Special Meeting of the Infrastructure & Franchise Committee

Transcription

1 COMMITTEE MEMBERS Edi E. Birsan, Chair Laura M. Hoffmeister, Member Civic Center 1950 Parkside Drive Concord, CA Special Meeting of the Infrastructure & Franchise Committee Monday, January 30, :30 p.m. Garden Conference Room, Wing A 1950 Parkside Drive AGENDIZED ITEMS The public is entitled to address the City Council on items appearing on the agenda before or during the City Council s consideration of that item. Each speaker will be limited to approximately three minutes. 1. ROLL CALL 2. PUBLIC COMMENT PERIOD 3. REPORTS a. Update to Central Contra Costa Sanitary District Future Treatment Plant Upgrades. Report by Robert Ovadia, City Engineer. 4. ADJOURNMENT ADA NOTICE AND HEARING IMPAIRED PROVISIONS In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator at (925) , at least five days in advance of the hearing. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility. Distribution: City Council Valerie Barone, City Manager Susanne Brown, City Attorney Joelle Fockler, City Clerk Justin Ezell, Director of Public Works 1

2 3.a Staff Report Date: January 30, 2017 To: From: Reviewed by: Prepared by: Subject: Council Committee on Infrastructure & Franchise Victoria Walker, Director of Community and Economic Development Justin Ezell, Director of Public Works Robert Ovadia, City Engineer (925) Information Update Regarding the Central Contra Costa Sanitary District Plans for Future Treatment Plant Upgrades Report in Brief The Central Contra Costa Sanitary District (District) has developed a Comprehensive Wastewater Master Plan outlining needed capital improvements in both the District s sewer collection system and the sanitary sewer treatment plant. On November 10, 2016 the District Board held a workshop to introduce the 10 year and 20 year Capital Improvement Program Recommendations outlined in the Comprehensive Waste Water Master Plan for both the collection system and the sewer treatment plant. The overall cost of the planned improvements for the sewer treatment plant over the next 10 years is approximately $566 million. The District Board reviewed potential rate schedules and financing options for the District s direct customers to fund the improvements. The District Board will continue their discussion on the financing options at their meeting on January 26, The City of Concord is responsible for the proportional share of treatment costs and plant improvements based on the wastewater flows sent to the sewer treatment plant. Last year, the City of Concord s share of the wastewater flows to the sewer treatment plan was approximately 35 percent. District staff will provide the Infrastructure and Franchise Committee (Committee) with a presentation on the current status of the Comprehensive Wastewater Master Plan, estimated costs, and financing options under consideration by the Board. As part of the preparation of the City s two-year operating budget for FY , City staff will request the Committee s direction on how best to include estimates of the Page 1 of 8

3 Infrastructure and Franchise Committee Information update regarding the Central Contra Costa Sanitary District plans for future treatment plant upgrades January 30, 2017 City s share of the sewer treatment plan improvement costs into the Budget and 10 year financial plan. Recommended Action Staff s requests the Committee s direction on desired modeling of the City s share of the estimated treatment plant capital improvements to be included into the FY Operating Budget and 10-year financial plan. Background The City of Concord contracts with the Central Contra Costa Sanitary District for treatment of its wastewater and pays its proportional share of operation and maintenance expenses and capital improvements at the treatment plant. The District has developed a Comprehensive Wastewater Master Plan outlining needed capital improvements in both the District s sewer collection system and the sanitary sewer treatment plant. The four primary drivers for these improvements include (1) replacement of aging infrastructure; (2) capacity for planned growth of the communities served; (3) meeting all regulatory requirements; and (4) sustainability projects that address optimization, resource recovery and energy. On November 10, 2016 the District Board held a workshop to review the 10 year and 20 year Capital Improvement Program Recommendations outlined in the Comprehensive Waste Water Master Plan for both the collection system and the sewer treatment plant. The overall cost of the planned improvements for the District is $873 million in the next 10 years and up to $1.8 billion over the 20 year period. Planned improvements for the sewer treatment plant are approximately $566 million over the 10 year period. The City of Concord wastewater flows are processed by the District s sewer treatment plant. The City of Concord provides roughly one third of the wastewater that is treated at the District s facility, although the precise proportion of the annual flow varies from year to year. The City of Concord is responsible for the proportional share of treatment costs and treatment plant improvements costs based on the wastewater flows. The estimated cost of the proposed sewer treatment plant upgrades needs to be considered by the City through the upcoming budgeting process as it prepares for the financial implications of addressing the proportional share of these upgrade costs. Analysis The Committee will receive a presentation from District staff regarding the primary improvements proposed at the treatment plant and estimated costs of the improvements over the next 10 years. District staff will also discuss the financing options under consideration by the district, the impacts to the direct rate payers as well as the City s anticipated cost share. Page 2 of 8

4 Infrastructure and Franchise Committee Information update regarding the Central Contra Costa Sanitary District plans for future treatment plant upgrades January 30, 2017 The City of Concord has historically provided approximately percent of wastewater flows treated by the District. This rate has increased over the last year to approximately 35 percent. This share is anticipated to increase with new development in the City as well as with the long-term development of the Reuse Area. The upgrades to the treatment plant will have a substantial impact to the contact costs incurred by the City and ultimately to the rates passed on to property owners in the City, depending on how the costs are financed. Pursuant to the City s agreement with the District, the City can participate in bond financing associated with treatment plant improvements. Financial Impact The City will be responsible for its proportional share of improvement costs at the District s treatment plant. The total costs associated with the sewer treatment plant upgrades are estimated at $566 million over 10 years. The financial impact will vary based on the amount, duration and timing of the financing options selected by the District as well as the City s participation in the financing. Alternatives The District has considered various financing options for the implementation of the Comprehensive Wastewater Master Plan including: 1. Pay-as-you-go: collecting revenues in advance of planned expenditures. This option can have a significant impact on service rates as well as extend the timeline for implementation. 2. Debt Financing: issuance of debt obligations to secure funding for improvements. Debt issuance would likely be phased to time with improvement implementation targets. This option would reduce the pace of service rate increases as compared to Option 1 above as the cost to rate payers would be limited to the debt service and be spread over time. 3. Some combination of Options 1 and 2 above. District staff will provide an update on the financing recommendations under consideration to the Committee at the meeting. Public Contact The Agenda was posted. Attachments 1. Central Contra Costa Sanitary District 10 Year CIP Update, Proposed FY17-18 and FY18-19 CIB, and Rate Scenarios from Board Workshop #4 Page 3 of 8

5 Attachment 1 10-YR CIP UPDATE, PROPOSED FY17-18 AND FY CIB, AND RATE SCENARIOS Board Workshop # 4 January 26, 2017 MPR Conference Room 11am to 4 pm Page 4 of 8

6 PLANT OF THE FUTURE SITE PLAN Page 5 of 8

7 MAJOR PROJECTS RECOMMENDED IN MASTER PLAN FOR NEXT 2 FISCAL YEARS TREATMENT PLANT Screenings Removal Pump & Blower Seismic Upgrade Piping Renovation Phase 9 Solids Handling Improvements Headworks/Preair/ Primary Gates and Concrete Renovation UV Electrical Improvements Odor Control Replacement Alternative Energy and Bioenergy Project Evaluation RECYCLED WATER COLLECTION SYSTEM Sewer Renovation projects: Pleasant Hill Ph. 2 Walnut Creek Ph.11 and 12 Lafayette Ph.11 and 12 S. Orinda Ph.6 and 7 Martinez Ph.5 Pump Stations: Moraga/Cross Roads, Martinez, Fairview and Maltby Filter Plant Upgrade GENERAL IMPROVEMENTS Asset Management Information Technology Buildings Improvements Vehicles Replacement Equipment Replacement Page 6 of 8

8 PRELIMINARY 10-YEAR CIP $873M OF IMPROVEMENTS IDENTIFIED (WITH DIGESTERS STARTING IN FY 24-25) FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/ Treatment Plant $18,044,950 $18,707,219 $50,502,244 $48,611,109 $46,181,619 $56,523,212 $51,635,748 $23,375,212 $34,949,903 $37,392,325 Solids Improvements Phase 2&3 (Digesters + FBI) $0 $0 $0 $0 $0 $0 $0 $20,190,449 $20,190,449 $20,190,449 Collection System $18,492,120 $17,180,028 $35,752,312 $37,999,695 $39,439,860 $36,758,521 $38,293,113 $41,739,196 $41,985,174 $45,703,025 Recycled Water $460,000 $540,000 $1,209,665 $5,770,993 $5,770,993 $125,000 $1,646,920 $9,099,080 $125,000 $125,000 General Improvements $4,277,050 $2,911,965 $3,455,778 $1,943,278 $3,297,500 $4,172,500 $1,797,500 $2,797,500 $1,797,500 $2,570,000 CIP Program Contingency $1,500,000 $1,500,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Total CIP (not incl. Future Unfunded) $42,774,120 $40,839,212 $92,919,998 $96,325,074 $96,689,971 $99,579,233 $95,373,281 $99,201,437 $101,048,026 $107,980,799 (Rounded in $M 2016 Dollars) Page 7 of 8

9 PRELIMINARY 5-YEAR CIP ($369.5M) FY17/18 FY18/19 FY19/20 FY20/21 FY21/ Treatment Plant $18,044,950 $18,707,219 $50,502,244 $48,611,109 $46,181,619 Solids Improvements Phase 2&3 (Digesters + FBI) $0 $0 $0 $0 $0 Collection System $18,492,120 $17,180,028 $35,752,312 $37,999,695 $39,439,860 Recycled Water $460,000 $540,000 $1,209,665 $5,770,993 $5,770,993 General Improvements $4,277,050 $2,911,965 $3,455,778 $1,943,278 $3,297,500 CIP Program Contingency $1,500,000 $1,500,000 $2,000,000 $2,000,000 $2,000,000 Total CIP (not incl. Future Unfunded) $42,774,120 $40,839,212 $92,919,998 $96,325,074 $96,689,971 (Rounded in $M 2016 Dollars) Page 8 of 8