 1,500,000 2,100,000
FY Total $200,000 $300,000 $300,000 $1,650,000 $2,450,000
June 16, 2022 Regular Board Meeting Agenda Pack(2l59Page 312 of 771
Page 264 of 341
Fire Protection System — Phase 4— District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Planning 68 110
Purpose:
To upgrade or replace treatment plant fire alarm systems. Project Drivers
Aging
Drivers: Infrastructure Capacity
The majority of the fire alarm system was built in the late 1970s,
and the fire alarm control panel was upgraded in the early 2000s. Regulatory Sustainability
There are seven existing fire systems (alarm, monitoring, and
suppression types) at the treatment plant. The existing fire
systems are the primary notification to the control room r
operators and occupied buildings in the event of a fire. Wiring '
and devices on the fire alarm system continue to be problematic �• `
and is in frequent need of repair. Repairs have become r
extremely complex and difficult; therefore, long-term reliable
improvements to the fire alarm system are needed.
Description: �a
e.
Staff anticipates the recommended improvements will be ••
implemented over a multi-year fire improvement program:
• Phase 1 of the project, completed in 2013, replaced the
outdated Headquarters Office Building (HOB) fire system and corrected limited treatment plant
deficiencies.
• Phase 2, completed in 2019, included a comprehensive evaluation and implementation of
recommended improvements for life safety of occupied (public and staff) areas of all staffed and
critical process areas in the treatment plant such as the HOB, Plant Operations Building, Solids
Conditioning Building (SCB), Standby Power Building, and Fuel Oil Storage Area.
• Phase 3, currently in construction, includes upgrades to HOB and the laboratory fire panels and
other fire protection improvements.
• Phase 4 includes replacement of fire alarm and sprinkler systems at the Pump and Blower Building,
Warehouse, MRC, Tunnels, and Emergency Sludge Loadout Building.
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 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design - 160,000 - - 160,000
Construction - 700,000 700,000
FY Total $- $860,000 $- $- $860,000
June 16, 2022 Regular Board Meeting Agenda Packe6oPage 313 of 771
Page 265 of 341
Control System Upgrades — District Project TBD
Program Phase Priority�� Ranking Score
Treatment Plant Construction 19 230
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
I
newer PLCs no longer runs efficiently on the older programming
units.
Description: 4
The following are major elements included in the project:
• 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 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): Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - -
Construction - 200,000 200,000 600,000 1,000,000
FY Total $- $200,000 $200,000 $600,000 $1,000,000
June 16, 2022 Regular Board Meeting Agenda PackO&1Page 314 of 771
Page 266 of 341
Secondar Clarifier Improvements - Phase 1 - District Project TBD
Aeli-IN 1-has��=Priority Rank Ranking Score
Treatment Plant Design TBD TBD
Purpose:
To replace aging secondary clarifier equipment and related Project Drivers
facilities. Aging
Infrastructure Capacity
Drivers:
The secondary clarifiers were installed over 40 years ago. Central Regulatory Sustainability
San continues to perform annual routine maintenance on the
secondary clarifiers and related waste activated sludge (WAS) and
return activated sludge (RAS) systems and equipment to extend the
useful life of these facilities.
Due to the recent condition assessment of these facilities, a
rehabilitation improvements project has been identified and is
required.
Description: IAIMoos
This project includes the following major elements:
• Rehabilitate or replace secondary clarifier drives and sludge
collector mechanisms. .
• Replace piping, valves, and pumps as required.
• Replace secondary scum removal and piping systems.
r.
• Replace electrical support infrastructure as required.
• Rehabilitate or replace the seismic protection panels.
• Coatings for concrete or steel.
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): Secondary Clarifiers
Elmr
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $ $- $- $- $-
Design 900,000 - - 900,000
Construction - 1,100,000 2,000,000 6,000,000 9,100,000
FY Total $- $2,000,000 $2,000,000 $6,000,000 $10,000,000
June 16, 2022 Regular Board Meeting Agenda PackO&2Page 315 of 771
Page 267 of 341
Warehouse Seismic Upgrades - District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Design TBD TBD
Purpose: Project Drivers
To improve the seismic safety of the Warehouse Building.
Aging Capacity
Drivers: Infrastructure
In January 2008, California adopted the 2007 California Building
Code (2007 CBC). Among the updates in the 2007 CBC were Regulatory Sustainability
significant changes to seismic design. In 2009, a seismic
evaluation was completed of the treatment plant facilities
(Martinez Wastewater Treatment Plant Seismic Vulnerability
Assessment of Selected Facilities, December 2009).
The Warehouse Building is a modular (Butler) metal building
constructed of a single story, and a partial mezzanine around
1986. The 2009 evaluation assessed the building's seismic
performance and included recommendations to bring the �'"" � •�
Warehouse Building in line with current seismic design
standards.
Description:
This project includes seismic improvements to the Warehouse Building, such as isolation of the
mezzanine lateral load resisting system and installation of knee braces at moment frames. Staff will
evaluate the need to expand the mezzanine for additional storage or other alternatives to better utilize
the warehouse or increase security measures.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues. This project may be combined with other security or fire protection projects.
Location(s): Warehouse, Mechanical Shop
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $50,000 $- $- $50,000
Design - 350,000 - - 350,000
Construction - 100,000 750,000 750,000 1,600,000
FY Total $- $500,000 $750,000 $750,000 $2,000,000
June 16, 2022 Regular Board Meeting Agenda Packq?I&3Page 316 of 771
Page 268 of 341
Electrical Infrastructure Sub 90 — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Planning TBD TBD
Purpose:
Plant-wide electrical optimization to address resiliency,
vulnerability, capacity, and future safety concerns. Aging
Drivers:
Infrastructure Capacity
The treatment plant consists of thousands of electrical assets. The
existing 12kV system feeder is the backbone of the plant (12kV is Regulatory Sustainability
considered "medium-voltage"). Critical medium-voltage feeders
should have redundancy in protection, distribution, and
transformers. Such components are typically not available off
the shelf, and for emergencies. Due to the high energies
involved, failures have the potential to be wide reaching, and
recovery takes longer due to limited availability of replacement 7-
equipment and the specialized nature of the work. While the
existing 12 kV system is functional, the overall architecture in
some cases falls short of today's industry best practices.
Description:
A new 12kV system has been conceived, known as Substation 90
(Sub 90) that will optimize the plant's electrical architecture. Sub 90 will provide a structure that will
serve as the origin for most 12kV feeders. From a safety standpoint, Sub 90 will offer a means for true
12kV redundancy, ability to electrically isolate, and updated safety features. It will also offer a means
to de-ernergize equipment so that workers can safely enter vaults/manholes. The Sub 90 and
associated infrastucture will serve the plant's current and future electrical loads for projects like the UV
disinfection replacement, Solids Project Phase 2, and replacements of any substation.
Staff will assess industry best practices and emphasize on the following areas: 1) Redundancy—where
any single component or feeder failure will not render critical systems inoperative; 2) Ability to isolate
—this allows for de-energization of equipment; testing, planned maintenance and replacements, and
emergency work can be done on electrically isolated and deenergized systems; 3) Protection —
inclusion of appropriate circuit breakers and protective relaying; and 4) Safe switching— Interlocks are
automated, and result in logical and safe switching between sources.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures will be
funded from Capital Revenues.
Location(s):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $500,000 $- $- $500,000
Design - - 500,000 1,000,000 1,500,000
Construction - - - 21,600,000 21,600,000
FY Total $- $500,000 $500,000 $22,600,000 $23,600,000
June 16, 2022 Regular Board Meeting Agenda PackeWage 317 of 771
Page 269 of 341
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 replacements.
Specific vehicles are replaced each year as approved through the annual budget process.
• Equipment Acquisition- New Equipment items are purchased and approved on a yearly basis.
• Management Information Systems-This subprogram reflects the importance of Information
Technology (IT) in the daily operation of Central San. Staff will develop an IT Master Plan that
envisions implementing specific improvements and extends several years into the future. An
allowance to meet future 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 properties, legal expenses, easement
acquisitions, and security systems. Central San has invested significant resources in its assets, and
the purpose of the Asset Management Program, is to optimize the lifecycle of these assets to deliver
high quality and reliable services in a sustainable manner for customers with acceptable levels 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 2022-23 General Improvements Program Budget/Project Summar
Project Project Name D. 2022-23 Future Total
Number FYs by Project
8230 Capital Legal Services $228,665 $20,000 $- $248,665
8240 IT Development FY 2016-25 4,488,794 500,000 - 4,988,794
8250 Enterprise Resource Planning Replacement 5,380,000 - - 5,380,000
8251 Capital Improvement Program & Budget Impr. 390,000 200,000 100,000 690,000
8252 POB EV Charging Station 490,000 150,000 650,000 1,290,000
8253 COVID-19 Response Plan 275,000 - - 275,000
8516 Equipment Acquisition 1,476,000 250,000 250,000 1,976,000
8517 Vehicle Replacement Program FY 2016-25 4,718,000 900,000 2,700,000 8,318,000
100003 Property Repairs and Improvements 450,000 700,000 300,000 1,450,000
100004 HOB Exterior Repairs 400,000 - - 400,000
100027 Furnishings Replacement 100,000 - 100,000
100029 Solar Project on Lagiss Property 600,000 - - 600,000
100031 Community Dev.System Replacement 200,000 400,000 200,000 800,000
100033 Security Improvements FY 2021-25 200,000 100,000 300,000 600,000
100035 Technology Strategic Plan 500,000 500,000 - 1,000,000
*TBD Easement Acquisition FY 2022-31 - 75,000 675,000 750,000
General Improvements Program Total: $19,896,459F$3,795,000 $5,175,000 $28,866,459
*New project in FY 2022-23 and number To Be Determined(TBD)
June 16, 2022 Regular Board Meeting Agenda Pack(2�&5Page 318 of 771
Page 270 of 341
Capital Legal Services — District Project 8230
J�, � ���lhas�"� Priority Rank Ranking Score
General Improvements All 55 145
Purpose:
To streamline the processing of legal bills.
Aging
Capacity
Drivers:
Infrastructure
In the past, legal expenses were charged to individual
capital projects. This process required extra staff time Regulatory Sustainability
each month to review legal bills and get approvals from several
different project managers.
Description: �.
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 2022-23 FY 2023-24 Future FYs Total
Planning $228,665 $20,000 $- $- $248,665
Design - - - -
Construction - - - -
FY Total $228,665 $20,000 $- $- $248,665
June 16, 2022 Regular Board Meeting Agenda Packet6-6Page 319 of 771
Page 271 of 341
Information Technolo v Develo ment— District Project 8240
Program Phase Priority Rank Ranking Score
General Improvements Construction 33 185
Purpose:
. _ Drivers
To replace and upgrade Information Technology (IT) infrastructure
and software as needed. Aging Capacity
Infrastructure
Drivers:
An IT Development Plan was developed to centralize efforts and Regulatory Sustainability
funding in the development of computer and telecommunication
technology within Central San. Central San budgets IT on an
annual basis.
The IT Master Plan was approved in 2015 and its
implementation is within the Capital Improvement Program
(CIP) and the Ten-Year Capital Improvement Plan.
Description: =
This project is the implementation of the IT Master Plan which
includes the following major elements:
• Network infrastructure upgrades
• Disaster recovery/business continuity
• Cloud-based technology improvements
• Business application suite improvements
• Increasing mobile presence
• Desktop technology refreshment
• Web redesign and enhancement
• 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 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - - -
Construction 4,488,794 500,000 - - 4,988,794
FY Total $4,488,794 $500,000 $- $- $4,988,794
June 16, 2022 Regular Board Meeting Agenda PackO&7Page 320 of 771
Page 272 of 341
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 Project Drivers
that manages Central San's finances, budget, human resources, Aging
procurement, payroll, and other related resources. Infrastructure capacity
Drivers:
The existing SunGard ERP system uses outdated technology that Regulatory
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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction 5,080,000 - - - 5,080,000
FY Total $5,380,000 $- $- $- $5,380,000
June 16, 2022 Regular Board Meeting Agenda Pack(2�&8Page 321 of 771
Page 273 of 341
Capital Improvement Program and Budget Improvements— District Project 8251
10M �Ranking Score 111 1
General Improvements Construction 72 85
Purpose:
Provide for the capitalization of the staff time necessary for the Project Drivers
data gathering and production of the CIB and CIP, and for upgrades Aging Capacity
to the current program management system software, Infrastructure
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. 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 projects with � .
the implementation of E-builder. As of July 1, 2019, E-builder was
done with its pilot stage and went-live for all projects. l —ii �' •a 3M
Description:
Upgrades of additional processes, such as master commitments I LQ [2p--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 2022-23 FY 2023-24 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design - - - - -
Construction 290,000 200,000 100,000 590,000
FY Total $390,000 $200,000 $100,000 $- $690,000
June 16, 2022 Regular Board Meeting Agenda Pack(2kj-9Page 322 of 771
Page 274 of 341
Plant Operations Building Electric Vehicles EV Charging Station — District Project 8252
Program Phase Priority Rank Ranking Score
General Improvements Design/Construction 74 50
Purpose:
To install electric vehicle charging stations (EVCS) in the parking lot Project Drivers
of the Plant Operations Building (POB). Aging Capacity
Infrastructure p y
Drivers:
In late 2020, Governor Newsom signed Executive Order N-79-20 Regulatory Sustainability
that will end sales of internal combustion passenger vehicles and
trucks by 2035. In addition, the California Air Resources Board (CARB) is
developing an Advanced Clean Fleets regulation for medium- and heavy-
duty vehicles to accelerate zero-emission vehicle purchases and transition
to zero-emission vehicles in California. These draft regulations are i
scheduled for adoption in October 2022 and will apply to vehicles with I !
greater than 8,500 pounds gross vehicle weight rating (GVWR). Starting in
2024, 50% of vehicle additions will need to be zero-emission vehicles
(ZEVs). In 2027 and beyond, 100% of vehicle additions will need to be
ZEVs. To ensure compliance with the Advanced Clean Fleets regulations,
Central San will need to install EVCS to support future procurements of
ZEVs. The installation of EVCS will also present an opportunity for Central
San to reduce carbon footprint.
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
or with the pool area within the treatment plant. This project will evaluate
long-term replacement as California requirements to EV are being
included. EV charging as CSO will also be included as necessary.
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 2022-23 FY 2023-24 Future FYs Total
Planning $40,000 $- $- $- $40,000
Design 100,000 150,000 - - 250,000
Construction 350,000 - 650,000 - 1,000,000
FY Total $490,000 $150,000 $650,000 $- $1,290,000
June 16, 2022 Regular Board Meeting Agenda Pack(2l7-oPage 323 of 771
Page 275 of 341
COVID-19 Response Plan - District Project 8253
Program Phase Priority Rank Ranking Score
General Improvements Planning/Design/Construction 1 345
Purpose: Project Drivers
Provide for the capitalization of a response plan to safely bring
staff back to the office post-pandemic in the workplace. Aging Capacity
Infrastructure p y
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, -.f—
share ideas and information. In contrast, returning to the F
workplace now means that we need to find new ways to bring
people together, while simultaneously providing the capability to
keep them apart safely and responsibly. As the pandemic has r
turned conventional thinking on workplace design inside-out,
previously normative approaches to space per person, ratios of y
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 2022-23 FY 2023-24 Future FYs Total
Planning $10,000 $- $- $- $10,000
Design 40,000 - - - 40,000
Construction 225,000 - - - 225,000
FY Total $275,000 $- $- $- $275,000
June 16, 2022 Regular Board Meeting Agenda Pack(21:7--1Page 324 of 771
Page 276 of 341
E ui ment Ac uisition— District Project 8516
Program Phase Priority Rank Ranking Score
General improvements Construction 38 170
Purpose:
To provide new, safe, and cost-effective equipment for operations Project Drivers
and maintenance of Central San facilities. Aging Capacity
Infrastructure
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:
• Two (2) Conexwest Hazmat Oils Storage Containers
for the Mechanical Shop.
• One (1) Megger VLF Test Set for the Electric Shop. '� AO—
• Three (3) Remote Racking System for the Electric
Shop.
• One (1) JIM Test Systems Instrument Test Bench for
the Instruments Shop.
• One (1) Pape—Cushman Electric Shuttle Cart for Maintenance Division.
• One (1) OZII Camera Assembly and Wheeled Transporter for CSO.
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
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - -
Construction 1,476,000 250,000 250,000 - 1,976,000
FY Total $1,476,000 $250,000 $250,000 $- $1,976,000
June 16, 2022 Regular Board Meeting Agenda Packet7-2Page 325 of 771
Page 277 of 341
Vehicle Replacement Program— District Project 8517
Program: Phase: Priority Rank: AL Ranking Score
General Improvements Construction 25 200
Purpose: 4600kroject Drivers
Provide safe and cost-effective vehicle replacement.
Aging
Capacity
Drivers: 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
the FY 2016-2026 plan) which will be used to fund the project.
Underspending in a year will result in a carryforward to future
years. This approach will also recognize that due to long lead
times, especially on specialized vehicles, the budget for this
t
program can carry forward to the next fiscal year when delivery
takes place.
Description:
The following vehicles are being considered in FY 2022-23:
Description
Ton 4x2 Truck(1)
F-550 Truck Mechanics service truck (1)
Vactor Hydro-Vac and Water Recycler Unit (1)
Planner for Sid Steer(1)
Electric Vehicles (up to 2) - Preorder
Operating Department Impact and Funding Source:
This project will not have an impact on operating budgets. Expenditures are funded from Capital
Revenues.
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - -
Construction 4,718,000 900,000 900,000 1,800,000 8,318,000
FY Total $4,718,000 $900,000 $900,000 $1,800,000 $8,318,000
June 16, 2022 Regular Board Meeting Agenda Packet73Page 326 of 771
Page 278 of 341
Properly Repairs and Improvements — District Project 100003
Program Phase Priority Rank Ranking Score
General Improvements Construction 65 115
Purpose: REEMLroject Drivers
Protect and enhance Central San's property through repairs,
improvements, and needed upgrades. Aging Capacity
Infrastructure p y
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 used as
rental property and to house some Central San work groups and -
equipment. Central San also owns several buildings at the
Collection System Operations Building and Vehicle Maintenance "
Shop that houses additional staff and equipment. ` -
Description:
This project will fund needed improvements to Central San's buildings, buffer properties, rental
properties, and the surrounding parking lots and grounds. Items identified include resealing and
stripping the asphalt parking lots, replacing broken concrete walkways, and repairing or upgrading
interior work areas. This project may be combined and or coordinated with the Headquarters Office
Building Exterior Repairs Project, if needed. The Annex will be improved with a storage facility to
accommodate emergency equipment and other items for the Pumping Stations group.
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 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design - 50,000 - - 50,000
Construction 450,000 650,000 150,000 150,000 1,400,000
FY Total $450,000 $700,000 $150,000 $150,000 $1,450,000
June 16, 2022 Regular Board Meeting Agenda Pack(2l7-4Page 327 of 771
Page 279 of 341
Head uarters Office Building Exterior Repairs - District Project 100004
Program Phase Priority Rank Ranking Score
General Improvements Construction 38 170
Purpose:
Protect and enhance Central San's property through repairs,
improvements, and needed upgrades. Ag'ng 11['Z11110:2 Capacity
Lfrastructure p y
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 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 30,000 - - - 30,000
Construction 370,000 - - - 370,000
FY Total $400,000 $- $- $- $400,000
June 16, 2022 Regular Board Meeting Agenda Packet75Page 328 of 771
Page 280 of 341
Furnishin s Replacement - District Project 100027
Phase �Wpriority Rank Ranking Score
General Improvements Construction 75 125
Purpose: REENkroject Drivers
Provide safe and cost-effective furnishing replacement.
Aging
Capacity
Drivers: Infrastructure
Central San will budget and replace office furniture or modular
furniture from time to time as replacement is needed for Regulatory Sustainability
ergonomics or the assets have reached the end of their useful life.
This project will replace furnishing cost effectively and are
capitalizable.
Underspending in a year will result in a carryforward to future `
years. - •-
Description:
This project was opened in fiscal year 2021 to capitalize the multi- ,.
purpose room table and chair replacements and will carry forward
to future years as staff evaluates and plans for other furnishings to
be replaced.
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):Central San wide
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - -
Construction 100,000 - - 100,000
FY Total $100,000 $- $- $ $100,000
June 16, 2022 Regular Board Meeting Agenda Pack(2tmPage 329 of 771
Page 281 of 341
Solar Project on Lagiss Property— District Project 100029
Program Phase Priority Rank Ranking Score
General Improvements Design/Construction 58 135
Purpose: To directly fund certain elements of Central San's solar
project on the Lagiss property, which is being implemented via a Project Drivers
Power Purchase Agreement (PPA). Aging
Infrastructure Capacity
Drivers:The primary driver for this capital project is to maximize
the economics on Central San's solar project by directly funding Regulatory Sustainability
the project's PG&E interconnection, which is the only element of
the project that will be owned by Central San. Another driver is
funding the project's California Environmental Quality Act (CEQA)
mitigation costs.
Description: In November 2020, Central San executed a PPA with
-
REC Solar for a 1.75 MW solar array on the Lagiss property, which y
will be interconnected under PG&E's Renewable Energy Self-
generation Bill Credit Transfer (RES-BCT) Program -a program only :.
available to public agencies. Central San will pay REC Solar for the monthly production of solar energy
delivered to PG&E's electrical grid and, in return, earn PG&E energy credits, which will be applied to up
to 50 of Central San's PG&E power accounts to offset Central San's average grid power purchases every
year. In FY 21-22, this project funded the PG&E electrical grid interconnection fee of approximately
$516,000 and initial CEQA mitigation costs. At this time, the only anticipated expenses remaining on
this capital project are minor CEQA mitigation costs related to potential wildlife impacts from the
project.
Operating Department Impact and Funding Source:
The Board Energy Policy requires payback savings within ten years. This project is anticipated to be
under ten years and bring an annual savings to the Operating Budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Lagiss Property (west of the Treatment Plant's overflow basins)
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 25,000 - - 25,000
Construction $575,000 - - 575,000
FY Total $600,000 $- $- $- $600,000
June 16, 2022 Regular Board Meeting Agenda Packet7-7Page 330 of 771
Page 282 of 341
Community Development System Re lacement— District Project 100031
Program Phase Priority Rank Ranking Score
General improvements Construction 58 135
Purpose: REEMLroject Drivers
To replace the community development system (e.g. permitting
system). Aging
Infrastructure Capacity
Drivers:
Implement a paper-free, contactless permitting system that meets Regulatory sustainability
customers' modern expectations.
Description:
After selecting Oracle for the replacement Enterprise Resource
Planning system, Central San executed an agreement with Oracle w
in July 2019 as the second participant in their Early Adopter
Program for a Community Development Services module that was
beginning development. The implementation has been delayed -
while critical functionality is designed and deployed to the test
environments for Early Adopters and the level of reconfiguration
determined and scheduled.
Central San's goal is to have a user-friendly system with a self-service public portal to submit
applications, plans, pay fees, schedule inspections, track applications and obtain permit history; mobile
access to complete inspections and access parcel information; and reduce clerical and administrative
burden on staff.
Operating Department Impact and Funding Source:
This project is expected to have an ongoing impact of approximately$100,000 per year on the
Operating Budget, for direct and indirect annual licensing fees and on-going consultant services for the
administration of the system. Project expenditures are funded from Capital Revenues.
Location(s):
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - - -
Construction 200,000 400,000 200,000 - 800,000
FY Total $200,000 $400,000 $200,000 $- $800,000
June 16, 2022 Regular Board Meeting Agenda Packgl7$Page 331 of 771
Page 283 of 341
Security Improvements (FY 2021-25) - District Project 100033
WProgram 7- Phase�= Priority Rank Ranking Score
General Improvements Planning 62 125
Purpose:
To update security and identify improvements for the safety for Project Drivers
employees and the public, meet safety standards, reduce exposure Aging Capacity
to liability, reduce property loss, and reduce operations and Infrastructure
maintenance expenses.
Regulatory Sustainability
Drivers:
Security system improvements are routinely identified and
refined. Additional security measures for essential public service fiOk
� ` -
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 GhI
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 \ "
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
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 - - - 100,000
Construction 100,000 100,000 100,000 200,000 500,000
FY Total $200,000 $100,000 $100,000 $200,000 $600,000
June 16, 2022 Regular Board Meeting Agenda Packo"Page 332 of 771
Page 284 of 341
Technolo Strate is Plan - District Project 100035
. - . 111 ��mmm!has�r Priority Rank Ranking Score
General Improvements Planning 58 135
Purpose:
The activities performed during the Technology Master Plan
project will include and invite participation from all Central San Aging Capacity
Departments and Divisions. Infrastructure
Drivers: Regulatory Sustainability
Update the 2015 Information Technology (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
• Supervisory Control and Data Acquisition (SCADA) roadmap
• Enterprise Asset Management (EAM) —Asset reliability, condition, and health monitoring
• Electronic Document Management
• Enterprise systems and architecture
• Geographic Information System (GIS) roadmap
• Building Information Modeling (BIM) /,fomputer-Aided Design (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 2022-23 FY 2023-24 Future FYs Total
Planning $500,000 $500,000 $- $- $1,000,000
Design - - - - -
Construction - - - - -
FY Total $500,000 $500,000 $- $- $1,000,000
June 16, 2022 Regular Board Meeting Agenda Packf2tgOPage 333 of 771
Page 285 of 341
Easement Ac uisition FY 2022-31 — District Project TBD
Program Phase Priority Rank Ranking Score
General Improvements Planning 33 185
Purpose:
To improve or acquire new property land rights for existing or new Project Drivers
sanitary sewers that are located on private properties and are not Aging Capacity
associated with a current capital project for sewer renovation
Infrastructure p y
work.
Regulatory Sustainability
Drivers:
As capital projects are designed, sanitary sewer easements
may have to be acquired for those specific projects. This
project provides funds for the acquisition of easements for
projects where specific funds are not identified within the
sewer renovation capital improvement projects in the Capital
Improvement Budget.
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 the District's Outfall pipeline.
• Easements for recycled water distribution pipelines.
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): Central San-wide
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - - - -
Construction - 75,000 $75,000 600,000 750,000
FY Total $- $75,000 $75,000 $600,000 $750,000
June 16, 2022 Regular Board Meeting Agenda Pack�*1Page 334 of 771
Page 286 of 341
Page Intentionally Blank
June 16, 2022 Regular Board Meeting Agenda Packe-2Page 335 of 771
Page 287 of 341
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, the Veranda
shopping center, and the city of Pleasant Hill, including
their new library. Ultimately, Central San will deliver
1.5 million gallons per day for irrigation use in the Zone
1 area. Central San will continue to collaborate with
local water purveyors to identify cost-effective t f
landscape irrigation and industrial recycled water
projects.
Central San currently produces over 500 million gallons
of recycled water per year for use at the treatment
plant site, by irrigation customers, and for a range of
commercial uses. Over 200 million gallons per year of
recycled water is provided to a variety of customers
in the city of Pleasant Hill, the city of Concord, and
,r
businesses near Central San's treatment plant in
Martinez. Recycled water is used for landscape ---y
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.
June 16, 2022 Regular Board Meeting Agenda Packer-3Page 336 of 771
Page 288 of 341
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 and discussions with other regional water districts
(including EBMUD and SFPUC).
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 2022-23 Recycled Water Program Budget/Project Summar
Project Project Budget-to- FY 2022-23 Future FYs Total Project
Number Date Cost
7361 Filter Plant and Clearwell
Improvements—Phase 1A $30,989,000 $7,600,000 $- $38,589,000
7366 Recycled Water Distribution System 715,000 215,000 860,000 1,790,000
Renovations Program
7368 Water Exchange Project 400,000 - - 400,000
100002 Filter Plant and Clearwell 650,000 800,000 33,200,000 34,650,000
Improvements—Phase 16
100036 Zone 1 Recycled Water 2021+ 100,000 100,000 824,000 1,024,000
Recycled Water Program Total: $32,854,000 $8,715,000 $34,884,000 $76,453,000
June 16, 2022 Regular Board Meeting Agenda Packft-4Page 337 of 771
Page 289 of 341
Filter Plant&Clearwell Improvements - Phase 1A- District Project 7361
Program Phase Priority Rank Ranking Score
Recycled Water Construction 6 315
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. :a
The electrical and instrumentation infrastructure is mostly original,
showing signs of significant wear, and requires replacement to
ensure operational reliability. Opportunities to minimize energy
demands and reduce chemical dosing requirements will be -
included in the rehabilitation project. Additional improvements
will be incorporated in a future Phase 1B project.
Description:
The Filter Plant & Clearwell Improvements- 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.
• Replacement of one filter (bid alternate), chemical addition improvements, and rehabilitation of
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 2022-23 FY 2023-24 Future FYs Total
Planning $1,130,000 $- $- $- $1,130,000
Design 2,870,000 - - - 2,870,000
Construction 26,989,000 7,600,000 - - 34,589,000
FY Total $30,989,000 $7,600,000 $- $- $38,589,000
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Recycled Water Distribution System Renovations Program— District Project 7366
ME MM Ranking Score
Recycled Water Planning 51 150
Purpose: 4600kroject Drivers
To renovate existing recycled water distribution system facilities.
Aging
Capacity
Drivers: Infrastructure
Central San's recycled water distribution system consists of
approximately 13 miles of recycled water distribution piping, Regulatory Sustainability
which includes several isolation valves, pressure-reducing
valves, air relief valves, hydrants, flow meters, and other
connections and appurtenances. The recycled water
distribution system includes pressured pipes installed
over various years ranging from the mid-1990s to 2015
r �
and now serves over 30 customers. Eventual ;
renovations and upgrades to the distribution system
components will be required to maintain reliable service ' N` N
1 ro �!
to Central San's recycled water customers.
Q
Description: ,
This project includes renovation of recycled water
piping, valves, meters, and other appurtenances. In
addition, this project will include upgrades to overall ' °•
n aMw
system reliability and continued condition assessment P _7
•.5
and inspection of various recycled water distribution �•,
system assets.
Operating Department Impact and Funding Source:
The impacts to operational budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Zone 1 Recycled Water Distribution System—Cities of Pleasant Hill, Concord, Martinez
7—Design
Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
$100,000 $- $- $- $100,000
200,000 - - 200,000
Construction 415,000 215,000 215,000 645,000 1,490,000
FY Total $715,000 $215,000 $215,000 $645,000 $1,790,000
June 16, 2022 Regular Board Meeting Agenda Packft6Page 339 of 771
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Water Exchange Project- District Project 7368
RM — "IM Ar Priority Rank Ranking Score
Recycled Water Planning 51 150
Purpose: ect Drivers
To develop a project to recycle as much of Central San's
wastewater supply as possible. Aging Capacity
Infrastructure P y
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
. sr
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 2022-23 FY 2023-24 Future FYs Total
Planning $400,000 $- $- $- $400,000
Design - - - - -
Construction - - - - -
FY Total $400,000 $- $- $- $400,000
June 16, 2022 Regular Board Meeting Agenda Pack(2t&7Page 340 of 771
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Filter Plant&Clearwell Improvements — Phase 113 — District Project 100002
Program Phase Priority Rank Ranking Score
Recycled Water Design 42 165
Purpose:
To rehabilitate and replace components of the existing Filter Plant Project Drivers
recycled water facilities. Aging
Infrastructure Capacity
Drivers:
The recycled water facilities produce disinfected tertiary effluent Regulatory Sustainability
that meets Title 22 recycled water requirements and is used on-
site for utility water and is pumped 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 t
pumping replacement are being implemented under the earlier
phase, Filter Plant & Clearwell Improvements- Phase 1A, Districts
Project 7361. That project is scheduled to complete 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 Filter Plant & Clearwell Improvements- Phase 113 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 (pending result of the tertiary membrane pilot study).
• 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 or bonds.
Location(s): Treatment Plant
Project Budget
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $- $- $- $- $_
Design 650,000 800,000 - 1,550,000 3,000,000
Construction - - 3,500,000 28,150,000 31,650,000
FY Total $650,000 $800,000 $3,500,000 $29,700,000 $34,650,000
June 16, 2022 Regular Board Meeting Agenda Packf-gPage 341 of 771
Page 293 of 341
Zone 1 Recycled Water— District Project 100036
Program Phase Priority Rank Ranking Score
Recycled Water Construction 70 100
Purpose: Project Drivers
To continue providing recycled water for landscape irrigation
customers within the Zone 1 distribution area, which includes the Aging Capacity
City of Pleasant Hill and portions of the cities of Concord and Infrastructure
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
per year.
Central San staff evaluates potential new recycled water
landscape irrigation sites near the existing recycled water
distribution system and works with developers to evaluate
options for connecting to the system.
Description:
This project provides funds for the planning, design, and construction of recycled water facilities for
landscape irrigation and commercial customers in the Zone 1 distribution area.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Zone 1 Recycled Water Distribution System—Cities of Pleasant Hill, Concord, and Martinez
BudgetProject
Phase Budget-to-Date FY 2022-23 FY 2023-24 Future FYs Total
Planning $-
Design - - -
Construction 100,000 100,000 103,000 721,000 1,024,000
FY Total $100,000 $100,000 $103,000 $721,000 $1,024,000
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Page Intentionally Blank
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Ten-Year Capital Improvement Plan
(FY 2022 - FY 2032)
OVERVIEW
Central San has developed a Ten-Year Capital Improvement Plan (CIP) for capital facilities and financing
needs. The Ten-Year CIP covers the period starting on July 1, 2022, and ending June 30, 2032. 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 2022-2024):
• 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 $1,135,673,000.
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Ten-Year Capital Improvement Plan Budget Process
The Ten-Year CIP assumes that funds will be available to support the plan. For FY 2022-23, 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 used to
fund the Solids Handling Facility Improvements Project from FY 2021-22 through FY 2025-26.
Two other debt offerings are currently assumed in the ten-year financial plan. A bond offering for
June 2022 may substantially fund the portion of the FY 2022-23 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. 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 $900.0 million, of which approximately$470.0 million
may be within the next twenty years. These projects include the following:
• Nutrient Removal (Nutrient Watershed Permit)**
• 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° was updated to InfoAssets° program which 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 is determined using factors such as pipeline size, flow conditions, and proximity to waterways,
June 16, 2022 Regular Board Meeting Agenda Pack(2fi93Page 346 of 771
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hospitals, schools, and roads. The overall risk of each segment is based on the likelihood of failure and
consequence of failure scores, and a decision matrix developed through workshops with staff were
used to prioritize the replacement of each pipe segment. InfoAssets° 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
Maintenance This program will fund maintenance access cover
Access Cover Present through 2032 Collection System modifications and replacement throughout the collection
Modifications system.
Implement cured-in-place pipe repair projects to address
Blanket C
Cured t Colace Pipe Presentontract through 2032 Collection System pipelines that require immediate action. Projects are
completed in five-year cycles.
This program will fund rehabilitation and replacement of
aging small diameter sewers throughout the collection
system. Aging infrastructure needs will continue to be
Collection System identified, prioritized by risk,and packaged into capital
Sewer Renovation— 2022 to 2032 Collection System projects by geographical areas throughout the collection
Phases 2 and 3 system. This program is also coordinated with
miscellaneous relief projects for sewers identified by the
hydraulic model as having wet weather hydraulic capacity
deficiencies and possibly 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
Large Diameter based on the inspection program. This program will fund
rehabilitation and replacement of aging large diameter
Piping Renovation Present to Collection System sewers throughout the collection system. Aging
Program—Phase 1 2032
and 2 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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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 2032 Collection System deficiencies, and sustainability and optimization
opportunities. Projects are performed in five-year cycles,
includes five-and ten-year updates to Master Plan.
Collection System Present Continued build-out of the collection system modeled
Modeling Support through 2032 Collection System network to include areas of planned development,and
other major upgrades and updates to the hydraulic model.
Large Diameter Phased inspection program for large-diameter trunks and
Pipeline Inspection Present
Program—Phase 1 through 2032 Collection System interceptors to update condition and prioritize
rehabilitation and replacement needs.
and 2
Force Main Phased inspection program for force mains to update
Inspection Program Present through 2032 Collection System condition and prioritize rehabilitation and replacement
—Phase 1 and 2 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, right-
Sewerage Support through 2032 Central San-wide of-way,and inspection for construction of developer
installed sewer facilities.
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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
Design the replacement the existing aeration tanks
Aeration Basins Diffuser diffusers to increase aeration system performance
Replacement and
Re Present to A N Tanks
p 2028 / and optimize the activated sludge process. This
Seismic Upgrades project also includes structure improvements and
repairs.
Inspect the condition of several large diameter,critical
pipelines on the treatment plant site such as primary
Condition Assessment Present to effluent, mixed liquor,secondary effluent,final
of Buried Pipelines 2023 Treatment Plant effluent pipelines,and wet weather bypass pipelines.
These inspections will require complicated shutdowns
and temporary bypass pumping and piping.
Replace, rehabilitate,and/or improve the steam
Steam Renovations— Presentsystem,and coordinated with the existing steam
Treatment Plant
Phase 1 though 2027 system and heat recovery in the Solids Conditioning
Building.
Replace the aging existing UV disinfection process
UV Disinfection with a new, more energy efficient UV disinfection
Replacement(Includes Present to UV Channel, Final process. Increase wet weather hydraulic capacity
UV Hydraulic 2027 Effluent Channel through UV disinfection and final effluent channel to
Improvement) accommodate a
20-year wet weather storage event.
Electric Blower Present Replace the existing electric blower in the Pump and
Improvements though 2023 Treatment Plant Blower Building. Coordinated with the Solids Handling
Facility Improvements Project.
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Project Title Year(s) Location Description
Rehabilitate and replace aeration diffusers,air piping,
structural upgrades, and seismic improvements to
Aeration Basins Diffuser reconfigure the aeration basins(A/N Tanks)to
Replacement and Present though 2027 Treatment Plant maximize the use of unused channels to optimize the
Seismic Upgrades activated sludge process using available volume and
tankages,as well as upgrade instrumentation and
controls to improve air flow distribution.
Increase secondary treatment wet weather capacity
Secondary Treatment Secondary Clarifiers to accommodate a 20-year wet weather storage
Hydraulic 2024 to 2029 and Mixed Liquor event. This includes a mixed liquor flow split structure
Improvements Flow for the secondary clarifiers, up to two additional
secondary clarifiers,and mixed liquor channel
improvements such as new gates.
This project will plan and provide funding
Nutrient Removal 2024 though Treatment Plant requirements for the future addition of nutrient
2032 removal facilities to meet the Nutrient Watershed
permit.
Outfall Improvements— Inspect outfall pipe and make necessary repairs. This
Phase 8 2026 to 2028 Treatment Plant project will require complicated shutdowns and
temporary bypass pumping and piping.
Construct up to two additional primary sedimentation
Primary Expansion 2028 to 2032 Pre-Aeration, tanks and corresponding new pre-aeration(grit
Primaries removal)tank, improve wet weather grit handling,
and replace primary sludge pumps.
Implement improvements for wet weather flow
Wet Weather Flow Headworks,Wet management and holding basin operation such as raw
2029 to 2032 Weather Holding wastewater diversion pipeline,drain back pumping,
Management Basins sixth influent pump,and improved basin grading and
drainage.
Ten-Year CIP - Treatment Plant Program Projects
Solids Handling Process
Project Title Year(s) Location Description
Solids Handling
Facility Present Solids Conditioning Rehabilitate and replace the sludge dewatering,sludge
Improvements— though 2026 Facilities handling,furnace air pollution control equipment.
Phase 1A
Solids Handling
Facility Present Solids Conditioning Structural seismic upgrades to the Solids Conditioning
Improvements— though 2026 Facilities Building.
Phase 1B
Solids Handling Phase 2 Project will update the long-term plan for solids
Facility Present Solids Conditioning handling,treatment and disposal for Central San, and will
Improvements— though 2032 Facilities determine options to how to best transition from current
Phase 2 solids handling and disposal methods.
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Dissolved Air
Flotation Thickeners 2030 though Solids Conditioning Rehabilitate and renovate the DAFT Tanks used for waste
(DAFT)Tanks 2033 Facilities activated sludge thickening.
Improvements
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 2032 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 2032 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 2029 to 2031 Basin A South and replace soil cap.
Warehouse Seismic Present to Implement upgrades to the Warehouse building to meet
Upgrades 2025 Warehouse current seismic design standards and improve overall
seismic safety.
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.
Treatment Plant Continue to implement safety-related enhancements
Safety Present to Treatment Plant around the treatment plant to proactively address safety
Enhancements— 2032
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 2032 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.
Filter Plant, UV,
Miscellaneous Headworks, Fuel Implement seismic upgrades to miscellaneous structures
Seismic Upgrades 2023 to 2025 Oil, Hypo Tanks, and process equipment around the treatment plant.
Substations
Treatment Plant Complete an evaluation and implementation plan for the
Supervisory Control
and Data 2025 to 2029 Treatment Plant upgrade and replacement of the SCADA, PLCs, and
Acquisition (SCADA) communications networks, and determine workforce
planning needs.
Improvements
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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 old,
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 2032 Central San-wide maintenance of Central San assets.
Vehicle
Replacement Present Central San-wide Continued replacement and acquisition of new Central San
through 2032 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 2032 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 2032 Central San-wide new sanitary sewers that are located on private properties.
Security Study and Present Central San-wide Continued implementation of general security
Improvements through 2032 improvements for Central San buildings and properties.
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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 2032 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.
Ten-Year CIP - Recycled Water Program Projects
Project Title Year(s) Location Description
Continue to expand Zone 1 Recycled Water Program,to
Zone 1 Area within provide cost-effective water for landscaping, irrigation at
Zone 1 Recycled Present to the Cities of schools, parks, private businesses,golf courses,street
Water 2032 Concord, Martinez, medians,and for commercial applications such as truck
and Pleasant Hill 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 2032 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.
Complete the rehabilitation and replacement of the
Filter Plant& recycled water treatment facilities, including the remaining
Clearwell Present to Treatment Plant three filters(pending the outcome of the tertiary
Improvements— 2028 membrane pilot study),forebays,applied water pumps,
Phase 113 chlorine contact basins,and related electrical,
instrumentations and control systems.
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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 $1,135,673,000 (in 2022 dollars) over the period
from FY 2022-23 through FY 2031-32. A summary of the planned expenditures by program, without
future inflation, for the Ten-Year CIP is included in Tables 1-5.
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Page Intentionally Blank
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Table 1-Ten-Year Program:Collection SystemFiscal Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project# Project Name 10 Year Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
5991 Pleasant Hill Sewer Renovation-Phase 2 3,740,000 3,740,000
8419 Collection System Planning 200,000 200,000
8436 Pump Station Upgrades-Phase 1 0
8442 Pump Station Equipment&Piping Replacement-Phase 2 206,000 206,000
8443 Large Diameter Pipeline Inspection Program-Phase 1 0
8444 Force Main Inspection Program-Phase 1 0
8447 Pump Station Security Improvements 246,000 82,000 82,000 82,000
8448 Maintenance Access Cover Modifications 400,000 400,000
8449 Collection System Modeling Support 0
8450 Development Sewerage Support 4,635,000 927,000 927,000 927,000 927,000 927,000
8457 Pump Station Upgrades-Phase 2 42,000,000 11,900,000 17,500,000 12,600,000
8463 North Orinda Sewer Renovation-Phase 8 0
8464 Martinez Sewer Renovation-Phase 7 2,500,000 2,500,000
8465 Walnut Creek Sewer Renovation-Phase 15 0
8466 Danville Sewer Renovation-Phase 4 3,702,000 3,702,000
100005 Cured-In-Place Pipe Blanket Contract(FY 2020-25) 250,000 250,000
100006 Contractual Assesment District Project 900,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
100007 Large Diameter Renovation Program 13,500,000 3,000,000 4,000,000 3,500,000 3,000,000
100017 San Ramon Electrical Upgrades 1,213,000 1,213,000
100023 Walnut Creek Sewer Renovation-Phase 16 0
100024 South Orinda Sewer Renovation-Phase 9 0
100025 Lafayette Sewer Renovation-Phase 15 0
TBD Collection System Master Plan(5-Year Update) 250,000 250,000
TBD Collection System Sewer Renovation-Phase 2 90,010,000 10,010,000 20,000,000 20,000,000 20,000,000 20,000,000
TBD Collection System Modeling Support 2022+ 1,120,000 120,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000
TBD Orinda-Moraga PS Architectural Improvements 1,250,000 1,250,000
TBD Pump Station Improvements&Rehabilitations 2,390,000 500,000 500,000 1,390,000
TBD Pumping Station SCADA&PLC Upgrades 2,150,000 350,000 500,000 1,300,000
TBD Force Main Replacement Program 17,834,000 200,000 534,000 1,425,000 3,490,000 2,785,000 4,085,000 1,585,000 1,585,000 2,145,000
TBD Collection System Planning 2023+ 2,020,000 220,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000
TBD Pump Station Equipment&Piping Replacement 2023+ 2,250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
TBD 2023+Maintenance Access Cover Modifications 3,300,000 500,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000
TBD Large Diameter Pipeline Inspection Program-Phase 2 1,000,000 200,000 400,000 400,000
TBD Cured-In-Place Pipe(CIPP)Blanket Contract(FY 2024+) 2,100,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000
TBD Force Main Inspection Program-Phase 2 1,000,000 200,000 800,000
TBD Collection System Master Plan(10-Year Update) 1,000,000 1,000,000
TBD Large Diameter Renovation Program 2027+ 18,000,000 2,500,000 2,000,000 4,500,000 4,500,000 4,500,000
TBD Collection System Sewer Renovation-Phase 3 100,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
Development Sewerage Support 2027+ 4,750,000 950,000 950,000 950,000 950,000 950,000
Contractual Assesment District Project 100,000 100,000
TBD lCollection System Modeling Support 2022+ 125,000 125,000
Collection System Total: $ 324,141,000 $ 36,850,000 $ 43,754,000 $ 40,393,000 $ 30,292,000 $ 30,367,000 $ 28,385,000 $ 28,385,000 $ 28,385,000 $ 28,385,000 $ 28,945,000
303
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Table 2-Ten-Year Program:Treatment PlantFiscal Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project# Project Name 10 Year Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
7315 Applied Research&Innovations 700,000 300,000 400,000
7328 Influent Pump Electrical Improvements 1,426,000 1,426,000
7341 Walnut Creek/Grayson Creek Levee Rehab 2,500,000 1,500,000 1,000,000
7348 Solids Handling Facility Improvements-Phase 1A 100,500,000 5,000,000 28,000,000 36,000,000 29,000,000 2,500,000
7349 Steam Aeration&Blower Systems Renovations 500,000 500,000 -
7357 Plant-Wide Instrumentation Upgrades 0 - -
7363 Treatment Plant Planning 200,000 200,000
7369 Piping Renovation-Phase 10 0
7370 Annual Infrastructure Replacement FY 2019-25+ 3,000,000 1,000,000 1,000,000 1,000,000
7371 Condition Assessment of Buried Yard Pipelines 0
7373 Fire Protection System-Phase 3 0
7375 Contractor Staging Improvements 0
100001 UPCCAA Urgent Projects FY 2020-25+ 1,800,000 600,000 600,000 600,000
100008 Laboratory Seismic&Roof Upgrades 500,000 500,000
100009 MHF Hearth Replacement 500,000 500,000
100010 Air Conditioning and Lighting Renovations Project 0
100011 Plant Electrical Replacement and Rehabilitaton 1,750,000 400,000 450,000 450,000 450,000
100012 UV Disinfection Replacement and Hydraulic Improvements 65,500,000 3,500,000 2,500,000 5,000,000 20,000,000 24,000,000 10,500,000
100014 MRC Building and Maintenance Shops Improvements 1,350,000 750,000 600,000
100015 Electric Blowers Improvements 4,245,000 4,245,000
100019 Aeration Basin Diffusers and Seismic Improvements 59,000,000 7,500,000 14,500,000 12,000,000 12,000,000 12,000,000 1,000,000
TBD TP Safety Enhancements Program 2,100,000 300,000 300,000 300,000 300,000 300,000 150,000 150,000 150,000 150,000
100022 Wet Weather Basin Improvements 1,200,000 600,000 600,000
TBD Fire Protection System-Phase 4 860,000 860,000
TBD Controls System Upgrades FY 22-26 1,000,000 200,000 200,000 200,000 200,000 200,000
TBD Electrical Infrastructure Sub 90 23,600,000 500,000 500,000 500,000 5,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 2,100,000
TBD Steam Renovations Phase 1 17,000,000 4,500,000 8,000,000 4,500,000
TBD Solids Handling Facility Improvements-Phase 2 152,600,000 3,100,000 2,500,000 2,500,000 2,500,000 9,500,000 22,500,000 30,000,000 30,000,000 40,000,000 10,000,000
TBD Warehouse Seismic Upgrades 2,000,000 500,000 750,000 750,000
TBD ISecondary Clarifier Improvements Phase 1 10,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
304
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Table 2-Ten-Year Program:Treatment Plant(Continued) Fiscal Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project# Project Name 10 Year Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
TBD Treatment Plant Planning 2023+ 3,780,000 420,000 420,000 420,000 420,000 420,000 420,000 420,000 420,000 420,000
TBD Solids Handling Facility Improvements-Phase 16 Seismic 32,950,000 2,950,000 10,000,000 20,000,000
TBD Fire Protection System-Phase 5 400,000 400,000
TBD Misc.Seismic Upgrades 800,000 300,000 500,000
TBD Applied Research&Innovations 2024+ 3,372,000 450,000 450,000 412,000 412,000 412,000 412,000 412,000 412,000
TBD IFire Protection System-Phase 6 400,000 400,000
TBD Nutrient Removal 55,000,000 500,000 2,000,000 2,000,000 4,000,000 5,500,000 8,000,000 8,000,000 25,000,000
TBD Odor Control Upgrades-Phase 16 1,242,000 515,000 727,000
TBD Treatment Plant SCADA Upgrades 9,300,000 600,000 2,200,000 3,250,000 3,250,000
TBD CO-Gen Replacement 25,600,000 500,000 1,650,000 8,500,000 8,500,000 6,450,000
TBD Annual Infrastructure Replacement FY 2025-26+ 14,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
TBD Tunnel Improvements 5,200,000 100,000 2,500,000 2,600,000
TBD UPCCAA Urgent Projects FY 2025-26+ 4,305,000 615,000 615,000 615,000 615,000 615,000 615,000 615,000
TBD Plant Electrical Replacement and Rehabilitaton 2025+ 2,700,000 450,000 450,000 450,000 450,000 450,000 450,000
TBD Outfall Improvements-Phase 8 6,150,000 1,650,000 4,500,000
TBD Standby Generator Expansion 5,700,000 100,000 2,800,000 2,800,000
TBD WWTP Master Plan(10-Year Update) 1,180,000 625,000 555,000
TBD Steam Renovations Phase 2 34,100,000 100,000 4,500,000 10,500,000 10,500,000 8,500,000
TBD Electrical Infrastructure-Substations 17,100,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 2,100,000
TBD Controls System Upgrades-Phase 3 750,000 150,000 150,000 150,000 150,000 150,000
TBD Odor Control Upgrades-Phase 2 14,995,000 800,000 1,545,000 5,150,000 7,500,000
TBD Surcharge Soil Pile Relocation 19,345,000 1,545,000 7,800,000 10,000,000
TBD Wet Weather Flow Management 8,540,000 300,000 2,575,000 5,665,000
TBD Daft Tank Improvements 2,300,000 350,000 1,950,000
TBD Primary Expansion 100,000 100,000
TBD Solids Handling Facility Improvements-Phase 3 1,000,000 1,000,000
TBD ITP Safety Enhancements Program FY 2031+ 150,000 150,000
Treatment Plant Total: $ 724,290,000 $ 39,981,000 $ 68,470,000 $ 78,585,000 $ 98,862,000 $ 71,222,000 $ 75,702,000 $ 72,292,000 $ 72,142,000 $ 84,922,000 $ 62,112,000
Table 3-Ten-Year Program:General ImprovementsFiscal Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Project# Project Name 10 Year Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
8230 Capital Legal Services 20,000 20,000
8240 IT Development FY 2016-25 500,000 500,000
8250 ERP Replacement 0
8251 Capital Improvement Plan&Budget(Document Management) 300,000 200,000 100,000
8252 POB E.V.Charging Station 800,000 150,000 650,000
8253 lCovid Response 0
8516 District Equipment Acquisition 500,000 250,000 250,000
8517 Vehicle Replacement Program FY 2016-26 3,600,000 900,000 900,000 900,000 900,000
100003 Property Repairs and Improvements 1,000,000 700,000 150,000 150,000
100004 HOB Exterior Repairs 0
TBD Security Improvements 400,000 100,000 100,000 100,000 100,000
TBD Technology Strategic Plan 500,000 500,000
100031 Community Development System Replacement 600,000 400,000 200,000
TBD Solar Project on Lagiss Property 0
TBD District Easement Acquisition 2022+ 750,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
TBD IT Development FY 2023+ 4,635,000 515,000 515,000 515,000 515,000 515,000 515,000 515,000 515,000 515,000
TBD Capital Legal Services 2023+ 225,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
TBD Equipment Acquisition FY 2024+ 2,200,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000 275,000
TBD Security Improvements Study(10-Year) 700,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
TBD Property Repairs and Improvements FY 2025+ 1,050,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
TBD Vehicle Replacement Program FY 2026+ 5,700,000 950,000 950,000 950,000 950,000 950,000 950,000
General Improvements Total: $ 23,480,000 $ 3,795,000 $ 2,965,000 $ 2,040,000 $ 2,140,000 $ 2,090,000 $ 2,090,000 $ 2,090,000 $ 2,090,000 $ 2,090,000 $ 2,090,000
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Table 4-Ten-Year Program:Recycled WaterFiscal Year 2022 2023 2024 202S 2026 2027 2028 2029 2030 2031
Project# Project Name 10 Year Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
7361 Filter Plant and Clearwell Improvements-Phase 1A 7,600,000 7,600,000
7366 Recycled Water Distribution Systems Renovations Program 1,075,000 215,000 215,000 215,000 215,000 215,000
7368 Water Exchange Project 0
100002 Filter Plant and Clearwell Improvements-Phase 113 34,000,000 800,000 3,500,000 4,000,000 2,100,000 9,000,000 9,500,000 5,100,000
TBD Zone 1 Recycled Water 2021+ 924,000 100,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000
Recycled Water Distribution Systems Renovations Program 1 1,075,000 215,000 215,000 1 215,000 1 215,000 1215,000
TBD IZone 1 Recycled Water 2031+ 103,000 -1 1 1 1103,000
Recycled Water Total: $ 44,777,000 $ 8,715,000 $ 3,818,000 $ 4,318,000 $ 2,418,000 $ 9,318,000 $ 9,818,000 $ 5,418,000 $ 318,000 $ 318,000 $ 318,000
Table 5-Ten-Year Program:Totals by Program Fiscal Year 2022 2023 2024 202S 2026 2027 2028 2029 2030 2031
Programs 10 Year Total 2023 2024 2025 2026 2027 2028 2029i
Collection System 324,141,000 36,850,000 43,754,000 40,393,000 30,292,000 30,367,000 28,385,000 28,385,000 28,385,000 28,385,000 28,945,000
Treatment Plant 724,290,000 39,981,000 68,470,000 78,585,000 98,862,000 71,222,000 75,702,000 72,292,000 72,142,000 84,922,000 62,112,000
General Improvements 23,480,000 3,795,000 2,965,000 2,040,000 2,140,000 2,090,000 2,090,000 2,090,000 2,090,000 2,090,000 2,090,000
Recycled Water 44,777,000 8,715,000 3,818,000 4,318,000 2,418,000 9,318,000 9,818,000 5,418,000 318,000 318,000 318,000
Subtotal 1,116,688,000 89,341,000 119,007,000 125,336,000 133,712,000 112,997,000 115,995,000 108,185,000 102,935,000 115,715,000 93,465,000
Contingency 18,985,000 1,635,000 1 1,350,000 2,000,000 12,000,000 1 2,000,000 1 2,000,000 1 2,000,000 1 2,000,000 1 2,000,000 1 2,000,000
Total with Contigency $ 1,135,673,000 $ 90,976,000 $ 120,357,000 $ 127,336,000 $ 135,712,000 $ 114,997,000 $ 117,995,000 $ 110,185,000 $ 104,935,000 $ 117,715,000 $ 95,465,000
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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. In June 2021, Central San (through its Financing Authority) issued $50.8 million of par
value in certificates of participation to generate $58 million in proceeds (inclusive of issuance
premium) for the capital program for FY 2020-21 and FY 2021-22. This issuance freed up reserve funds
that would have been used for the capital program, which instead were used to pay off the pension
unfunded actuarially accrued liability. During FY 2021-22, Central San also finalized a loan agreement
with the State Revolving Fund (SRF) for a loan up to $173.4 million for Phase 1 of the Solids Handling
Facility Improvements Project. Repayment would not commence until the completion of the project.
Accordingly, a debt service schedule is not included in this document.
Central San's debt service is presently funded by property taxes and investment income. Debt service
is projected at $13.3 million, an increase of$0.4 million from the prior year's budget of$12.9 million,
as amended. Table 1 summarizes the debt service sub-fund budget.
Table 1— Debt Service Sub-Fund Budget Summary
Debt Service Sub-Fund FY 2020-21 FY 2021-22 FY 2022-23
Actual Budget Budget
Debt Service Revenue:
Property Taxes(Portion Allocated to Debt Service) $2,511,211 $12,891,059 $13,251,922
Investment Income 11,194 - -
Total Revenue 2,522,405 12,891,059 13,251,922
Debt Service Expense:
2018 Bond Interest Payment and Amortized Costs 542,226 706,227 624,797
2021 Certificates of Participation Interest and Amortized Costs - 1,734,832 1,874,625
Trustee/Issuance Costs 240,179 - 2,500
Total Interest and Other Costs 782,405 2,441,059 2,501,922
2018 Bond Principal Payment 1,740,000 1,805,000 1,885,000
2021 Certificates of Participation Principal Payment - 8,645,000 8,865,000
Total Principal Payments 1,740,000 10,450,000 10,750,000
Total Debt Service Expenditures $2,522,405 $12,891,059 $13,251,922
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
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through eliminating a debt service reserve fund that was previously held for the 2009 bonds.
The 2018 Revenue Bonds have a revised rate covenant as compared to the 2009 bonds, providing for a
Net Revenues Covenant and a Gross Revenues Covenant.
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.
2021 Certificates of Participation
In June 2021, Central San issued (through its Facilities Financing Authority) $50.8 million of par value
certificates of participation, with $58 million in proceeds (inclusive of issuance premium) used to fund
a portion of the capital program for FY 2020-21 and FY 2021-22. The transaction was undertaken in
connection with a plan to pay off the pension unfunded actuarially accrued liability. Funds that were
to be used to fund the capital program, with the addition of$12 million of funds in the pension
prefunding trust, were used to pay down the $70.8 million pension liability. This transaction is
anticipated to result in about $15 million of net cost savings. As a result of this transaction, a budget
amendment was adopted by the Board in August 2021 that included changes to the O&M, Debt
Service, and Sewer Construction funds. These amendments have been reflected in the FY 2021-22
budget figures used in this document. The 2021 Certificates of Participation provide for the same Net
Revenues and Gross Revenues pledge as noted above for the 2018 Revenue Bonds.
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.
In December 2018, Central San applied for an $89.6 million loan through a competitive process with
the California State Water Resources Control Board (SWRCB) to fund solids handling improvements to
the treatment plant. Central San's project was selected as part of the Intended Use Plan for 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. A loan agreement was finalized in 2021. In
September 2021, the Board determined that a change in direction in the Solids Handling Project was
warranted given higher than anticipated costs for the project plan that had been provided for up to
that point. Instead, the current plan is to conduct less extensive work on the existing solids handling
process and accelerate elements of the longer-term plan for solids handling involving digestion.
Planning work for this revised plan is underway. The anticipated impact of this change on the
approved SRF loan is that the District will draw a lesser amount for work within that application's
approved project scope. No draws have yet been made on this loan facility as of May 2022. Funding
for the remaining Solids Handling Project work outside of that scope will be funded from other sources.
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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.
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.
$14,000,000 �I
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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 and 2021
Certificates of Participation is shown below.
2018 Revenue RefladiQLAprids 2021 Certificates of Participation
Fiscal Amortization Total Debt AmortizatiTotal Debt Grand Total
Year Principal and Interest Service Principal on and Service Debt Service
Interest
2021-22 $1,805,000 $706,227 $2,511,227 $8,645,000 $1,734,832 $10,379,832 $12,891,059
2022-23 $1,885,000 $624,797 $2,509,797 $8,865,000 $1,874,625 $10,739,625 $13,249,422
2023-24 $1,965,000 $539,267 $2,504,267 $5,125,000 $1,524,875 $6,649,875 $9,154,142
2024-25 $1,465,000 $458,875 $1,923,875 $5,630,000 $1,256,000 $6,886,000 $8,809,875
2025-26 $1,535,000 $383,875 $1,918,875 $6,165,000 $961,125 $7,126,125 $9,045,000
2026-27 $1,610,000 $305,520 $1,915,520 $6,740,000 $638,500 $7,378,500 $9,294,020
2027-28 $1,685,000 $222,875 $1,907,875 $6,905,000 $297,375 $7,202,375 $9,110,250
2028-29 $1,765,000 $136,625 $1,901,625 $2,495,000 $62,375 $2,557,375 $4,459,000
2029-30 $1,850,000 $46,250 $1,896,250 $- $- $- $1,896,250
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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, recent measures are far above this requirement.
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 other post-employment benefits (OPEB) adjustment ($30.4 million) from the transition to the
CalPERS healthcare plan. Debt coverage following the "Net Revenue Covenant" (lower of the two
methods) is projected to be 6.92 and 5.97 for FY 2021-22 and FY 2022-23 respectively.
Figure 2 — Historic and Projected Debt Service Coverage Ratio
110.0
104.0
90.0
90.0
70.6
60.0
54.0
40.0
30.0
10.0
0.0
2009 Bonds: Adjusted Net Revenue debt Coverage R atio —_—2009 Bonds: Net Revenue Debt Service Coverage Ratio
2013 Bonds/2021 COPs:Grass Revenue Covenant 2018 Bonds/2021 CGPs:Net Revenue Covenant
As noted previously, the calculation 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 Refunding Bonds and 2021 Certificates of Participation have the
following covenants:
• Net Revenues Covenant: Net revenues (gross revenues excluding capacity fees and after payment
of O&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.
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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 2021 (and previously in 1994 and 2002), Central San financed a portion of its capital
improvements using a Facilities Financing Authority, a form of 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 2022-23 through the finalized
loan from the California SWRCB for Phase 1 of the Solids Handling Facility Improvements Project. This
financing, and other financing currently anticipated within the 10-year financial planning horizon, is
forecast to be 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:
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.
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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
FY 2020-21 Y 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget to
Budget t Projection Budget Budget
Variance
Salaries $41,903,773 $38,707,998 $42,010,642 $40,863,399 $46,463,223 $4,452,581
Salary Vacancy (1,077,800) - (1,248,000) - (1,482,000) (234,000)
Overtime 1,695,518 1,354,174 1,640,900 1,523,891 1,618,676 (22,224)
Standby 419,000 218,985 422,000 414,000 447,000 25,000
Compensated Absences Payout 850,000 796,013 1,150,000 1,100,000 1,100,000 (50,000)
Total Salaries 43,790,491 41,077,170 43,975,542 43,901,290 48,146,899 4,171,357
Current Employee Benefits 18,751,483 16,989,719 19,371,650 18,936,636 20,210,822 839,172
Benefit Vacancy (581,000) - (716,000) - (663,000) 53,000
Total Benefits 18,170,483 16,989,719 18,655,650 18,936,636 19,547,822 892,172
PF w IR
Total Salaries and Benefits
(Active Employees) 61,960,974 58,066,889 62,631,192 62,837,926 67,694,721 5,063,529
Capitalized Administrative O/H _ _ _ _ _
Total Salaries&Benefits after
Capitalized Admin O/H 61,960,974 58,066,889 62,631,192 62,837,926 67,694,721 5,063,529
Pension UAAL 13,490,507 13,011,821 62,770 107,915 66,220 3,450
OPEB UAAL 2,451,000 2,479,231 1,260,000 1,260,000 1,320,000 60,000
Additional Trust Contributions 1,250,000 1,250,000 1,250,000 1,250,000 - (1,250,000)
Total Benefits and UAAL 17,191,507 16,741,053 2,572,770 2,617,915 1,386,220 (1,186,550)
Ak
Total Salaries,Benefits&UAAL
before Extraordinary Item 79,152,481 74,807,942 65,203,962 65,455,841 69,080,941 3,876,979
Pension UAAL Payoff - 70,763,669 - - - -
Total Salaries,Benefits&UAAL $79,152,481 $145,571,611 $65,203,962 $65,455,841 $69,080,941 $3,876,979
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Table 2 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Operations &Maintenance Sub-Fund
FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget to
Budget Actual Budget Projection Budget Budget
Variance
Salaries $37,749,621 $34,876,495 $37,784,817 $36,440,460 $40,933,130 $3,148,313
Salary Vacancy (989,800) - (1,248,000) - (1,317,000) (69,000)
Overtime 1,514,370 1,181,287 1,602,574 1,440,488 1,585,718 (16,856)
Standby 419,000 218,985 422,000 414,000 447,000 25,000
Compensated Absences Payout 850,000 796,013 1,150,000 1,100,000 1,100,000 (50,000)
Total Salaries 39,543,191 37,072,780 39,711,391 39,394,948 42,748,849 3,037,457
Current Employee Benefits 17,209,569 15,607,102 17,924,723 17,558,146 18,593,895 669,172
Benefit Vacancy (581,000) - (716,000) - (663,000) 53,000
Total Benefits 16,628,569 15,607,102 17,208,723 17,558,146 17,930,895 722,172
Total Salaries and Benefits
(Active Employees) 56,171,760 52,679,882 56,920,115 56,953,094 60,679,744 3,759,629
Capitalized Administrative 0/H (5,083,396) (4,852,280) (4,520,000) (5,168,152) (5,618,681) (1,098,681)
Total Salaries&Benefits after
Capitalized Admin O/H 51,088,364 47,827,602 52,400,115 51,784,942 55,061,063 2,660,948
Pension UAAL 12,126,016 11,787,320 56,845 101,817 59,784 2,938
OPEB UAAL 2,451,000 2,479,231 1,260,000 1,260,000 1,320,000 60,000
Additional Trust Contributions 1,250,000 1,250,000 1,250,000 1,250,000 - (1,250,000)
Total Benefits and UAAL $15,827,016 $15,516,551 $2,566,845 2,611,817 $1,379,784 ($1,187,062)
or
Total Salaries,Benefits&UAAL
before Extraordinary Item 66,915,380 63,344,153 54,966,960 54,396,759 56,440,847 1,473,887
Pension UAAL Payoff - 70,763,669 - - -
Total Salaries,Benefits&UAAL $66,915,380 $134,107,822 $54,966,960 $54,396,759 $56,440,847 $1,473,887
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Table 3 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Sewer Construction Sub-Fund
Sewer Construction Sub-Fund
FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget to
Budget Actual Budget Projection Budget Budget
Variance
Salaries $4,154,152 $3,831,503 $4,225,824 $4,422,939 $5,530,093 $1,304,268
Salary Vacancy (88,000) - - - (165,000) (165,000)
Overtime 181,148 172,887 38,326 83,404 32,958 (5,369)
Total Salaries 4,247,300 4,004,390 4,264,151 4,506,342 5,398,050 1,133,900
Current Employee Benefits 1,541,914 1,382,617 1,446,927 1,378,490 1,616,927 170,000
Total Benefits 1,541,914 1,382,617 1,446,927 1,378,490 1,616,927 170,000
Total Salaries and Benefits
(Active Employees) 5,789,214 5,387,007 5,711,078 5,884,832 7,014,977 1,303,900
Capitalized Administrative O/H 5,083,396 4,852,280 4,520,000 5,168,152 5,618,681 1,098,681
Total Salaries&Benefits after
Capitalized Admin O/H 10,872,610 10,239,287 10,231,077 11,052,984 12,633,658 2,402,581
Pension UAAL 1,364,491 1,224,502 5,925 6,097 6,436 511
Total Benefits and UAAL 1,364,491 1,224,502 5,925 6,097 6,436 511
Total Salaries,Benefits&UAAL $12,237,101 $11,463,788 $10,237,002 1 $11,059,082 $12,640,094 $2,403,092
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Tables 4 - 6 show additional detail on employee benefit costs for Central San as a whole, the O&M Sub-
Fund and the Sewer Construction Sub-Fund.
Table 4 - Benefit Cost Detail, Central San as a Whole
Central San as a Whole W
Budgetto
Account Description FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Budget Actual Budget Projected Budget Variance
Insurance Premiums:
Medical $6,431,143 $5,498,310 $6,847,400 $6,631,743 $7,239,177 $391,777
Dental 529,494 414,932 537,277 528,601 572,177 34,900
Long-Term Disability 73,126 55,612 89,149 66,874 92,951 3,801
Life/AD&D 92,305 85,317 87,115 87,883 89,328 2,212
Workers'Compensation 866,625 868,002 836,443 716,060 849,332 12,889
Vision 46,323 50,954 51,106 49,987 53,221 2,116
Total Insurance Premiums 8,039,016 6,973,127 8,448,491 8,081,149 8,896,186 447,696
91
Employer Taxes:
State Unemployment
Insurance 84,166 85,595 110,443 83,984129,273 18,830
Federal Medicare 543,359 550,849 539,461 571,4317 584,803 45,343
Total Employer Taxes 627,525 636,444 649,903 655,415 714,076 64,173
Employer Retirement
Contributions:
Pension(Normal Cost) 5,758,044 4,956,703 5,948,365 5,741,403 6,219,267 270,903
Deferred Compensation
(401a) 2,639,598 2,795,431 2,264,892 2,398,669 2,370,293 105,401
Total Employer Retirement
Contributions $8,397,642 $7,752,134 $8,213,256 $8,140,072 $8,589,560 $376,303
OPEB ADC(Normal Cost):
Medical&Vision 1,504,000 1,516,376 1,863,000 1,863,000 1,845,000 (18,000)
Dental 135,000 111,279 180,000 180,000 153,000 (27,000)
Life 2,000 360 17,000 17,000 13,000 (4,000)
Total OPEB ADC(Normal Cost) $1,641,000 7$1,628,015 $2,060,000 $2,060,000 $2,011,000 ($49,000)
III
Benefit Adjustments:
Capitalized Admin Overhead - - - -
Benefit Vacancy (581,000) - (716,000) (663,000) 53,000
Other 46,300 - - -
Total Benefit Adjustments: (534,700) - (716,000) (663,000) 53,000
Central San as a Whole $18,170,483 $16,989,719 $18,655,650 $18,936,636 $19,547,822 $892,172
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Table 5 - Benefit Cost Detail, O&M Sub-Fund
O&M Sub-Fund 7010
Budget to
Account Description FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Budget Actual Budget Projected Budget Variance
Insurance Premiums:
Medical $5,892,246 5,001,852 $6,319,255 $6,115,359 $6,636,610 $317,355
Dental 482,595 371,477 494,600 486,155 523,844 29,244
Long-Term Disability 66,329 48,667 79,973 60,133 82,706 2,732
Life/AD&D 80,686 81,504 79,922 84,254 81,571 1,649
Workers'Compensation 826,417 845,464 804,799 692,581 813,785 8,986
Vision 46,323 46,841 47,020 45,932 48,654 1,634
Total Insurance Premiums 7,394,596 6,395,805 7,825,569 7,484,413 8,187,170 361,601
Employer Taxes:
State Unemployment
Insurance 25,000 44,893 50,000 50,000
50,000 -
Federal Medicare 543,359 550,849 539,461 571,431 584,803 45,343
Total Employer Taxes 568,359 595,742 589,461 621,431 634,803 45,343
Employer Retirement
Contributions:
Pension(Normal Cost) 5,181,105 4,443,343 5,395,262 5,209,550 5,613,906 218,644
Deferred Compensation
(401a) 2,378,209 2,544,197 2,054,432 2,182,752 2,147,016 92,584
Total Employer Retirement
Contributions 7,559,314 6,987,540 7,449,694 7,392,302 7,760,922 311,228
OPEB(Normal Cost):
Medical&Vision 1,504,000 1,516,376 1,863,000 1,863,000 1,845,000 (18,000)
Dental 135,000 111,279 180,000 180,000 153,000 (27,000)
Life/AD&D 2,000 360 1 17,000 17,000 13,000 1 (4,000)
Total OPEB(Normal Cost) 1,641,000 1,628,015 2,060,000 2,060,000 2,011,000 (49,000)
Benefit Adjustments:
Capitalized Admin Overhead (5,083,396) (4,852,280) (4,520,000) (5,168,152) (5,618,681) (1,098,681)
Benefit Vacancy (581,000) (716,000) - (663,000) 53,000
Other 46,300 - -
Total Benefit Adjustments: (5,618,096) (4,852,280) (5,236,000) (5,168,152) (6,281,681) (1,045,681)
Total O&M Fund Benefits $11,545,173 $10,754,822 $12,688,724 $12,389,994 $12,312,215 ($376,509)
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Table 6 - Benefit Cost Detail, Sewer Construction Sub-Fund
I Sewer Construction Sub-Fund
Budgetto
Account Description FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Budget Actual Budget Projected Budget Variance
Insurance Premiums:
Medical $538,897 $496,459 $528,145 $516,384 $602,567 $74,422
Dental 46,899 43,455 42,678 42,446 48,333 5,656
Long-Term Disability 6,797 6,945 9,176 6,741 10,245 1,069
Life/AD&D 11,619 3,813 7,193 3,630 7,756 563
Workers'Compensation 40,208 22,538 31,644 23,479 35,547 3,903
Vision - 4,112 4,085 4,056 4,567 482
Total Insurance Premiums 644,420 577,322 622,921 596,736 709,016 86,095
Employer Taxes(Medicare) 59,166 40,701 60,443 33,984 79,273 18,830
Employer Retirement
Contributions:
Pension(Normal Cost) 576,939 513,360 553,103 531,853 605,361 52,258
Deferred Compensation
(401a) 261,389 251,234 210,460 215,917 223,276 12,817
Total Employer Retirement
Contributions 838,328 764,594 763,563 747,770 828,638 65,075
Capitalized Admin Overhead 5,083,396 4,852,280 4,520,000 5,168,152 5,618,681 1,098,681
Total Sewer Construction Fund
Benefits $6,625,310 $6,234,897 $5,966,927 $6,546,642 $7,235,608 $1,268,681
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Table 6 - Changes in Net Position and Fund EquitV
%, I
WF07 .
Total Operating Revenue $87,222,779 $89,242,561 $117,796,852 $67,917,508
Total Non-Operating Revenues 24,658,211 27,828,610 26,019,317 25,707,900
Total Revenues 111,880,990 117,071,171 143,816,169 93,625,408
Total Operating Expenses 100,715,441 105,444,779 100,442,562 110,189,046
Non-Operating Expense-Interest 604,851 542,226 2,443,260 2,501,922
Total Expenses 101,320,292 105,987,005 102,885,822 112,690,968
—1111111111111111111111117— OF—
Income Before Capital Contributions 10,560,698 11,084,166 40,930,347 (19,065,560)
Total Capital Contributions 53,068,468 46,644,333 23,425,620 77,911,492
Change in Net Position 63,629,166 57,728,499 64,355,967 58,845,932
Beginning Net Position 704,131,562 767,760,728 825,489,227 889,845,194
Ending Net Position 767,760,728 825,489,227 889,845,194 948,691,126
pr
Net Investment in Capital Assets 692,117,172 684,834,242 749,151,142 823,351,142
Restricted for Debt Service 2,639 34,929,105 - -
Unrestricted 75,640,917 105,725,880 140,694,052 125,339,984
Total Net Position $767,760,728 $825,489,227 $889,845,194 $948,691,126
Net Position is classified into three categories: Net Investment in Capital Assets, Restricted for Debt
Service, and Unrestricted. The classification is based on availability or accessibility of the resource,
rather than its origin. Net position is a measure of the overall financial condition of Central San.
Over time, trends in net position provide indications of Central San's financial strength. Central San's
financial condition is affected by numerous factors including financial policies, rate and spending
decisions, and external factors such as overall economic trends affecting the service territory, new
regulatory requirements, and accounting pronouncements.
The largest portion of Central San's net position is the investment in capital assets (e.g., land,
buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less any related
debt used to acquire those assets that are still outstanding.
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The following figure shows historical Central San ad valorem property tax collections in comparison to
assessed value of taxable property in the District's service territory. Figure 2 is provided to illustrate
the general correlation between increasing property values and Central San property tax revenues.
Figure 2 — Central San Property Tax Collections
Central San Ad Valorem Tax Col Iections
$140,000 Contrasted Against Eget Assessed Value of Taxable Property in Central San Service Territory $25
Amounts in millions
$120,000
$20
$100,000
$SO 000 $15
$50,000
$lo
$40,000
$5
$20,000 —
$0 - -- - - - - - - $0
FY2012-13 FY2713-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY201919 FY2019-20 FV2020-21 FY2021-22
IIIIIIIIIIIIIIIIIIA—sed Value of Taxable Property in Centra I San Service Territory(Left Axis)
Centra I Sao Ad Va lorem Ta x Calle coons(Right Axis)
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Glossary
Terms and Definitions Used in the Budget Document
Accrual Basis of The basis of accounting under which transactions are recognized when they occur, regardless of the
Accounting 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 of Central San-wide and department operations costs incurred by administration support functions
Capital 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 authorized by the Board establishing maximum appropriations and
projected revenues and reserves to meet those needs for a one fiscal year. The total expenditures of
each fund must stay within Board-approved appropriations in the adopted budget, unless amended
by the Board.
Amended Budget The current effective budget for a fiscal year,incorporating revision(s)approved by the Board.
Annual The annual comprehensive financial report(ACFR) is prepared at the close of each fiscal year to show
Comprehensive the actual audited condition of Central San's funds and serves as the official public record of Central
Financial Report San's financial status and activities.
Appointment Type Indicates the character of a position. The following are examples of appointment types for 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 Directors The five public officials elected at large to represent Central San's service area. Also 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 2009.
Bonds(BABs) These bonds are sold at a taxable rate rather than a lower tax-exempt rate,and Central San receives
cash rebates from the U.S.Treasury to offset the higher interest cost.
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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.
Capital Referring to the Sewer Construction Fund.
Capital Board-approved funding for capital reference projects for which relatively accurate time estimates
Appropriation 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 A financial plan for providing the purchase,construction, or rehabilitation of fixed assets such as
Improvement equipment,facilities,and systems. The capital budget is usually enacted as a part of the complete
Budget(CIB) 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 Flow Projected cash disbursements for capital projects for a given time period. The estimated 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,aqueducts,
Expenditures 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 future years
Improvement Plan setting forth each capital project, identifying the expected beginning and ending date for each
(CIP) 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 hands.
Accounting
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 O&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 long-term
Costa Sanitary 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 buy a
Participation (COP) share of the lease revenue of an agreement made by these entities.
Contra Costa The retirement association for 16 local agencies in Contra Costa County, including the County itself.
County CCCERA's retirement benefit structure is based upon the County Employees Retirement Law(CERL)of
Employees' 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 Accounts An index of all the financial accounts in Central San's general ledger. Used as an 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.
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BudgetTerms and Definitions Used in the Document
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 System Pipelines and pumping stations that convey wastewater from customers to the treatment plant.
Commercial Paper Short-term financing for capital projects.
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 part of the
Study 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 Fund One of four sub-funds of the enterprise fund used to account for Central San's operations. 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)
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 to wear and tear.
Distribution Wastewater treatment plants,storage reservoirs, pumping plants, pipelines,and appurtenances that
System 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 Temp Temporary staffing positions that are restricted to working no more than 12 months,do not 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 leaders
Management that indicates where effectively managed water/wastewater utilities should focus.
(EUM)
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BudgetTerms and Definitions Used in the Document
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 financial
Enterprise Fund 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 Capacity Fee 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 reserves, and
Policy 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)
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 followed
Accepted by organizations in the U.S. These Principles are established by two organizations:The Financial
Accounting Accounting Standards Board for commercial and not-for-profit entities,and the Governmental
Principles(GAAP) Accounting Standards Board for governmental entities in the United States.
Governmental Governmental Accounting Standards Board is the body that specifies the accounting rules for
Accounting governmental agencies in the U.S. The Board issues GASB statements that can require significant
Standards Board changes to an agency's financial reporting.
(GASB)
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.
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BudgetTerms and Definitions Used in the Document
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 defined benefit pensions,which revises and
establishes new financial reporting requirements for most state and local governments that provide
their employees with pension benefits.
GASB 75 An accounting requirement of the Governmental Accounting Standards Board effective in 2017 that
addresses Accounting and Financial Reporting for defined benefit Other Post Employment Benefit
(OPEB) plans,which revises and establishes new financial reporting requirements for most state and
local governments that provide their employees with OPEB benefits.
General Fund An account used to record funds that are not legally restricted for specified purposes,such as those
Reserves 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 issues,those
Obligations(GO) bonds are general obligation (GO) bonds. Sometimes,the term is also used to refer to bonds which
Bonds are to be repaid from taxes and other general revenues.
Government Government Finance Officers Association represents public finance officials throughout the U.S.and
Finance Officers Canada; it provides best practice guidance,consulting, networking opportunities, publications,
Association (GFOA) training programs, and recognition programs to its members.
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 that, in the
Hazardous Waste absence of this service,could be inappropriately disposed of through the sewer system, risking
Collection Facility 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
InfoWorks° New Sewer System Hydrodynamic Model
Key Performance Indicators with specific targets that measure how well Central San is progressing in achieving its
Indicators(KPI) 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.
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BudgetTerms and Definitions Used in the Document
Modified Accrual The accrual basis of accounting adapted to the government fund type under which revenues are
Basis of Accounting recognized when they become both "measurable" and "available to finance 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 records
Flow Basis expenses when cash is paid.
Net Assets See Fund Balance.
One-Time Revenue A revenue that cannot reasonably be expected to continue,such as a single-purpose 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 to the
Appropriation 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, Engineering
Departments &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. This sub-
Maintenance fund provides for the general operations, maintenance, and administration of
(0&M) Fund Central San. Also referred to as the"Running Expense"fund,which is the legal name of this fund
pursuant to the Sanitary Act of 1923.
Organization A group of staff organized into one unit or section working under a division or department. This is
the lowest level at which operating budgets are developed.
Other Post- In addition to pensions, many state and local governmental employers provide other post-
Employment employment benefits(OPEB)as part of the total compensation offered to attract and retain the
Benefits(OPEB) 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 off
(Administrative (holidays,sick leave,vacation,etc.). These costs are expressed as a percent of salary. For Central
Overhead and San accounting,salaries and benefits are separate from overhead (whereas consulting firms
Non-Work Hours) 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, pre-
(or pay-go) funding,or setting money aside for future expenses. Used primarily to refer to the strategy of
paying for capital projects.
Public Employees' California's Public Employees' Pension Reform Act established a new less costly retirement tier for
Pension Reform employees newly hired or which did not have prior service with a reciprocal retirement system prior
Act(PEPRA) to January 1,2013.
Performance Specific quantitative measures of work performed within an activity or program (e.g.,total miles of
Measures 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 out
Reference Project independently but require coordination with other projects to ensure overall program success.
Appropriation requests and projected cash flows are authorized at this level.
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BudgetTerms and Definitions Used in the Document
Proposed Budget The recommended balanced financial plan for one fiscal year submitted for consideration to the
Board prior to adoption.
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 Capacity A component of capacity fees for units that are located in areas tributary to one or more of Central
Fees San's pumping stations. (See Capacity Fees.)
Purchased Category of expenses at the highest"grandparent" roll-up level for financial and budgetary reporting
Property Services purposes in the new chart of accounts. Includes services purchased to operate, repair, maintain,
and rent property owned or used by Central San. Includes"parent" roll-up expense categories such
as: repairs&maintenance, hauling&disposal,security, rentals, cleaning,and construction.
Rate(or Cash) Annual operations and maintenance expenses as well as the portion of the capital program that are
Funded 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 0&M and Sewer Construction Funds to help mitigate against sewer
Fund Reserve 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 Reserves Monies that, by action of the Board,State Law,or Bond Covenants,are required to be spent on
specific programs or held for specified purposes.
Restricted Revenue Monies that are legally earmarked for a specific use,as may be required by state law, bond
covenants,or grant requirements. For instance,capacity fees must be used within the Sewer
Construction Fund;the revenue cannot be transferred to 0&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 by debt,
Capital grants,or other funds.
Running Expense Legal term used by the Sanitary District Action of 1923 (California Health&Safety Code section
Fund 6792)to be used for ongoing running expenses of Sanitary Districts. Synonymous with Operating&
Maintenance(O&M) Fund.
Service Area The cities and areas served by Central San,including Alamo, Blackhawk,Clyde, Danville, Lafayette,
Martinez, Moraga,Orinda, Pacheco and portions of San Ramon and Martinez. Concord's and
Clayton's residents'and businesses'wastewater is collected by the City of Concord 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).
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DefinitionsTerms and . • Document
Self-Insurance One of four sub-funds of the enterprise fund used to account for Central San's operations. This fund
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. This sub-
Construction fund provides for the treatment plant and collection system renewal and replacement expenditures,
(Capital) Fund as well as office facilities renewal,vehicle and equipment replacement, information systems
(S/C) replacement,and miscellaneous capital expansion needs.
Strategies, The key components of the Strategic Plan that specify the overall goals in the coming years,consisting
Initiatives, Metrics of the Strategies(highest level objectives), Initiatives(how the strategies will be achieved), and
(SIM) Metrics(measurements of progress).
Sinking Fund A method by which a government may set aside money over time to pay for a project or obligation.
Staffing Plan The classes and positions that have been authorized by the Board and have been determined
necessary to carry out Central San functions. Central San's current staffing level is based on a 2015
Organization and Staffing Plan,which resulted from a study conducted by Raftelis Financial
Consultants, recommending 290 FTE positions.
State Revolving A state revolving fund (SRF) is a fund administered by a U.S.state for the purpose of providing low-
Fund (SRF) interest loans for investments in water and sanitation infrastructure(e.g.,sewage treatment,
stormwater management facilities,drinking water treatment),as well as for the implementation of
nonpoint source pollution control and estuary protection projects. The SRF in California is
administered by the State Water Resources Control Board.
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 its assets,
Assets(Balance liabilities,and equities as of a specified date. Assets minus liabilities equal fund balance(also called
Sheet prior to 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,0&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.
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BudgetTerms and Definitions Used in the Document
Supplies& Category of expenses at the highest"grandparent" roll-up level for financial and budgetary
Materials reporting purposes in the new chart of accounts. Includes amounts paid for items that are
consumed or deteriorated through use or lose their identity through fabrication or incorporation
into different or more complex units or substances. Includes"parent" roll-up expense categories
such as: utilities&fuel,chemicals,and general supplies.
Unfunded The difference between the actuarial accrued liability and the actuarial value of assets accumulated
Actuarial Accrued to finance that obligation. This is a term used in connection with pension plans or commitments to
Liability(UAAL) provide other post-employment benefits(OPEB)to employees.
Unfunded Liability Liability that has been incurred during the current or a prior year,that does not have to be 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. Generally calculated as current assets less current liabilities,with some exceptions.
Working Capital The amount of working capital deemed to be unrestricted and liquid to meet current demands.
Reserves 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 for the 0&M,Sewer
Construction,and Self-Insurance funds 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 its 0&M
Reserve Target 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 O&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
ACFR Annual Comprehensive Financial Report
ADC Actuarially Determined Contribution
Board Board of Directors
CAD Contractual Assessment Districts, Computer Aided Design
CAPERS California Public Employees' Retirement System
CCCERA Contra Costa County Employees' Retirement Association
CCCSD Central Contra Costa Sanitary District
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
COLA Cost of Living Adjustment
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
HOB Headquarters Office Building
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
PY Prior Year
RAM PCAP J100 Risk Analysis and Management for Critical Asset Protection
ReW Recycled Water
RSA Rate Stabilization Account
SCB Solids Conditioning Building
SIF Self-Insurance Fund
SRF State Revolving Fund (Loan)
SSC Sewer Service Charge
SSO Sanitary Sewer Overflow
Ten-Year CIP Ten-Year Capital Improvement Plan
UAAL Unfunded Actuarially Accrued Liability
UV Ultraviolet
VFD Variable Frequency Drives
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