Maintenance Support Services. Finance/Administration Committee May 24, 2016

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1 Maintenance Support Services Finance/Administration Committee May 24, 2016

2 Overview Summary Management of contract services Staffing levels and recruitment Impact of not approving contracts Recommendations and next steps

3 Summary Fully maintained and operated (FM&O) supplement District forces for Paving and concrete Dump truck Backhoe Hydro-excavation District staff performs majority of this work (72% to 99%) District aggressively filling vacant funded positions

4 Use of Contract Resources FM&O contracts used for Unplanned absences (e.g., medical, fatigue) Planned absences (e.g., training, vacation) Peak workload demands Joint paving projects with cities Catch up on backlog (e.g., paving delays due to inclement weather) Need for specialized equipment

5 Paving and Concrete Services Use $1,581,794 $2,702,421 $520,536 Board authorized 5-year contract January 2014 for $5,000,000 Requesting $1,000,000/ year for the remainder of authorization Exhausted all authorization including change order limit District staff completed approximately 98% of work Added crew in FY16 Increase past two years due to Unanticipated projects Increase in catastrophic main breaks Backlog clean up lead to spike in concrete orders Expanded participation in joint paving projects with cities/counties Vacancies and absences

6 Dump Truck Services Use $2,543,675 $2,849,306 $1,233,098 Board authorized 5-year contract October 2013 for $6,250,000 Requesting $2,500,000/year for the remainder of authorization Exhausted all authorization including change order limit District staff completed approximately 72% of work Increase past two years due to Increase in catastrophic main breaks Increase in main relocations Increase in infrastructure renewals Pipeline Rebuild startup Vacancies and absences

7 Backhoe Services Use $14,045 $95,568 $21,605 Requesting $200,000/year for five years District staff completed approximately 99% of work Issuing purchase orders for each project Added four HEOs in FY16 Increase due to Increase in catastrophic main breaks Increase in main relocations Increase in infrastructure renewals Pipeline Rebuild startup Poly and copper service replacements Backlog Vacancies and absences

8 Hydro-excavation Services Use $61,190 $89,048 $21,500 Requesting $100,000/year for five years Issuing purchase orders for each project District owns four truck-mounted and four trailer-mounted hydro-excavators Two new hydro-excavators on order ($400,000 each), 9-12 months to manufacture Contract provides different size configurations for equipment not regularly used by District Hydro-excavation needed Unreliable third-party utility marking Hydro-excavation safer and more efficient than hand digging Clean-up after maintenance work

9 Management of Contract Services Spot checks performed on dump truck drivers Rotate work to different vendors Violations/concerns Reported to Purchasing Purchasing communicates with vendors Removes from use list if issues continue

10 Union Notification Monthly Contracting Out Committees Local 444 MOU Article 13 Semi-annual updates provided on Board authorized services

11 Discussions with Local 444 Discussed some contracts during January 2016 contracting out meeting Notified union of contracting out in March, April and May for maintenance support services Met with Local 444 four times to discuss contracts Delayed Board award two times to continue discussions with Local 444

12 OMD Staffing Increase 900 Budgeted Positions * FY11 FY12 FY13 FY14 FY15 FY16 * Includes 29 positions for the Meter Reading and Maintenance Division

13 OMD Hires FY12 FY13 FY14 FY15 FY16

14 OMD Staffing Level Description Filled Hires Last 4 Years Heavy Equipment Operator Heavy Transport Operator Vacant Funded* Eligible Retirements (thru 2019) Truck Driver Concrete Finisher Paving Raker Total * Currently recruiting all vacant funded positions

15 OMD Recruitment Description Posting Testing Hiring List Heavy Equipment Operator Completed Completed June 8 Heavy Transport Operator May 30 July August 5 Truck Driver June 6 July August 12 Concrete Finisher TBD TBD TBD Paving Raker Completed Week of June 20 July 8

16 Recruitment Challenges Retirements Competition for hires Other challenges (e.g., resignations)

17 Multi-year Contracts and Pipeline Rebuild Multi-year contracts Necessary because preparing, issuing and reviewing proposals takes approximately 6 months Pipeline Rebuild Reviewing current methods and investigating new techniques for pipe installation Trenchless pipe installation will require less excavation

18 Impact of Not Approving Contracts Impacts without external resources: Delays in leak response Delays in service installations for customers Delays in capital project and applicant work Paving/concrete will not meet permit 30 day turnaround requirements Impact on joint paving projects with cities Backlog will grow

19 Meetings and Communications Date Meeting Union Notified Paving/ Concrete Dump Trucks Contract Backhoe Hydro- Excavation Recruitment Update January 7, 2016 X X x X March 3, 2016 X X March 16, 2016 X X April 4, 2016 X X April 7, 2016 X X X April 21, 2016 X X X X X April 28, 2016 X X May 3, 2016 X X May 5, 2016 x x X x X x

20 Sample Information Provided to Local 444 Jan. 7, Meeting Paving/Concrete Semi-Annual Update Provided Contract Paving graph Reviewed concrete orders received Reviewed 2015 Use: Paving $659,000 Concrete $135,700 Other Budget Units: $601,000 Dump Truck Rental Semi-Annual Update Provided FM&O Dump Trucks Graph Discussed high and low usage Quarterly Recruitment Update

21 Local 444 May 12 Request Paving and concrete services Contracting out notification sent to Local 444 on March 16, 2016 Union Rejected contracting out services Stated they would provide additional information Requested a plan on contracting in vs contracting out District Contracts used to meet peak workload and on an asneeded basis Contracts used for joint paving projects Plan for use in notification for contracting out memo

22 Local 444 May 12 Request Dump truck services Contracting out notification sent to Local 444 on April 28, 2016 Union Proposed $1,000,000 for three years Fill all vacant funded TDII positions after hiring list is established Requested a position status report District Discussed amount at contracting out meetings Agreed to fill vacant funded TDII positions Sent staffing plan to union in error

23 Union May 12 Request Backhoe services Contracting out notification sent to Local 444 on April 4, 2016 Concern of timeliness of re-notification to contract backhoe services. Discussed at May 5 contracting out meeting. Union $60,000 Requested a position status report District Discussed amount at contracting out meetings Sent staffing plan to union in error

24 Union May 12 Request Hydro-excavation services Contracting out notification sent to Local 444 on May 3, 2016 Union $100,000 Commitment to purchase two more trucks District Discussed amount at contracting out meetings Committed to purchasing two more trucks

25 Union May 12 Request Sweeping services Contracting out notification sent to Local 444 on April 5, 2016 Union stated they did not oppose this contract Multi-year contracts Union opposed multi-year contracts District discussed the challenges with single year contracts

26 Cal/OSHA and Backhoe Operators Title 8 CCR, 1510(b) requires employers to qualify equipment operator All District operators are certified that they comply with Cal/OSHA requirements District re-certifies operators every 5 years Vendors are self-qualified and must comply with state law

27 Recommendation and Next Steps Continue use of maintenance support service contracts on as-needed basis Prioritize, recruit and fill all current vacant funded positions for these classifications by September 2016 Acquire equipment necessary to support these positions Provide Local 444 semi-annual reports on utilization of services Review staffing levels during the FY18/19 budget

28 Questions

29 State Drought Emergency and Long Term Water Efficiency Regulations Board of Directors May 24, 2016

30 Presentation Overview Governor s Executive Order May 9, 2016 SWRCB Emergency Regulation modifications May 18, 2016, effective June 1, 2016 EBMUD Revised Section 29 Water Waste Prohibitions Effective July 1,

31 Governor Executive Order May 9, 2016 Directed actions aimed at using water wisely, reducing water waste, improving efficiency Directs the SWRCB to extend the urban emergency regulations through end of Jan Directs DWR to work with SWRCB to develop new permanent water use framework - by Jan. 10,

32 Governor Executive Order May 9, 2016 Long-term water use targets shall: Be customized to the unique conditions of each water agency; Generate more statewide water conservation than existing (i.e. 20x2020) requirements; and Be based on strengthened standards for: indoor residential per capita water use outdoor irrigation, in a manner that incorporates landscape area, local climate, and new satellite imagery data commercial, industrial, and institutional water use Water lost through leaks 4

33 Governor Executive Order May 9, 2016 Permanently requires monthly reporting on: water usage conservation achieved enforcement efforts Directs urban and agricultural water suppliers to: accelerate data collection improve water system management prioritize capital projects to reduce water waste California Energy Commission shall certify: innovative water conservation water loss detection and control technologies 5

34 SWRCB Emergency Regulation Modifications May 18, 2016 Extends certain potable water prohibitions Provides for local agency self-certification of sustainable water supply and conservation target Requires calculation of available water supplies in a third year of a design drought Repeat of hydrologic years Demand as average of 2013 and 2014 production Conservation standard commensurate with shortage at end of third year Maintains state mandated conservation levels for agencies that choose not to self-certify Maintains homeowners association requirements 6

35 EBMUD Conservation Standard & Supply Reliability Calculation Step 1: Determine Total Potable Water Demand (used in Step 3, thousand acre-feet ) Potable Water Production in Calendar Year Potable Water Production in Calendar Year Total Potable Water Demand = ( )/2 200 Step 2: Calculate Total Potable Water Supply (used in Step 3, thousand acre-feet ) (Start w/605 TAF End of Year Storage per April WSADR) Year 1 (Repeat of Hydrologic Year) 415 Year 2 (Repeat of Hydrologic Year) 281 Year 3 (Repeat of Hydrologic Year) 292 Step 3: Calculate Conservation Standard (thousand acre-feet ) Total Potable Water Demand (from Step 1) 200 Total Potable Water Supply in Year 3 (from Step 2) 292 Supply Shortfall in Year 3 ( ) = (negative amount indicates a surplus) -92 Conservation Standard with Self-Certification of Supply Reliability 0% (Shortfall in Year 3/Total Potable Water Demand)

36 Section 29 Regulation Modifications: Prohibiting Wasteful Use Of Water Adopt Section 29 Regulation Modifications Effective July 1, 2016 Defines and imposes wasteful potable water use prohibitions and restrictions Consistent with SWRCB amended emergency regulations Enforcement and appeal provisions Effective at all times until changed 8

37 Section 29 Regulation Modifications: What s Required for All Customers Potable Water Use Prohibitions CA Current Sec. 29 New Sec. 29 Washing of sidewalks, driveways Using a hose to wash vehicles without a shutoff nozzle Irrigation of ornamental turf in street medians Irrigating outdoor landscapes in an manner that causes runoff; or within 48 hours after measurable precipitation Irrigation of landscapes of newly constructed homes, buildings inconsistent with state requirements Non-recirculating fountains or decorative water features Excessive use or runoff Excessive use or runoff; nozzle not mandated No restriction Excessive use or runoff NA Non-residential & new services Buttresses Section 31 All customers 9

38 Section 29 Regulation Modifications: What s Required for All Customers Potable Water Use Prohibitions CA Current Sec. 29 New Sec. 29 Apply potable water to other hard surfaces or materials that does not result in excessive use and runoff Reduce other interior or exterior uses of water to minimize or eliminate excessive runoff or waste Repair leaks wherever feasible. Irrigation or plumbing with measureable leaks shall not be turned on or restored to service until repairs have been completed Addresses large leaks 10

39 Section 29 Regulation Modifications: What s Required for Business Potable Water Use Prohibitions CA Current Sec. 29 New Sec. 29 Restaurants or other food services can only serve water to customers upon request Hotels and motels to offer patrons option of not having towels and linens washed daily Use of potable water for construction, street cleaning, soil compaction and dust control is prohibited if a feasible alternative source of water is available Limit sewer flushing or street washing with potable water as much as possible, consistent with health and safety Use systems that recycle water where feasible; single pass cooling systems in new connections, and nonrecirculating systems in all new conveyer car wash and commercial laundry systems shall be prohibited 11

40 EBMUD Section 29 Regulation: Water Savings Guidelines (New) Guideline Conserve water indoors (35-45 gpcd target) Use covers on swimming pools and home spas (hot tubs) and avoid frequent draining, refilling and topping off Irrigate less outdoors (before dawn or at dusk, and not on consecutive days) Gyms, spas and similar facilities should request patrons to conserve water while showering and using wash basins Ensure existing trees remain healthy and do not present a public safety hazard. Trees and other nonturf vegetation within street medians may continue to be watered efficiently Current Sec. 29 New Sec

41 Next Steps SWRCB Emergency Regulation modifications effective June 1, 2016 EBMUD Revised Section 29 Water Waste Prohibitions effective July 1, 2016 SWRCB permanent water use efficiency framework June-Oct stakeholder meetings Nov-Dec 2016 public draft framework Jan. 10, 2017 submit to Governor s Office 13

42 Drought Water Savings and Customer Response Board of Directors May 24, 2016

43 Water Conservation Goals for 20% System-wide Reduction 45% 40% 35% 35% Emphasize reductions in non-essential water use Avoid/limit impacts to the economy and environment Safeguard water supplies for public health needs 40% 40% 30% 25% 20% 15% 10% 5% 0% 25% 16% SF Residential 16% 16% 12% 25% MF Residential 10% 23% 13% 9% 20% 8% 6% 9% Commercial Institutional Industrial + Petro 0% Irrigation Avg. % Reduction Winter Summer 2

44 EBMUD Customer Demand & Savings ( ) 2013 Avg Avg Avg. Average Consumption (MGD) % -31% Total Savings 2014 vs = 12% Total Savings 2015 vs = 24% 14.6 Billion Gallons Saved in 2015! -7% -14% -6%-14% -22% -42% -9% -20% -4% -1% 0 Single-Family Multi-Family Commercial Irrigation Institutional Industrial & Petroleum

45 Single-Family Seasonal Demand CY (MGD) Winter/Indoor Summer/Outdoor Notes: (1) Summer use based on July, August consumption data. (2) Winter use based on December, January consumption data. 4

46 Single Family CY 2013 & CY 2015 Usage by Customer Percentile Average Billed CCF's in Calendar Year % -34% -32% -30% -31% -29% -28% -28% -25% -26% -26% -27% -22%-23% -24% -11% -17% -20% -36% -39% CY 2013 CY 2015 Customer Percentile (approx. 18,000 accts. per grouping)

47 Single Family Residential Consumption by Tier & >80 CCF Water Consumption (MGD) Tier 1 Tier 2 Tier 3.Over 80 CCF Significant shaving of peak (irrigation) demand when the EU penalty came into effect

48 Single Family Residential Consumption >80 CCF ( ) WATER CONSUMPTION (MGD) Most customers using > 80 CCF in 2013 and 2014 dropped out of the group Water use in 2015 by customers > 80 CCF dropped by a combined 27% when the EU penalty came into effect -27%

49 Single-Family Residential: Monthly Excessive Use Penalties Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016

50 Single-Family Residential: Qualified Super Savers by Month 100,000 90,000 80,000 < 8 CCF Per Billing Cycle 90,764 78,074 70,000 60,000 63,486 57,189 59,044 59,702 56,594 65,731 62,745 64,852 50,000 40,000 30,000 20,000 10,000 0 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016

51 Water Conservation Services: ,000 rebates totaling $2.6M o o o 2.3 million square feet of turf removal 11,300 high-efficiency clotheswashers 7,800 high-efficiency toilets 70,000 households received Home Water Reports 35,000 landscape irrigation water budget reports distributed

52 Water Conservation Outreach ( ) Media outreach Stakeholder letters Website updates Top of bill messages Employee news Robocalls Special Pipeline Billboards Community Events

53 Summary District (and state) programs and measures were effective in achieving savings goals All customer groups contributed toward overall savings District will continue to promote water efficiency and conservation opportunities among all customer groups, including larger water users District will continue to provide education and outreach on water use restrictions/requirements