AGENDA ITEM H-6 Public Works
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1 AGENDA ITEM H-6 Public Works STAFF REPORT City Council Meeting Date: 5/22/2018 Staff Report Number: CC Consent Calendar: Accept the Water System Master Plan Recommendation Staff recommends that the City Council accept the Water System Master Plan. Policy Issues In May 2015, the City Council identified the development of the Water System Master Plan as a priority project and was included in the work plan, including subsequent years. The development of the Water System Master Plan is consistent with the Menlo Park Municipal Water s (MPMW) goals and primary mission, the preservation of the public welfare, health, peace and safety of the and its inhabitants (Ordinance 222, 1952). Background MPMW provides water to approximately 16,000 customers through 4,200 service connections. The remainder of the city receives water from the California Water Company, the O Connor Tract Cooperative Water Company, and the Palo Alto Park Mutual Water Company. The water service area includes the upper zone, which covers the Sharon Heights area, and the lower and high pressure zones, which include areas extending from east of El Camino Real to the San Francisco Bay (Attachment A). All of the water provided in the service area is purchased from the San Francisco Public Utilities Commission. In 2015, staff began working on a Water System Master Plan (Attachment B) to develop a capital improvement program and long-term maintenance and operational recommendations for the water system. Throughout this process, staff kept the City Council updated on the progress made on a number of tasks. The summary presented below provides an overview of the staff reports, their content and City Council actions. March 15, 2016 Staff provided an update on the recycled water/water reuse alternatives assessment by the consultant, which focused on quantifying the recycled water demand in the MPMW service area, assessed the opportunities for purchasing recycled water from the cities of Redwood City and Palo Alto and evaluated graywater use (Attachment C). March 14, 2017 This update focused on the findings from the consultant s comprehensive analysis of MPMW current operations, services and organizational structure. This analysis assessed the staffing level needs required for the provision of safe and efficient services and the implementation of operational and preventive maintenance standards established by the American Water Works Association (Attachment D). March 28, 2017 The staffing assessment findings were presented to the City Council during this time.
2 Staff Report #: CC This update also included a history of the water system (Attachment E.) May 2, 2017 Per the City Council s direction, staff explored opportunities for outsourcing some of the functions currently done in-house by water staff (Attachment F.) January 23, 2018 Staff provided an update on the draft capital improvement plan, based on the recommendations from the consultant to the City Council (Attachment G.) April 17, 2018 Staff made a presentation to the City Council on the capital improvement plan findings during this time. The City Council provided feedback on the proposed funding strategy and staffing recommendations (Attachment H.) The remainder of this report provides a summary of the Water System Master Plan scope of work, its findings, and the City Council feedback regarding the funding strategy for the water capital improvement plan and water staffing levels that was received during the April 17 presentation. Analysis The scope of work for the Water System Master Plan focused on an update of the water system evaluation conducted in 2000 and the development of a capital improvement program and long-term maintenance and operational recommendations for the next 25 years. The work also consisted of a number of other tasks, including an inventory and evaluation of the water system, a comprehensive analysis of MPMW current operations, water system condition assessment and a recycled water/water reuse study. A summary of the tasks follows below: System inventory and mapping The consultant completed an inventory of MPMW water distribution system, acquired global positioning data on all the valves and water meters, and updated the existing geographic information system maps. System evaluation Based on the updated system conditions, the consultant developed a hydraulic model, updated the seismic vulnerability assessment, completed a system wide condition analysis, and provided a vulnerability and risk assessment of the water distribution system. Advanced metering infrastructure Currently, water meter readings are manual. The consultant evaluated technological advances in the water distribution industry and provided recommendations for the implementation of smart water meters and an advanced communications network. Operations and maintenance In order to optimize the operational efficiency and reliability of the water distribution system, the consultant evaluated water quality requirements, monitoring and control deficiencies, as well as emergency preparedness planning. Water reuse alternatives As part of this task, the consultant identified water reuse alternatives MPMW could implement to reduce potable water demand. In particular, the consultant identified the effectiveness of graywater systems and explored options for the purchase of recycled water from the cities of Redwood City and Palo Alto. With an additional source of water, potable water demand could be offset with recycled water for uses allowed by the State (e.g., irrigation, cooling and toilet/urinal flushing), allowing MPMW to meet potable water demand during drought conditions and supply shortfalls. In addition, West Bay Sanitary District is in the process of
3 Staff Report #: CC developing a recycled water treatment facility at the Sharon Heights Golf & Country Club, which is located in MPMW service area. This project will help reduce the demand for potable water used for irrigating the golf course and also supply recycled water to SLAC National Accelerator Laboratory. Capital and maintenance improvement recommendations The Water System Master Plan evaluated the water system based on existing and future water demand conditions, fire flow capacity, pipe age and material, emergency supply, seismic vulnerability and water quality. From this assessment, the consultant developed recommendations for several improvement projects to be implemented by 2040, associated costs and categorized them based on priority. The projects were categorized by improvement type, which focused on capacity, reliability, rehabilitation, and replacement and other, such as recommended studies and programs. The proposed Capital Improvement Plan is significant, with a total capital cost for $90.31 million. A summary of the preliminary costs is presented in the table below: Table 1: Summary of capital improvement costs by priority and improvement type (draft) Improvement type Very high High Medium Priority total Capacity - $4.49M $18.49M $22.98M Reliability $10.80M $7.83M $0.25M $18.88M Rehabilitation and replacement $42.15M $0M $0M $42.15M Other $0.26M $4.52M $1.52M $6.30M Total $53.21M $16.84M $20.26M $90.31M MPMW has used the pay-as-you-go model (adjusting rates as necessary to make capital improvements on a cash basis) to fund capital improvements. However, the significance of the recommended improvements require the evaluation of other models, such as debt financing (revenue bonds which amortize the cost of improvements over 20 to 30 years). Following the City Council s feedback April 17, staff will evaluate options and develop a funding strategy. Staff will also explore grant opportunities for water infrastructure projects as well as cost-sharing opportunities with private developers. Staffing levels As part of this task, the consultant conducted a comprehensive analysis of MPMW current operations, service offerings and organizational structure and assessed the staffing levels required to provide safe and efficient services. During the time of the assessment in , the system was maintained and operated by a Water System Supervisor (the position was vacant during this time), a Water quality specialist and a Water System Operator II. The consultant s findings indicate that MPMW is understaffed in operations, compared to American Water Works Association guidelines and comparable cities. State law requires that operators responsible for maintaining and operating a water system hold certifications from the State Water Resources Control Board. Current permanent staff holds the required certifications from the State Water Resources Control Board for the operation of a D3 water system. To properly maintain the system based on American Water Works Association recommended practices, the consultant s recommendation is for 4 additional full-time certified operators, for a total water operations staff of seven. As part of the fiscal year budget, the City Council approved two additional positions that were filled earlier this year. City Council also provided feedback that two additional positions to be included as part of the fiscal year budget.
4 Staff Report #: CC Impact on City Resources Acceptance of the Water System Master Plan does not have a direct impact on the City s resources. However, the implementation of the recommended projects will require an evaluation of water rates and funding options. Environmental Review This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines and 15061(b)(3) as it proposes an organizational structure change that will not result in any direct or indirect physical change in the environment. An environmental review will be conducted on an individual basis as the water capital improvement projects are designed. Public Notice Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. Attachments A. MPMW Service Area, 2018 B. Water System Master Plan hyperlink: C. Staff report CC - hyperlink: D. Staff report CC - hyperlink: E. Staff report CC - hyperlink: F. Staff report CC - hyperlink: G. Staff report CC - hyperlink: H. Staff report CC - hyperlink: Report prepared by: Azalea Mitch, City Engineer Reviewed by: Justin Murphy, Public Works Director
5 ATTACHMENT A City of Redwood City MARSH RD California Water Service Company -- Bear Gulch District HWY 280 Menlo Park Municipal Water SAND HILL RD ALAMEDA DE LAS PULGAS VALPARAISO AVE SANTA CRUZ AVE MIDDLE AVE OAK GROVE AVE EL CAMINO REAL RAVENSWOOD AVE MIDDLEFIELD RD RINGWOOD AVE BAY RD HWY 101 Menlo Park Municipal Water BAYFRONT EXPRESSWAY WILLOW RD ALPINE RD SERRA BLVD JUNIPERO Palo Alto Mutual Water Company UNIVERSITY DR Stanford University City of Palo Alto O'Connor Tract Co-Operative Water Company City of East Palo Alto. City Limits Travel Ways Water Water Provider California Water Service Company -- Bear Gulch District City of East Palo Alto City of Palo Alto City of Redwood City Menlo Park Municipal Water Stanford University Palo Alto Mutual Water Company O'Connor Tract Co-Operative Water Company Miles Water Providers Within and Surrounding Menlo Park
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