ten-year capital improvement program
TRANSCRIPT
TEN-YEAR CAPITAL
IMPROVEMENT PROGRAM For Fiscal Years 2021-2030
TEN-YEAR CAPITAL
IMPROVEMENT PROGRAM For Fiscal Years 2021-2030
BOARD OF DIRECTORS Lisa M. Borba, AICP, President Connstance Holdaway, Vice President Ernesto A. Avila, P.E. Bette Boatmun John A. Burgh GENERAL MANAGER Stephen J. Welch PROJECT TEAM Jill Mosley, Senior Engineer Celia Cheung, Rate and Financial Analyst Lars Sandberg, Project Controls Manager Lizz Cook, Director of Finance
2021 CIP
Executive Summary ........................................................................................................ ES-1
1. Introduction .............................................................................................................. 1-1
1.1. CIP Context ................................................................................................................... 1-1
1.2. District Mission, Values, and Goals .............................................................................. 1-2
1.3. District Facilities and Operation .................................................................................. 1-4
1.3.1. Water Supply and Quality ..................................................................................... 1-5
1.3.2. Untreated Water System ....................................................................................... 1-7
1.3.3. Treated Water System ........................................................................................... 1-8
2. CIP Structure and Development .................................................................................. 2-1
2.1. CIP Structure ................................................................................................................. 2-1
2.1.1. Program Configuration ......................................................................................... 2-1
2.1.2. Priority System ...................................................................................................... 2-1
2.2. CIP Development .......................................................................................................... 2-2
2.2.1. Assumptions .......................................................................................................... 2-2
2.2.2. Identification of Projects ...................................................................................... 2-5
2.2.3. Cost Estimates ....................................................................................................... 2-5
2.2.4. Sources of Funding and Allocations ..................................................................... 2-6
3. Financial Plan ............................................................................................................ 3-1
3.1. Projected Revenues and Funding Sources .................................................................. 3-3
3.1.1. Water Sales Revenues ........................................................................................... 3-3
3.1.2. Facility Reserve Charge Revenues ........................................................................ 3-5
3.1.3. City of Brentwood and Diablo Water District Revenue ........................................ 3-7
3.1.4. Other Revenue ....................................................................................................... 3-7
3.1.5. Interest Income ..................................................................................................... 3-7
3.1.6. Property Tax Revenue ........................................................................................... 3-7
3.1.7. Capital Funded by Others Revenue ...................................................................... 3-7
3.2. Projected Expenditures ................................................................................................ 3-8
3.2.1. Operations and Maintenance Expenditures ........................................................ 3-8
3.2.2. Capital Project Expenditures ................................................................................ 3-9
3.2.3. Debt Financing and Annual Debt Service Expenditures .................................... 3-12
3.3. Reserves ...................................................................................................................... 3-14
3.4. Operating Cost Impacts ............................................................................................. 3-17
2021 CIP
3.4.1. Background ......................................................................................................... 3-18
3.4.2. Summary of Operating Cost Impacts ................................................................. 3-18 4. Programs and Projects ............................................................................................... 4-1
4.1. Administrative Program ............................................................................................... 4-2
4.1.1. Facilities Upgrades Sub-Program ......................................................................... 4-3
4.1.2. Equipment and Other Purchases Sub-Program .................................................. 4-6
4.1.3. Vehicle Replacement Fund Sub-Program .......................................................... 4-14
4.2. Future Water Supplies Program................................................................................. 4-16
4.2.1. Water Supplies Sub-Program ............................................................................. 4-17
4.2.2. Planning Sub-Program ....................................................................................... 4-23
4.3. Los Vaqueros Watershed and Conservation Lands Program ................................... 4-27
4.3.1. Recreation Sub-Program .................................................................................... 4-28
4.3.2. Watershed and Conservation Lands Sub-Program ........................................... 4-30
4.4. Treated Water Facilities Program .............................................................................. 4-32
4.4.1. Non-District Funded Sub-Program ..................................................................... 4-33
4.4.2. New Treated Water Facilities Sub-Program ....................................................... 4-38
4.4.3. Treated Water Facilities Improvements Sub-Program ...................................... 4-41
4.4.4. Treated Water Facilities Planning Sub-Program ............................................... 4-46
4.5. Untreated Water Facilities Program .......................................................................... 4-49
4.5.1. Non-Districted Funded Sub-Program ................................................................ 4-51
4.5.2. Untreated Water Facilities Improvements Sub-Program .................................. 4-53
4.5.3. Untreated Water Facilities Planning Sub-Program ........................................... 4-66
4.6. Water Treatment Facilities Program ......................................................................... 4-69
4.6.1. Water Treatment Plant Facilities Improvements Sub-Program ....................... 4-70
4.6.2. Water Treatment Facilities Planning Sub-Program ........................................... 4-75
4.6.3. Water Treatment Plant Expansion Sub-Program .............................................. 4-77
List of Abbreviations ....................................................................................................... AB-1
Index .............................................................................................................................. IN-1
2021 CIP ES-1
Executive Summary The Ten-Year Capital Improvement Program (CIP) provides an assessment of the capital investments required over the next ten years for Contra Costa Water District (District) to successfully carry out its mission. The identified capital projects and programs are prioritized and scheduled over the ten-year period based on criteria including among others, urgency and basis of funding. An integral part of the CIP is the Financial Plan, discussed in Section 3, which includes an analysis of the revenue requirements to implement the CIP while meeting all other District financial obligations and operations. The comprehensive approach to capital planning provides an opportunity for the District to prioritize capital investments, monitor progress toward meeting goals, manage cash flow, diversify revenue sources, and project rates and charges over a ten-year horizon.
The CIP for fiscal years 2021-2030 (2021 CIP) balances projected lower water sales revenue, essential capital investments, and responsible debt management to achieve revenue requirements to maintain reliable and cost effective service to customers. The 2021 CIP includes 46 projects, ranked in three priority levels, with a total estimated cost of approximately $1.1 billion. The Financial Plan assumes that priority level 1 and 2 projects totaling $374.1 million (current dollars) are funded, an increase of $52.7 million from the 2020 CIP. Priority level 3 projects, which are not funded, total $724.6 million compared to $730.3 million from the 2020 CIP. Figure ES.1 illustrates the total costs included in the 2021 CIP by priority level and provides a comparison to the 2020 CIP. The increase in priority level 2 funding is primarily a result of recently completed planning studies which identified additional investments in infrastructure necessary to maintain the reliability and quality of the District’s service to customers. Other changes in funding from the 2020 CIP to the 2021 CIP include the net result of adjusting or updating cost estimates, schedules, progress on projects, and greater definition on projects identified since the 2020 CIP.
Figure ES.1 Total Funding by Priority Level
2021 CIP ES-2
This CIP reflects a continued increase in existing infrastructure investments to ensure the District can maintain the reliability and quality of water delivery to customers by replacing aging facilities before failures occur. Increased investment for renewal and replacement needs for the Contra Costa Canal (Canal), treated water system including pipelines, and water treatment plants are funded. Several planning studies, including the Untreated Water Renewal and Replacement Study, Water Treatment Plant Master Plan, and Untreated Water Reservoir Master Plan, were completed in the past year which identified increased infrastructure renewal needs for the respective systems. These studies, along with the Pipeline Renewal and Replacement Study (PLRR Study) completed in 2018, identify a need to increase investments within and beyond the ten-year horizon to address aging infrastructure and to maintain the reliability of the District’s service. Other facility planning studies as well as refinements to the District’s asset management practices are underway, all of which will provide additional definition to the level of investment needed to maintain reliable and cost-effective service. As a substantial portion of the debt from the original Los Vaqueros Project begins to be retired towards the end of the ten-year CIP window, funding capacity will become available in the future to provide for additional renewal and replacement investments. Figure ES.2 illustrates the financial capacity that will be created as the debt is retired.
Figure ES.2 Long-Term Financial Capacity Concept
The capacity reflected beyond 2030 is based on current estimates for debt service obligations and will vary based on business needs. The studies in progress and those study updates included in the 2021 CIP, as well as the tools developed to refine the District’s asset management practices will enable the District to assess overall investment needs in the short- and long-term for efficient and responsible infrastructure renewal. The capacity projections will be re-evaluated annually to align with the District’s long-term strategic plans.
The 2021 CIP also includes an increase in the priority level 2 funding for the Canal Modernization project to further define improvements necessary to ensure the system continues to operate reliably, safely, and economically in the coming decades, as well as the Canal Title Transfer project to obtain ownership
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2021 2026 2031 2036 2041 2046 2051
Millions
Capacity ST Debt ST Debt Refinancing LT Debt
Capacity for Canal Modernization and Other
Future Improvement Needs
2021 CIP
2021 CIP ES-3
of the Canal from the Bureau of Reclamation (Reclamation). The Contra Costa Canal (Canal) is approaching 80 years old and requires increasingly costly repairs and maintenance. Urban development since the original construction of the Main Canal has increased public exposure to this open water body, which poses life safety risks and has resulted in numerous drownings despite extensive protective measures. The current phase of the Canal Modernization project will define the improvements required to meet the long-term objectives for the Main Canal, which is the District’s backbone water conveyance facility and a priority for improvements. The implementation of the project has been included in the CIP as priority level 3 as funding has not yet been identified and will continue to be evaluated as part of the CIP process as the scope and schedule for the project is further defined.
The 2021 CIP includes minor updates to the revenue projections included in the 2020 CIP, specifically slightly reduced water sales projections and new water service connections revenues. This CIP update continues to reflect reduced untreated water sales as a result of the anticipated desalination project by the City of Antioch as well as overall lower sales stemming from the recent drought and potential regulations resulting from the State’s long-term conservation framework. New water service connections and resulting Facility Reserve Charge (FRC) revenues have also been slightly reduced from the 2020 CIP in the near-term as a result of recent housing trends and industry projections showing slower than previously assumed increases in new home construction in the coming years.
All of the priority level 1 and 2 projects in the 2021 CIP can be funded, and all operating costs and debt service obligations met, with the planned revenue increases over the ten-year CIP planning period. Similar to the 2020 CIP, this CIP also includes funding for long-term obligations, including pensions and Other Post-Employment Benefits (OPEB). The projected annual revenue increases over ten years are consistent with the 2020 CIP and remain 3.75% for treated water and untreated water with the exception of additional 2.25% to 1.5% for untreated water in FY2023-2025 due to the potential impact of the City of Antioch Desalination Project.
CIP Overview
The 2021 CIP provides an overview of District facilities as well as the District’s mission and goals to provide context for the improvements and investments included in the CIP, as discussed in more detail in Section 1. The capital projects included in the CIP are organized based on two structural elements, the Priority System and Program Configuration, to enable analysis and planning for improvements in specific areas of District responsibility. The programmatic approach for the projects in the CIP provides flexibility on the timing and definition of project implementation such that the investments can be prioritized and programmed with the CIP to ensure the District continues to fulfill its mission and meet its goals.
The Priority System ranks the level of importance of a project based on several factors, such as protection of health and safety and rate of return on the District’s investment. As previously noted, only priority level 1 and 2 projects are included in the ten-year Financial Plan. An overview of the three priority levels is provided below and additional detail provided in Section 2.1.
Priority Level 1: These projects are ranked the highest if they are required for health and safety; required by law, regulation, or contract; are under construction; and/or are funded by applicants or outside funding source.
Priority Level 2: These projects are those that provide measurable progress toward achieving the District’s goals, but the District has a moderate level of control as to when these projects should be accomplished.
2021 CIP ES-4
Priority Level 3: Projects not meeting the criteria for priority level 1 or 2 are ranked as priority level 3. These are projects that are anticipated to be needed, but may not yet have defined scopes, schedules, or funding sources.
The 2021 CIP groups projects into one of six programs1, each of which represent a different function of the District and area of responsibility. The highlights of each is provided below.
Administrative Program: Projects included in this program address improvement to District buildings and common facilities not directly involved in the treatment, conveyance, or storage of water. The program total included in the 2021 CIP is $30.8 million, of which $30.0 million is for priority level 1 and 2 projects which include improvements to buildings such as HVAC, replacements of computer and network systems and hardware, and replacement of vehicles and heavy equipment as well as other equipment and systems for overall District operations. The significant funded projects within this overall program are as follows:
Project $ Million
Building and Facility Improvements 5.4
District-Wide Geographic Information System 1.2
Replacement/Upgrade of Computer Systems 6.0
Replacement of Laboratory Equipment 1.0
Replacement/Upgrade of Network Systems and Hardware 1.8
Replacement/Upgrade of SCADA Equipment 1.9
Replacement/Upgrade of Telecommunications Equipment 1.1
Replacement of Fleet Vehicles, Heavy Equipment and Rental Boats 11.4
Future Water Supply Program: This program includes water quality and reliability improvement projects as well as projects to meet future water supply needs. Priority level 1 and 2 projects total $61.6 million and include funding of the Los Vaqueros Reservoir Expansion Studies, water conservation incentives, and water use efficiency improvements necessary to meet State regulations, and updates to studies. There are no priority level 3 projects in the 2021 CIP under this program. The significant funded projects within this overall program are as follows:
Project $ Million
Los Vaqueros Reservoir Expansion Studies 23.3
Water Conservation Incentives 7.0
Water Use Efficiency for Regulations 27.8
Future Water Supplies Placeholder 2.2
Los Vaqueros Watershed and Conservation Lands Program: Improvements to maintain the District’s ability to manage the Los Vaqueros Watershed and Conservation Lands and to meet the District’s water permit commitments are included in this Program. Only priority level 1 and
1 There were 10 Programs included in the 2020 CIP which have been consolidated in the 2021 CIP to better align the projects within each Program with areas of District responsibility.
2021 CIP ES-5
2 projects are included in this CIP within this program, which total $7.8 million, to fund improvements to recreation facilities as well as roads, trails, fencing, Watershed Office and Interpretive Center, and other associated facilities within the Watershed and Conservation Lands. The significant funded projects within this overall program are as follows:
Project $ Million
Los Vaqueros Watershed and Conservation Land Improvements 7.8
Treated Water Facilities Program: Projects included in this program are vital to maintaining the level of service, quality, and safety of the District’s existing treated water system as well as providing for expansion to meet future needs. The 2021 CIP includes $116.9 million for priority level 1 and 2 projects which include renewal and replacement of the treated water pipelines, pump stations, reservoirs, and associated facilities as well as applicant funded projects. The program totals $178.3 million which includes $61.4 million for Level 3 projects such as planning and design for potable and recycled water facilities associated with the initial phases of the development at the former Concord Naval Weapons Station. The significant funded projects within this overall program are as follows:
Project $ Million
Treated Water Applicant Funded Projects 17.2
Port Chicago Highway Pipeline Phase II 2.0
Pipeline Renewal and Replacement 60.5
Treated Water Facilities Improvements Program 37.2
Untreated Water Facilities Program: This program includes projects to replace, expand, and improve the District’s untreated water facilities. Priority level 1 and 2 projects, totaling $111.3 million, include improvements to the untreated water pump stations, reservoirs, pipelines, and intakes as well as $31.3 million for the Canal Modernization projects. The total program costs are $675.5 million, with the majority associated with implementation of the Canal Modernization project (priority level 3) of $507.6 million. The significant funded projects within this overall program are as follows:
Project $ Million
Contra Costa Canal Facility Title Transfer 0.9
Canal Modernization – Main Canal 31.1
Canal Modernization – Loop Canal 0.3
Canal Replacement Project 12.0
Mallard Slough Channel Rehabilitation 4.6
Rock Slough Fish Screen Improvements 2.3
Untreated Water Facilities Improvements Program 48.8
Shortcut Pipeline Refurbishments 7.2
Untreated Water Reservoir Rehabilitation Program 3.1
2021 CIP ES-6
Water Treatment Facilities Program: Improvement needs related to the water treatment facilities are included in this program. This program includes $59.4 million for improvements at the Bollman Water Treatment Plant (WTP), Randall-Bold WTP, and City of Brentwood WTP for projects such as chemical tank improvements, electrical system improvements, conversion of chlorine gas system, and other renewal and replacement projects. The program total is $144.7 million, with the majority of the priority level 3 projects associated with expansions of Randall-Bold WTP and City of Brentwood WTP which would be funded by others. The significant funded projects within this overall program are as follows:
Project $ Million
Bollman WTP Improvements 22.0
City of Brentwood WTP Improvements 3.1
Randall-Bold WTP Improvements 20.8
The Program funding levels as well as detailed information on the projects within each program included in the 2021 CIP are provided in Section 4. Figure ES.3 illustrates the total for each program included in the 2021 CIP and provides a comparison to the 2020 CIP.
Figure ES.3 Total Costs by Program
*Administrative Program includes District buildings, equipment, and vehicles not directly involved in the treatment,
conveyance, or storage of water.
Figure ES.4 illustrates the total funding (priority level 1 and 2 projects) for each program included in the 2021 CIP and provides a comparison to the 2020 CIP.
2021 CIP ES-7
Figure ES.4 Total Funded (Priority Level 1 and 2) by Program
*Administrative Program includes District buildings, equipment, and vehicles not directly involved in the treatment,
conveyance, or storage of water.
Changes in each of the programs are a result of inflation, addition of projects, and updated cost estimates. The majority of increase in the Future Water Supply program is a result of the increased costs to continue the Los Vaqueros Expansion Project, of which the majority will be funded by the local agency partners and state/federal investments. The Untreated Water program increase is a result of increased costs for the Canal Modernization project as well as the recently completed Untreated Water Renewal and Replacement Study which identified a need to increase investments to maintain reliability of the existing system.
Financial Plan Overview
The Financial Plan reflects the District’s continued commitment to provide outstanding customer service while controlling costs consistent with Board policies on reserves and rates. The Financial Plan has been updated to include expenditures and reserve balance projections through FY2020, revised revenue projections, and anticipated costs projected for the ten-year CIP period. The 2021 CIP continues investments in system renewal and replacement programs and reflects the substantial retirement of long-term debt issued for the original Los Vaqueros Reservoir Project beginning in 2028. This debt retirement provides financial capacity to invest in future infrastructure projects, such as the Canal Modernization project and additional infrastructure renewal and replacements as critical facilities continue to age.
The project expenditures, revenues, use of reserves, and funding sources included in the Financial Plan are discussed in detail in Section 3 and summarized in Table ES.1.
2021 CIP ES-8
Table ES.1 2021 CIP Projected Revenues and Uses of Funds (in millions of dollars, inflated) FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL Revenue Source Water Sales Revenues
141.0 150.5 155.7 164.7 174.1 182.4 190.5 199.0 207.6 216.4 1,781.9
Facility Reserve Charges
7.0 7.5 8.0 8.5 9.1 9.7 10.1 10.5 10.8 11.2 92.4
Partners1 7.8 6.7 7.0 7.4 7.7 8.0 8.3 8.8 9.2 9.5 80.4 Other Revenues2
8.4 8.4 8.5 8.5 8.5 9.1 9.2 9.9 10.4 10.8 91.7
Capital Funded by Others3
16.8 14.8 4.9 5.4 9.2 9.4 4.1 4.5 6.2 7.1 82.4
Debt Proceeds
0.7 7.1 - - - - - - - - 7.8
Reserve Use4
7.7 3.3 3.6 (1.9) (4.4) (1.5) (16.9) (22.7) (18.6) (15.9) (67.3)
Total 189.5 198.3 187.7 192.7 204.1 217.1 205.2 210.0 225.5 239.2 2,069.3 Use of Funds Operating Expenses5
97.2 101.9 105.9 110.6 115.6 120.7 126.0 131.5 137.3 143.3 1,190.0
Capital Expenses6
50.5 51.5 37.4 40.0 47.0 60.0 43.1 39.6 44.3 47.1 460.5
Debt Service7
41.8 44.9 44.4 42.1 41.5 36.4 36.1 38.9 43.9 48.8 418.8
Total 189.5 198.3 187.7 192.7 204.1 217.1 205.2 210.0 225.5 239.2 2,069.3 1Includes City of Brentwood and DWD for their share of costs related to the long-term water service agreements. 2Includes interest income, property taxes, land levy taxes, property lease revenue, grazing, cell site lease revenue, wind power royalties, Los Vaqueros recreation program, and miscellaneous service charges. 3Includes grants, applicant funded, and other agencies. 4Includes Restricted and Unrestricted District Reserves. Positive values reflect reserve use; negative values reflect increases. 5Significant operating costs include labor and variable costs such as power, purchased water, and chemicals. 6Capital expenses are the Priority 1 and 2 projects. 7Includes projects financed with short-term debt, committed long-term debt service, and projected long-term debt service which reflects the District’s capacity to fund future capital projects.
As previously noted, the updated water sales projections and FRC revenues are reduced from the 2020 CIP based on continued observed trends and housing projections, which combined results in a revenue decrease of $30.0 million in the common years of the 2020 CIP.
The total District operating costs, including current operating costs inflation adjusted over time, as well as future costs related to implement the CIP projects are included in the Financial Plan. Over the common years of the 2021 and 2020 CIP (2021-2029), projected operating costs are lower by $12.7 million (inflated dollars) as a result of general inflation being lowered in FY21 (from 3.5% to 3.0%) and the lower water projected sales resulting in reduced variable operating expenditures. Also included in the operating costs is $1.0 million per year for six years to continue rebuilding the District’s Drought Reserve to $8.0 million, as was included in the 2020 CIP, to provide the ability to partially mitigate the impacts of a future drought as the reserve was fully utilized in the last drought to partially offset financial impacts to customers.
2021 CIP ES-9
The Financial Plan assumes priority level 1 and priority level 2 projects, totaling $460.5 million inflated (current dollars $374.1 million), are funded. The majority of the funded projects, $370.3 million, inflated, are revenue funded (80.4%). Funded by others (17.9% of total) totals $82.4 million, inflated which has increased from the 2020 CIP primarily due to the Los Vaqueros Reservoir Expansion project and the early funding grant requiring local cost share, which will be partially funded by potential partners. The remainder is debt-funded (1.7%) which total $7.8 million, inflated. The District’s annual investment in capital facilities is the sum of revenue-funded capital costs and existing and future debt service costs. The District currently pays debt service for several past projects such as the Los Vaqueros Reservoir Project, as discussed in more detail in Section 3. As long-term debt issued for the original Los Vaqueros Reservoir Project is retired, starting in 2022, the District plans to use the regained debt capacity to refinance short-term debt. Rates are set to meet capital and debt service costs as well as District operating costs. The debt service coverage ratios in this CIP range from 1.71 to 2.69, and are in compliance with the District’s bond covenants including maintaining a net revenue to debt service coverage ratio of at least 1.25 times annual debt service.
Revenue Increase Projections
The projected untreated and treated water revenue increases required to fund priority level 1 and level 2 projects, while covering operating costs, debt service, and maintaining required reserve balances, is shown on Tables ES.2. The revenue projections are consistent with the 2020 CIP. These are preliminary projections only and the Board of Directors determines actual revenue increases at the time of each annual rate review.
Table ES.2 Projected Revenue Increases 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Untreated Water3 2021 CIP 6.00%1 3.75% 3.75% 6.00% 5.75% 5.25% 3.75% 3.75% 3.75% 3.75% 3.75% 2020 CIP 6.00% 3.75% 3.75% 6.00% 5.75% 5.25% 3.75% 3.75% 3.75% 3.75% NA Treated Water 2021 CIP 6.00%2 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 2020 CIP 6.00% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% NA
1Adopted by the Board in January 2020. 2Adopted by the Board in January 2020. 3Untreated Water Rate increases in 2023 through 2025 assume Antioch’s desalination project is online and increases in rates are needed to offset the potential impact from reduces water use. Refer to Section 3.1.1 for additional details.
Implementing the 2021 CIP priority level 1 and 2 projects will require annual untreated and treated water revenue increases over the ten-year period ranging from 3.75% to 6.0% and are generally consistent with the 2020 CIP. While these rate increases exclude implementation of several key priority 3 projects in development, the District is able to limit these increases in the face of significant cost increases, aging infrastructure, and lower revenues by reducing controllable operating costs, obtaining low-cost financing, and prudently using reserves over the ten-year CIP.
2021 CIP 1-1
1. Introduction The Ten-Year Capital Improvement Program (CIP) is part of the Contra Costa Water District’s (District) long-range capital investment and financial planning process. The CIP is updated biennially, consistent with District Code of Regulations Chapter 7.16.030.B. The 2021 CIP is an update of the previous CIP that covered fiscal years 2020-2029, adopted by the Board on February 20, 2019. The 2021 CIP provides a comprehensive view of the investments needed to meet the District’s mission and goals over the next ten years spanning from 2021 to 2030.
This section provides the context of the 2021 CIP with an overview of how the CIP fits within the District’s financial planning efforts as well as background on District facilities and operations.
1.1. CIP Context
The District undertakes three principal financial planning efforts consisting of the biennial CIP Update and Ten-Year Financial Plan, a two-year capital and operating budget, and an annual review of rates, fees, and charges. While these processes are separate, they are inter-related.
The Ten-Year Financial Plan included in the CIP estimates operating costs and reserve balances as well as estimates revenue requirements necessary to fund the required projects and operate the District. This provides the basis for projecting ten-year rate impacts. The CIP has historically been presented to the Board in February of each year. The budget is presented to the Board in May and June, every other year. Budget status is reviewed at approximately six-month intervals until the next two-year budget. Rates, fees, and charges are brought to the Board in November and December of each year, and adjustments are typically considered for Board action in January. Beginning with the 2021 CIP Update, the CIP will be updated and presented to the Board biennially to align with the two-year budget process. Regular budget reviews and the annual rate analysis will occur on their current schedules ensuring no loss of financial oversight.
The financial planning process is illustrated in Figure 1.1, which reflects the modification of updating the CIP biennially. Board adoption of the CIP establishes the scope and estimated costs of the capital investments included in the CIP which are designed to meet the long-term needs of the District. Adoption does not commit funds or authorize projects. Project approvals and funding are obtained through the budget process.
2021 CIP 1-2
Figure 1.1 District 2-Year Financial Planning Process
All three financial planning efforts are integral to the overall financial integrity of the District. This integrated process ensures near-term financial decisions are made with an understanding of the long-term implications. Planning capital improvements over a ten-year period through the CIP provides flexibility to optimize capital investments while consistently adhering to the Board’s rate policies. The approval and funding of projects through the two-year budget minimizes uncertainty in financial decision-making and maximizes control over financial resources.
1.2. District Mission, Values, and Goals
The Mission Statement broadly describes the District’s purpose and objective in providing water service to its customers. The District has also established a set of values that are intended to guide behavior, performance, outcomes, and decisions. In addition, the District utilizes a set of goals that includes broad, longer-term statements that have organization-wide impact and explain what the District wants to achieve. Established by the Board and periodically reviewed, the Mission Statement, Values, and Goals guide the development of the CIP and are explained in more detail below.
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In fulfilling this mission, the District established and recently updated the values which provide the foundation on how the District and its employees conduct business. The nine values are enduring principles which guide behavior, performance, outcomes, and decisions which are as follows:
• Safety: We provide, as a top priority, a safe and healthful work environment for employees our team.
• Trust: We protect public trust in the District with uncompromising integrity, commitment to our profession standards, full transparency, and fairness in all our business dealings.
• Responsibility: We take ownership for our results and deliver on our performance outcomes to responsibly serve our customers, the community, and our planet.
• Exceptional Customer Service: We value our customers, act in their best interest, and take pride in delivering personalized service.
• Employee Success: We share a meaningful sense of purpose in an environment that strives to offer professional growth, inclusivity, and work-life balance.
• Teamwork: We engage in respectful, collaborative, trust-based relationships at all levels within the organization and with our business partners.
• Continuous Improvement: We continuously seek opportunities to optimize our business practices and assets by engaging the expertise of our employees and embracing innovation.
• Recognition: We reward the positive contributions of our employees at the organization, team, and individual levels.
• Communication: We strive for open, effective dialogues at all levels of the organization to ensure input is valued and considered and reasons for decisions are explained.
The goals have been established to provide broad, longer-term statements regarding the District’s objectives in meeting its mission. The District’s current draft goals are listed below:
Promote safety and health in our workplace and business practices. Manage water resources to ensure a sustainable supply and to protect water quality. Deliver superior customer service as a foundational priority. Protect customer financial interests through ongoing stewardship of District resources.
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Invest in assets, technology and efficiencies to cost-effectively provide reliable service. Pursue organizational excellence through diversity, inclusivity, leadership and professionalism. Foster partnerships through leadership and collaboration at the regional, state and national
level. Practice environmental stewardship by protecting natural resources and minimizing
environmental impacts.
The values and goals along with the mission statement are used in the development and analysis of the CIP to ensure the projects are consistent with these guiding elements.
1.3. District Facilities and Operation
The Contra Costa Water District provides water to municipal, residential, commercial, industrial, landscape irrigation, and agricultural customers. The District2 was approved by the voters in 1936 as the legal entity to contract, purchase, and distribute water provided by the U.S. Bureau of Reclamation (Reclamation) through the Contra Costa Canal (Canal). Today, the District’s service area encompasses most of central and northeastern Contra Costa County, a total area of more than 140,000 acres, to provide water to approximately 500,000 people. In performing this service, the District operates and maintains a complex system of water transmission, treatment, and storage facilities to supply both treated and untreated (raw) water to its customers.
The major untreated water municipal customers include the Cities of Antioch, Pittsburg, Martinez, and Diablo Water District (DWD) as well as major industrial customers such as the refineries within the District’s service area located in central Contra Costa County. Treated water is distributed to customers living in the following communities: Clayton, Clyde, Concord, Pacheco, Port Costa, and parts of Martinez, Pleasant Hill, and Walnut Creek. In addition, the District treats and delivers water to the City of Brentwood, Golden State Water Company (serving Bay Point), and the City of Antioch. An overview of the District’s service area and major facilities to supply water is shown in Figure 1.2.
2 Originally, the District was named “Contra Costa County Water District” however “County” was dropped from the name in 1981.
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Figure 1.2 District Service Area
For the first 25 years of its existence, the District's main responsibility was the purchase and distribution of untreated water through the Canal. The cities and other water utilities within the District were responsible for treating water used by their customers. However, in the late 1950s, many citizens and public officials became concerned about the quality and cost of the water in the central county area. To solve this problem, the District purchased the California Water Service Company's Concord-area treatment, pumping, storage, and distribution facilities. Since then, the District has constructed the Ralph D. Bollman Water Treatment Plant (WTP) in Concord and the Randall-Bold WTP in Oakley which is jointly owned with DWD. The Bollman and Randall-Bold WTPs now provide treated water to approximately 205,000 residents in the central county area. The Randall-Bold WTP provides treated water to DWD as well as to new growth in Central County, and by contract, to the Cities of Antioch and Brentwood, and the Golden State Water Company (Bay Point). The District also has agreements with the City of Brentwood to convey their water supply from East Contra Costa Irrigation District (ECCID) and for treatment at the City of Brentwood WTP for their long-term needs.
The following sections summarize the District’s water supply and quality as well as the facilities necessary to provide service to customers within the service area. The projects included in the 2021 CIP directly relate to maintaining the facilities described as well as providing high quality, reliable water supply consistent with the District’s mission.
1.3.1. Water Supply and Quality
The District is a Central Valley Project (CVP) contractor, historically relying almost entirely on the federal government, specifically the U.S. Bureau of Reclamation, to supply its water through the Sacramento-San Joaquin Delta (Delta). The District’s CVP Contract with Reclamation was renewed in 2005 for a 40-year term and provides for a maximum delivery of 195,000 acre-feet per year. Water available under the District’s CVP contract may be reduced in some years due to overall CVP water supply conditions,
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regulatory restrictions, and droughts. CVP water is the District’s primary water supply and can be used directly or stored in District reservoirs, including the Los Vaqueros Reservoir.
The District has other water supplies available under its own water rights and inter-agency agreements, which include the following:
Mallard Slough Water Rights: The District has rights at Mallard Slough to divert a maximum of 26,700 AFY. Diversions from Mallard Slough are unreliable due to frequently poor water quality in the San Joaquin River at this point of diversion. Water quality conditions have restricted diversions from Mallard Slough to approximately 3,100 AFY (on average) with no diversions in dry years.
Los Vaqueros Project Water Rights: The Los Vaqueros Project (Water Right Decision 1629 and Water Rights Permit No. 20749) included acquisition of additional water rights to divert and store up to 95,850 AF annually in the Los Vaqueros Reservoir between November 1 of each year, to June 30 of the subsequent year. The water may only be diverted when the Delta is declared to be in surplus condition. The State Board also issued Water Rights Permit No. 20750 for diversion and storage of the water of Kellogg Creek, located within the Los Vaqueros Reservoir watershed. These rights are in addition to the contractual rights to divert and store water furnished through the CVP.
East Contra Costa Irrigation District Agreement: The District has a contract with ECCID that provides up to 8,200 AFY of water supply that can be used in East County areas within the boundaries of both the District and ECCID. This contract also allows up to an additional 4,000 AFY of drought supply available through groundwater exchange.
As the District obtains its water supply exclusively from the Delta, all of its intakes are subject to variations in water quality caused by salinity intrusion, Delta hydrodynamics, and discharges into the Delta and its tributary streams from both point and non-point sources. Since 1992, the District has invested over $1.3 billion on capital improvements, including the $550 million Los Vaqueros Project and first expansion, to improve water quality and reliability for its customers. The Los Vaqueros Reservoir enables the District to decrease diversions from the Delta and use the stored high-quality reservoir water to blend with Delta water to improve delivered water quality as needed. The Los Vaqueros Reservoir has benefitted the District’s customers both in water quality and supply, particularly during recent drought conditions where the reservoir was drawn down significantly to provide water supply.
Other significant investments for water quality and reliability include improvements at both the Bollman and Randall-Bold WTPs, construction of the Multi-Purpose Pipeline, improvements at Contra Loma Reservoir, Middle River Intake, and the Los Vaqueros Reservoir Expansion.
Notwithstanding these efforts, the District’s supplies and its ability to consistently provide high-quality water to its customers have declined significantly over the last twenty years. Continued decline of water quality is anticipated as impacts from climate change take effect, including increased and longer periods of drought, coupled with increasing demands on Delta water supplies and degradation from discharges to the Delta. Judicially imposed restrictions on diversions from the Delta that started in 2007 limit the timing and availability of water for the District. The increase in chlorides, the measure of water quality, directly impacts the performance of the Los Vaqueros Project by requiring additional blending releases from the reservoir to meet the District’s water quality objectives. In addition, future regulating agencies impacts and projects such as the California Delta Conveyance Project (formerly WaterFix) has the potential to further degrade water quality at the District’s intakes.
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This CIP includes projects related to water supply and quality and are included in the Future Water Supply and Water Treatment Facilities Programs. The projects are primarily identified through master planning and other planning studies as further discussed in Section 2.
1.3.2. Untreated Water System
The District’s untreated water system consists of four intakes, pump stations, pipelines, four storage reservoirs, and the 48-mile Canal that conveys water from the Sacramento-San Joaquin Delta to eastern and central Contra Costa County.
The Canal is the District's backbone water supply conveyance facility, originating at Rock Slough and passing through many of the cities and communities in the northeastern and central county areas before ending at the Martinez Reservoir. The land adjacent to the Canal, particularly in east county, has experienced significant residential growth in the last two decades. Since 2009, the District has completed a series of projects to replace the first four miles of the Canal which was an earthen channel. With the completion of Segment 4 in 2019, approximately 13,500 feet of the Canal has been enclosed in the pipe. The final and remaining segment to be enclosed (Segment 5) is anticipated to begin construction within the next 5 years and is included in this CIP. Enclosing the unlined portion of the Canal addresses various vulnerabilities including water quality and potential flooding.
A series of four pump stations within the first 7 miles of the Canal, Pumping Plants 1 through 4, lift water from Rock Slough to a height of 124 feet above sea level to flow by gravity to the terminus of the Canal in Martinez. From Pumping Plant 1, the Canal is concrete lined with capacities ranging from approximately 22 cubic feet per second (CFS) to 350 CFS. The first 25 miles of the Canal is a critical facility, termed main Canal, as it is the only untreated water conveyance facility serving municipal and industrial untreated water customers along its route, including Antioch, Pittsburg, Brentwood, the Treated Water Service Area (TWSA) served by Bollman WTP as well as the large refineries in central county. The Canal has several in-line siphons, culverts, and check structures, as well as a 1.4-mile tunnel. The Ygnacio Relift Pump Station diverts water from the main Canal into the 5-mile Ygnacio Loop in the City of Walnut Creek.
The Shortcut Pipeline, located in central county, originates at the Canal north of the Bollman WTP and terminates at the Martinez Reservoir. This pipeline provides redundancy to a portion of the Canal, known as Loop Canal, and conveys untreated water from the Canal to Mallard Reservoir (for the Bollman WTP), Martinez Reservoir (for City of Martinez and Shell Oil Company) as well as several smaller industrial customers.
Approximately 170,000 AF of storage capacity is available with the four reservoirs - Contra Loma, Martinez, Mallard, and the expanded Los Vaqueros. Contra Loma Reservoir (2,100 AF capacity) is used to provide emergency storage, to regulate flows in the Canal, to meet peak flows, and to provide back up during canal maintenance. Mallard Reservoir (3,100 AF capacity) serves Bollman WTP and Martinez Reservoir (276 AF capacity) serves as terminal storage for flow regulation and serves Martinez and the Shell Refinery.
The original Los Vaqueros Project was completed in 1998 and included construction of a 100,000-acre-foot reservoir, a new point of diversion at Old River south of the Highway 4 crossing, transmission facilities, pumping plants, and other associated facilities. The pumping plant at the Old River intake has an installed capacity of 250 CFS and diversion at the intake for delivery to the District’s service area began in the summer of 1997. In 2010, CCWD completed construction of a pumping plant on Victoria Canal near Middle River that has an installed capacity of 250 CFS. Expansion of the Los Vaqueros
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Reservoir was completed in 2012, increasing storage capacity to 160,000 AF. The expanded reservoir provides improved water supply reliability in drought periods, improved water quality, and environmental benefits including reduced impacts on Delta fisheries.
The Middle River and Old River pumping plants are permitted to operate at a combined capacity of 320 CFS and pump water to the 4-million-gallon Transfer Reservoir. From the Transfer Reservoir water can either flow by gravity to the Canal or pumped up to the Los Vaqueros Reservoir via the Transfer Pipeline by the 200 CFS capacity Transfer Pump Station. Water from the Los Vaqueros Conveyance System (Los Vaqueros Reservoir, Old River Intake, and Middle River Intake) is conveyed by gravity via the Los Vaqueros Pipeline to the Canal and is blended with water supplies from Rock Slough at the Neroly Blending Facility in Antioch.
An intertie connecting the Los Vaqueros Pipeline with East Bay Municipal Utility District’s (EBMUD’s) Mokelumne Aqueducts in Brentwood was completed in 2007 that enables the wheeling of a portion of CCWD’s Central Valley Project (CVP) water via the Freeport Regional Water Project and the Mokelumne Aqueducts. The intertie also functions as an emergency connection between EBMUD and CCWD, enabling the districts to share water resources in an emergency.
The District, other local water agencies, and Reclamation continue to study the potential for further expansion of Los Vaqueros Reservoir up to 275,000 AF and related conveyance facilities. In Spring 2019, the District entered into a Multi-Party Cost Share Agreement with the Local Agency Partners (LPAs) which include ACWD, BAWSCA, City of Brentwood, EBMUD, Grassland Water District, SFPUC, San Luis & Delta Mendota Water Authority, Valley Water, and Zone 7 Water Agency. This agreement follows ones separately entered into in the Fall of 2016 to continue to fund the ongoing work for the Phase 2 Los Vaqueros Expansion Project (LVE2). The District completed the Draft Supplement to the Final Environmental Impact Study/ Environmental Impact Report (EIS/EIR) for the project in June 2017 and the project was awarded $459 million in a Proposition 1 Water Storage Investment Program grant in July 2018. The Final Federal Feasibility Report with the attached EIS/EIR is anticipated to be approved in 2020. A Joint Powers Authority (JPA) is anticipated to be formed by December 2020 to implement LVE2.
Projects associated with improvements to the untreated water system are included in this CIP as part of the Untreated Water Facilities Program as well at the continued evaluation of the LVE2 project under the Future Water Supply Program. Projects are developed and identified through master planning and other planning studies as further discussed in Section 2.
1.3.3. Treated Water System
The District operates three water treatment facilities, the 75 million gallons per day (MGD) Bollman WTP, the 50 MGD Randall-Bold WTP, and the 16.5 MGD City of Brentwood WTP. The Bollman WTP was constructed in 1968 and primarily serves the District's treated water customers in Central County, and under special agreement, provides treated water to Golden State Water Company (GSWC) for the community of Bay Point. The Randall-Bold WTP in Oakley, which came on line in July 1992, currently provides treated water to the District’s TWSA as well as DWD, GSWC, and the Cities of Brentwood and Antioch. The Multi-Purpose Pipeline, constructed in 2003, is primarily intended to transport treated water from the Randall-Bold WTP to the TWSA in Central County, but can also transport treated water from Central County to Randall-Bold. In the event of a major emergency, the Multi-Purpose Pipeline can also pump untreated water for fire suppression.
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In addition, the District has entered into an agreement with the City of Brentwood to convey its ECCID water supply and provide treatment services to meet the needs of the City for use in the part of Brentwood that is outside the District’s service area. A separate treatment facility on the Randall-Bold site was constructed and is operated by the District for the City of Brentwood. The City of Brentwood WTP began delivering water to the City of Brentwood in July 2008. All costs related to this facility are paid by the City.
Treated water distribution facilities include more than 800 miles of pipeline and 40 active storage reservoirs. Total treated water storage capacity is approximately 72 million gallons. Thirty pump stations are used to deliver the water and maintain water pressure within the distribution system. There are approximately 61,334 active service connections to the treated water system, servicing approximately 141,698 equivalent 5/8-inch connections. New facilities are periodically added to the treated water system to meet new demands, increase reliability, improve operating efficiencies, and ensure service standards are met. These new facilities are identified and prioritized in a Treated Water Master Plan (TWMP) while the Treated Water Renewal and Replacement (TWRR) Study and Pipeline Renewal and Replacement (PLRR) Study identify and prioritize improvement needs on existing facilities. Together, these studies form the planning basis for many of the treated water projects in the CIP.
Projects associated with improvements to the treated water system are identified through master planning and other planning studies as further discussed in Section 2 and included in this CIP as part of the Treated Water Facilities Program.
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2. CIP Structure and Development Two structural elements provide the framework for analysis and review of the CIP – Program Configuration and Priority System. The CIP is organized into six separate functional areas which enables the projects included in the CIP to be viewed as a series of programs for improvements in specific areas of District responsibility. Projects within each program are prioritized based on a three-tier system. The program configuration and priority system along with the assumptions form the basis for developing the CIP as discussed in this section.
2.1. CIP Structure
The organization of projects into programs and priority system are reviewed in this section.
2.1.1. Program Configuration
The basic unit of the CIP is the project. Projects are grouped by sub-program and rolled up into one of the six programs. Each of the program areas represents a different function of the District and sub-programs are groups of related projects within a program. The programs are described in more detail in Section 4 and summarized here:
Administrative Program: Projects included in this program address improvements for District buildings and common facilities not directly involved in the treatment, conveyance, or storage of water. This program also includes projects to invest in equipment and software systems needed to maintain District operations.
Future Water Supply Program: This program includes water quality and reliability improvement projects as well as projects to meet future water supply needs.
Los Vaqueros Watershed and Conservation Lands Program: Improvements to maintain the District’s ability to manage the Los Vaqueros Watershed and Conservation Lands and to meet the District’s water permit commitments are included in this program.
Treated Water Facilities Program: Projects included in this program are vital to maintaining the level of service, quality, and safety of the District’s existing treated water system as well as providing for expansion to meet future needs.
Untreated Water Facilities Program: This program includes projects to replace, expand, and improve the District’s untreated water facilities.
Water Treatment Facilities Program: Improvement needs related to the water treatment facilities are included in this program.
Project summaries have been prepared all projects in the CIP and are provided in their respective programs in Section 4. A project description, justification, benefits, priority, estimates of cash flow and operations and maintenance (O&M) impacts, and funding source information are provided in each summary.
2.1.2. Priority System
Each CIP project is assigned a priority level according to prioritization methodology. This methodology ranks or rates the importance of a project based on various criteria such as protection of health and safety, legal requirements, and rate of return on the District's investment. The priority levels provide a basis for determining which projects should be done in any given year and how projects should be scheduled over the ten-year span of the CIP. Only those projects with a priority level 1 or 2 ranking are included in the Ten-Year Financial Plan and Rate Model. A description of the three priority levels and the prioritization criteria used to rank projects is as follows.
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Priority Level 1
These are the highest priority of all capital projects. Projects are ranked priority level 1 if they meet one or more of the following criteria:
• Project is required for health and safety. This includes projects needed to protect and preserve the health and safety of customers, employees, and the public.
• Project is required by law, regulation, or contract. This includes projects required to meet requirements imposed by Federal, State, or local governments.
• Project is under construction. • Project is funded by applicants or outside funding source.
As an example, an Untreated Water Reservoir Rehabilitation project would be ranked priority level 1 if it was required by the California Department of Safety of Dams or Reclamation to ensure dam safety.
Priority Level 2
Projects are ranked priority level 2 if they meet all of the following criteria:
• The project has a defined scope and provides measurable progress toward achieving the District’s goals.
• The District has a moderate level of control over the schedule of implementing the project. • Funding is available such that rate increases are consistent with the Board policy. • When return on investment is a determining factor, projects have a payback period of less than
five years.
Reservoir and pump station upgrades as recommended in the TWMP and Treated Water Renewal and Replacement (TWRR) Study are examples of projects that are priority level 2. Treated water reservoirs and pump station improvements help achieve the strategic goals of improving water system reliability and increasing operational flexibility, the District has control of scheduling, and any rate increases to fund the project are consistent with the Board policy.
Priority Level 3
Projects not meeting the criteria for priority level 1 or 2 are ranked as priority level 3. These are projects that are anticipated to be needed, but may not yet have defined scopes, schedules, or funding sources. In some cases where a project is defined but only a portion of the funding is available, the project will be phased with the funded portion in priority level 1 or 2 and the unfunded portion in priority level 3. Where return on investment is a determining factor, projects with a long-term payback of greater than five years are priority level 3 projects.
The three priority levels are consistent with those used in previous ten-year CIPs. Project priority rankings were re-evaluated during the project review process and changes were made where necessary to reflect changed circumstances.
2.2. CIP Development
2.2.1. Assumptions
Long-range financial planning is dependent on the ability to forecast future expenditures and revenues. Assumptions are made where necessary to proceed with the planning process. Revenue assumptions for this update use the current rate methodology, incorporate the impacts from the recent drought and reduced water use, and reflect anticipated water use efficiency regulations as well as impacts from long-term housing projections which are modified as needed to reflect District conditions or trends.
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The assumptions used for the development of the 2021 CIP, as listed below, have been organized so that related assumptions are grouped together.
1. General a. CIP untreated and treated water costs for priority level 1 and level 2 projects will be held to
a level that results in rate impacts that are consistent with Board policy. b. Facility Reserve Charges (FRCs) are a funding source for capital projects. A portion of the
FRCs fund CIP projects related to growth or future water supplies. Allocations between existing and future customers are consistent with the findings of the 2015 FRC Study and methodology used in the Financial Plan.
c. Capital projects with non-District funding sources (such as applicant funds and grants) are included in CIP cost estimate totals and the outside funding is included in revenue projections.
d. Capital projects may be financed with short-term or long-term debt. The short-term financing is assumed to be provided by either Water Revenue Notes or Extendable Municipal Commercial Paper depending on overall lowest cost of financing. The short-term debt will either 1) be refinanced with long-term bonds as debt capacity becomes available or 2) repaid with revenues.
e. District policy and bond covenants require maintaining a debt coverage ratio of at least 1.25:1 for all debt except Extendable Municipal Commercial Paper, which has a coverage ratio minimum requirement of 1.15:1.
2. Revenue Forecasting a. Water sales projections for financial planning are used in predicting future revenues and
tend to err conservatively; therefore, are assumed to be at the lower end of an acceptable range. Water sales projections used in the CIP are limited to the quantity of water the District expects to sell, and does not included losses (distribution, water treatment plant, canal conveyance, and Los Vaqueros evaporation), recycled water, groundwater, water wheeled to the City of Brentwood, or other local sources used by the District’s municipal customers. Water sales projections reflect anticipated reductions required in the State’s long-term conservation framework and anticipated regulations. Additionally, water sales have been reduced starting in 2023 based on the anticipated City of Antioch desalination project. These projections are similar to those used in the 2020 CIP.
b. The CIP projections for new treated water connections are generally consistent with the 2020 CIP projections. New untreated water connections have been slightly reduced in the first year of the CIP based on discussions with the District’s municipal customers, observed housing trends, and industry projections. The number of projected new connections are anticipated to increase over the next few years consistent with regional housing projections.
c. Interest income on the District’s investments has been reduced from the previous CIP based on the current market and projections, and is projected to be 2.3% in 2021, 2.5% in 2022 through 2025, and 3.0% annually for the remaining four years of the plan. These projections are based on recent interest income and forecasted trends in targeted federal fund interest rates.
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3. Inflation a. Inflation of operating and maintenance expenditures (excluding purchased water) is
projected at an average rate of 3% for FY2021 and 3.5% annually thereafter. b. Inflation is projected at 4% per year for all capital costs in the Financial Plan. c. CVP water costs are estimated to increase by 7% annually based on Reclamation’s rate
setting policies and historical trends. 4. Capacity Planning
a. Demand projections for capacity planning determine the maximum amount of water needed on an annual or peak basis for sizing and scheduling facilities. The projections are based on the Future Water Supply Study (FWSS) update and modified as appropriate for their respective purposes. The FWSS forecasts annual demands for water supply planning purposes whereas the TWMP and other studies start with FWSS demands and utilize peaking factors to estimate maximum day or peak hour demands. The purpose of the TWMP and similar studies is to design facilities that will meet the maximum required conditions. These and other differences in assumptions are documented in each study.
b. FWSS and TWMP demands are adjusted to account for drought recovery trends, economic factors, peak period demands, sources of supply, and other project-specific conditions as appropriate.
5. Cost Estimating a. Project costs (capital and O&M) are expressed in current dollars unless otherwise noted.
Costs in the Financial Plan are escalated by the appropriate inflation rates, as previously described.
b. Cost estimates in the first year of the CIP do not include funds that could be re-budgeted to match cash flow from the current fiscal year’s approved budget. For purposes of the CIP, it is assumed that budgeted funds are fully expended unless otherwise stated.
c. Components of capital cost estimates include land acquisition, construction, engineering services (planning, design, and construction management), labor and benefit costs including payroll taxes, medical insurance, retirement plan benefits, and direct costs (including legal fees and administrative support). Cost estimates also include up to 30% for construction contingencies depending on the characteristics of the project.
d. Estimates of O&M costs include labor and benefit costs including payroll taxes, medical insurance, retirement plan benefits, etc., and materials, equipment, services and other expenses (such as power) required for all District operations, including operating and maintaining property and facilities.
e. Accuracy ranges provide guidelines for interpreting cost estimates. They do not represent project contingencies. Projects under construction do not have an accuracy range because it is assumed the project will be completed for the budgeted amount, which includes allowances for change orders and unforeseen circumstances consistent with District policy. Cost estimates for capital projects are accurate within plus and minus ranges that vary depending on project stage as follows:
i. Preliminary planning estimates (+50% to –30%) ii. Completion-of-planning estimates (+30% to –15%)
iii. Design-level estimates (+15% to –5%) f. Cost estimates are generally rounded to two significant figures, but in no case more refined
than to the nearest ten-thousand.
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These assumptions are used to develop the financial plan included in the CIP. Additional assumptions specific to the rate model are described further in Section 3.
2.2.2. Identification of Projects
Most of the projects in the CIP are identified in planning documents, such as the WTP Master Plan and PLRR Study. Many of these planning documents are periodically updated to ensure that project planning is based on current and reliable information. Table 2.1 lists major master plans and studies and the next scheduled update. Some CIP projects are based on maintenance reports, field inspection records, and customer complaints; while other projects are required to meet legislation, regulation, agreement, or Board policy requirements. Additionally, the CIP team meets with staff responsible for specific District functions, such as water treatment, to facilitate identification of capital project needs or to adjust timing of a previously identified project based on changing conditions.
Table 2.1 – Master Plans and Planning Documents Document Completed Next Update Canal Drainage Study 1998 NA(1) Canal Modernization Planning Study 2015 NA(1) Delta Region Drinking Water Quality Management Plan 2005 NA(1) Facilities Master Plan 1999 NA(1) Facility Reserve Charge Analysis 2015 2023 Future Water Supply Study 2015 2022 Pipeline Renewal and Replacement Study 2018 2023 Property Management Plan 2012 2022 Seismic and Reliability Improvements Project 1997 NA(1) Treated Water Master Plan Update 2015 2021 Treated Water Renewal and Replacement Study 2017 2023 Untreated Water Facility Improvement Plan 2019 2025 Untreated Water Reservoir Master Plan 2019 2029 Urban Water Management Plan 2016 2021 Water Treatment Plant Master Plan 2020 2028 Watershed Facilities Master Plan 2014 2024
1An update is not necessary or is not currently scheduled.
As shown in the table, several studies including the PLRR, WTP Master Plan and Untreated Water Improvement Plan were recently updated which identified projects and priorities within each of the systems covered by each study. Each of the studies identified projects within the ten-year CIP planning horizon and beyond and generally found that increases in investments for renewal and replacements are necessary to maintain reliable service to customers. The level on long-term investment needs will become more defined as additional data is collected and studies are updated. Additionally, these study updates along with refinements made to the District’s asset management practices will enable the District to assess and prioritize investments across all programs in a more comprehensive and efficient manner.
2.2.3. Cost Estimates
Capital, operating, and debt cost estimates are factored into the Financial Plan. Capital costs are estimated for each project according to industry data and District experience, and are expressed in current dollars unless otherwise noted. Each cost estimate has a plus and minus accuracy range that
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varies depending on project planning stage, as listed in the Assumptions. The accuracy of each cost estimate is noted as a dollar range on the project summary sheet. The capital cost estimates have been adjusted based on the Engineering News Record (ENR) Construction Cost Index for the Bay Area for October 2019 (12,525), an increase of 3.45% compared to the 2020 CIP.
Estimates of annual costs associated with operating and maintaining new capital facilities are based on unit costs developed in cooperation with the O&M Department. Estimates for costs related to maintaining land owned by the District are based on preliminary dollar per acre figures provided by the Watershed and Lands Division.
The Financial Plan accounts for inflation over the ten-year CIP period for all costs except projected debt service, by escalating costs for each project year by year. Debt service for long-term debt is based on fixed payment schedules for each debt issuance. The District is currently paying 1.15% for extendable municipal commercial paper and 1.49% for water revenue notes. Debt service cost for short-term debt is assumed to increase over the ten-year period. Interest rates for extendable municipal commercial paper are assumed to increase up to 2.5% per year for up to $52.7 million. Interest rates for Water Revenue Notes are in the range of 2.0% and 3.0% annually for up to $53.7 million. CVP water costs reflect changes implemented by Reclamation as stated in the item 3c in the Key Assumptions.
2.2.4. Sources of Funding and Allocations
The Financial Plan includes a ten-year analysis of revenues and reserves necessary to fund CIP projects and the operating costs of the District, including debt service. In order to perform the analysis, the relative benefits of the untreated and treated water systems to existing and future customers have to be determined for each project. Project benefits to the treated and untreated water systems have been defined by program as shown in Table 2.2.
Table 2.2 – Program Allocation of Untreated and Treated Water Funds
Program Untreated Water
Funded (%) Treated Water
Funded (%)
Administrative Program 33 67
Future Water Supply Program 100 0
Los Vaqueros Watershed and Conservation Lands Program 100 0
Treated Water Facilities Program 0 100
Untreated Water Facilities Program 100 0
Water Treatment Facilities Program 0 100
Projects related to water supply or components of the untreated water system, such as the Canal, are funded from untreated water revenues, FRCs, and/or reserves. Untreated water revenues include the untreated water portion of the treated water rate based on consumption which currently accounts for approximately 35% of untreated water revenues. Projects related to facilities in the Treated Water Service Area are funded from treated water revenues and/or reserves. The benefits of facilities and equipment required for administrative purposes are allocated according to the proportion of District operating costs funded from untreated and treated water revenues, 33% and 67%, respectively.
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Allocating benefits between existing and future customers considers whether a project is required to fulfill current needs or only needed for future development and growth. Once this has been established, determining whether a project directly or indirectly benefits the other category of customers is necessary. For example, an eight-million-gallon reservoir may be needed to meet current storage deficits, but in order to accommodate future growth, a twelve-million-gallon storage facility is included in the project. Costs would be apportioned two-thirds to existing customers and one-third to future customers to reflect the benefit received for each customer category.
The source of funds for projects is based on the allocation of benefits for the two customer categories. The FRC is used to fund the portion of projects required for growth (future customers). Rate revenues, including reserves, are used to fund the portion benefiting existing customers. Allocations are determined during master plan development or by financial audit as well as the recently completed rate study and are not determined in the CIP. It is assumed for purposes of this CIP that allocations between existing and future customers will be consistent with those in the 2015 FRC Study. Funding information is provided for each project in Section 4.
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3. Financial Plan The Financial Plan includes projected sources of revenues to fund an estimated ten years of operating, capital and debt service costs, while remaining consistent with Board policies on revenue increases, reserve balances, and debt coverage ratios. The Financial Plan balances operating cost reductions, efficient capital outlays, use of reserves, responsible debt management and addresses the financial impacts of long-term water conservation to achieve revenue requirements that ensure customer service continues at high levels.
Funding sources and expenditures are projected at approximately $2.0 billion over the ten-year planning period of 2021 through 2030. A summary of the sources and uses of funds in the 2021 CIP are shown in Figures 3.1, 3.2 and Table 3.1 and the summary of the previous CIP sources and uses of funds are provided in Table 3.2 for comparison. Water sales revenues are projected at a steady growth rate. However, compared to the previous CIP, water sales revenues decreased in the near-term due to observed lower demands from untreated water customers. In anticipation of water sales reduction by the City of Antioch, additional revenue increases are required to maintain sufficient revenues to support operations. Rate stabilization reserves, operating reserves and capital reserves are planned to be gradually rebuilt over the long-term planning period. This CIP reflects continued investment in infrastructure renewal and replacement as well as annual operating costs of the water system. The Financial Plan concludes that all CIP priority level 1 and 2 projects and all operating and debt service expenditures can be funded.
Figure 3.1 Projected Source of Funds
1Funding for LV Reservoir Expansion Phase 2 Project beyond the term of the Multi-Party Agreement is excluded from the
projected sources of funds.
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FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
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Water Sales Revenus Facility Reserve Charges Other Non-Rate RevenuesReimbursements Capital Funded by Others Reserve UseDebt Proceeds
2021 CIP 3-2
Figure 3.2 Projected Use of Funds
1Expenditures for LV Reservoir Expansion Phase 2 Project beyond the term of the Multi-Party Agreement is excluded from the projected use of funds.
Table 3.1 2021 CIP Projected Revenues and Uses of Funds (in millions of dollars, inflated) FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL Sources of Funding
Water Sales Revenues 141.0 150.5 155.7 164.7 174.1 182.4 190.5 199.0 207.6 216.4 1,781.9
Facility Reserve Charges 7.0 7.5 8.0 8.5 9.1 9.7 10.1 10.5 10.8 11.2 92.4
City of Brentwood 5.0 5.2 5.5 5.8 6.1 6.3 6.6 7.0 7.3 7.6 62.4
DWD Revenue 2.8 1.5 1.5 1.6 1.6 1.7 1.7 1.8 1.9 1.9 18.0
Other Revenue 2.4 2.4 2.4 2.5 2.5 2.5 2.5 2.6 2.6 2.6 25.0
Interest Income 1.8 1.8 1.8 1.7 1.7 2.2 2.3 2.8 3.3 3.7 23.1
Property Taxes 3.5 3.5 3.6 3.6 3.6 3.7 3.7 3.8 3.8 3.8 36.6
Land Levy Taxes 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 7.0
Capital Funded by Others 16.9 14.8 4.9 5.5 9.1 9.4 4.0 4.5 6.1 7.2 82.4
Debt Proceeds 0.7 7.1 - - - - - - - - 7.8
Reserve Use1 7.7 3.3 3.6 (1.9) (4.4) (1.5) (16.9) (22.7) (18.6) (15.9) (67.3)
TOTAL 189.5 198.3 187.7 192.7 204.1 217.1 205.2 210.0 225.5 239.2 2,069.3
Uses of Funds
Operating & Maintenance 97.2 101.9 105.9 110.6 115.6 120.7 126.0 131.5 137.3 143.3 1,190.0
District Funded Capital 32.9 29.6 32.5 34.5 37.9 50.6 39.1 35.1 38.2 39.9 370.3
Capital Funded by Others 16.9 14.8 4.9 5.5 9.1 9.4 4.0 4.5 6.1 7.2 82.4
Debt Funded Capital 0.7 7.1 - - - - - - - - 7.8
Debt Service Short-Term2 2.3 5.6 5.5 5.3 5.2 - - - - - 23.9 Debt Service Long-Term Committed3 39.5 39.3 38.9 36.8 36.3 36.4 36.1 18.9 18.9 18.8 319.9 Debt Service Long-Term Projected4 - - - - - - - 20.0 25.0 30.0 75.0
TOTAL 189.5 198.3 187.7 192.7 204.1 217.1 205.2 210.0 225.5 239.2 2,069.3
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FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
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Operating & Maintenance Capital Funded by Others District Funded CapitalDebt Service Projected Debt Service Committed Build ReservesDebt Funded Capital
2021 CIP 3-3
1Includes Restricted and Unrestricted District Reserves. Positive values reflect reserve use; negative values reflect increases. 2Projects financed with short-term debt include Middle River Intake, Los Vaqueros Reservoir Expansion, Shortcut
Pipeline, Canal Replacement Segment 2, and District Center Building Improvement Projects. 3Committed long-term debt service reflects debt used to finance completed projects, including the original Los Vaqueros
Reservoir, Multi-Purpose Pipeline and anticipated conversion of existing short-term debt into long-term debt. 4Projected long-term debt service reflects the District’s capacity to fund future capital projects.
Table 3.2 2020 CIP Projected Revenues and Uses of Funds (in millions of dollars, inflated) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 TOTAL
Sources of Funding
Water Sales Revenues 135.3 146.4 153.8 159.1 167.7 176.7 185.1 193.4 201.9 210.9 1,730.3 Facility Reserve Charges 6.2 6.7 7.2 7.8 8.5 9.2 9.9 10.4 10.8 11.2 87.9 City of Brentwood 4.4 4.6 4.8 5.0 5.3 5.5 5.7 6.0 6.3 6.5 54.1 DWD Revenue 2.7 2.7 1.4 1.5 1.5 1.6 1.6 1.7 1.8 1.8 18.3 Other Revenue 2.2 2.2 2.3 2.3 2.3 2.3 2.4 2.4 2.4 2.4 23.2 Interest Income 1.7 1.9 2.0 2.5 2.9 3.3 3.6 3.8 4.3 4.8 30.8 Property Taxes 3.0 3.0 3.0 3.0 3.1 3.1 3.1 3.2 3.2 3.2 30.9 Land Levy Taxes 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 7.0 Capital Funded by Others 10.2 6.5 7.0 4.1 8.0 8.2 5.8 4.0 3.5 6.7 64.0 Debt Proceeds 1.5 - - - - - - - - - 1.5 Reserve Use1 9.0 3.3 0.1 (3.2) 2.8 (6.4) (1.0) (15.6) (13.3) (18.2) (42.5) TOTAL 176.9 178.0 182.3 182.8 202.8 204.2 216.9 210.0 221.6 230.0 2,005.5 Uses of Funds Operating & Maintenance 92.9 97.2 101.4 106.3 111.8 117.6 123.5 127.7 133.1 138.7 1,150.2 Capital Funded by Others 10.2 6.5 7.0 4.1 8.0 8.2 5.8 4.0 3.5 6.7 64.0 District Funded Capital 28.3 31.7 29.4 29.4 37.3 32.4 40.1 30.7 37.4 37.0 333.7 Debt Funded Capital 1.5 - - - - - - - - - 1.5 Debt Service Short-Term2 4.8 5.2 6.0 5.6 5.4 5.2 0.0 0.0 0.0 0.0 32.2 Debt Service Long-Term Committed3 39.2 37.4 38.5 37.4 35.3 34.8 34.9 34.6 17.4 17.4 326.9 Debt Service Long-Term Projected4 - - - - 5.0 6.0 12.6 13.0 30.2 30.2 97.0 TOTAL 176.9 178.0 182.3 182.8 202.8 204.2 216.9 210.0 221.6 230.0 2,005.5 1Includes Restricted and Unrestricted District Reserves. Positive values reflect reserve use; negative values reflect increases. 2Projects financed with short-term debt include Middle River Intake, Los Vaqueros Reservoir Expansion, Shortcut
Pipeline, Canal Replacement Segment 2, and District Center Building Improvement Projects. 3Committed long-term debt service reflects debt used to finance completed projects, including the original Los Vaqueros
Reservoir, Multi-Purpose Pipeline and anticipated conversion of existing short-term debt into long-term debt. 4Projected long-term debt service reflects the District’s capacity to fund future capital projects.
3.1. Projected Revenues and Funding Sources
The District generates revenue from multiple sources, including water sales, FRCs, interest earnings, property taxes, State and Federal funding, grants and miscellaneous other sources. The primary sources of revenue are described below.
3.1.1. Water Sales Revenues
Water sales, on average, generate approximately 86% of the District's total revenue during the Ten-Year Financial Plan period, based on conservative estimates of outside funding. Treated water sales, including wholesale treated water and the untreated water component of the treated water rate, are projected to provide 70% of the total water sales revenue during the ten-year planning period, with the remaining 30% to be generated by the sale of untreated water to untreated water only customers.
2021 CIP 3-4
Consumption for treated and untreated water sales are re-evaluated based on current conditions and reflect the reductions required in the State’s long-term conservation framework and anticipated legislation which may require a further increase in water use efficiency in the future. Additionally, water sales have been reduced starting in 2023 based on the anticipated City of Antioch desalination project that would reduce its total water use from the District, thus reducing water sales to the projected minimum take amount. Total annual consumption levels assumed in the 2021 CIP compared to the 2020 CIP are presented in Table 3.3. Compared to the prior year CIP, annual consumption is projected lower due to observed trends. Untreated water usage by industrial customers have held steady over the last few years, therefore the projected growth for untreated water sales have been lowered in this CIP.
Table 3.3 Assumed Annual Consumption (In thousands of Acre-Feet) 1 CIP FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
2021 NA2 87.8 90.7 88.9 90.4 92.0 92.6 93.3 94.0 94.5 95.1 2020 87.6 90.6 92.2 90.4 91.3 92.5 93.1 93.8 94.5 95.2 N/A
1Annual consumption numbers represent the amount of water the District sells and does not include other uses of water within the service area including losses (Los Vaqueros Reservoir evaporation, Canal losses, water treatment and distribution), recycled water, groundwater, water wheeled on behalf of the City of Brentwood, and other local sources.
2Current estimate for FY20 is 84,300 AF. Projected Revenue Increases
The rate setting policy requires that rate adjustments be planned in advance with a ten-year forecast period to provide for minimal and orderly adjustments to avoid large sporadic rate increases. The projected revenue increases in this CIP includes adjustment for the anticipated water use reduction from the City of Antioch desalination project. Higher untreated water revenue increases are projected in order to maintain sufficient revenues and not have a negative impact on operations.
The revenue increases are necessary to ensure sufficient funding is available to meet the District’s operating, capital and debt service costs, while maintaining appropriate levels of operating reserves. The revenue increase projections included in the Financial Plan are driven by planned expenditures adjusted for inflation. Included in the revenue increases is funding towards rebuilding the Drought Reserve to $8.0 million by FY2025. Through a balanced use of resources, a maximum annual increase of 6.00% is projected in this ten-year planning period.
Table 3.4 presents the projected untreated water revenue increases necessary to fund the untreated water customers’ share of all revenue funded priority level 1 and 2 capital projects, rebuilding the drought reserve, as well as operating and debt service expenditures. To account for the anticipated water use reductions from the City of Antioch desalination project, additional revenue increases of 1.50% to 2.25% over three years (FY2023-FY2025) are needed to maintain sufficient revenues to fund untreated water costs. The total untreated water revenue increase projections are within a range of 3.75% to 6.00% per year. The revenue increase projections are consistent with the 2020 CIP.
Table 3.5 presents the projected treated water revenue increases necessary to fund all revenue funded priority level 1 and 2 capital projects, rebuilding the drought reserve, as well as treated water operating costs, debt service and the treated water customers’ share of untreated water costs. The total treated water revenue increase projections are 3.75% per year. The revenue increase projections are consistent with the 2020 CIP.
2021 CIP 3-5
Table 3.4 Projected Untreated Water Revenue Increases – Priority Level 1 and 2 Projects Comparison of 2021 CIP and 2020 CIP
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 2021 CIP 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% Potential impact of reduced water usage1
- - 2.25% 2.00% 1.50% - - - - -
2021 CIP Adjusted 3.75% 3.75% 6.00% 5.75% 5.25% 3.75% 3.75% 3.75% 3.75% 3.75% 2020 CIP 3.75% 3.75% 6.00% 5.75% 5.25% 3.75% 3.75% 3.75% 3.75% N/A
1Based on estimated impact from City of Antioch’s planned desalination project.
Table 3.5 Projected Treated Water Revenue Increases – Priority Level 1 and 2 Projects Comparison of 2021 CIP and 2020 CIP
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 2021 CIP 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 2020 CIP 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% N/A
3.1.2. Facility Reserve Charge Revenues
The Facility Reserve Charge (FRC) is a one-time charge for system capacity paid by a customer prior to connecting to the District's water system. There are two aspects of the FRCs that are used to estimate the annual revenues 1) the estimated number of connections per year and 2) the charge per connection.
The estimated number of new connections for treated and untreated water service has been updated to reflect observed housing trends and industry projections. Table 3.6 presents the actual new connections for 2011-2019 and projected new connections for 2020-2030. Compared to the 2020 CIP, the estimated number of new connections for untreated and treated water service has been reduced due to observed trends in the District as well as industry projections which continue to show increases but at reduced rates. The 2021 CIP assumes a moderate housing growth over the ten-year period.
Table 3.6 New Connections Annual New Connections FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Untreated Water 463 577 759 726 712 660 553 479 522 620 Treated Water 121 77 32 164 85 156 123 173 151 160 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Untreated Water 640 670 700 740 780 830 870 910 950 990 Treated Water 160 170 180 190 200 210 210 210 210 210
The charge per connection is based on the 2015 FRC Study. Separate FRCs are developed for the District’s Treated Water Service Area and Untreated Water Service Area. All new connections pay the untreated water FRC, and new connections in the Treated Water Service Area also pay the treated water FRC. Both the untreated and treated water FRCs include a “buy-in” component and a “future facilities” component. The buy-in component is based on the value and remaining capacity of existing facilities. This component reimburses existing customers for the portion of the costs of "oversizing" facilities to accommodate future growth. The future facilities component recognizes the cost of future water supply and facilities that are necessary to serve new connections. As FRC revenue is received, the buy-in component is used to fund costs in the year received and the future facilities component is apportioned
2021 CIP 3-6
to the appropriate reserve accounts for application to future and existing capital projects, consistent with the FRC methodology.
The untreated water buy-in component includes facilities such as the Multi-Purpose Pipeline (MPP), Middle River Intake, and the expanded Los Vaqueros Reservoir. The future facilities component includes cost for future water supplies and the cost to add capacity for future development.
The treated water buy-in component reimburses existing customers for facilities related to storage, pumping, pipelines, and the Randall-Bold WTP. A separate FRC will be considered for the Concord Community Reuse Plan development of the former Concord Naval Weapons Station area once the redevelopment plans are solidified. The treated water future facilities component incorporates cost for additional pipeline capacity that was recommended to serve future customers, based on the 2015 Treated Water Master Plan.
FRC revenues are computed by multiplying the applicable FRCs by the projected number of new connections. It has been assumed that the FRC components subject to inflation will be increased by the Engineering News Record (ENR) index on an annual basis, consistent with Board direction. FRC revenues are $5.0 million lower in the common years due to the reduction in the number of new untreated water connections projected.
FRC Reserves
The future facilities portion of the FRC revenue is accumulated in the designated reserves to fund future facilities related projects. The estimated FRC reserve balances at the end of each fiscal year, summarized by major component, are identified in Table 3.7.
Table 3.7 Projected FRC Reserve Balances (in millions of dollars, cumulative) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
Untreated Water Future Supply Component 7.58 7.87 8.21 8.34 7.70 4.48 1.72 2.35 1.32 0.35 (0.73)
Future Capacity Component1 0.12 0.32 0.06 0.02 0.02 0.04 0.01 0.01 0.04 0.01 0.01
Treated Water Future Facilities Component 4.93 6.46 8.43 10.54 12.87 15.41 18.15 20.73 23.59 26.37 28.04
1Funds used for qualified debt service for Multi-Purpose Pipeline Project.
The untreated water FRC reserve balances are lower compared to the previous CIP which reflects slower pace of new untreated water connections anticipated over the next ten years as a result of continued observed housing trends. The buy-in component of the FRCs is deposited in the unrestricted reserve accounts. It is assumed that the buy-in component of the untreated and treated water FRCs will be expended in the year received, so no balances are included in the table. FRC revenues will continue to be collected over a longer period than the ten-year CIP planning period.
Consistent with the 2015 FRC Update Study, the future water supply component is utilized to cover one-third of water efficiency projects based on the proportional benefits received with the goal of achieving long-term conservation targets mandated by the State. The balances in the Untreated Water Future Supply component are anticipated to be not sufficient to fully fund one-third of water use efficiency projects in FY30 and requires $0.7 million (inflated dollars) to be funded through rates revenue. Future FRC supply component revenues will be used to reimburse the portion funded by rate revenues. The
2021 CIP 3-7
balances in the Untreated Water Future Capacity component reflect the difference between collected amounts and debt service for a portion of growth’s share of the MPP Project.
The treated water FRC future facilities component reflects accumulated reserves to fund cost of future facilities such as additional storage, pumping, pipelines, and water treatment plant expansion to serve future developments.
3.1.3. City of Brentwood and Diablo Water District Revenue
Revenue from the City of Brentwood is related to the long-term treated water service agreements. All estimated costs related to treated water delivered from the Brentwood WTP are included in revenues. Diablo Water District (DWD) revenue includes their contractual share of debt service, and DWD’s share of operating expenditures for the Randall-Bold WTP. Revenue from DWD decreases in FY22 as the debt service for the facilities are paid in full on October 1, 2020 (FY21).
3.1.4. Other Revenue
Other revenue includes property lease revenue, grazing revenue, cell site lease revenue, wind power royalties, Los Vaqueros recreation program revenue, and miscellaneous service charges. The projected other revenues in the 2021 CIP are consistent with prior CIP.
3.1.5. Interest Income
Interest earnings projections have been reduced compared to the 2021 CIP to reflect current market rates. In 2019, the Federal Reserve decreased interest rates three times during the year. The Federal Funds rate as of September 2019 is in the range of 1.50% - 1.75%. This CIP assumes a gradual rise in interest rates over the ten-year planning period, from 2.0% to 3.0%. The projected interest income is lower than the prior CIP partially due to the lower interest rates anticipated. In addition, the decrease in water sales revenues negatively impacts the reserve balances that can potentially earn interest income. The negative Financial Plan impact of the lower interest rates is offset by the similarly low interest rates assumed for short-term debt as discussed in the next section under the Debt Financing.
3.1.6. Property Tax Revenue
The District receives approximately one percent of the general property tax collected by Contra Costa County. The general property tax revenue increases $5.7 million over the ten-year planning period due to increased property values. The District also receives an ad valorem tax (or land levy tax) to provide revenue necessary to meet the District’s ongoing obligation to the federal government for portions of the Contra Costa Canal System under the District’s Central Valley Project water service contract with the U.S. Bureau of Reclamation. The land levy tax is assumed to be renewed and collected throughout the ten-year planning period and used to fund the District’s obligation to Reclamation for the refurbishment of the Shortcut Pipeline under the District’s CVP water supply contract.
3.1.7. Capital Funded by Others Revenue
A portion of the District’s capital projects are funded from other sources including grants, applicants, developers, and other agencies. The projected revenues from this category increased by $21.5 million in the 2021 CIP as compared to the common years of the 2020 CIP.
2021 CIP 3-8
3.2. Projected Expenditures
The Financial Plan considers estimated expenditures for District-wide operations and maintenance activities, completion of the priority level 1 and 2 capital projects, and annual debt service. Estimates are presented in current and inflated dollars.
3.2.1. Operations and Maintenance Expenditures
Operations and maintenance expenditures or operating costs include labor costs, goods and services, purchased water costs, and utilities. The total District operating costs, including current operating costs inflated over time, as well as future costs related to implementing the CIP projects are included in the Financial Plan. Table 3.8 summarizes operating costs in inflated dollars. Estimated O&M costs are based on the FY20 budgeted expenses and adjusted to reflect anticipated cost increases or decreases. Over the common years the 2021 CIP operating costs are $12.7 million less than the prior CIP. The general inflation assumed for the first year of the CIP, FY21, is lowered from 3.5% to 3.0%. The lower inflation anticipated in the first year of the CIP has the effect of decreasing future year cost projections. The lower expenditures reflect the District’s commitment to reduce controllable operating costs and optimization of the District’s assets. Lower projected water consumption over the ten-year planning period reduces the variable water production costs such as water purchases and energy costs. Annual Operating costs are anticipated to increase from 4.4% to 4.8% per year over the ten-year planning period.
Table 3.8 Total District Operations & Maintenance Expenditures (in millions of dollars, inflated) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Total
2021 CIP N/A $97.2 $101.9 $105.9 $110.6 $115.6 $120.7 $126.0 $131.5 $137.3 $143.3 $1,190.0
2020 CIP
92.9 97.2 101.4 106.3 111.8 117.6 123.5 127.7 133.1 138.7 N/A 1,150.2 Annual Increase 2021 CIP 4.6% 4.8% 3.9% 4.4% 4.5% 4.4% 4.4% 4.4% 4.4% 4.4%
Salary and benefits are approximately 50% of the O&M expenses. Salary expenses are assumed an annual 3.5% cost-of-living adjustment. Benefit expenses are assumed an annual 5.0% increase. The other 50% of O&M expenses include purchased water, energy and other utilities, purchased goods, outside services, and retirement/OPEB contributions. General inflation is based on current and historical Consumer Price Index trends and is assumed at 3.0% for FY21 and 3.5% for each year thereafter. Utilities are assumed to increase 5.0% annually. Water purchases are assumed to increase 7.0% annually.
The projected Operating costs include 20,000 AF of annual refilling of the Los Vaqueros Reservoir. It is assumed that the reservoir will continue to be drawn down and refilled over the ten-year planning period as needed for water quality and operational needs. The refill cost includes the costs to purchase water and energy for pumping. In future years where there is a significant drawdown of the reservoir (drought, construction, etc.), the District will experience water and power cost savings as net releases from storage will offset water purchases, Delta pumping, and Los Vaqueros filling costs in that year. When this occurs, the District will evaluate end of fiscal year results and will direct funds to the subsequent year’s budget for refilling expenses, or to the Drought Reserve as appropriate. Drawing upon stored water avoids purchased water and energy costs at the time of withdrawal. The cost to refill is included to ensure funding is available to replenish the storage water for future year’s use.
2021 CIP 3-9
Funding for annual contributions to the Retirement and OPEB Trusts are included in Operating costs. Annual contributions to the Retirement Trust increased $650,000 per year, from $7.30 million budgeted in FY20 to $7.95 million due to a decrease in the assumed investment returns discount rate from 7.00% to 6.75%. Annual contributions to the OPEB Trust decreased $500,000 per year, from $3.5 million budgeted in FY20 to $3.0 million. The reduction in the OPEB Trust contribution is due to the CalPERS medical premiums increase less than anticipated and the investment return discount rate decreased from 7.0% to 6.5%.
As future obligations are dependent on investment results and assumptions used in the actuarial study, an additional $26.6 million in placeholder funding is included to address the potential for higher required contributions or retiree cost-of-living adjustments.
Funding to rebuild the drought reserve is included at $1.0 million per year through FY2025 to accumulate a total of $8.0 million dollars, consistent with the 2020 CIP. In 2019, the Board authorized transferring $2.0 million into the drought reserve due to positive financial results. The $8.0 million target balance for the drought reserve was based on a scenario of $15.0 million in water sales revenue reduction over a two-year dry period. The financial impact of a severe drought may be addressed by using a combination of drought reserves, drought charges and cost reductions. The drought reserve target of $8.0 million is based on impacts incurred during the last drought and is estimated to offset 50% of the financial impact in this scenario and reduce the amount needed to recover in the year immediately following the drought.
Additional cost impacts of planned capital improvements are included in Operating costs discussed in Section 3.4.
3.2.2. Capital Project Expenditures
The Financial Plan assumes that all priority level 1 & 2 projects are funded for a ten-year total of $374.1 million in current dollars and $460.5 million in inflated dollars. Priority level 3 projects are assumed to be unfunded. Capital projects may be funded by District revenues, funded by others, or debt financed.
Total revenue-funded projects in the 2021 CIP increased by $36.6 million (inflated dollars) compared to last year’s CIP. The increase is largely due to increased capital investments in main replacements and the Canal Modernization.
Capital projects that are funded by others are included in Table 3.11. Projects funded by others increased $18.4 million primarily reflecting planned continuation of the Los Vaqueros Reservoir Expansion Phase 2 Project.
Priority Level 1 and 2 Projects (Revenue Funded)
The following table show the District funded capital expenditures by program for priority level 1 and 2 projects. Revenue funded projects are funded by water rates, FRC revenues, and reserves. Tables 3.9 and 3.10 include all projects designated as priority level 1 and 2 that are not debt-funded or funded by others. Table 3.9 show program estimates in current dollars for the 2021 CIP and 2020 CIP, respectively, while Table 3.10 display the estimates for both CIPs in inflated dollars. Additional renewal and replacement needs for the Treated Water Facilities (main replacements) and Untreated Water Facilities (Canal Modernization) have been funded.
2021 CIP 3-10
Table 3.9 Capital Expenditures – Revenue Funded by Program – Priority Level 1 and 2 Projects (in millions of dollars, current dollars) Program FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Administrative NA 5.2 4.6 2.4 2.9 1.8 2.4 2.2 2.2 3.4 2.8 30.0 Future Water Supplies NA 2.0 0.9 1.2 2.7 6.8 6.1 0.9 3.3 3.2 3.0 30.0 LV Watershed NA 1.3 0.9 0.6 0.5 1.1 1.1 1.0 0.5 0.5 0.5 7.8 Treated Water Facilities NA 11.2 9.4 10.2 8.9 9.7 10.2 10.2 8.2 10.1 11.5 99.7 Untreated Water Facilities NA 10.9 10.8 10.2 9.2 8.9 17.4 11.9 7.8 6.7 7.0 100.7 Water Treatment Facilities NA 1.4 1.0 4.4 5.3 2.8 2.8 3.4 3.7 2.9 2.2 29.8 Total NA 31.9 27.6 28.9 29.5 31.1 39.9 29.7 25.6 26.8 27.0 298.1 2020 CIP Administrative 2.7 4.4 2.5 1.9 2.1 1.3 2.8 2.1 3.2 2.2 NA 25.2 Future Water Supplies 2.5 1.3 1.5 3.5 9.2 8.9 1.2 1.5 1.3 1.4 NA 32.2 LV Watershed 1.0 0.6 0.7 1.2 0.9 0.6 0.4 0.4 0.4 0.5 NA 6.7 Treated Water Facilities 8.3 7.5 7.7 8.4 6.6 6.8 7.5 11.2 11.9 13.3 NA 89.1 Untreated Water Facilities 9.0 13.4 11.4 7.7 6.8 5.5 14.5 4.7 4.7 4.7 NA 82.2 Water Treatment Facilities 4.8 1.9 2.1 2.1 4.8 2.3 3.8 2.5 4.6 2.7 NA 31.5 Total 28.3 29.0 25.9 24.9 30.4 25.3 30.2 22.2 26.0 24.7 NA 267.0
Table 3.10 Capital Expenditures - Revenue Funded by Program – Priority Level 1 and 2 Projects (in millions of dollars, inflated dollars) Program FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Administrative NA 5.2 4.7 2.8 3.5 2.2 3.0 3.0 3.1 4.9 4.2 36.6 Future Water Supplies NA 2.1 1.0 1.3 3.2 8.4 7.8 1.2 4.5 4.6 4.5 38.6 LV Watershed NA 1.3 1.0 0.6 0.6 1.4 1.4 1.4 0.6 0.7 0.7 9.7 Treated Water Facilities NA 11.4 10.0 11.2 10.2 11.6 12.7 13.1 11.0 14.1 16.8 122.1 Untreated Water Facilities NA 11.4 11.8 11.6 10.8 10.9 22.2 15.8 10.7 9.7 10.5 125.4
Water Treatment Facilities NA 1.5 1.1 5.0 6.2 3.4 3.5 4.6 5.2 4.2 3.2 37.9
Total NA 32.9 29.6 32.5 34.5 37.9 50.6 39.1 35.1 38.2 39.9 370.3
2020 CIP Administrative 2.7 4.8 2.8 2.3 2.6 1.6 3.8 2.8 4.6 3.3 NA 31.3 Future Water Supplies 2.5 1.4 1.7 4.2 11.3 11.3 1.5 2.0 2.0 2.1 NA 40.0 LV Watershed 1.0 0.7 0.8 1.4 1.2 0.7 0.6 0.6 0.6 0.8 NA 8.2 Treated Water Facilities 8.3 8.1 8.8 9.9 8.1 8.7 10.0 15.5 17.0 19.8 NA 114.2 Untreated Water Facilities 9.0 14.6 12.9 9.1 8.4 7.0 19.2 6.4 6.7 7.0 NA 100.3
Water Treatment Facilities 4.8 2.1 2.4 2.5 5.9 3.0 5.1 3.4 6.5 4.0 NA 39.7
Total 28.3 31.7 29.3 29.4 37.4 32.3 40.1 30.7 37.4 37.0 NA 333.7
2021 CIP 3-11
Revenue and Debt Funded, Priority Level 1 and 2 Projects
A comparison of the 2021 CIP and 2020 CIP is presented in Table 3.11, identifying the projected capital expenditures funded by untreated and treated water revenues and funded by others. Adjustments made in this CIP are discussed in the following sections.
Untreated Water Revenue Funded Projects
The untreated water revenue funded projects in the 2021 CIP are $185.2 million (inflated dollars) over the next ten years. Expenditures are projected to increase by $26.9 million due to investments in the Canal Modernization Project and untreated water facilities improvements. The higher capital project expenditures are estimated to begin in FY25.
Treated Water Revenue Funded Projects
The treated water revenue funded projects in the 2021 CIP are $185.1 million (inflated dollars) over the next ten years. Expenditures are projected to increase by $9.9 million primarily due to additional investments in pipeline replacements as high priority projects were identified in the 2018 Pipeline Renewal and Replacement Study. Other increases are due to increasing costs for vehicle and heavy equipment replacements and additional investments in computer system upgrades and GIS.
Projects Funded by Others
The capital projects funded by others in the 2021 CIP are $82.4 million (inflated dollars) over the next ten years. Expenditures are projected to increase by $18.8 million. Projected funded by grants and agreements increased $21.0 million. The increase reflects the planned continuation of the Los Vaqueros Reservoir Expansion Phase 2 Project and partner contributions. The applicant funded project expenditures decreased by $5.7 million. The applicant funding for initial phases of the development of the former Concord Naval Weapon Station site has been changed to a priority 3 project in this CIP due to timing uncertainty, therefore is not included in the table for the 2021 CIP.
Table 3.11 Capital Expenditures Funded by Revenue and Others - Priority Level 1 and 2 Projects (in millions of dollars, inflated)
A. 2021 CIP FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Total Revenue Funded 1 Untreated Water 16.5 15.3 14.4 15.7 21.3 32.3 19.3 16.9 16.5 17.0 185.2 Treated Water 16.4 14.3 18.1 18.8 16.6 18.3 19.8 18.2 21.7 22.9 185.1 Total 32.9 29.6 32.5 34.5 37.9 50.6 39.1 35.1 38.2 39.9 370.3 Funded by Others Grants and Agreements 13.1 12.0 0.0 0.9 3.7 5.5 0.0 1.5 1.4 1.4 39.5 Other Agencies 2 1.9 0.8 2.9 2.5 3.3 1.7 1.7 0.6 2.2 3.2 20.8 Applicants 1.9 2.0 2.0 2.1 2.1 2.2 2.3 2.4 2.5 2.6 22.1 Total Funded by Others 16.9 14.8 4.9 5.5 9.1 9.4 4.0 4.5 6.1 7.2 82.4 Total 49.8 44.4 37.4 40.0 47.0 60.0 43.1 39.6 44.3 47.1 452.7
1Approximately 33% of untreated water expenditures are paid by treated water rates (as the TWSA is also an untreated water customer). Allocation is based on consumption.
2Funded by other agencies includes estimated funds from Randall-Bold partners and the City of Brentwood. 3Capital projects that are debt financed are included in annual debt service on Table 3.12.
2021 CIP 3-12
B. 2020 CIP FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Total Revenue Funded1 Untreated Water 13.4 18.2 16.3 15.4 21.6 19.5 22.5 9.9 10.6 10.9 158.3 Treated Water 14.9 13.5 13.1 14.0 15.7 12.8 17.6 20.8 26.7 26.1 175.2 Total Revenue Funded 28.3 31.7 29.4 29.4 37.3 32.3 40.1 30.7 37.3 37 333.5 Funded by Others Grants and Agreements 5.0 - - 1.3 4.9 5.1 2.2 - - - 18.5 Other Agencies 2 1.9 1.8 1.5 1.0 1.2 1.1 1.5 1.8 1.2 4.3 17.3 Applicants 3.3 4.6 5.5 1.8 1.9 2.0 2.0 2.2 2.2 2.3 27.8 Total Funded by Others 10.2 6.4 7.0 4.1 8.0 8.2 5.7 4.0 3.4 6.6 63.6 Total 38.5 38.1 36.4 33.5 45.3 40.5 45.8 34.7 40.7 43.6 397.1
1Approximately 33% of untreated water expenditures are paid by treated water rates (as the TWSA is also an untreated water customer). Allocation is based on consumption.
2Funded by other agencies includes estimated funds from Randall-Bold partners and the City of Brentwood. 3Capital projects that are debt financed are included in annual debt service on Table 3.12.
3.2.3. Debt Financing and Annual Debt Service Expenditures
The District uses both short-term and long-term debt to finance major construction projects. The financing structure is continually evaluated for opportunities to optimize the overall cost of debt.
Short-Term Financing – The District uses water revenue notes and extendable municipal commercial paper (EMCP) to meet its short-term debt financing needs for capital projects. The projects that have been financed with short-term debt remain unchanged from the previous CIP: the Middle River Intake Project (MRIP), the Los Vaqueros Expansion – Phase 1 (LVE), Canal Replacement Segment 2, Shortcut Pipeline Refurbishments, and District Center Building Improvements Project. A current ongoing capital project that is debt financed is the Shortcut Pipeline Refurbishment Project.
In 2022, the short-term financings for the MRIP, LVE and Shortcut Pipeline Refurbishment Projects are assumed to be retired with long-term revenue bonds, other outside sources of revenue, or with District reserves as applicable. The other two projects, Canal Replacement Segment 2 and District Center Building Improvements, will be repaid with revenues or reserves by 2025. The short-term debt for the Shortcut Pipeline Refurbishments Project will be retired using designated Land Levy Tax revenues.
The Shortcut Pipeline Refurbishment reserve (USBR Reserve – Facility Refurbishment reserve) is accumulated through land levy tax payments with a balance of $5.9 million as of December 31, 2019. The reserve, which is restricted to be used solely for the Shortcut Pipeline Refurbishment Project, currently funds the project’s annual debt service. The Financial Plan assumes the funds will be used to pay a portion of the principal prior to refinancing with long-term debt.
The interest rates for EMCP have been lowered in this CIP compared to the prior year due to observed trends in the capital market. The Federal Reserve has decreased interest rates in 2019 and a gradual increase is anticipated. ECMP interest rates are estimated to be in the range of 2.00% to 2.50% over the ten-year planning period for up to $52.7 million in outstanding principal. Interest rates for revenue notes range from 2% to 3% for $53.7 million in outstanding principal. The short-term debt service expenditures in this CIP decreased by $3.3 million in the common years due to the refinancing of a portion of the short-term debt into long-term debt in 2019.
2021 CIP 3-13
Long-Term Financing – The District traditionally uses water revenue bonds to provide long-term financing for larger capital projects. The District plans to continue using revenue bonds to refinance the short-term debt used to finance the MRIP, LVE, and Shortcut Pipeline Refurbishments Projects. The conversion from short-term debt to long-term debt, at an interest rate of 5.0%, is projected to begin in 2022 as the District regains debt capacity with the substantial retirement of long-term debt issued for the original Los Vaqueros Reservoir Project. The long-term debt service expenditures in this CIP increased by $15.6 million in the common years due to refinancing of a portion of the short-term debt into long-term debt in 2019. This CIP reflects the substantial retirement of long-term debt issued for the original Los Vaqueros Reservoir Project beginning 2028. This debt retirement provides financial capacity to invest in future infrastructure projects, such as the Canal Modernization project and additional infrastructure renewal and replacements as these critical facilities continue to age. This additional capacity is reflected in the long-term projected debt service in 2028 through 2030 in the amount of $20.0 million to $30.0 million per year as presented in Table 3.12.
Table 3.12 Projected Debt Service Expenditures (in millions of dollars) A. 2021 CIP Debt Service FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Total Untreated Water Short-Term1 1.5 2.6 2.6 2.5 2.4 - - - - - 11.6 Long-Term Committed2 24.5 26.6 26.4 25.0 24.7 24.7 24.4 12.9 12.9 12.9 215.0 Long-Term Projected3 - - - - - - - 13.4 16.7 20.1 50.2 Total Untreated Water 26.0 29.2 29.0 27.5 27.1 24.7 24.4 26.3 29.6 33.0 276.8 Treated Water Short-Term1 0.8 3.0 2.9 2.8 2.8 - - - - - 12.3 Long-Term Committed2 15.0 12.7 12.5 11.8 11.6 11.7 11.7 6.0 6.0 5.9 104.9 Long-Term Projected3 - - - - - - - 6.6 8.2 9.9 24.7 Total Treated Water 15.8 15.7 15.4 14.6 14.4 11.7 11.7 12.6 14.2 15.8 141.9 Total Short-Term1 2.3 5.6 5.5 5.3 5.2 - - - - - 23.9 Long-Term Committed2 39.5 39.3 38.9 36.8 36.3 36.4 36.1 18.9 18.9 18.8 319.9 Long-Term Projected3 - - - - - - - 20.0 25.0 30.0 75.0 Total Debt Service 41.8 44.9 44.4 42.1 41.5 36.4 36.1 38.9 43.9 48.8 418.8
1Short-term debt service includes Middle River Intake Project, Los Vaqueros Expansion, Shortcut Pipeline Refurbishment, Canal Replacement Segment 2, and District Center Building Improvements.
2Long-term debt service existing debt includes Los Vaqueros Reservoir, Randall-Bold Water Treatment Plant, Canal, Bollman Water Treatment Plant Improvements, and SRIP projects.
3Debt service in years FY28-FY30 includes projected debt service reflecting capacity for future capital improvements.
2021 CIP 3-14
B. 2020 CIP Debt Service FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Total Untreated Water Short-Term1 $3.2 $3.5 $2.8 $2.6 $2.5 $2.4 - - - - $17.0 Long-Term Committed2 23.3 23.1 26.0 25.2 23.8 23.4 23.5 23.2 11.7 11.7 214.9 Long-Term Projected3 0.0 0.0 0.0 0.0 3.4 4.0 8.4 8.7 20.2 20.2 64.9 Total Untreated Water 26.5 26.6 28.8 27.8 29.7 29.8 31.9 31.9 31.9 31.9 296.8 Treated Water Short-Term1 1.6 1.8 3.0 2.9 2.9 2.8 - - - - 15.0 Long-Term Committed2 15.9 14.4 12.4 11.9 11.2 11.0 11.1 11.1 5.4 5.4 109.8 Long-Term Projected3 0.0 0.0 0.0 0.0 1.7 2.0 4.2 4.3 10.0 10.0 32.2 Total Treated Water 17.5 16.2 15.4 14.8 15.8 15.8 15.3 15.4 15.4 15.4 157.0 Total Short-Term1 4.8 5.3 5.8 5.5 5.4 5.2 - - - - 32.0 Long-Term Committed2 39.2 37.5 38.4 37.1 35.0 34.4 34.6 34.3 17.1 17.1 324.7 Long-Term Projected3 - - - - 5.1 6.0 12.6 13.0 30.2 30.2 97.1 Total 44.0 42.8 44.2 42.6 45.5 45.6 47.2 47.3 47.3 47.3 453.8
1Short-term debt service includes Middle River Intake Project, Los Vaqueros Expansion, Shortcut Pipeline, Canal Replacement Segment 2, and District Center Building Improvements. 2Long-term debt service existing debt includes Los Vaqueros Reservoir, Randall-Bold Water Treatment Plant, Canal, Bollman Water Treatment Plant Improvements, and SRIP projects. 3Debt service in years FY24-FY28 includes projected debt service reflecting capacity for future capital improvements.
Debt Ratings
The District has credit ratings on its long-term bonds of AA+ from Standard and Poor’s (S&P), AA from Fitch, and Aa2 from Moody’s. The District also carries ratings of AA and AA- on its mezzanine level WR Notes from S&P and Fitch, respectively. The District’s EMCP carries the highest available short-term ratings of A-1+ by S&P and F1+ from Fitch. The District’s credit ratings are viewed favorably by the investment markets, and its debt issuances are regarded as desirable investment holdings.
Debt Service Coverage
The District’s bond covenants, as well as Board policy, require the District to maintain a revenue to debt service coverage ratio of 1.25 to 1.0 on water revenue bonds, water revenue notes, and other parity debt, and 1.15 to 1.0 on EMCP. The 2021 CIP and Ten-Year Financial Plan anticipates the District will be well above this requirement. The projected coverage ratios are in the range between 1.71 to 2.69 over the ten-year planning period based on current outstanding debt. Table 3.13 shows the projected annual debt coverage ratios over the ten-year planning period.
Table 3.13 2021 CIP Projected Debt Coverage Ratio FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1.99 2.02 1.71 1.95 2.26 2.69 2.58 2.55 2.39 2.26
3.3. Reserves
The District's reserve funds include a combination of restricted and unrestricted reserves. Restricted reserves are designated by contractual or legal requirements, or Board-designated to limit their usage to specific purposes. Reserves included in the Financial Plan are the Capital Improvement Fund, the Rate Stabilization Fund, Unrestricted Reserves and the Vehicle Replacement Reserve. These reserves are utilized as necessary through the ten-year rate projection period to enable reasonable and consistent revenue increases for both untreated and treated water customers.
2021 CIP 3-15
The Rate Stabilization Fund balance was established in accordance with the Master Bond Resolution adopted by the Board in October 1987. The purpose of the fund is to assist in smoothing rates to pay debt service and to assure that minimum debt service coverage ratios required by the District’s bond covenants are met. Funds deposited into this reserve were treated as operating costs in the year of deposit and will be treated as revenue in years of use for the purpose of computing the District’s debt service coverage ratio. The District also maintains twelve months of debt service obligation in the bond reserve funds. However, because the bond reserve funds are restricted, they are not included in the reserve balances used to offset revenue increases.
Due to the need for continued investment in our aging infrastructure, debt financing may be an effective tool for funding larger capital improvement projects such as the Canal Modernization Project. Debt financing capital infrastructure projects would require issuance of new debt. A strong credit rating would help the District in achieving favorable interest rates. Although the District is projected to meet the required debt coverage ratios, having the Rate Stabilization Fund has helped the District maintain the current strong credit rating. This CIP assumes the District will accumulate reserves above the minimum six months of operating reserves. Higher reserve levels provide flexibility for either debt financing or rate funding larger capital projects in future years.
Figures 3.3 and 3.4 presents minimum and maximum reserve targets with annual projected reserve balances in this range over the entire ten-year planning period. The maximum target includes 1) six months of operating reserves, 2) one year of rate funded capital projects, and 3) Rate Stabilization Reserves at 1.275 times the annual debt service (existing and projected). Higher reserve levels as presented by the maximum reserve target provides flexibility for either debt financing or rate funding larger capital projects in the future years. The addition of the maximum target illustrates one possible scenario and the Financial Plan would be updated to support the amount of infrastructure renewal. The appropriate reserve levels will continue to be refined over the next two years as capital project costs and timing are further defined. Compared to the prior year CIP, the projected reserve levels are lower due to water sales and FRCs growth adjusted downward in this CIP. The untreated water reserves are anticipated to be drawn down over the next few years to the minimum six-month reserve target by FY26 and gradually rebuild in the following years. The treated water reserves are anticipated to stay in six-month minimum reserve level in the near term and gradually rebuild over the ten-year planning period.
Table 3.14 Untreated and Treated Water Reserve Balances by Fiscal Year (in millions of dollars, inflated)
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Untreated Water 49.2 40.6 32.4 28.4 26.1 20.6 23.6 29.3 33.4 35.1 Minimum Required 15.5 16.3 16.9 17.7 18.6 19.5 20.4 21.4 22.4 23.4 Treated Water 33.9 35.4 37.0 40.6 46.7 52.3 61.9 75.5 86.8 98.0 Minimum Required 33.0 34.5 35.9 37.5 39.1 40.7 42.5 44.3 46.2 48.1
2021 CIP 3-16
Figure 3.3 Untreated Water Reserve Balance
Figure 3.4 Treated Water Reserve Balance
A breakdown of the District’s reserves as of December 31, 2019, including those reserves used to smooth rate increases, is provided on Table 3.15.
2021 CIP 3-17
Table 3.15 Reserve Fund Balances – December 31, 2019 (In thousands of dollars, current dollars) Reserves Untreated Treated Other Total Legally Restricted Funds Contra Costa Water District Bond Reserves - - $16,044 $16,044 Contra Costa Water Authority Bond Reserves - - 2,439 2,439 Debt Proceeds 1 - - 1 Canal Replacement 450 - - 450 Wetlands Mitigation Endowment 1,285 - - 1,285 Contract Retention - - - Los Vaqueros Reservoir Expansion Phase 2 2,893 - - 2,893 USBR Reserve - Facility Refurbishment 6,519 - - 6,519 USBR Reserve - CVP Operations Agreement 1,000 - - 1,000
Subtotal 12,148 - 18,483 $30,631 Board Restricted Reserves Capital Improvement Fund1 15,023 20,487 - 35,510 Rate Stabilization Fund1 33,878 18,202 - 52,080 FRC Reserve – UW Future Supply Component 7,328 - - 7,328 FRC Reserve – UW Future Capacity Component2 1,202 - - 1,202 FRC Reserve – TW Future Facilities - 3,212 - 3,212 Emergency Response Reserve 1,144 - - 1,144 Drought Reserve 740 1,260 - 2,000 Los Vaqueros Reservoir Refill Reserve 1,100 - - 1,100 Sacramento/EBMUD Mitigation Reserve 2,918 - - 2,918 Vehicle Replacement Fund - - 2,510 2,510 Self-Insurance Reserve - - 1,250 1,250 Workers' Compensation Deductible Reserve - - 1,050 1,050 OPEB Reimbursement Reserve - - 100 100
Subtotal 63,334 43,161 4,910 111,404 Unrestricted Funds Unrestricted Reserves1 10,707 16,484 - 27,191
Subtotal 10,707 16,484 - 27,191 TOTAL $86,189 $59,645 $23,393 $169,226
1Reserve funds drawn down to smooth rate increases. 2Applied to growth’s share of Multi-Purpose Pipeline-Seismic Reliability Improvement Project debt service.
3.4. Operating Cost Impacts
Implementation of the CIP affects District operating costs. Adding new facilities can result in increases in operating costs as additional labor or materials may be needed to operate and maintain the facilities. Other capital facilities, such as the Brentwood Water Treatment Plant, generate payments from the City of Brentwood, which will completely offset the District’s costs to operate and maintain the plant. Some capital projects yield improved efficiency and productivity resulting in reduced operating costs. To be an effective long-range financial planning tool, the CIP must consider the capital costs of constructing facilities, income generated by facilities, and the resulting impacts on operating costs.
2021 CIP 3-18
This section provides background on District operating costs, an overview of the operating impacts of the CIP, and a discussion of specific impacts on labor and energy use. The operating impacts are factored into the Financial Plan along with capital costs, debt service, and overall operating costs. The operating impacts of individual projects are described in Section 4.
3.4.1. Background
Operating cost impacts resulting from capital projects are incorporated into the operating cost projections in the year the facility comes on line. Projected operating costs are provided in Table 3.8. Operating Cost Impacts Assumptions
Operating cost impacts are determined for each project based on current costs to operate similar facilities, industry standards, or market trends. Operating costs include labor, materials, supplies, equipment, and administrative costs. Total operating cost impacts as shown are net of savings that might also result from the project. The two operating cost components most affected by capital projects are labor and energy, both of which are discussed later in this section. Impacts on labor operating costs are net of labor savings and not savings in other operating costs to ensure the full impact on labor is identified. For example, savings in energy or chemicals due to a more efficient facility would not reduce the need for staff to maintain the facility. Energy impacts presented are net increases or savings in energy usage for each project.
The impact of capital projects on operating labor costs differs by type of facility. Operating labor costs reflect current proportions of labor to total operating costs by type of facility or activity. To estimate full-time employees, the operating labor cost is divided by an assumed cost of employment. For purposes of the CIP, the assumed cost of employment is set at $150,000 per year per additional employee including salaries and benefits. Other costs of employment may be used if specific staffing plans have been completed. Actual salaries would vary depending on classification and hours worked.
3.4.2. Summary of Operating Cost Impacts
Table 3.16 shows the increase in total operating costs that includes labor costs resulting from CIP projects by fiscal year. Projects and sub-programs with significant impacts have been individually listed. A discussion of the significance of the increase to rates or staffing needs follows each table as appropriate.
Annual Total Operating Cost Increases - The net increase in total operating costs related to the priority level 1 and 2 capital projects included in this CIP is shown in Table 3.16.
2021 CIP 3-19
Table 3.16 Net Increase in Total Operating Expenses by Year (In thousands of dollars, current dollars) PROJECT PROG FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL Distribution Facilities – Applicant1
TW 10 13 16 19 22 25 28 31 34 37 235
SCADA Upgrades – Operational Data Warehouse1
Admin (35) (35) (35) (35) (35) (35) (35) (35) (35) (35) (350)
Water Use Efficiency for Regulations2
Future Water
1,000 1,000 1,000 1,000 1,000 5,000
Computer Systems
Admin 100 100 130 130 130 130 130 130 130 1,110
TOTAL PRIORITY 1&2 (25) 78 81 114 117 1,120 1,123 1,126 1,129 1,132 5,995 1Reflects anticipated labor cost impacts. 2The Water Use Efficiency for Regulations includes $92,000 of anticipated labor cost increases.
A measure of the potential impact on rates is the increase in annual operating costs as a result of bringing new capital facilities online. By FY2030, there is a projected increase of approximately $1.1 million annually. The main driver for the increase in O&M costs is the implementation of the Water Use Efficiency for Regulations projects. An additional cost of $1.0 million per year is included in the Financial Plan to represent the operating costs associated with implementing additional conservation measures (contract services) and/or recycled water projects (purchased water) to meet the State-mandated water use reduction requirements.
2021 CIP 4-1
4. Programs and Projects This section provides a summary of each of the six program areas of the 2021 CIP as well as details of the sub-programs and projects included in each program. As previously noted, projects are grouped into programs which represents different functional areas of the District responsibility.
A summary of total CIP expenditures by program over the ten-year period, along with a comparison to the 2020 CIP is shown in Table 4.1.
Table 4.1 – 2021 CIP Program total (In million dollar, current dollars)
Program 2021 CIP 2020 CIP
Administrative Program 30.8 26.6
Future Water Supply Program 61.6 45.2
Los Vaqueros Watershed and Conservation Lands Program 7.8 6.8
Treated Water Facilities Program 178.3 168.3
Untreated Water Facilities Program 675.5 630.6
Water Treatment Facilities Program 144.7 169.8
Total 1,098.7 1,051.71 1Reflects total 2020 CIP; however, the 2020 CIP included a $4.4 million project for Energy Demand Reductions which has been incorporated into other relevant projects.
Though projects are organized by program, funding is determined by priority level. Table 4.2 shows funding by priority level and by fiscal year for the 2021 CIP, and 2020 CIP funding is provided for comparison.
Table 4.2 CIP by Fiscal Year and Priority (In million dollar, current dollars) Priority FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Level 1 NA 5.8 3.4 3.5 5.8 12.2 11.2 3.4 6.7 6.4 6.1 64.4 Level 2 NA 42.9 44.3 29.8 28.3 26.3 36.1 29.4 22.3 24.8 25.7 309.7 Level 3 NA 0.9 1.3 6.3 50.3 46.2 118.5 128.4 130.3 119.7 122.7 724.6 Total NA 49.5 49.0 39.6 84.4 84.8 165.8 161.2 159.2 150.8 154.5 1,098.7
2020 CIP Level 1 6.5 6.0 6.6 6.8 15.8 14.8 3.3 3.3 3.3 3.3 NA 70.0 Level 2 33.5 28.9 25.4 21.6 21.1 16.9 31.2 21.7 25.1 25.8 NA 251.4 Level 3 0.0 3.9 10.4 46.4 102.2 104.8 140.9 128.6 99.1 94.0 NA 730.3 Total 40.0 38.9 42.4 74.7 139.1 136.6 175.5 153.7 127.5 123.2 NA 1,051.7
Several programs include sub-programs, which are a grouping of projects in specific areas within the larger program. For example, the Treated Water Facilities Program includes four sub-programs which group projects based on whether they are Non-District funded, new facilities, improvements to existing facilities, or planning study updates. The following sections summarizing the programs also includes a discussion of sub-programs and projects, the estimated funding required to accomplish the projects, and a comparison to the program costs estimated in the previous CIP.
2021 CIP 4-2
4.1. Administrative Program
The District requires use of a variety of buildings, facilities, vehicles, and equipment to support operations and maintenance of the water treatment, transmission, and storage facilities as well as provide service to customers. Prudent planning requires that the District consider its long-term capital needs for these support facilities and equipment as part of its overall financial planning. The projects included in this program provide for the capital improvements needed for these facilities, such as the District Center and the Antioch Service Center buildings, as well as computer and control systems, laboratory equipment, and vehicle and heavy equipment. The District must continue to reinvest in its existing buildings and facilities to optimize the function of these facilities and protect and maintain its capital investment.
Program funding for the next ten years is estimated at $30.8 million, of which $30.0 million is for Priority 1 and 2 projects as shown by fiscal year in Table 4.3. For comparison, 2020 CIP funding levels are also shown.
Table 4.3 Administrative Program Summary (In million dollar, current dollars) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 5.2 4.6 2.4 2.9 1.8 2.4 2.2 2.2 3.4 2.8 30.0 Priority 3 NA 0.0 0.0 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.7 Total NA 5.2 4.6 2.6 3.1 1.9 2.4 2.3 2.3 3.5 2.9 30.8 2020 CIP Priority 1 & 2 2.7 4.4 2.5 1.9 2.1 1.3 2.8 2.1 3.2 2.2 NA 25.2 Priority 3 0.0 0.3 0.3 0.3 0.1 0.1 0.1 0.1 0.1 0.1 NA 1.4 Total 2.7 4.7 2.8 2.3 2.2 1.3 2.9 2.2 3.3 2.3 NA 26.6
In comparison to the 2020 CIP, this program has increased $4.2 million. Increases are a result of inflation, the addition of projects, and increases in vehicle replacement costs. These increases are partially offset by the cyclical nature of equipment and replacements.
This program includes three sub-programs – Facilities Upgrades, Equipment and Other Purchases, and Vehicle Replacement – each of which are discussed in more detail below including the projects within each sub-program. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.4.
2021 CIP 4-3
Table 4.4 Sub-Program Summary within Administrative Program (In million dollar, current dollars) Sub-Program
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Facilities NA 0.6 0.6 0.6 0.8 0.4 0.4 0.4 0.4 0.4 0.4 5.4 Equipment NA 2.8 2.4 1.2 1.2 0.9 1.4 1.1 0.7 1.4 1.0 14.0 Vehicles NA 1.8 1.5 0.9 1.1 0.5 0.6 0.8 1.1 1.7 1.4 11.4 Total NA 5.2 4.6 2.6 3.1 1.9 2.4 2.3 2.3 3.5 2.9 30.8 2020 CIP Facilities 0.5 0.5 0.5 0.6 0.9 0.5 0.5 0.5 0.5 0.5 NA 5.2 Equipment 1.1 2.5 1.1 0.9 0.8 0.5 2.1 1.4 2.0 0.6 NA 13.0 Vehicles 1.1 1.8 1.2 0.8 0.5 0.3 0.3 0.3 0.8 1.2 NA 8.5 Total 2.7 4.7 2.8 2.3 2.2 1.3 2.9 2.2 3.3 2.3 NA 26.6
The significant projects within this overall program are as follows:
Building and Facility Improvements (priority level 1 - $5.4 million) District-Wide Geographic Information System (priority level 2 - $1.2 million; priority level 3 - $0.7
million) Replacement/Upgrade of Computer Systems (priority level 2 - $6.0 million) Replacement of Laboratory Equipment (priority level 2 - $1.0 million) Replacement/Upgrade of Network Systems and Hardware (priority level 2 - $1.8 million) Replacement/Upgrade of SCADA Equipment (priority level 2 - $1.9 million) Replacement/Upgrade of Telecommunications Equipment (priority level 2 - $1.1 million) Replacement of Fleet Vehicles, Heavy Equipment and Rental Boats (priority level 2 - $11.4
million)
The detailed discussion on each sub-program within the Administration Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
4.1.1. Facilities Upgrades Sub-Program
The Facilities Upgrades Sub-program includes one project, the Annual Building and Facility Improvements project, which provides for renewal and replacement of existing District buildings and grounds. The Facilities Master Plan has been the key document guiding development of new facilities. This master plan assessed space requirements based on current and future personnel, equipment, and operational needs. With the completion of new maintenance facilities in Concord and Antioch in FY2002, the Bisso Administration Building in FY2003, and the O&M Building Upgrade in FY2004, the high priority projects identified in the plan have been constructed.
While there are no additional new administrative facilities included in this CIP, improvements funded include re-roofing, replacement or upgrading of heating, cooling and electrical systems, and structural upgrades. Additionally, replacement and improvements to the video surveillance system for all District facilities is included in this project to replace this aging system and provide enhancements at vulnerable areas. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.5.
2021 CIP 4-4
Table 4.5 Facilities Upgrades Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Total
2021 CIP Bldg. & Facility Imp.
NA 0.65 0.65 0.57 0.84 0.45 0.45 0.45 0.45 0.45 0.45 5.39
Total NA 0.65 0.65 0.57 0.84 0.45 0.45 0.45 0.45 0.45 0.45 5.39 2020 CIP
Bldg. & Facility Imp.
0.50 0.46 0.46 0.60 0.86 0.46 0.46 0.46 0.46 0.46 NA 5.16
Total 0.50 0.46 0.46 0.60 0.86 0.46 0.46 0.46 0.46 0.46 NA 5.16
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: FACILITIES UPGRADES PAGE 4-5
PROJECT SUMMARY
BUILDING AND FACILITY
IMPROVEMENTS
Priority: 1/2 Lead Department: Operations & Maintenance 2021 CIP Total: $5,390,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this annual project is to protect the health and safety of employees and customers and to comply with codes and regulations related to building health and safety through capital improvements to existing District buildings and grounds. This program is ranked as Priority Level 1/2 based on the need to continually reinvest in the District's support facilities and buildings to protect the health and safety of employees and customers, and to comply with codes and regulations related to building health and safety. Scope: Improvement projects are initiated based on findings reported on maintenance and field inspection reports and include items such as heating and cooling systems, electrical systems, plumbing and mechanical components, and interior and site improvements. Status: Improvement projects included in FY2021 and FY2022 include Engineering Building carpet replacement, HVAC system replacement, Engineering Building Stucco rehabilitation, Fuel system replacement, various facility roof rehabilitations and protective coating rehabilitations. Replacement of the single-wall fuel tanks at Antioch Service Center, required by the California Health and Safety Code, is planned for FY2023 and FY2024. Additionally, video camera replacement and system improvements are also planned for FY2021 and FY2022. This project was included in the 2020 CIP at a ten-year cost of $5,155,000. The costs have increased as a result of inflation and addition of improvements, including security camera replacements. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 448 448 566 840 448 448 448 448 448 448 4,990 2 200 200 400 3
Total 648 648 566 840 448 448 448 448 448 448 5,390 Cost Estimate Accuracy Range: $8,005,000 to $3,833,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: These improvements will serve to reduce operation and maintenance costs or to keep these costs from rising through replacement or upgrades to facility systems and components. Improvements will also serve to extend the useful life of facilities.
2021 CIP 4-6
4.1.2. Equipment and Other Purchases Sub-Program
Computer systems, control systems, communications equipment, and laboratory equipment are included in the Equipment and Other Purchases Sub-program. These replacements are typically made every seven to ten years, based on life cycles when vendor support is no longer available or when a business case can be made for investment in a new technology. Specific capital equipment designated for replacement is generally included in the two-year budget. Capital equipment expenditures for larger items with a long life are included within the context of the ten-year CIP. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.6.
Table 4.6 Equipment and Other Purchases Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Total
2021 CIP District-wide GIS NA 0.43 0.14 0.30 0.45 0.08 0.07 0.07 0.08 0.23 0.07 1.92 Computer Systems
NA 1.38 0.83 0.49 0.44 0.44 0.69 0.44 0.44 0.44 0.44 5.98
Laboratory Equip NA 0.15 0.06 0.04 0.10 0.18 0.09 0.04 0.02 0.02 0.32 1.00 Network Systems & Hardware
NA 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 1.76
Radio Equipment NA 0.03 0.15 0.18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.35 SCADA NA 0.60 0.59 0.00 0.00 0.00 0.35 0.35 0.00 0.00 0.00 1.89 Telecom Equip NA 0.03 0.50 0.00 0.02 0.00 0.02 0.00 0.00 0.50 0.02 1.10 Total NA 2.79 2.44 1.17 1.17 0.87 1.40 1.08 0.71 1.36 1.02 14.01
2020 CIP District-wide GIS 0.12 0.34 0.34 0.34 0.23 0.07 0.07 0.07 0.07 0.07 NA 1.73 Computer Systems
0.43 0.96 0.19 0.24 0.19 0.19 1.51 0.79 1.16 0.19 NA 5.85
Laboratory Equip 0.32 0.15 0.06 0.04 0.10 0.18 0.09 0.04 0.02 0.02 NA 1.00 Network Systems & Hardware
0.21 0.09 0.09 0.24 0.30 0.07 0.09 0.09 0.24 0.30 NA 1.72
Radio Equipment 0.00 0.18 0.18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 0.35 SCADA 0.00 0.29 0.28 0.00 0.00 0.00 0.35 0.35 0.00 0.00 NA 1.28 Telecom Equip 0.02 0.50 0.00 0.00 0.00 0.02 0.02 0.02 0.50 0.00 NA 1.09 Total 1.10 2.51 1.14 0.85 0.82 0.53 2.13 1.37 1.99 0.59 NA 13.03
The comprehensive project summaries for each project included in this sub-program follow.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-7
PROJECT SUMMARY
DISTRICT-WIDE GEOGRAPHIC
INFORMATION SYSTEM
Priority: 2/3 Lead Department: Engineering 2021 CIP Total: $1,922,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this annual program is to improve operating efficiencies by maintaining and enhancing a readily accessible and user-friendly centralized data source for the District’s drawings, maps, and other operational and planning data. The Geographic Information System (GIS) ensures data consistency and integrity by avoiding errors through eliminating duplication of effort and improving the sharing of information internally and with other agencies, utilities and customers. GIS increases user productivity and provides reliable and fast access to the District’s spatial database from both the office and field and is relied upon for operation, maintenance, planning, design, and construction of District facilities. Scope: Make cost effective system investments as identified in the FY2019 GIS Master Plan Update, which include addition of the untreated water system data and inclusion of the District’s property related records as well as ongoing improvements to the existing treated water system data. Status: The FY2019 GIS Master Plan Update recommended system improvements for FY 2021 and FY 2022 to increase worker productivity, including the addition of untreated water system data and inclusion of District property-related records. The next Master Plan update is scheduled for FY2024. This project was included in the 2020 CIP at a total cost of $1,731,000. The costs have been adjusted for inflation and updated to reflect the recommended improvements identified in the FY2019 GIS Master Plan. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 430 140 150 297 10 10 157 1,194 3 151 151 71 71 71 71 71 71 728
Total 430 140 301 448 81 71 71 81 228 71 1,922 Cost Estimate Accuracy Range: $2,498,000 to $1,634,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: Operating efficiencies are anticipated to increase as enhancements recommended in the Master Plan Update are implemented.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-8
PROJECT SUMMARY
REPLACEMENT/UPGRADE OF
COMPUTER SYSTEMS
Priority: 2 Lead Department: Information Technology 2021 CIP Total: $5,980,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purposes of this annual program is to ensure that the District’s information technology-based business systems needs are met in an efficient manner. The District operates approximately forty business systems, including the Financial (FIS), Customer Billing (CBIS), Human Resources (HRIS), Computerized Maintenance Management (CMMS) and Geographic (GIS) Information Systems. The program is ranked as Priority Level 2 because the District has a moderate level of control as to when upgrades need to occur. Scope: Replacing or enhancing these systems per their stated lifecycles. The program also includes annual software and hardware enhancements or upgrades qualifying for capitalization, as prioritized by the system’s program manager. Status: Planned activities in FY2021 including replacement of CBIS. This program was included in the 2020 CIP at a total cost of $5,849,000. The cost has been adjusted for inflation and the passing of FY2019. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 1,375 825 485 435 435 685 435 435 435 435 5,980 3
Total 1,375 825 485 435 435 685 435 435 435 435 5,980 Cost Estimate Accuracy Range: $7,774,000 to $5,083,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: Operating efficiencies are anticipated to increase as the new enhancements are implemented.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-9
PROJECT SUMMARY
REPLACEMENT OF
LABORATORY EQUIPMENT
Priority: 2 Lead Department: Operations & Maintenance 2021 CIP Total: $1,004,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this annual project is to ensure the District’s laboratory is equipped with well-maintained laboratory equipment that is capable of providing reliable test results for regulatory compliance and process control. The water quality laboratory requires sophisticated instruments to maintain the analytical capabilities needed to meet regulatory requirements. The laboratory also provides services to outside agencies under contract, which requires a high degree of accuracy and reliability from the equipment. The program is ranked as Priority Level 2 because the District has a moderate level of control as to when replacements need to occur. Scope: Replacements include chromatographs, microscopes, spectrometers, analyzers, incubators, ovens, and lab equipment. Status: Equipment is replaced as it reaches the end of its useful life, or when spare parts are no longer available. This project was included in the 2020 CIP at a ten-year cost of $1,004,000. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 150 60 35 95 180 92 40 15 20 317 1,004 3
Total 150 60 35 95 180 92 40 15 20 317 1,004 Cost Estimate Accuracy Range: $1,305,000 to $853,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This program will not increase operating and maintenance costs. As replacements occur, the District will evaluate opportunities for efficiencies and cost reduction.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-10
PROJECT SUMMARY
REPLACEMENT/UPGRADE OF
NETWORK SYSTEMS AND
HARDWARE
Priority: 2 Lead Department: Information Technology 2021 CIP Total: $1,760,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this annual program is to ensure that the District’s computer network system is replaced or updated to support District operations in an efficient and reliable manner. The District’s network hardware systems are required for efficient operation of the District and must be replaced periodically to ensure that the district’s financial and customer billing information systems needs continue to be met in an efficient manner. The program is ranked as a Priority Level 2 because the District has a moderate level of control as to when upgrades need to occur. Scope: Computer network hardware includes switch-hubs, routers, antennas and firewalls that provide for transmission of email, access to electronic data files, and staff access to key business systems including the Financial Information System, Customer Billing Information System and Geographic Information System. Status: Planned activities in FY2021 include replacements and updates to the District’s network system. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 176 176 176 176 176 176 176 176 176 176 1,760 3
Total 176 176 176 176 176 176 176 176 176 176 1,760 Cost Estimate Accuracy Range: $2,288,000 to $1,496,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This program reduces anticipated future operating and maintenance costs by replacing equipment when it is most cost-effective to do so.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-11
PROJECT SUMMARY
REPLACEMENT OF RADIO
SYSTEM EQUIPMENT
Priority: 2 Lead Department: Operations & Maintenance 2021 CIP Total: $352,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this project is to ensure effective and reliable communications among District’s personnel. Upgrades or system replacements ensure reliability of the critical communication system and could allow the District to establish networks allowing interfacing with other local agencies, including police and fire departments. The program is ranked as Priority Level 2 because the District has a moderate level of control as to when upgrades and replacements need to occur Scope: Replacement of communication equipment for District vehicles, base stations, and portable units. Status: Replacement of the District’s previous 40-year old radio system was completed in FY2010. The next system upgrade is scheduled to occur in FY2021 and FY2022. This project was included in the 2020 CIP at a ten-year cost of $352,000. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 30 146 176 352 3
Total 30 146 176 352 Cost Estimate Accuracy Range: $458,000 to $299,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: No significant change in operating cost is anticipated with this project.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-12
PROJECT SUMMARY
REPLACEMENT OF SCADA
EQUIPMENT
Priority: 2 Lead Department: Operations & Maintenance 2021 CIP Total: $1,887,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purpose of this project is to ensure continued capability to remotely monitor and control the District’s operational system. The program is ranked as Priority Level 2 because the District has a moderate level of control as to when upgrades need to occur. Scope: Periodic upgrades to the Supervisory Control and Data Acquisition (SCADA) system, as hardware and software manufacturers continually upgrade their products, making older systems obsolete and expensive to maintain. In addition, system capacity is expanded as the District grows. Status: The last system software upgrade was completed in FY2010 and the last upgrade cycle for field programmable logic controllers and radios was completed in FY2015 for high priority sites. SCADA servers and remaining field programmable logic controllers are scheduled for replacement in FY2021 and FY2022 and the next SCADA radio replacement cycle is anticipated to start in FY2026. This project was included in the 2020 CIP at a ten-year cost of $1,280,000. The costs have increased as a result of inflation and updated costs for replacements and upgrades. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 595 586 352 354 1,887 3
Total 595 586 352 354 1,887 Cost Estimate Accuracy Range: $2,493,000 to $1,644,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This project will not increase operating and maintenance costs.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: EQUIPMENT AND OTHER PURCHASES PAGE 4-13
PROJECT SUMMARY
REPLACEMENT OF
TELECOMMUNICATIONS
EQUIPMENT
Priority: 2 Lead Department: Information Technology 2021 CIP Total: $1,100,000 Project Funding: 32% UW rates/ 68% TW rates Purpose and Priority Basis: The purposes of this project is to ensure that the District’s telecommunications needs are being met. This project is ranked as Priority Level 2 because the District has a moderate level of control as to when upgrades need to occur. The program is ranked as Priority Level 2 because the District has a moderate level of control as to when upgrades need to occur. Scope: Replacement and enhancement of the District’s telecommunications system occurs approximately every seven years, including telephone services, PBX and peripherals such as voice mail and telephone station sets. This project was included in the 2019 CIP at a total cost of $1,090,000. The cost has been adjusted for inflation and the passing of FY2019. Status: The initial master plan was complete in FY2004 and its recommendations have been implemented through FY2013. Telecommunications Equipment is scheduled for replacement in FY2022 and the next replacement cycle is anticipated to be complete in FY2029. This project was included in the 2020 CIP at a total cost of $1,090,000. The cost has been adjusted for inflation, the passing of FY2020 and addition of FY2030. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 30 504 20 20 504 22 1,100 3
Total 30 504 20 20 504 22 1,100 Cost Estimate Accuracy Range: $1,430,000 to $935,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This project will not increase operating and maintenance costs.
2021 CIP 4-14
4.1.3. Vehicle Replacement Fund Sub-Program
Vehicle and heavy equipment replacements are included in this sub-program and funded from the Vehicle Replacement Fund. This fund is a reserve fund, established by the Board for this purpose, with consistent annual contributions reflected in the ten-year Financial Plan. Replacements are made when it is determined serviceable lives have been reached, or when it is most cost-effective based on anticipated future operating and repair costs. New vehicles require a business justification before they are added to the fleet. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.7.
Table 4.7 Vehicle Replacement Fund Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Fleet Vehicles & Heavy Equipment
NA 1.76 1.47 0.85 1.06 0.55 0.60 0.79 1.14 1.70 1.44 11.36
Total NA 1.76 1.47 0.85 1.06 0.55 0.60 0.79 1.14 1.70 1.44 11.36 2020 CIP
Fleet Vehicles & Heavy Equipment
1.11 1.76 1.25 0.82 0.50 0.33 0.32 0.33 0.81 1.23 NA 8.45
Total 1.11 1.76 1.25 0.82 0.50 0.33 0.32 0.33 0.81 1.23 NA 8.45
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: ADMINISTRATIVE
SUB-PROGRAM: VEHICLE REPLACMENT FUND PAGE 4-15
PROJECT SUMMARY
REPLACEMENT OF FLEET
VEHICLES, HEAVY EQUIPMENT,
AND RENTAL EQUIPMENT
Priority: 2 Lead Department: Finance 2021 CIP Total: $ 11,355,000 Project Funding: 70% TW rate, 30% UW rate Purpose and Priority Basis: The purposes of this program are to provide safe, reliable, and cost-effective operations and transportation for employees in the performance of their duties and to ensure economical operation of the Los Vaqueros Reservoir rental boat fleet. This program is ranked as Priority Level 2 because it maintains and enhances existing assets. Scope: Replace fleet vehicles, heavy equipment, and rental boat. Status: Vehicles, boats, or equipment are recommended for replacement when it is determined that they have reached the end of their serviceable life, or when it is more cost-effective to replace them based on anticipated future operating and repair costs. This program was included in the 2020 CIP at a total cost of $8,451,000. The cost has been adjusted for inflation as well as to reflect the increased costs of replacements based on recent expenditures and timing for replacements. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 1,756 1,468 851 1,063 548 600 790 1,140 1,695 1,444 11,355 3
Total 1,756 1,468 851 1,063 548 600 790 1,140 1,695 1,444 11,355 Cost Estimate Accuracy Range: $14,762,000 to $9,652,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This program reduces operating and maintenance costs by replacing vehicles when it is most cost-effective to do so. For purposes of the CIP, operational impacts are assumed negligible.
2021 CIP 4-16
4.2. Future Water Supplies Program
This program includes projects related to meeting future water supply requirements and help meet the District’s goals of increasing water supply reliability at the lowest cost possible. The Future Water Supply Study (FWSS), updated approximately every 5 years, serves as the basis for identifying projects to ensure a reliable supply of high quality water for service to District customers. The study was last updated in 2015 and examines both water supply and demand alternatives for meeting future water supply requirements with resulting projects related to new supplies, demand reduction, and recycling which combine to meet future demands.
The Los Vaqueros Reservoir Expansion project is included as part of this program which could provide additional water supply to the District. An evaluation of potential District costs and benefits, completion of the feasibility study efforts, and development of partnership agreements is included under this program as part of the 2021 CIP. Sources of funding for this project include outside agencies, and District revenues. Other projects include conservation projects to meet the requirements of 20x2020 and pending regulations in response to the State’s long-term Conservation Framework are included in this program.
Program funding for the next ten years is estimated at $61.6 million all of which is for Priority 1 and 2 projects as shown by fiscal year in Table 4.8. For comparison, 2020 CIP funding levels are also shown.
Table 4.8 Future Water Supplies Program Summary (In million dollar, current dollars) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 13.2 11.9 1.2 3.5 9.8 8.7 0.9 4.4 4.2 3.9 61.6 Priority 3 NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total NA 13.2 11.9 1.2 3.5 9.8 8.7 0.9 4.4 4.2 3.9 61.6 2020 CIP Priority 1 & 2 6.5 1.3 1.5 4.6 13.2 12.8 1.2 1.5 1.3 1.4 NA 45.2 Priority 3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA 0.0 Total 6.5 1.3 1.5 4.6 13.2 12.8 1.2 1.5 1.3 1.4 NA 45.2
In comparison to the 2020 CIP, this program has increased $16.4 million. Increases are a result of inflation and the increase in Los Vaqueros Reservoir Expansion project as a result of the need to progress the project with the execution of the early funding grant agreement with the State of which the partners contribution is $22.2 million. Increases are partially offset by the reduction in other projects within this program due to completion and/or updated cost estimates.
This program includes two sub-programs – Water Supplies and Planning. The Water Supply sub-program includes projects to increase the District’s water supplies and/or reliability. The Planning sub-program includes planning projects, such as updates to the FWSS. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.9.
2021 CIP 4-17
Table 4.9 Sub-Program Summary within Future Water Supplies Program (In million dollar, current dollars)
Sub-Program
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Water Supplies
NA 13.2 11.9 0.9 3.0 9.8 8.7 0.9 4.2 3.9 3.9 60.3
Planning NA 0.0 0.0 0.3 0.5 0.0 0.0 0.0 0.2 0.3 0.0 1.3 Total NA 13.2 11.9 1.2 3.5 9.8 8.7 0.9 4.4 4.2 3.9 61.6 2020 CIP Water Supplies
6.3 1.2 1.2 4.5 13.2 12.6 1.2 1.2 1.2 1.4 NA 43.8
Planning 0.2 0.1 0.4 0.2 0.0 0.1 0.0 0.3 0.2 0.0 NA 1.4 Total 6.5 1.3 1.5 4.6 13.2 12.8 1.2 1.5 1.3 1.4 NA 45.2
The significant projects within this overall program are as follows:
Los Vaqueros Reservoir Expansion (priority level 2 - $23.3 million) Water Conservation Incentives (priority level 1 - $7.0 million) Water Use Efficiency for Regulations (priority level 1 - $27.8 million) Future Water Supplies Placeholder (priority level 1 - $1.7 million, priority level 2 $0.3 million) Future Water Supply Study Update (priority level 2 - $0.8 million)
The detail discussion on each sub-program within the Future Water Supplies Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
4.2.1. Water Supplies Sub-Program
This sub-program includes projects related to new water supplies as identified in the 2015 FWSS update and other planning evaluations. Water use efficiency projects to further conservation and water demand reduction as well as a placeholder for annual funding of new supplies anticipated for long-term growth are included in this sub-program. Additionally, the Los Vaqueros Reservoir Expansion Studies project is also a part of this sub-program. The projects included in this sub-program meet the goals of the District’s FWSS, conforms to the requirements of the Reclamation water supply contract, and address long-term conservation requirements.
The water use efficiency projects included in this program are Water Use Efficiency Incentives project and Water Use Efficiency for Regulations project. The Water Use Efficiency Incentives project provides funding to meet Best Management Practices (BMPs) required by the Central Valley Project Improvement Act (CVPIA). The Water Use Efficiency for Regulations project provides the funding to meet pending regulations stemming from Governor Brown’s Executive Order B-37-16 to establish a conservation framework and subsequent legislation requiring water efficiency standards be developed.
The Future Water Supplies Placeholder project provides funding for water purchases needed for future growth. This project is fully funded by FRC revenues, consistent with the projection used in the Financial Plan, and will only proceed as funds are available.
2021 CIP 4-18
The Los Vaqueros Reservoir Expansion project provides the funding to continue the evaluation and development of the next phase of expansion of the Los Vaqueros system, including reservoir expansion up to 275 TAF and improvements to existing facilities as well as addition of new facilities. The CIP includes funding to complete the environmental documentation, grant application coordination, an evaluation of potential District costs and benefits, facility evaluations and conceptual design, and development of partnership agreements. Future funding beyond these efforts, including implementation, depends on partner and District interest and is anticipated to also include State and Federal grant funds.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.10.
Table 4.10 Water Supplies Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP LV Reservoir Expansion
NA 12.31 11.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.34
Water Use Efficiency Incentives
NA 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 7.00
Water Use Efficiency for Regulations
NA 0.00 0.00 0.00 2.08 8.86 7.83 0.00 3.29 2.99 2.74 27.79
Future Water Supplies Placeholder
NA 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.47 2.16
Total NA 13.20 11.92 0.89 2.96 9.75 8.72 0.89 4.18 3.88 3.90 60.29 2020 CIP
LV Reservoir Expansion
5.18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 5.18
Water Use Efficiency Incentives
1.05 0.97 0.97 0.97 0.97 0.97 0.97 0.97 0.97 0.97 NA 9.80
Water Use Efficiency for Regulations
0.00 0.00 0.00 3.30 12.07 11.48 0.00 0.00 0.00 0.00 NA 26.86
Future Water Supplies Placeholder
0.10 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.42 NA 1.97
Total 6.33 1.15 1.15 4.46 13.23 12.64 1.15 1.15 1.15 1.40 NA 43.81
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: WATER SUPPLIES PAGE 4-19
PROJECT SUMMARY
LOS VAQUEROS RESERVOIR
EXPANSION
Priority: 2 Lead Department: Water Resources 2021 CIP Total: $23,344,000 Project Funding: Partners and UW rates Purpose and Priority Basis: The purpose of this project is to improve local agency water supply reliability and water quality while protecting Delta fisheries and providing additional Delta ecosystem benefits. This project is ranked as Priority Level 2 because the District has had flexibility in conducting and implementing recommendations from the studies. Scope: The proposed project will include a regional intertie (the Transfer-Bethany Pipeline), upgraded and new pump stations and pipelines, and could increase the reservoir’s capacity from 160,000 to 275,000 AF. The project may be implemented in phases with conveyance facilities being constructed in advance of further expansion of the reservoir, as these facilities also provide benefits in conjunction with the existing 160,000-acre-foot reservoir. Implementation will consider the CCWD Board Principles and the additional assurances, commitments, and requirements adopted by the Board in 2003. Status: FY2021 project activities will include the District and Local Agency Partners developing a plan of finance and a governance structure for the project. The District will also initiate consultations with permitting agencies, develop the change petitions needed to modify water rights, and work with other federal, state, and local agencies to secure additional agreements. FY2021 also include final design of the dam expansion, DSOD permit coordination, and other facility evaluations in support of the agreement. This project was included in the 2020 CIP at a total cost of 3,924,000. The costs have been adjusted for inflation and reflective of the early funding grant agreement. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 39,623 12,311 11,033 62,967 3
Total 39,623 12,311 11,033 62,967 Cost Estimate Accuracy Range: $68,613,000 to $58,108,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: These planning activities will not result in O&M impacts. The extent of O&M impacts of an enlarged Los Vaqueros Reservoir will be dependent on the scale of the project.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: WATER SUPPLIES PAGE 4-20
PROJECT SUMMARY
WATER USE EFFICIENCY
INCENTIVES
Priority: 1 Lead Department: Finance 2021 CIP Total: $7,000,000 Project Funding: UW FRCs, grants, UW rates Purpose and Priority Basis: As part of the overall Water Use Efficiency Program, the Water Use Efficiency Incentive Program is an integral component of the District’s long-term water supply. Cost-effectively reducing demand delays the need for new sources of water and can potentially reduce the size of or eliminate the need for certain capital projects. The program will be instrumental for District compliance with the upcoming water efficiency requirements set forth in 2018 legislation under SB606 and AB1668. The purpose of this annual program is to reduce water demands by providing water conservation rebate incentives to customers for the purchase and installation of water efficient fixtures, devices and equipment. The program is available to all customer classes in the District’s service area. Incentives are consistent with the Future Water Supply Study (FWSS) and the requirements in the District’s water supply contract with the United States Bureau of Reclamation. This program is ranked as a Priority 1 because it is required to be implemented in the Conservation Section of the District’s USBR Contract. Scope: The Water Use Efficiency Program currently includes incentives to replace water-thirsty lawn with water-wise landscaping, installing smart irrigation controllers, pool covers, commercial toilets and urinals, commercial clothes washers and commercial irrigation equipment. Status: The amount of incentives provided are subject to customer demands. This program was included in the 2020 CIP at a total cost of $9,801,000. The coast has been reduced based on projected customer demands. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 700 700 700 700 700 700 700 700 700 700 7,000 2 3
Total 700 700 700 700 700 700 700 700 700 700 7,000 Cost Estimate Accuracy Range: $8,051,000 to $6,651,000 (+15%/-5%) ENR-CCI: 12,525
Operational Impacts: This program has no operational impact.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: WATER SUPPLIES PAGE 4-21
PROJECT SUMMARY
WATER USE EFFICIENCY FOR
REGULATIONS
Priority: 1 Lead Department: Planning 2021 CIP Total: $27,785,000 Project Funding: FRCs, UW rates, grants Purpose and Priority Basis: The purpose of this project is to meet the requirements of the long-term conservation framework developed by the State in response to Governor Brown’s Executive Order B-37-16 as well as subsequent legislation requiring the State Board to develop water use efficiency standards. This project is ranked as Priority Level 1 because it is necessary to meet regulatory requirements. Scope: The program may include implementation of advanced metering infrastructure (smart meter) systems, expansion of the District’s conservation program, recycled water projects, and other water use efficiency measures to lower overall service area water demands. The goal of the program is to meet these regulatory requirements in the most cost-effective way, including pursuit of grants to offset costs. Status: This project has been used to meet the requirement of Senate Bill (SB) X7-7 which set a goal of reducing per capita urban water use by 20% by December 31, 2020. The District has met these requirements and is currently awaiting the receipt of its reduction targets from the State. Project initiation would not proceed until the reduction targets and water use efficiency standards are finalized. This project was included in the 2020 CIP at a total cost of $26,859,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2,075 8,864 7,827 0 3,292 2,991 2,736 27,785 2 3
Total 2,075 8,864 7,827 0 3,292 2,991 2,736 27,785 Cost Estimate Accuracy Range: $42,043,000 to $19,814,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: A placeholder of $1 million has been included in the Financial Plan to represent the operating costs associated with implementing additional conservation measures and the increased cost of purchasing recycled water.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: WATER SUPPLIES PAGE 4-22
PROJECT SUMMARY
FUTURE WATER SUPPLIES PLACEHOLDER Priority: 1/2 Lead Department: Planning 2021 CIP Total: $2,160,000 Project Funding: UW FRCs Purpose and Priority Basis: The purpose of this placeholder project is to help the District meet water supply reliability criteria and future service obligations, as recommended in the Future Water Supply Study (FWSS), including securing water for shortages (as a first priority) and for future growth. This project provides for the annual buy-in for water supply from ECCID which is ranked as Priority Level 1 since it is a contractual obligation. Future purchase is ranked as Priority Level 2 because it is required to meet future service obligations and the District has some control over the timing. Scope: The program includes the annual buy-in for ECCID water and additional water supplies. The water purchase plan for the CIP follows the FWSS but is adjusted to the actual demand growth. Water purchases for future growth will not affect rates. Status: Purchases for drought reliability (and a fraction for growth) commenced in FY1999 (ECCID purchase). The need for a supplemental water supply is anticipated to occur outside the current 10-year CIP window, with environmental/permitting activities starting in FY2030. This program was included in the 2020 CIP at a total cost of $1,974,000. The cost has been adjusted for inflation and to reflect the passing of FY2020. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 188 188 188 188 188 188 188 188 188 188 2,094 2 280 10,280 10,560 3
Total 188 188 188 188 188 188 188 188 188 468 10,280 12,654 Cost Estimate Accuracy Range: $14,306,000 to $11,818,000 (+15%/-5%) ENR-CCI: 12,525
Operational Impacts: There are no impacts. Costs for pumping water for future growth are included in the Financial Plan.
2021 CIP 4-23
4.2.2. Planning Sub-Program
This sub-program includes projects to support the long-term planning for future water supplies needed to ensure supply reliability, meet future growth, and satisfy regulations. The projects include updates to the FWSS, FRC Study, and East Contra Costa County (ECCC) Integrated Regional Water Management Plan (IRWMP).
The FWSS was initially adopted by the Board in August 1996 and updated most recently in 2015. The results of this update were incorporated into the UWMP, which was completed in July 2016 in accordance with State requirements. Funding to implement demand reduction recommendations, including conservation projects, is included in the Water Demand Reduction Program. This sub-program includes funding to provide for future updates to the FWSS with the next update anticipated to initiate in FY2021.
Last updated in 2015, the FRC Study establishes the methodology and cost allocations to ensure that the District’s capital costs are equitably allocated between existing rate-payers and growth. It also establishes the District’s untreated and treated water connection fees and ensures that the fees collected through the FRC are appropriately distributed to the facilities that will be required to serve the growth. The next update to the FRC Study is planned for FY2023.
The District collaborates with other ECCC water agencies on water resource projects to pursue grants. The ECCC IRWMP identifies future projects for which ECCC agencies expect to request grant funding. This project includes funding to update the IRWMP in FY2025, which is a state requirement to maintain eligibility for future IRWM grants.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.11.
Table 4.11 Planning Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP FWSS Update NA 0.00 0.00 0.10 0.37 0.00 0.00 0.00 0.00 0.31 0.00 0.78 FRC Update NA 0.00 0.00 0.19 0.00 0.00 0.00 0.00 0.18 0.00 0.00 0.36 ECCC IRWMP Update
NA 0.00 0.00 0.00 0.14 0.00 0.00 0.00 0.00 0.00 0.00 0.14
Total NA 0.00 0.00 0.29 0.50 0.00 0.00 0.00 0.18 0.31 0.00 1.28 2020 CIP
FWSS Update 0.00 0.10 0.35 0.00 0.00 0.00 0.00 0.30 0.00 0.00 NA 0.76 FRC Update 0.00 0.00 0.00 0.18 0.00 0.00 0.00 0.00 0.17 0.00 NA 0.35 ECCC IRWMP Update
0.15 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.00 0.00 NA 0.28
Total 0.15 0.10 0.35 0.18 0.00 0.13 0.00 0.30 0.17 0.00 NA 1.39
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: PLANNING PAGE 4-24
PROJECT SUMMARY
FUTURE WATER SUPPLY STUDY UPDATE Priority: 2 Lead Department: Planning 2021 CIP Total: $782,000 Project Funding: 37% UW rates, 63% FRCs Purpose and Priority Basis: The purpose of this project is to enable the District to implement economically and environmentally sound options to ensure high quality, reliable water supplies for the next fifty years. This study is necessary to determine water supply needs of existing and future customers during times of increasing supply uncertainty. This project is ranked as Priority Level 2 because the District has a moderate level of control over scope and timing. Scope: The periodic update of the FWSS is necessary to ensure it accurately reflects current demand and supply conditions as well as regulatory changes. Status: The next updates to the FWSS are planned for FY2023-2024 and FY2029. This project was included in the 2020 CIP at a total cost of $756,000. The cost has been adjusted for inflation and project timing. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 104 365 313 782 3
Total 104 365 313 782 Cost Estimate Accuracy Range: $1,017,000 to $665,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: There are no direct operations and maintenance costs associated with the study update. Operational impacts for each project recommended in the study would be evaluated as projects are implemented.
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: PLANNING PAGE 4-25
PROJECT SUMMARY
FACILITY RESERVE CHARGE
STUDY UPDATE
Priority: 2 Lead Department: Planning 2021 CIP Total: $364,000 Project Funding: FRCs, and rates Purpose and Priority Basis: The purpose of this study project is to ensure that the District’s capital costs are equitably allocated between existing and future customers and that the fees collected through the District’s untreated and treated water connection fees are appropriately distributed to the facilities that will be required to serve future growth. This project is ranked as Priority Level 2 because the District has a moderate level of control over scope and timing. Scope: The periodic update of the study is necessary to evaluate the adequacy of the FRC. Status: The FRC Study was last updated in FY2016, and additional updates are planned for FY2023 and FY2028. This program was included in the 2020 CIP at a total cost of $353,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 187 177 364 3
Total 187 177 364 Cost Estimate Accuracy Range: $473,000 to $309,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: There are no impacts associated with the study update. PROJECT SUMMARY
PROGRAM: FUTURE WATER SUPPLIES
SUB-PROGRAM: PLANNING PAGE 4-26
PROJECT SUMMARY
EAST CONTRA COSTA REGION
INTEGRATED REGIONAL WATER
MANAGEMENT PLAN UPDATE
Priority: 2 Lead Department: Planning 2021 CIP Total: $136,000 Project Funding: UW rates, grants Purpose and Priority Basis: The purpose of this project is to meet state requirements for eligibility for future Integrated Regional Water Management (IRWM) grants. The plan identifies future projects for which East Contra Costa County (ECCC) agencies expect to request grant funding and is an eligibility requirement for future IRWM grants. This project is ranked as Priority Level 2 because the District has a moderate level of control over scope and timing. Scope: The periodic update of the IRWMP is necessary to maintain eligibility of State grants. Status: The initial ECCC IRWM Plan was adopted in FY2007 and updated in FY2016. The plan is a living document that requires ongoing updates. Future updates are anticipated in FY2024. This program was included in the 2020 CIP at a total cost of $282,000. The cost has been reduced to reflect the passing of FY2020 which included a plan update. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 136 136 3
Total 136 136 Cost Estimate Accuracy Range: $307,000 to $281,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: There are no impacts associated with the study update. Operational impacts for each capital improvement recommended in the plan will be evaluated as the improvements are implemented.
2021 CIP 4-27
4.3. Los Vaqueros Watershed and Conservation Lands Program
This program maintains the District’s ability to manage the Los Vaqueros Watershed and Conservations Lands to meet the water permit commitments for the Los Vaqueros project. Projects within the program are based on the recommendations of the 2014 Watershed Facilities Master Plan and are associated with owning and managing activities in the Los Vaqueros Watershed and on District-owned conservation lands.
Program funding for the next ten years is estimated at $7.8 million all of which are for Priority 1 and 2 projects as shown by fiscal year in Table 4.12. For comparison, 2020 CIP funding levels are also shown.
Table 4.12 Los Vaqueros Watershed and Conservation Lands Program Summary (In million dollar, current dollars)
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 1.2 0.9 0.6 0.5 1.1 1.1 1.0 0.5 0.5 0.5 7.8 Priority 3 NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total NA 1.2 0.9 0.6 0.5 1.1 1.1 1.0 0.5 0.5 0.5 7.8 2020 CIP Priority 1 & 2 1.0 0.6 0.7 1.2 0.9 0.6 0.4 0.4 0.4 0.5 NA 6.8 Priority 3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA 0.0 Total 1.0 0.6 0.7 1.2 0.9 0.6 0.4 0.4 0.4 0.5 NA 6.8
In comparison to the 2020 CIP, this program has increased $1.0 million. Increases are a result of inflation and the addition of projects to address the cyclical nature of equipment replacements.
This program includes two sub-programs – the Recreation and the Watershed and Conservation Lands - each of which are discussed in more detail below including the projects within each sub-program. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.13.
Table 4.13 Sub-Program Summary within Los Vaqueros Watershed and Conservation Lands Program (In million dollar, current dollars)
Sub-Program
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Recreation NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Watershed NA 1.2 0.9 0.6 0.5 1.1 1.1 1.0 0.5 0.5 0.5 7.8 Total NA 1.2 0.9 0.6 0.5 1.1 1.1 1.0 0.5 0.5 0.5 7.8 2020 CIP Recreation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA 0.1 Watershed 1.0 0.6 0.7 1.2 0.9 0.6 0.4 0.4 0.4 0.5 NA 6.7 Total 1.0 0.6 0.7 1.2 0.9 0.6 0.4 0.4 0.4 0.5 NA 6.8
The significant project within this overall program are as follows:
Los Vaqueros Watershed and Conservation Land Improvements (priority level 2 - $7.8 million)
The detail discussion on each sub-program within the Los Vaqueros Watershed and Conservations Lands Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
2021 CIP 4-28
4.3.1. Recreation Sub-Program
The Recreation Sub-program provides the capital funding for facility and equipment projects for periodic renewal and replacements. This sub-program includes one project, the Los Vaqueros Recreation Facilities and Equipment Project, for the renewal and replacement of assets such as docks, picnic tables, benches, and other miscellaneous recreational improvements. Maintaining these facilities and equipment contribute to competitiveness by preserving customer satisfaction with the Recreation Program.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.14.
Table 4.14 Recreation Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP LV Rec Facilities & Equipment
NA 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.01
Total NA 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.01
2020 CIP LV Rec Facilities & Equipment
0.02 0.00 0.01 0.00 0.01 0.00 0.01 0.00 0.01 0.00 NA 0.08
Total 0.02 0.00 0.01 0.00 0.01 0.00 0.01 0.00 0.01 0.00 NA 0.08
The comprehensive project summary for the project included in this sub-program follow.
PROGRAM: LOS VAQUEROS WATERSHED AND CONSERVATION LANDS
SUB-PROGRAM: RECREATION PAGE 4-29
PROJECT SUMMARY
LOS VAQUEROS RECREATION
FACILITIES AND EQUIPMENT
Priority: 2 Lead Department: Watershed and Lands 2021 CIP Total: $13,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this program is to provide rehabilitation of and upgrades to existing and future recreation facilities and infrastructure necessary to meet the District’s commitments to operating the Los Vaqueros Recreation Program. This program is ranked as Priority Level 2 in order to maintain the recreation functions and a positive public image of the Los Vaqueros Recreation Program. Scope: Facilities included are public buildings and bathrooms, marina structures, fishing docks, interpretive resources, fishery habitat, parking areas trails and staging areas, water supply and waste water systems, emergency communications facilities, electrical power and telephone utilities, and other related facilities and equipment for public access and use. Status: The first Watershed Facilities Master Plan was completed in 2014. Improvements recommended are reflected in this CIP. This project was included in the 2020 CIP at a total cost of $77,000. The cost has been adjusted to reflect updated project implementation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 13 13 3
Total 13 13 Cost Estimate Accuracy Range: $20,000 to $9,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: The operational impacts of this program are anticipated to be minimal.
2021 CIP 4-30
4.3.2. Watershed and Conservation Lands Sub-Program
The Watershed Sub-Program includes projects predominantly focused on meeting permit requirements. These projects can also help maintain water quality in the reservoir. Additionally, the projects may increase revenues through leases of District lands for grazing, wind power, or other enterprises.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.15.
Table 4.15 Watershed Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP W/S & Conservation Land Improve.
NA 1.28 0.90 0.57 0.47 1.12 1.08 1.03 0.46 0.46 0.46 7.81
Total NA 1.28 0.90 0.57 0.47 1.12 1.08 1.03 0.46 0.46 0.46 7.81 2020 CIP
W/S & Conservation Land Improve.
1.02 0.62 0.66 1.20 0.92 0.55 0.41 0.41 0.41 0.52 NA 6.70
Total 1.02 0.62 0.66 1.20 0.92 0.55 0.41 0.41 0.41 0.52 NA 6.70
The comprehensive project summary for the project included in this sub-program follow.
PROGRAM: LOS VAQUEROS WATERSHED AND CONSERVATION LANDS
SUB-PROGRAM: WATERSHED AND CONSERVATION LANDS PAGE 4-31
PROJECT SUMMARY
LOS VAQUEROS WATERSHED
AND CONSERVATION LAND
IMPROVEMENTS
Priority: 2 Lead Department: Watershed and Lands 2021 CIP Total: $7,814,000 Project Funding: UW rates, FEMA, reserves Purpose and Priority Basis: The purpose of this annual program is to improve the District’s capability to protect, manage, and maintain the Los Vaqueros watershed area and the Conservation Lands for primary water quality and natural resource management purposes and to meet the District’s commitments for Los Vaqueros program-related environmental mitigation. The program is ranked as Priority Level 2 because it is a Los Vaqueros Project requirement to effectively maintain District watershed lands and comply with the terms and conditions of the LVP Biological Opinions. Scope: The watershed improvements include management plans, roads and trails, fences, oak woodland restoration areas, sediment control basins, storm water management, program-related ponds and wetlands, riparian restoration areas, remote water facilities for grazing, fire prevention and suppression, public safety, communications equipment and facility improvements, including the Watershed Office and Interpretive Center, and renovation or demolition and removal of unsafe structures. Status: The first Watershed Facilities Master Plan was completed in 2014. Improvements recommended are reflected in this CIP. In addition, major road and culvert improvements resulting from 2017 storm damage are included in FY2021 as well as improvements for the Watershed Interpretive Center water treatment system. This project was included in the 2020 CIP at a total cost of $6,701,000. The cost has been adjusted for inflation and to reflect addition of projects. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 1,282 895 573 470 1,118 1,078 1,033 455 455 455 7,814 3
Total 1,282 895 573 470 1,118 1,078 1,033 455 455 455 7,814 Cost Estimate Accuracy Range: $11,721,000 to $5,470,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impacts of this program are anticipated to be minimal.
2021 CIP 4-32
4.4. Treated Water Facilities Program
The objective of this program is to maintain and improve the level of service, quality, and safety of the District's treated water system. The projects included in this program address expansion of treated water facilities to meet future needs as well as renewal and replacement treated water pipelines, reservoirs, and pump stations. Projects directly advance the District’s goals of increasing system reliability and improving delivered water quality while also indirectly assisting in increasing competitiveness by improving efficiencies and customer satisfaction. The majority of projects included in this program are based on the recommendations from the Treated Water Master Plan (TWMP) updated in 2015, Treated Water Renewal and Replacement Study (TWRR Study) updated in 2017, and the Pipeline Renewal and Replacement Study (PLRR Study) completed in 2018.
Program funding for the next ten years is estimated at $178.3 million, of which $116.9 are Priority 1 and 2 projects as shown by fiscal year in Table 4.16. For comparison, 2020 CIP funding levels are also shown.
Table 4.16 Treated Water Facilities Program Summary (In million dollar, current dollars) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 12.9 11.2 11.9 10.6 11.5 11.9 11.9 9.9 11.8 13.2 116.9 Priority 3 NA 0.9 1.3 3.6 33.9 21.7 0.0 0.0 0.0 0.0 0.0 61.4 Total NA 13.8 12.5 15.6 44.6 33.1 11.9 11.9 9.9 11.8 13.2 178.3 2020 CIP Priority 1 & 2 11.6 11.7 12.5 9.9 8.1 8.4 9.1 12.7 13.4 14.8 NA 112.3 Priority 3 0.0 0.0 0.0 25.1 30.3 0.6 0.0 0.0 0.0 0.0 NA 56.0 Total 0.0 11.7 12.5 35.0 38.4 9.0 9.1 12.7 13.4 14.8 NA 168.3
In comparison to the 2020 CIP, this program has increased $10.0 million. Increases are primarily a result of increased investments in the Pipeline Renewal and Replacement (PLRR) project consistent with recommendations from the PLRR Study and inflation.
This program includes four sub-programs - Non-District Funded, New Treated Water Facilities, Treated Water Facilities Improvements, and Treated Water Facilities Planning. Each sub-program is discussed in more detail below including the projects included in each sub-program. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.17. Approximately $65.4 million are for applicant-funded projects, $98.0 million are for improvements to existing facilities, and $13.6 million for reliability and redundancy improvements.
2021 CIP 4-33
Table 4.17 Sub-Program Summary within Treated Water Facilities Program (In million dollar, current dollars)
Sub-Program FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Non-District Funded
NA 2.7 3.1 3.1 25.3 22.7 1.7 1.7 1.7 1.7 1.7 65.4
New TW Facilities
NA 0.0 0.0 2.1 9.6 0.0 0.0 0.0 0.0 0.3 1.7 13.6
TW Facilities Improvements
NA 10.7 9.2 10.3 9.7 10.4 10.2 9.6 8.2 9.8 9.8 98.0
TW Facilities Planning
NA 0.4 0.3 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.0 1.2
Total NA 13.8 12.5 15.6 44.6 33.1 11.9 11.9 9.9 11.8 13.2 178.3 2020 CIP Non-District Funded
3.3 4.2 4.8 24.4 21.9 1.6 1.6 1.6 1.6 1.6 NA 66.4
New TW Facilities
0.0 0.0 0.0 2.0 9.2 0.0 0.0 0.0 0.3 1.6 NA 13.2
TW Facilities Improvements
8.3 7.0 7.5 8.6 7.3 7.5 7.2 10.9 11.6 11.6 NA 87.5
TW Facilities Planning
0.0 0.4 0.2 0.0 0.0 0.0 0.3 0.2 0.0 0.0 NA 1.2
Total 0.0 11.7 12.5 35.0 38.4 9.0 9.1 12.7 13.4 14.8 NA 168.3
The significant projects within this overall program are as follows:
Treated Water Applicant Funded Projects (priority level 1 - $17.2 million) Concord Naval Weapons Station Potable Water Facilities (priority level 3 - $20.6 million) Concord Naval Weapons Station Recycled Water Facilities (priority level 3 - $27.6 million) Port Chicago Highway Pipeline Phase II (priority level 2 - $2.0 million) CCWD/EBMUD Treated Water Regional Intertie (priority level 3 - $11.7 million) Pipeline Renewal/Replacement (priority level 2 - $60.5 million) Treated Water Facilities Improvements Program (priority level 2 - $35.7 million, priority level 3
- $1.6 million)
The detail discussion on each sub-program within the Treated Water Facilities Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
4.4.1. Non-District Funded Sub-Program
This sub-program includes projects funded by other parties such as applicants and other governmental agencies requesting treated water service. Projects include pipelines, pump stations, and storage -reservoirs. The potable and recycled water projects for the initial phase of Concord Community Reuse Plan (CRP) development at the former Concord Naval Weapons Station (CNWS) site are included in this sub-program. Construction is anticipated to start in FY2022 and the District is currently coordinating with the City and developer to define the initial planning work necessary for the project. A project specific agreement with the Developer and City will be executed which will define the timing and scope of the project and any additional staffing may be needed to support the design and construction effort.
2021 CIP 4-34
This sub-program includes approximately $17.2 million in priority level 1 applicant-funded projects and $48.2 million in priority level 3 CNWS projects. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.18.
Table 4.18 Non-District Funded Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP TW Applicant Funded
NA 1.76 1.76 1.76 1.71 1.71 1.71 1.71 1.71 1.71 1.71 17.22
CNWS – Potable Water Facilities
NA 0.49 0.56 0.72 10.72 8.06 0.00 0.00 0.00 0.00 0.00 20.56
CNWS – Recycled Water Facilities
NA 0.41 0.75 0.62 12.85 12.97 0.00 0.00 0.00 0.00 0.00 27.61
Total NA 2.66 3.07 3.10 25.28 22.74 1.71 1.71 1.71 1.71 1.71 65.39 2020 CIP
TW Applicant Funded
1.69 1.55 1.55 1.55 1.55 1.55 1.55 1.55 1.55 1.55 NA 15.64
CNWS – Potable Water Facilities
1.00 1.32 1.63 10.36 7.80 0.00 0.00 0.00 0.00 0.00 NA 22.10
CNWS – Recycled Water Facilities
0.60 1.38 1.63 12.51 12.53 0.00 0.00 0.00 0.00 0.00 NA 28.64
Total 3.28 4.25 4.81 24.42 21.88 1.55 1.55 1.55 1.55 1.55 NA 66.38
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: NON-DISTRICT FUNDED PAGE 4-35
PROJECT SUMMARY
TREATED WATER APPLICANT
FUNDED PROJECTS
Priority: 1 Lead Department: Engineering 2021 CIP Total: $17,220,000 Project Funding: Applicant Funded Purpose and Priority Basis: The purpose of this annual program is to provide water service and distribution facilities, as requested and funded by developers and other applicants. This program is ranked as Priority Level 1 as it is applicant funded. This could include funding from applicants requesting water service, other governmental agencies, special loan arrangements, governmental grants, or assessment districts. The relocation of pipelines and other District facilities must be performed to avoid conflicts with new construction. Scope: The facilities typically include main extensions, but may include pipelines, pump stations, and storage reservoirs. Cost estimates are based on experience but may be significantly lower or higher in any given year depending upon applicant requests. These programs are usually handled jointly between the District and the applicant. Installation of potable and recycled water facilities at the former Concord Naval Weapons Station, though applicant-funded, is shown separately from this program due to the large costs. Status: Specific projects generally cannot be identified until an applicant presents development plans and requests service. This program was included in the 2020 CIP at a total cost of $15,639,000. The cost has been adjusted for inflation and anticipated applicant projects. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 1,757 1,757 1,757 1,707 1,707 1,707 1,707 1,707 1,707 1,707 17,220 2 3
Total 1,757 1,757 1,757 1,707 1,707 1,707 1,707 1,707 1,707 1,707 17,220 Cost Estimate Accuracy Range: $25,830,000 to $12,054,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impact of this program depends on the size and number of projects built.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: NON-DISTRICT FUNDED PAGE 4-36
PROJECT SUMMARY
CONCORD NAVAL WEAPONS
STATION POTABLE WATER
FACILITIES
Priority: 3 Lead Department: Planning 2021 CIP Total: $20,562,000 Project Funding: Developer Funded Purpose and Priority Basis: The purpose of this project is to provide potable water service and distribution facilities to the development proposed on the Concord Naval Weapons Station (CNWS), as requested and funded by the developers. The project is ranked as Priority Level 3 because the scope, costs, and schedule of improvements is unknown. Scope: Installation of transmission and distribution pipelines, pump stations, and storage reservoirs. Status: The City of Concord has recently completed an amendment of the General Plan and the Navy has progressed efforts to transfer the base to the City. Private and public development is still several years away. The project has been established to fund the water infrastructure necessary for the first phase of development pending an anticipated Project Specific Agreement expected in FY2020. This project includes a tank siting evaluation followed by design and construction of the treated water transmission, distribution and storage facilities. The actual costs may vary depending on the final plans. The specific facilities, costs, and schedule will be developed in conjunction with the City of Concord and developers. This project was included in the 2020 CIP at a total cost of $22,103,000. The cost has been adjusted to reflect revised cost estimates. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 491 564 724 10,723 8,060 20,562
Total 491 564 724 10,723 8,060 20,562 Cost Estimate Accuracy Range: $30,843,000 to $14,393,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impact of this project depends on the actual facilities built.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: NON-DISTRICT FUNDED PAGE 4-37
PROJECT SUMMARY
CONCORD NAVAL WEAPONS
STATION RECYCLED WATER
FACILITIES
Priority: 3 Lead Department: Planning 2021 CIP Total: $27,608,000 Project Funding: Developer Funded Purpose and Priority Basis: The purpose of this project is to provide recycled water service and distribution facilities to the development proposed on the Concord Naval Weapons Station (CNWS), as requested and funded by the developers. The project is ranked as Priority Level 3 because the scope, costs, and schedule of improvements is unknown. Scope: Installation of transmission and distribution pipelines, pump stations, and storage reservoirs for a recycled water system Status: The City of Concord has recently completed an amendment of the General Plan and the Navy has progressed efforts to transfer the base to the City and ultimately to private and public development interests. The Reuse Plan and General Plan specify that the use of recycled water will be maximized for outdoor irrigation purposes. Delivery of recycled water to the new development would require construction of dedicated pump stations, reservoirs, and a pipeline connecting to Central Contra Costa Sanitary District’s (CCCSD) treatment facilities. The project has been established to fund the infrastructure necessary for the first phase of development pending an anticipated Project Specific Agreement expected in FY2020. This project includes a Recycled Water Master Plan and Standards development followed by design and construction of the recycled water facilities. The actual costs may vary depending on the final plans. The specific facilities, costs, and schedule will be developed in conjunction with the City of Concord, CCCSD, and developers. This project was included in the 2020 CIP at a total cost of $28,641,000. The cost has been adjusted to reflect revised cost estimates. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 409 752 623 12,853 12,971 27,608
Total 409 752 623 12,853 12,971 27,608 Cost Estimate Accuracy Range: $41,412,000 to $19,326,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impact of this project depends on the actual facilities built.
2021 CIP 4-38
4.4.2. New Treated Water Facilities Sub-Program
Improvement projects to increase reliability and redundancy as well as meet demands are included in this sub-program. The projects are based on the recommendations included in the 2015 TWMP and include upgrades to existing facilities as well as new facilities to meet near term and long-term demands.
The Port Chicago pipeline project improves reliability and maintains water pressure and flow standards as demands grow. The first phase was completed, and this second phase adds 10,800 feet of new pipe to continue these improvements, which are partially funded from the FRC. A priority level 3 project for an intertie with the EBMUD’s system is also included.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.19.
Table 4.19 New Treated Water Facilities Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Port Chicago Pipeline – Phase II
NA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.27 1.70 1.97
CCWD/ EBMUD TW Intertie
NA 0.00 0.00 2.12 9.56 0.00 0.00 0.00 0.00 0.00 0.00 11.68
Total NA 0.00 0.00 2.12 9.56 0.00 0.00 0.00 0.00 0.27 1.70 13.65 2020 CIP
Port Chicago Pipeline – Phase II
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 1.64 NA 1.90
CCWD/ EBMUD TW Intertie
0.00 0.00 0.00 2.04 9.24 0.00 0.00 0.00 0.00 0.00 NA 11.28
Total 0.00 0.00 0.00 2.04 9.24 0.00 0.00 0.00 0.26 1.64 NA 13.18
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: NEW TREATED WATER FACILITES PAGE 4-39
PROJECT SUMMARY
PORT CHICAGO PIPELINE
PHASE II
Priority: 2 Lead Department: Planning 2021 CIP Total: $1,968,000 Project Funding: 44% TW rates, 56% TW FRC Purpose and Priority Basis: The purpose of this project is to ensure reliable service to the District’s existing and future treated water customers by providing a new backbone transmission main recommended in the Seismic Reliability Improvement Project (SRIP) Study and as identified in the 2015 Treated Water Master Plan update. This project is ranked as Priority Level 2 as the District has a moderate level of control over timing. Scope: This project consists of the design and construction of approximately 10,800 feet of 24 to 36-inch diameter pipeline extending from the Port Chicago Phase I pipeline near Willow Pass Road to Cowell Road. These improvements will enable the District to maintain water pressure and flow standards for the entire system as demands grow. Status: Planning and design is anticipated to begin in FY2028 with construction in FY2031. This program was included in the 2020 CIP at a total cost of $1,900,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 271 1,697 10,964 12,932 3
Total 271 1,697 10,964 12,932 Cost Estimate Accuracy Range: $19,398,000 to $9,052,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impact of this project is estimated to be $5,000 per year beginning in FY2032, which is outside of the current CIP window, and includes valve exercising, corrosion protection, monitoring and maintenance, and occasional flushing.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: NEW TREATED WATER FACILITES PAGE 4-40
PROJECT SUMMARY
CCWD/EBMUD TREATED
WATER REGIONAL INTERTIE
Priority: 3 Lead Department: Planning 2021 CIP Total: $11,680,000 Project Funding: Unknown at this time Purpose and Priority Basis: The purpose of this project is to provide enhanced reliability for the Bay Area’s largest water agencies to sustain adequate water supply after catastrophic events such as earthquakes, while also increasing the ability for Bay Area agencies to develop and share water resources more efficiently. These agencies are working together to connect their water systems, and one of the critical components identified as part of this regional effort is a treated water intertie between the District and EBMUD. This project is ranked as Priority Level 3 because it is dependent upon outside funding sources. Scope: This project includes the design and construction of a 10-15 million gallons per day intertie between EBMUD’s East of Hills water system and the District’s treated water distribution system, anticipated in Pleasant Hill and/or Walnut Creek. This project will provide a drinking water supply to existing and future Bay Area populations and will improve emergency response capabilities. Status: Planning would start in FY2023 followed by design with construction anticipated in FY2024. This program was included in the 2020 CIP at a total cost of $11,284,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 2,120 9,560 11,680
Total 2,120 9,560 11,680 Cost Estimate Accuracy Range: $17,520,000 to $8,176,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Operational impacts are expected to be minimal.
2021 CIP 4-41
4.4.3. Treated Water Facilities Improvements Sub-Program
Capital projects associated with improvements at the existing treated water facilities to address rehabilitation and renewal needs are included in this sub-program. The two major projects included in this sub-program are the Treated Water Facility Improvements project which includes improvements at existing pump stations and reservoirs, and the Pipeline Renewal and Replacement projects to address improvements for pipelines within the Treated Water Service area to continue to provide reliable service.
The Pipeline Renewal and Replacement project include replacement of treated water distribution pipelines that have reached their serviceable life as well as relocations of pipelines as requested by agencies or property owners or when pipeline location conflicts with the construction work of other agencies. Planned renewals and replacements not only ensures reliable service and high customer satisfaction but maintains the infrastructure at the lowest possible cost by eliminating damage and impacts from unplanned system failures as well as providing cost effective renewal compared to emergency repairs. The 2018 Pipeline Renewal and Replacement (PLRR) Study serves as the basis for the prioritized list of pipelines that should be replaced to maintain service levels for the next 5 years.
Treated Water Facility Improvements consists of the rehabilitation of pump stations and reservoirs, site improvements and replacement of water quality equipment, as prioritized in the TWRR Study. The TWRR Study is updated every five years and the recent update was completed in 2018.
This sub-program total funding over the ten years is $98.0 million, of which $60.5 million is for pipeline replacements which is an increase of $9.7 million from the 2020 CIP. This increase is consistent with the PLRR Study which also identified anticipated investment levels necessary to maintain service levels through 2050. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.20.
2021 CIP 4-42
Table 4.20 Treated Water Facilities Improvements Sub-Program Summary (In million dollar, current dollars)
Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP
Large TW Meter Replace.
NA 0.19 0.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.33
Pipeline Renewal & Replacement
NA 7.14 7.99 7.15 5.40 5.43 5.43 5.43 5.70 5.43 5.43 60.50
TW Facilities Improve.
NA 3.39 1.05 3.19 4.31 4.95 4.81 4.18 2.50 4.42 4.42 37.21
TW Reliability Improve.
NA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total NA 10.72 9.17 10.34 9.71 10.38 10.23 9.61 8.19 9.85 9.85 98.04 2020 CIP
Large TW Meter Replace.
0.22 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 0.42
Pipeline Renewal & Replacement
4.83 3.47 3.47 3.73 3.62 3.76 4.15 7.55 8.11 8.13 NA 50.81
TW Facilities Improve.
3.01 3.37 4.02 4.82 3.71 3.69 3.09 3.36 3.50 3.50 NA 36.06
TW Reliability Improve.
0.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 0.22
Total 8.28 7.04 7.48 8.55 7.33 7.45 7.24 10.91 11.60 11.63 NA 87.51
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: TREATED WATER FACILITIES IMPROVEMENTS PAGE 4-43
PROJECT SUMMARY
LARGE TREATED WATER
METER REPLACEMENTS
Priority: 2 Lead Department: Operations & Maintenance 2021 CIP Total: $331,000 Project Funding: TW rates Purpose and Priority Basis: The purpose of this project is to ensure accurate metering of treated water deliveries. Statistical testing of the District’s installed population of large meters has shown that a portion are outside the District’s standard for accuracy and need to be replaced. This project is ranked a Priority Level 2 because the District has a moderate level of control over scope and timing. Scope: The project consists of the replacement of approximately 110 mechanical compound meters that are 3 inches in diameter or larger, for which parts are no longer available, with new electronic flow meters. Status: Meter replacements began in FY2019 and will be completed in FY2022 This project was included in the 2020 CIP at a total cost of $656,000. The cost has been adjusted for inflation and completion of a portion of implementation in FY2020. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 401 191 140 732 3
Total 401 191 140 732 Cost Estimate Accuracy Range: $898,000 to $633,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: These meter replacements will serve to provide more accurate measurement and billing of customer water service deliveries.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: TREATED WATER FACILITIES IMPROVEMENTS PAGE 4-44
PROJECT SUMMARY
PIPELINE RENEWAL AND
REPLACEMENTS
Priority: 1/2 Lead Department: Engineering 2021 CIP Total: $60,497,000 Project Funding: TW rates Purpose and Priority Basis: The purposes of this program are to: 1) ensure reliable, cost-efficient delivery of treated water through replacement of pipelines that have experienced significant leak repair incidents or are undersize for fire flow and distribution capacity, 2) improve water quality circulation by creating interties between existing pipelines, and 3) relocate existing pipelines as legally required. Project to relocate pipelines as legally required are ranks priority 1 as this is a regulatory requirement. The remainder of this program is ranked as Priority Level 2 because pipeline upgrades are necessary to ensure reliable treated water system performance and minimize a source of unscheduled maintenance demands upon the Operations and Maintenance Department as a result of failures. Scope: Projects in this program are identified and prioritized in the 2018 Pipeline Renewal and Replacement Study. Planned renewals and replacements not only ensure reliable service and high customer satisfaction but maintain the infrastructure at the lowest possible cost by eliminating damage and impacts from unplanned system failures as well as providing cost-effective renewal compared to emergency repairs. In addition, pipelines are relocated as requested by agencies or property owners, or when pipeline location conflicts with the construction work of other agencies. Status: Projects planned for FY21 and FY22 include design and construction of main replacements in Concord and Pleasant Hill as well as leak detection units in along Marsh Creek Road. This program was included in the 2020 CIP at a total cost of $50,813,000. The cost has been adjusted for inflation and funding has been added to FY21 through FY30 to incorporate recommendations of the recently completed PLRR Study. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 280 280 280 280 280 280 280 280 280 280 2,800 2 6,859 7,707 6,867 5,124 5,145 5,145 5,145 5,415 5,145 5,145 57,697 3
Total 7,139 7,987 7,147 5,404 5,425 5,425 5,425 5,695 5,425 5,425 60,497 Cost Estimate Accuracy Range: $90,746,000 to $42,348,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: These programs provide increased reliability and improved circulation and eliminate conflicts with other utilities. Failure to replace aging pipelines would increase operating costs. For the purpose of the CIP, operating cost impacts are assumed negligible.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: TREATED WATER FACILITIES IMPROVEMENTS PAGE 4-45
PROJECT SUMMARY
TREATED WATER FACILITIES
IMPROVEMENT PROGRAM
Priority: 2/3 Lead Department: Engineering 2021 CIP Total: $37,213,000 Project Funding: TW rates Purpose and Priority Basis: The purpose of this annual program is to ensure reliable operation of the District’s treated water facilities, including treated water storage reservoirs and pump stations. The District’s treated water facilities may be approaching the end of their useful life. The improvements made by this program will ensure a reliable system of operation and greater maintenance efficiency. This program is ranked as Priority Level 2 because treated water site upgrades are necessary to maintain and enhance existing assets. Lower priority chlorination improvements have been ranked as Priority Level 3 as the District has significant level of control over the scope and schedule. Scope: The program consists of the rehabilitation of pump stations and reservoirs, improvements to site drainage, installation of water quality equipment, flow meters, fencing, landscaping, pavement, pump station roofing, and demolition of permanently inactive pump stations and reservoirs, as identified in the District’s Treated Water Renewal and Replacement Study. Status: Planned FY21 efforts include completion of construction of mechanical improvements at Clubhouse and Oakhurst Pump Stations, and improvements to the Pine Hollow Pump Station disinfection booster system, and construction of civil and mechanical improvements to Pine Hollow Reservoirs and Pine Hollow Pump Station. Improvements will be performed in order of priority based on criteria that include each facility’s ability to meet critical demands, impacts to operations, damage, and estimated remaining useful life. This program was included in the 2020 CIP at a total cost of $36,057,000. The cost has been adjusted for inflation and a shift in project schedule. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3,390 1,046 3,035 3,533 4,322 4,806 4,184 2,495 4,420 4,420 35,651 3 157 773 632 1,562
Total 3,390 1,046 3,192 4,306 4,954 4,806 4,184 2,495 4,420 4,420 37,213 Cost Estimate Accuracy Range: $55,820,000 to $26,049,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project improves operations and maintenance of treated water facilities. For purposes of the CIP, operational impacts are expected to be minimal.
2021 CIP 4-46
4.4.4. Treated Water Facilities Planning Sub-Program
This sub-program includes two projects related to updating the treated water facilities planning studies which serve as the basis for project identification and prioritization included in the overall Treated Water Facilities Program. The update of these studies are necessary to enable the District to periodically assess facility improvements to maintain the level of service and meet future needs. The 2015 TWMP evaluates and identifies improvements to increase the treated water system reliability and improving delivered water quality which is included in the 2021 CIP to be updated in 2021. The 2018 TWRR Study identifies and prioritizes renewal and replacement projects for the treated water system reservoirs and pump stations and is due for an update in 2022. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.21.
Table 4.21 Treated Water Facilities Planning Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP TWMP Updates
NA 0.43 0.00 0.00 0.00 0.00 0.00 0.30 0.00 0.00 0.00 0.74
TWRR Study Updates
NA 0.00 0.26 0.00 0.00 0.00 0.00 0.26 0.00 0.00 0.00 0.51
Total NA 0.43 0.26 0.00 0.00 0.00 0.00 0.56 0.00 0.00 0.00 1.25 2020 CIP
TWMP Updates
0.03 0.42 0.00 0.00 0.00 0.00 0.29 0.00 0.00 0.00 NA 0.74
TWRR Study Updates
0.00 0.00 0.25 0.00 0.00 0.00 0.00 0.25 0.00 0.00 NA 0.49
Total 0.03 0.42 0.25 0.00 0.00 0.00 0.29 0.25 0.00 0.00 NA 1.23
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: TREATED WATER FACILITIES PLANNING PAGE 4-47
PROJECT SUMMARY
TREATED WATER SERVICE
AREA MASTER PLAN UPDATE
Priority: 2 Lead Department: Planning 2021 CIP Total: $736,000 Project Funding: 40% TW rates, 60% TW FRC Purpose and Priority Basis: The purpose of this project is to ensure timely, cost-effective, and environmentally sound improvements to the District’s treated water service area facilities with the periodic updates of the Treated Water Service Area (TWSA) Master Plan to identify improvements. The plan ensures an integrated approach for meeting the supply and distribution needs of the TWSA for existing customers and projected future growth. This project is ranked as Priority Level 2 because it ensures that the District will meet water service and reliability commitments and the District has a moderate level of control over timing. Scope: Periodic updates to ensure that the plan accurately reflects changes in the communities to which treated water service is provided. Status: The most recent Treated Water Service Area (TWSA) Master Plan was completed in FY2015. A major update is scheduled for FY2021 with a minor update in FY2027. This program was included in the 2020 CIP at a total cost of $742,000. The cost has been adjusted for inflation and updated based on completion of work in FY2020. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 33 432 304 769 3
Total 33 432 304 769 Cost Estimate Accuracy Range: $990,000 to $659,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: There are no operations and maintenance costs associated with the plan updates. Operational impacts for each capital improvement recommended in the plan will be evaluated as the improvements are implemented.
PROGRAM: TREATED WATER FACILITIES
SUB-PROGRAM: TREATED WATER FACILITIES PLANNING PAGE 4-48
PROJECT SUMMARY
TREATED WATER RENEWAL
AND REPLACMENT STUDY
UPDATE
Priority: 2 Lead Department: Planning 2021 CIP Total: $510,000 Project Funding: TW rates Purpose and Priority Basis: The purpose of this project is to ensure timely, cost effective, and environmentally sound improvement to the District’s treated water service area through periodic updates of the Treated Water Renewal/Replacement Study. This project is ranked as Priority Level 2 because the District has a moderate level of control over timing to ensures water service and reliability commitments are met. Scope: Periodic study updates present the technical planning basis for many of the projects included in the CIP’s Treated Water Distribution and Storage Facilities Program, including pumping stations, concrete reservoirs, and steel tanks. Status: An update was last completed in 2018, and future updates are planned in FY2022 and FY2027. This program was included in the 2020 CIP at a total cost of $492,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 255 255 510 3
Total 255 255 510 Cost Estimate Accuracy Range: $663,000 to $434,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: There are no operations and maintenance costs associated with the plan updates. Operational impacts for each capital improvement recommended in the plan will be evaluated as the improvements are implemented.
2021 CIP 4-49
4.5. Untreated Water Facilities Program
This program includes projects to improve source water quality and to enhance, renew, and expand the District's untreated water facilities, including diversion facilities, the Contra Costa Canal, pumping facilities, pipelines, and other facilities used in the operation of the system. The program directly advances the District’s goal of increasing system reliability and ensuring capacity is available to meet the needs of new customers.
This program includes the Untreated Water Facilities Improvement Projects (UWFIP) to fund renewal and replacement of pumping and conveyance facilities which includes activities such as canal lining replacement, slope repairs, road repairs, and pump station rehabilitation to maintain the existing untreated water system. This program also includes projects to modernize the Canal facilities, which are approaching 80 years of continuous service, as well as the Canal Replacement Project which improves source water quality, flood protection, and enhances public safety. The District recently completed an additional 1 mile of the project which utilized a $14 million grant under the Department of Water Resources Proposition 84 program to bring the total length of replacement to 2.5 miles.
Program funding for the next ten years is estimated at $675.5 million, of which $111.3 are Priority 1 and 2 projects as shown by fiscal year in Table 4.22. For comparison, 2020 CIP funding levels are also shown.
Table 4.22 Untreated Water Facilities Program Summary (In million dollar, current dollars) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 12.9 17.4 10.2 9.2 9.0 19.1 12.0 7.8 6.8 7.0 111.3 Priority 3 NA 0.0 0.0 2.6 15.1 22.3 111.7 101.0 102.6 103.1 105.8 564.2 Total NA 12.9 17.4 12.8 24.3 31.3 130.8 113.0 110.5 109.9 112.8 675.5 2020 CIP Priority 1 & 2 11.5 13.4 11.4 7.7 6.8 5.6 16.1 4.7 4.7 4.7 NA 86.6 Priority 3 0.0 2.8 2.2 10.5 49.4 76.2 110.0 99.9 99.0 93.9 NA 543.9 Total 11.5 16.2 13.5 18.3 56.2 81.8 126.1 104.6 103.7 98.6 NA 630.6
In comparison to the 2020 CIP, this program has increased $44.9 million. Increases are a result of inflation, the addition of renewal and replacement projects as a result of the Untreated Water Renewal and Replacement Study update, and updated cost estimates.
This program includes three sub-programs – Non-District Funded, Untreated Water Facilities Improvements, and Untreated Water Facilities Planning – each of which are discussed in more detail below. The majority of projects included in this the program are for the Untreated Water Facilities Improvements sub-program which total $673.5 million to address the aging infrastructure and continue to provide reliable service. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.23.
2021 CIP 4-50
Table 4.23 Sub-Program Summary within Untreated Water Facilities Program (In million dollar, current dollars)
Sub-Program
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Non-District Funded
NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4
UW Facilities Improve.
NA 11.9 17.3 12.7 24.3 30.9 130.7 113.0 110.4 109.9 112.4 673.5
UW Facilities Planning
NA 0.9 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.3 1.6
Total NA 12.9 17.4 12.8 24.3 31.3 130.8 113.0 110.5 109.9 112.8 675.5 2020 CIP Non-District Funded
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA 0.2
UW Facilities Improve.
11.4 15.7 13.1 18.2 56.2 81.5 126.1 104.6 103.7 98.6 NA 629.0
UW Facilities Planning
0.1 0.5 0.5 0.0 0.0 0.3 0.0 0.0 0.0 0.0 NA 1.4
Total 11.5 16.2 13.5 18.3 56.2 81.8 126.1 104.6 103.7 98.6 NA 630.6
The significant projects within this overall program are as follows:
Contra Costa Canal Facility Title Transfer (priority level 2 - $0.9 million) Canal Modernization – Main Canal (priority level 2 - $31.1 million; priority level 3 - $500.4
million) Canal Modernization – Loop Canal (priority level 2 - $0.3 million; priority level 3 - $6.9 million) Canal Replacement Project (priority level 2 -$12.0 million; priority level 3 - $33.7 million) Mallard Slough Channel Rehabilitation (priority level 2 - $4.6 million) Rock Slough Fish Screen Improvements (priority level 1 - $2.3 million) Untreated Water Facilities Improvements Program (priority level 2 - $48.8 million) Shortcut Pipeline Refurbishments (priority level 2 - $7.2 million) Untreated Water Reservoir Rehabilitation Program (priority level 2 - $3.1 million; priority level
3 - $11.2 million) Transfer Pump Station Improvements (priority level 3 - $12.0 million)
The detailed discussion on each sub-program within the Untreated Water Facilities Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
2021 CIP 4-51
4.5.1. Non-Districted Funded Sub-Program
This sub-program includes projects funded by other parties such as applicants and other governmental agencies requesting untreated water service. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.24.
Table 4.24 Non-District Funded Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP UW Applicant Funded
NA 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.39
Total NA 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.39 2020 CIP
UW Applicant Funded
0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 NA 0.20
Total 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 NA 0.20
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: NON-DISTRICTED FUNDED PAGE 4-52
PROJECT SUMMARY
UNTREATED WATER
APPLICANT FUNDED PROJECTS
Priority: 1 Lead Department: Engineering 2021 CIP Total: $390,000 Project Funding: Applicant Funded Purpose and Priority Basis: The purpose of this annual program is to relocate existing or install new untreated water facilities as requested and funded by developers and other applicants. With a significant amount of new and planned development in East County, there is a need for the type of untreated water facility relocations and modifications provided by this program. This program is ranked as Priority Level 1 as the funding is from non-District sources. The relocation of pipelines and other District facilities must be performed to avoid conflicts with new construction. Scope: Relocation of District facilities, typically laterals. Cost estimates are based on experience but may be significantly lower or higher in any given year depending upon applicant requests. Status: Specific programs generally cannot be identified until an applicant presents development plans and requests service. This program was included in the 2020 CIP at a total cost of $195,000. The cost has been revised to reflect a reassessment of the District staff labor requirements to support these activities and inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 47 47 37 37 37 37 37 37 37 37 390 3
Total 47 47 37 37 37 37 37 37 37 37 390 Cost Estimate Accuracy Range: $585,000 to $273,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational impact of this program depends on the actual facilities built.
2021 CIP 4-53
4.5.2. Untreated Water Facilities Improvements Sub-Program
The purpose of this sub-program is to provide the funding for improvement projects to enable reliable and safe operations of the existing untreated water system. The Contra Costa Canal is approaching 80 years of continuous service and improvements are necessary to ensure that the water delivery system continues to operate in the coming decades. Similarly, many of the other untreated water facilities are in need of renewal and replacement as these facilities reach the end of their useful lives.
The CIP includes $538.6 million for two Canal Modernization projects in this sub-program, one for the Main Canal starting at Pumping Plant 1 to the Shortcut Pipeline turnout in Clyde and the other for the remainder of the Canal to Martinez. These projects are tracked separately to distinguish the funding and engineering efforts required for each key section of the Canal system. The initial phases of planning and design for the Canal Modernization projects are included as priority level 2 funding projects at approximately $31.4 million, whereas the initial stages of construction are included as priority level 3 projects in the outer years of the CIP window and beyond. The cost estimate has been revised as planning efforts progressed in the past year and the estimate will continue to be updated as the project becomes more defined.
The Canal Replacement Project included in this sub-program, will protect source water quality, provide flood protection and enhance public safety by replacing the four miles of unlined Canal from the Rock Slough headworks to Pumping Plant 1 with a buried pipeline. Approximately 13,500 feet of pipeline has been installed to date to replace the Canal. The CIP includes $45.7 million for this project to complete the remaining 7,500 feet in FY2026.
Also included in this sub-program are improvements at existing intakes to improve performance. The Mallard Slough Channel Rehabilitation project includes the dredging of the channel to remove sediment to the depth of the original design. The Rock Slough Fish Screen Improvements includes $2.3 million of priority level 1 funding to complete safety improvements for maintenance activities.
Other projects in this sub-program include projects that renew, replace, and upgrade existing untreated water facilities, such as canal lining, pipelines, pump stations and reservoirs, which combined for a total of $82.3 million. This is an increase of $16.8 million as a result of the recently completed studies which identified renewal and replacement needs for existing untreated water facilities to maintain reliable operations of the aging system. This also includes the Shortcut Pipeline Refurbishments project which is a phased approach to providing access to and rehabilitation of the pipeline that was originally constructed in the 1970s.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.25.
2021 CIP 4-54
Table 4.25 Untreated Water Facilities Improvement Sub-Program Summary (In million dollar, current dollars)
Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP
Canal Mod.-Main
NA 3.25 3.25 4.90 8.49 8.60 101.15 104.15 99.22 99.22 99.22 531.44
Canal Mod. -Loop
NA 0.00 0.00 0.29 0.00 0.00 0.00 1.10 1.52 2.12 2.18 7.20
Canal Replace. NA 0.00 0.00 1.61 10.08 11.11 22.91 0.00 0.00 0.00 0.00 45.71 Mallard Slough Rehab
NA 0.79 3.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.55
Rock Slough Fish Screen
NA 2.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.34
UW Facilities Improvements
NA 3.37 3.13 4.15 4.23 3.13 2.64 6.98 7.78 6.72 6.66 48.81
Shortcut Pipeline Refurbishment
NA 0.69 6.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.16
UW Reservoir Rehab
NA 1.50 0.71 1.44 0.54 0.66 0.68 0.73 1.90 1.81 4.37 14.32
Transfer Pump Station Improve.
NA 0.00 0.00 0.33 0.94 7.40 3.34 0.00 0.00 0.00 0.00 12.00
Total NA 11.93 17.31 12.72 24.28 30.89 130.72 112.96 110.42 109.87 112.44 673.53
2020 CIP Canal Mod.-Main
2.97 3.32 4.36 5.89 40.14 63.49 96.74 96.74 96.74 90.69 NA 501.08
Canal Mod. -Loop
0.28 0.00 0.00 0.00 0.00 1.06 1.46 2.04 2.11 2.10 NA 9.04
Canal Replace. 0.03 0.00 0.00 1.61 10.08 11.11 22.91 0.00 0.00 0.00 NA 45.74 Mallard Slough Rehab
0.18 0.66 3.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 4.38
Rock Slough Fish Screen
1.34 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 3.34
UW Facilities Improvements
3.60 3.24 4.07 3.90 2.76 4.66 4.66 4.66 4.66 4.66 NA 40.87
Shortcut Pipeline Refurbishment
1.65 5.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 7.45
UW Reservoir Rehab
1.34 0.46 0.20 0.74 0.40 1.14 0.30 1.14 0.20 1.14 NA 7.07
Transfer Pump Station Improve.
0.00 0.26 0.90 6.09 2.83 0.00 0.00 0.00 0.00 0.00 NA 10.08
Total 11.39 15.73 13.08 18.23 56.20 81.46 126.07 104.58 103.71 98.59 NA 629.04
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-55
PROJECT SUMMARY
CANAL MODERNIZATION – MAIN CANAL Priority: 2/3 Lead Department: Engineering 2021 CIP Total: $531,442,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this project is to ensure long-term safety, reliability and cost-effective renewal and replacement requirements for domestic and industrial water supply conveyance. The almost 80-year old Contra Costa Canal (Canal) is experiencing increasing repair and maintenance needs from aging equipment, failing concrete liner, failing roads, and ongoing soil movement. This project is ranked as Priority Level 2 because the District has a moderate level of control over the scope and implementation of this project. Construction of the project is ranked as Priority Level 3 because the District has significant control as to when to implement these portions of this project, and funding sources are uncertain at this time. Scope: The initial phase of the project is to evaluate the Canal facilities from Pumping Plant 1 in Oakley to the Shortcut Pipeline turnout in Clyde, referred to as the Main Canal, and recommend improvements to be implemented, subject to funding. Status: Studies to date concluded that a fully enclosed pipeline meets the operational, safety and risk considerations. Peer review completed in FY2018 concluded that additional evaluation is warranted given the significant financial investment required to replace the Canal with a pipeline. A comprehensive risk-based evaluation of project alternatives was performed in FY2019. The alternatives analysis resulted in selection of three project alternatives for further evaluation. A finance plan for these alternatives will be developed which will be utilized for public opinion research that will be completed in FY2020. Preliminary design and environmental planning as well as outside agency outreach and coordination activities are planned for FY2021 and FY2022. Completion of environmental documentation, final design, and other project activities are anticipated in FY2025. As project efforts increase, District staffing will also increase to support these efforts. Construction is scheduled to follow, subject to available funding.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-56
This project was included in the 2020 CIP at a total cost of $501,080,000. The cost has been adjusted for inflation and updated cost estimates. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 6,219 3,249 3,249 4,837 4,930 4,930 4,930 4,932 37,276 3 60 3,560 3,665 96,220 99,220 99,220 99,220 99,220 184,615 685,000
Total 6,219 3,249 3,249 4,897 8,490 8,595 101,150 104,152 99,220 99,220 99,220 184,615 722,276 Cost Estimate Accuracy Range: $1,080,305,000 to $507,459,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Any operational impact of this project will be determined after the specific scope has been identified.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-57
PROJECT SUMMARY
CANAL MODERNIZATION –
LOOP CANAL
Priority: 2/3 Lead Department: Planning 2021 CIP Total: $7,203,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this project is to ensure the District’s ability to meet its water supply objectives. The Contra Costa Canal (Canal) facilities from the Shortcut Turnout to Martinez Reservoir, referred to as the Loop Canal, currently provides water supply to a limited number of customers and provides redundancy to the Shortcut Pipeline. The almost 80-year old Canal is experiencing increasing repair and maintenance needs from failing concrete liners and ongoing soil movement. The annual operation, maintenance, and capital repair costs for the Loop Canal exceeds the annual water sales revenue and as the facility continues to age these costs will increase. The initial phase of the project is ranked as Priority Level 2 because the District has a moderate level of control over the scope and implementation of this project. Implementation of the project is ranked as Priority Level 3 because the District has significant control as to when to implement these portions of this project, and funding sources are uncertain at this time. Scope: As the reliability and capacity of Shortcut Pipeline and other District facilities improve, the need for untreated water conveyance along this corridor may change. Studies to date have considered various alternatives, including continuing untreated water in open conveyance, providing recycled water in open conveyance, and replacing the Canal with untreated or recycled water conveyance in a pipeline. The initial phase of the project includes an alternatives evaluation. Status: An alternatives evaluation is planned for FY2023. Planning/design activities are planned through FY2030. The schedule may change as the Concord Naval Weapons Station project moves forward. This program was included in the 2020 CIP at a total cost of $9,039,000. The cost has been adjusted based on updates in timing to implement. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 289 289 3 1,099 1,521 2,116 2,178 158,696 165,610
Total 289 1,099 1,521 2,116 2,178 158,696 165,899 Cost Estimate Accuracy Range: $248,849,000 to $116,309,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project may impact operations which will be determined after the specific scope has been identified.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-58
PROJECT SUMMARY
CANAL REPLACEMENT PROJECT Priority: 1/2/3 Lead Department: Engineering 2021 CIP Total: $45,708,000 Project Funding: UW rates, grants, outside
fees Purpose and Priority Basis: The purpose of this project is to improve source water quality at the District’s Rock Slough Intake by hydraulically isolating the high saline groundwater from the Canal. The project will also increase public safety, flood control, and reduce District liability by eliminating an open canal adjacent to planned urban development. The District’s match for future segments is ranked as Priority Level 2 because the District has a moderate level of control over the scope and implementation. The remaining project costs are ranked as Priority Level 3 because the District has significant control as to when to implement these portions of this project, and developer and grant funding sources are uncertain at this time. Scope: The project consists of replacing approximately four miles of canal from Pumping Plant No. 1 to Rock Slough with a buried pipeline within the USBR right-of-way, and ultimately replacement of Pumping Plant No. 1. The work has been phased to match specific reaches of the canal with unique project partners, funding sources, and benefits, and address the areas of highest risk first. All major permitting and mitigation requirements have been completed and will be extended or modified as required by the project schedule. Status: Four segments, totaling approximately 13,000 linear feet of pipe, have been installed. Development of the East Cypress Corridor requires replacement of the Canal beneath and approximately 1,000 feet to the south of East Cypress Road, which is envisioned to be completed by the Developer. The final 7,400-foot Canal segment and interim Pumping Plant 1 modifications to meet current demands is included as Priority Level 2 funding for a local match (District and City of Brentwood) of future, unidentified, outside funding. The associated outside funding is included as Priority Level 3 and may consist of developer fees for which the timing is unknown. Also included as Priority Level 3 is replacement of Pumping Plant 1, which is needed to restore full pumping capacity following encasement of the entire canal from Pumping Plant No. 1 to Rock Slough. Timing of Pumping Plant 1 replacement is uncertain and will be planned as demands increase or as needed to support other projects, such as the Los Vaqueros Expansion
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-59
This project was included in the 2020 CIP at a total cost of $104, 407,000. Costs have been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 57,707 57,707 2 568 11,455 12,023 3 1,611 10,076 10,543 11,455 33,685
Total 57,707 1,611 10,076 11,111 22,910 103,415 Cost Estimate Accuracy Range: $126,271,000 to $89,704,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The operational costs of this project are anticipated to be significant due to new activities required to maintain and clear debris from the new pipeline. However, these costs will be offset by a reduction of activities associated with the open waterway (such as levee maintenance, weed control, dredging, etc.) that will no longer be needed. Therefore, net operating impacts are assumed negligible.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-60
PROJECT SUMMARY
MALLARD SLOUGH CHANNEL
REHABILITATION
Priority: 2 Lead Department: Engineering 2021 CIP Total: $4,550,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this project is to enable the District to operate the Mallard Slough Pump Station as originally designed without operational restrictions due to low intake water levels. The Mallard Slough intake channel, 40 feet wide and 3,000 feet long, was acquired by CCWD in 1961 to draw water from Suisun Bay to the Mallard Slough Pump Station in Bay Point. The District performed a bathymetric survey of the channel in October 2006 and determined that five feet of sediment have built up since 1987, when the bottom of the slough was last dredged. This continuing buildup of sediment can significantly reduce the capacity of the pump station The project is ranked as Priority Level 2, because the District has a moderate level of control over the scope and implementation. Scope: Dredge the channel to its original design depth and remove the sediment spoils to a designated disposal site. Status: The permitting phase of the project occurred in FY2010 through FY2012. Construction must be completed by the end of 2022 due to the expiration of permits. Design, identification of spoils disposal locations, and construction are scheduled for FY2021 and FY2022. This program was included in the 2020 CIP at a total cost of $4,380,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 370 790 3,760 4,920 3
Total 370 790 3,760 4,920 Cost Estimate Accuracy Range: $7,195,000 to $3,555,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Operational impacts are expected to be minimal.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-61
PROJECT SUMMARY
ROCK SLOUGH FISH SCREEN
IMPROVEMENTS
Priority: 1 Lead Department: Engineering 2021 CIP Total: $2,338,000 Project Funding: UW rates and USBR Purpose and Priority Basis: The purpose of this project is to protect sensitive aquatic species and enhance safety and efficiency of operation at the Rock Slough Fish Screen (RSFS), constructed by the Bureau of Reclamation (Reclamation) with District support in 2012. After facility startup, deficiencies in the areas of debris removal efficiency, mechanical systems reliability and safe access for maintenance were identified. The District has indicated it will assume ownership of the Rock Slough Fish Screen provided adequate funding is provided by Reclamation to provide for safe and reliable operation of the facility. The project is ranked as Priority Level 1, because it is partially outside funded. Scope: Operational and safety improvements to ensure safe, efficient operation of the fish screen. Status: Alternatives studies and development of a prototype rake system began in late FY2012 and were completed in FY2014. Testing of the prototype rake system and design of the RSFS improvements was been impacted by regulatory approvals, which were obtained in late FY2018. Additional Reclamation funding was received in mid FY2019. Design and fabrication of the rake prototype has been completed and testing is currently taking place. Design of the other RSFS components is underway and expected to be completed mid FY2020. Construction is estimated to begin in late FY2020 and be completed in FY2021 pending sufficient reclamation funding. This project was included in the 2020 CIP at a total cost of $5,577,000. The costs have been adjusted for inflation and reflect the work completed in FY2020. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 3,602 2,338 5,940 2 3
Total 3,602 2,338 5,940 Cost Estimate Accuracy Range: $7,109,000 to $5,238,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The District has operated and maintained this federal facility since construction completion, and it is anticipated the District will assume formal responsibility for operation and maintenance upon completion of the improvements, as it has for the Contra Costa Canal and related facilities.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-62
PROJECT SUMMARY
SHORTCUT PIPELINE REFURBISHMENT Priority: 2 Lead Department: Engineering 2021 CIP Total: $7,157,000 Project Funding: UW Rates, grant and canal
levy tax Purpose and Priority Basis: The purpose of this project is to ensure reliable long-term water supply to the City of Martinez and several industrial customers including the Shell Refinery. The Shortcut Pipeline, constructed in 1971, is a 5 mile long and ranges in size from 42 to 60 inches in diameter. The pipeline was the subject of a 2009 risk assessment of geotechnical, structural and corrosion protection conditions which identified various access and facility improvments. Scope: Refurbish the pipeline and appurtenant facilities. This project is ranked as Priority Level 2 because the District has a moderate level of control over the scope and implementation of this project. Status: A phased approach to design, permitting, construction of access improvements and replacement of air relief valves, blow off valves, and isolation valves and inspection was completed in FY2019. The inspection identified significant settlement beneath the western Walnut Creek Levee. The 2009 risk assessment was updated and identified the need to install a parallel pipeline under the Walnut Creek levee and the Concord Fault. These repairs are included in the CIP with design occurring in FY2021 and construction in FY2022. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 10,946 691 6,466 18,103 3
Total 10,946 691 6,466 18,103 Cost Estimate Accuracy Range: $21,682,000 to $15,956,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: There will be long-term benefits for operation and maintenance as a result of the project to ensure continued reliable operation of this critical facility. Interim impacts of construction will require several shutdowns of the Shortcut Pipeline with the Loop Canal providing service during these shutdowns.
Shortcut Pipeline
Canal
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-63
PROJECT SUMMARY
TRANSFER PUMP STATION
IMPROVEMENTS
Priority: 3 Lead Department: Planning 2021 CIP Total: $12,000,000 Project Funding: Unknown at this time Purpose and Priority Basis: The purpose of this project is to meet operational needs for the higher average reservoir level resulting from the 2012 expansion of Los Vaqueros Reservoir to 160,000 AF. This project is ranked as a Priority Level 3, because the schedule and funding of improvements are unknown. Scope: Replace the existing 2,100 horsepower pumps with 3,000 horsepower units. Status: The project, which was originally part of the reservoir expansion effort, was rescheduled to a later date as it was determined that exhausting the useful life of the existing pumps prior to replacement would be more cost-effective. Timing for completion in this CIP is based on other improvements occurring at this facility as part of Los Vaqueros Expansion project. This project was included in the 2020 CIP at a total cost of $10,075,000. The costs have been adjusted for inflation, implementation timing, and updated cost estimate. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 330 940 7,395 3,335 12,000
Total 330 940 7,395 3,335 12,000 Cost Estimate Accuracy Range: $18,000,000 to $8,400,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: The net impact of the pump station upgrade is expected to be minimal.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-64
PROJECT SUMMARY
UNTREATED WATER
FACILITIES IMPROVEMENT
PROGRAM
Priority: 1/2 Lead Department: Engineering 2021 CIP Total: $48,806,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this program is to improve operational reliability of the District’s untreated water facilities, some of which are approaching 80 years of age and nearing the end of their useful lives. The program maintains and improves the pump stations, canals, and appurtenant infrastructure and roads associated with the Contra Costa Canal (Canal), conveyance pipelines and facilities installed as part of the Los Vaqueros Reservoir system, and Mallard Slough intake and pipeline. Improvements are identified and prioritized in the 2020 Untreated Water Renewal and Replacement Study. This program is ranked as Priority Level 2. Many of the District’s untreated water facilities may be approaching the end of their useful life. The improvements made by this program will ensure a reliable system of operation and greater maintenance efficiency. Scope: This program includes design and construct of improvements or repairs to pipelines, structures, laterals, wasteways, storm drainage, concrete canal liners, mechanical and electrical equipment, instrumentation, roads, bridges, fences, and erosion-impacted sites. Status: Planned FY2021 and FY2022 work includes Priority Level 1 and Priority Level 2 projects such as Canal liner repairs; improvements to work platforms and pump access platforms at pumping plants; pumping plant rake system improvements; safety improvements at Flow Control Station No. 1; and Canal debris screening systems. Other projects recommended in the 2020 Untreated Water Renewal and Replacement Study are anticipated to be completed in FY2023 and beyond. This program was included in the 2020 CIP at a total cost of $40,526,000. The cost has been adjusted for inflation and to reflect new and updated projects in the 2020 Untreated Water Renewal and Replacement Study. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3,370 3,133 4,151 4,231 3,130 2,644 6,981 7,778 6,724 6,664 48,806 3
Total 3,370 3,133 4,151 4,231 3,130 2,644 6,981 7,778 6,724 6,664 48,806 Cost Estimate Accuracy Range: $73,209,000 to $34,164,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project improves operations and maintenance of untreated water facilities and reduces water loss. For purposes of the CIP, operational impacts are assumed negligible.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES IMPROVEMENTS PAGE 4-65
PROJECT SUMMARY
UNTREATED WATER
RESERVOIR REHABILITATION
PROGRAM
Priority: 2/3 Lead Department: Engineering 2021 CIP Total: $14,324,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this program is to improve reliability of the District’s untreated water reservoirs, some of which are over 60 years old. FY2021 – FY2024 activities have been ranked as Priority Level 2 because the District has a moderate level of control over scope and implementation. Subsequent activities have been ranked as Priority Level 3 because the District has a significant level of control over the scope and implementation of these activities. Scope: Implement improvements identified and prioritized in the 2019 Untreated Water Reservoir Master Plan. Status: Priority Level 2 work planned for FY2021 includes the abandonment of the Chenery pipeline and demolition of the Chenery Tower at the Mallard Reservoir. Additionally, the District is prioritizing work identified in the 2019 Untreated Water Reservoir Rehabilitation Master Plan to address renewal and replacement needs as well as improvements to reservoir infrastructure. Future Priority Level 3 programs include improvements to video surveillance, enhancements to physical security, rehabilitation of reservoir access roads, and connecting existing instrumentation to the Supervisory Control and Data Acquisition (SCADA) System. This program was included in the 2020 CIP at a total cost of $7,072,000. The cost has been adjusted for inflation and to reflect new and updated projects in the 2020 Untreated Water Reservoir Rehabilitation Study. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 1,495 705 895 3,095 3 549 538 656 678 726 1,904 1,805 4,373 11,229
Total 1,495 756 1,444 538 656 678 726 1,904 1,805 4,373 14,324 Cost Estimate Accuracy Range: $21,487,000 to $10,027,000 (+50%/-30%) ENR-CCI: 12,107
Operational Impacts: Operational impacts of this project are anticipated to be minimal. Increasing surveillance, physical security, and automated dam instrumentation will decrease the cost of dam monitoring and increase the level of dam oversight though higher quality, real time data.
2021 CIP 4-66
4.5.3. Untreated Water Facilities Planning Sub-Program
This sub-program include planning and general untreated water facilities projects that are not specifically making improvements but are necessary in meeting District goals. Included in this sub-program is the periodic updated to the Untreated Water Facility Improvement Plan which identifies and prioritized projects and was recently updated in 2019. Additionally, this sub-program includes the Canal Facility Title Transfer project to enable the District to take title of the USBR owned Contra Costa Canal, anticipated to be complete in 2021.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.26.
Table 4.26 Untreated Water Facilities Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP Canal Title Transfer
NA 0.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.92
UW Facilities Improvement Plan
NA 0.00 0.00 0.00 0.00 0.34 0.00 0.00 0.00 0.00 0.34 0.68
Total NA 0.92 0.00 0.00 0.00 0.34 0.00 0.00 0.00 0.00 0.34 1.60 2020 CIP
Canal Title Transfer
0.01 0.45 0.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA 0.92
UW Facilities Improvement Plan
0.11 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 0.00 NA 0.44
Total 0.13 0.45 0.45 0.00 0.00 0.33 0.00 0.00 0.00 0.00 NA 1.36
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES PLANNING PAGE 4-67
PROJECT SUMMARY
CONTRA COSTA CANAL
FACILITIES TITLE TRANSFER
Priority: 2 Lead Department: Planning 2021 CIP Total: $920,000 Project Funding: UW rates Purpose and Priority Basis: The purpose of this project is to improve the efficiencies of project delivery and maintenance of work conducted on the Contra Costa Canal and related facilities. The District took over responsibility of operations and maintenance of the facilities in 1972. Continuing Bureau of Reclamation oversight of the facilities results in duplicative project reviews and administration. Efficiencies can be gained by transferring the facilities to the District. The District’s Central Valley Project (CVP) Water Service and Facilities Repayment Contract with the United States Bureau of Reclamation provides for the ability for the District to take ownership of the Federal facilities the District operates, including the Contra Costa Canal, Shortcut Pipeline, Contra Loma and Martinez Reservoirs, land, and other associated facilities. The prerequisites for title transfer include repayment of all project works (completed in 2010) and authorization from the United States Congress which was completed in 2019. This project is ranked as Priority Level 2 because the District has a moderate level of control over scope and timing. Scope: The project initiates the process to transfer title of the federal facilities to the District. The two main steps in the process are development of federal legislation and implementation of title transfer through the Bureau of Reclamation. Key steps in the implementation process would include property record review, hazardous materials review, NEPA, cultural (section 106) review, transfer of dam oversight from federal to state jurisdiction, and a stakeholder, including East Bay Parks, engagement process and negotiation of terms of the title transfer. Status: The federal legislation has been passed and the remaining key step are anticipated to be completed in FY2021. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 79 920 999 3
Total 79 920 999 Cost Estimate Accuracy Range: $1,196,000 to $782,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: This project is anticipated to reduce O&M costs due to elimination of duplicative project oversight and environmental review.
PROGRAM: UNTREATED WATER FACILITIES
SUB-PROGRAM: UNTREATED WATER FACILITES PLANNING PAGE 4-68
PROJECT SUMMARY
UNTREATED WATER FACILITY IMPROVEMENT PLAN
UPDATE Priority: 2 Lead Department: Planning 2021 CIP Total: $682,000 Project Funding: 78% UW rates, 22% UW FRCs Purpose and Priority Basis: The purpose of this project is to ensure timely, cost effective, and environmentally sound improvements to the District's untreated water facilities. The Untreated Water Facilities Improvement Plan (UWFIP) evaluates future needs of the untreated water facilities including such items as required capacity improvements, structural upgrades, renewal/replacement needs, and evaluation of alternatives to reduce loop canal maintenance costs. This project is ranked as Priority Level 2 because the integrity of the untreated water system depends on a comprehensive plan to ensure timely and cost-effective improvements. Scope: The Untreated Water Facility Improvement Plan prioritizes projects necessary to meet future needs of the District. The periodic update to the plan to ensures that the plan accurately reflects current improvement priorities and long-term facility reliability. Status: The plan was last updated in early 2020. Future updates of the UWFIP will be completed in FY2025 and FY2030. This program was included in the 2020 CIP at a total cost of $442,000. The cost has been adjusted for inflation and addition of another update to the plan. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 341 341 682 3
Total 341 341 682 Cost Estimate Accuracy Range: $887,000 to $586,000 (+30%/-15%) ENR-CCI: 12,525
Operational Impacts: As a study, there are no direct operations and maintenance costs associated with this project. Operational impacts for each project recommended in the study would be evaluated as projects are implemented.
2021 CIP 4-69
4.6. Water Treatment Facilities Program
The District's water treatment facilities are an essential element in providing high-quality water to its treated water customers. This program contains capital improvement projects for replacing, improving, and enhancing the water treatment facilities to maintain and enhance water quality and system reliability.
The Water Treatment Plant (WTP) Master Plan, updated in FY2020, provides the planning basis for both renewal and replacement projects and new facilities related to reliability and regulatory requirements at the treatment plants. Upgrades at all three treatment plants are included in the CIP at a combined cost of $59.4 million. Improvements include electrical, ozone and control systems and chemical storage facilities, as well as instrumentation replacement and safety improvement projects. Priority level 3 projects totaling $98.3 million are included, subject to availability of funding.
Program funding for the next ten years is estimated at $144.7 million, of which $46.4 are Priority 1 and 2 projects to perform safety projects and renew, replace, and enhance existing treatment facilities as shown by fiscal year in Table 4.27. For comparison, 2020 CIP funding levels are also shown.
Table 4.27 Water Treatment Facilities Program Summary (In million dollar, current dollars) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP Priority 1 & 2 NA 3.2 1.8 6.9 7.4 5.4 4.1 4.8 4.2 4.5 4.3 46.4 Priority 3 NA 0.0 0.0 0.0 1.1 2.2 6.8 27.3 27.6 16.4 16.9 98.3 Total NA 3.2 1.8 6.9 8.5 7.7 10.9 32.1 31.7 20.9 21.2 144.7 2020 CIP Priority 1 & 2 6.7 3.6 3.4 2.9 5.7 3.2 5.0 3.8 5.4 5.6 NA 45.2 Priority 3 0.0 0.8 7.9 10.1 20.6 27.5 29.0 28.6 0.0 0.0 NA 124.5 Total 6.7 4.4 11.3 13.0 26.3 30.7 34.0 32.4 5.4 5.6 NA 169.8
In comparison to the 2020 CIP, this program has decreased $25.1 million all in priority level 3 projects. Changes are a result of inflation and the definition of project costs and timing as a result of the recently completed WTP Master Plan.
This program includes three sub-programs – Water Treatment Plant Facilities Improvements, Water Treatment Facilities Planning, and Water Treatment Plant Expansion – each of which are discussed in more detail below including the projects within each sub-program. A summary of the total costs per sub-program and a comparison to 2020 CIP is provided in Table 4.28.
2021 CIP 4-70
Table 4.28 Sub-Program Summary within Water Treatment Facilities Program (In million dollar, current dollars)
Sub-Program FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL 2021 CIP WTP Facilities Improve.
NA 3.2 1.8 6.9 8.5 7.5 6.1 6.3 5.4 6.1 7.6 59.4
Planning NA 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.5 WTP Expansion NA 0.0 0.0 0.0 0.0 0.2 4.8 25.2 26.3 14.8 13.5 84.8 Total NA 3.2 1.8 6.9 8.5 7.7 10.9 32.1 31.7 20.9 21.2 144.7 2020 CIP WTP Facilities Improve.
6.5 4.2 10.2 8.3 7.6 3.9 8.8 18.0 3.4 3.6 NA 74.7
Planning 0.1 0.2 1.1 1.1 1.1 2.0 2.0 2.4 2.0 2.0 NA 13.9 WTP Expansion 0.0 0.0 0.0 3.6 17.6 24.8 23.2 11.9 0.0 0.0 NA 81.1 Total 6.7 4.4 11.3 13.0 26.3 30.7 34.0 32.4 5.4 5.6 NA 169.8
The significant projects within this overall program are as follows:
Bollman WTP Improvements (priority level 2 - $22.0 million; priority level 3 - $9.5 million) City of Brentwood WTP Improvements (priority level 2 - $3.1 million, priority level 3 - $0.4
million) Randall-Bold WTP Improvements (priority level 2 - $20.8 million, priority level 3 - $3.6 million) City of Brentwood Water Treatment Plant Expansion (priority level 3 - $53.6 million) Randall-Bold Water Treatment Plant Expansion (priority level 3 - $31.2 million)
The detail discussion on each sub-program within the Water Treatment Facilities Program includes a summary of costs for each project and comparison to the 2020 CIP costs. The comprehensive summary for each project within the sub-program included in the discussion provides a description, costs, O&M impacts, and funding source.
4.6.1. Water Treatment Plant Facilities Improvements Sub-Program
Improvement projects identified in the WTP Master Plan are included in this sub-program for each of the WTP facilities. The WTP Master Plan, recently updated in FY2020, identified and prioritized the projects at each WTP to address renewal and replacement needs of aging infrastructure as well as process improvements that can optimize operations and address regulatory changes anticipated in the future.
Overall this program has decreased $16.4 million from the 2020 CIP, primarily as a result of the completion of the WTP Master Plan that re-evaluated the projects previously included and reprioritized. A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.29.
2021 CIP 4-71
Table 4.29 Water Treatment Plant Facilities Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP BWTP Improve. NA 0.48 0.77 3.39 4.43 2.12 3.80 3.81 4.75 3.69 4.25 31.48 CBWTP Improve.
NA 0.14 0.32 0.79 0.76 1.14 0.04 0.04 0.04 0.04 0.12 3.44
RBWTP Improve.
NA 2.54 0.68 2.77 3.27 4.20 2.28 2.48 0.63 2.35 3.25 24.45
Total NA 3.17 1.77 6.94 8.46 7.45 6.12 6.34 5.42 6.09 7.62 59.37 2020 CIP
BWTP Improve. 4.24 1.39 3.25 6.73 6.29 3.18 5.97 9.81 2.89 0.41 NA 44.17 CBWTP Improve.
1.02 0.38 0.24 0.07 0.15 0.12 0.38 0.07 0.07 1.05 NA 3.54
RBWTP Improve.
1.27 2.40 6.74 1.54 1.21 0.64 2.44 8.17 0.45 2.13 NA 27.00
Total 6.53 4.18 10.23 8.33 7.65 3.95 8.79 18.05 3.41 3.60 NA 74.70
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WTP FACILITIES IMPROVEMENTS PAGE 4-72
PROJECT SUMMARY
BOLLMAN WATER TREATMENT
PLANT IMPROVEMENTS
Priority: 2/3 Lead Department: Planning/Engineering/O&M 2021 CIP Total: $31,482,000 Project Funding: TW rates Purpose and Priority Basis: The purpose of the Water Treatment Plant (WTP) Improvement Program is to implement projects that ensure the District continues to meet regulatory requirements and treated water production demands by operating facilities safely and cost-effectively. Bollman WTP was constructed in 1968 and has facilities and equipment that are in need of renewal and replacement due to age and normal wear and tear. The safety component of the program is ranked as Priority Level 1; improvements for which the District has a moderate level of control over the scope and implementation are ranked as Priority Level 2 with Priority Level 3 ranking for components for which the District has a significant level of control over the scope and schedule. Scope: Design and construct improvements to processes and facilities, and restore aging equipment and structural, mechanical, and electrical components. The 2020 WTP Master Plan provided the basis for recommended improvements and prioritization. Status: Planned FY2021 and FY2022 work includes Priority Level 2 projects such as assessments and repairs of concrete walls and underground pipes; chemical storage improvements; replacement of ozone analyzers and turbidimeters; installation of permanent process for in-plant algae control; and other projects recommended in the 2020 WTP Master Plan. This program was included in the 2020 CIP at a total cost of $44,171,000. The cost has been adjusted based on the results of the 2020 WTPMP which identified and prioritized projects. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 478 765 3,385 4,434 1,780 2,042 2,579 3,515 2,059 980 22,017 3 340 1,755 1,235 1,235 1,635 3,265 9,465
Total 478 765 3,385 4,434 2,120 3,797 3,814 4,750 3,694 4,245 31,482 Cost Estimate Accuracy Range: $47,224,000 to $22,038,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project improves operations and maintenance of Bollman WTP. For purposes of the CIP, operational impacts are assumed negligible.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WTP FACILITIES IMPROVEMENTS PAGE 4-73
PROJECT SUMMARY
CITY OF BRENTWOOD WATER
TREATMENT PLANT
IMPROVEMENTS
Priority: 2/3 Lead Department: Planning/Engineering/O&M 2021 CIP Total: $3,440,000 Project Funding: City of Brentwood Purpose and Priority Basis: The purpose of the Water Treatment Plant (WTP) Improvement Program is to implement projects that ensure the District continues to meet regulatory requirements and treated water production demands by operating facilities safely and cost-effectively. Brentwood WTP was constructed in 2008 and has facilities and equipment that are in need of renewal and replacement due to age and normal wear and tear. Improvements for which the District has a moderate level of control over the scope and implementation are ranked as Priority Level 2 with Priority Level 3 ranking for components for which the District has a significant level of control over the scope and schedule. Scope: Design and construct improvements to processes and facilities, and restore aging equipment and structural, mechanical, and electrical components. The 2020 WTP Master Plan provided the basis for recommended improvements and prioritization. Status: Planned FY2021 and FY2022 work includes Priority Level 2 projects such as replacement of ozone analyzers and turbidimeters; installation of permanent process for in-plant algae control; and other projects recommended in the 2020 WTP Master Plan. This program was included in the 2020 CIP at a total cost of $3,536,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 143 321 787 638 951 43 43 43 43 43 3,055 3 120 185 80 385
Total 143 321 787 758 1,136 43 43 43 43 123 3,440 Cost Estimate Accuracy Range: $5,161,000 to $2,409,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project improves operations and maintenance of Brentwood WTP. For purposes of the CIP, operational impacts are assumed negligible.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WTP FACILITIES IMPROVEMENTS PAGE 4-74
PROJECT SUMMARY
RANDALL-BOLD WATER
TREATMENT PLANT
IMPROVEMENTS
Priority: 1/2/3 Lead Department: Planning/Engineering/O&M 2021 CIP Total: $24,447,000 Project Funding: TW rates, partners Purpose and Priority Basis: The purpose of the Water Treatment Plant (WTP) Improvement Program is to implement projects that ensure the District continues to meet regulatory requirements and treated water production demands by operating facilities safely and cost-effectively. Randall-Bold WTP was constructed in 1992 and has facilities and equipment that are in need of renewal and replacement due to age and normal wear and tear. The safety component of the program is ranked as Priority Level 1; improvements for which the District has a moderate level of control over the scope and implementation are ranked as Priority Level 2 with Priority Level 3 ranking for components for which the District has a significant level of control over the scope and schedule. Scope: Design and construct improvements to processes and facilities, and restore aging equipment and structural, mechanical, and electrical components. The 2020 WTP Master Plan provided the basis for recommended improvements and prioritization. Status: Planned FY2021 and FY2022 work includes Priority Level 2 projects such as chemical storage improvements; replacement of ozone analyzers and turbidimeters; installation of permanent process for in-plant algae control; and other projects recommended in the 2020 WTP Master Plan. This program was included in the 2020 CIP at a total cost of $26,995,000. The cost has been adjusted based on the results of the 2020 WTPMP which identified and prioritized projects. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 2,544 679 2,767 2,297 2,697 2,012 1,610 627 2,352 3,252 20,837 3 975 1,500 265 870 3,610
Total 2,544 679 2,767 3,272 4,197 2,277 2,480 627 2,352 3,252 24,447 Cost Estimate Accuracy Range: $36,674,000 to $17,114,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: This project improves operations and maintenance of Randall-Bold WTP. For purposes of the CIP, operational impacts are assumed negligible.
2021 CIP 4-75
4.6.2. Water Treatment Facilities Planning Sub-Program
This sub-program includes project related to planning efforts to identify improvement needs at the WTPs or other studies to assess areas for increased optimization and efficiency. As previously noted, the WTP Master plan was recently updated and an update is scheduled for FY2027. Overall this sub-program is Changes to this project from the 2020 CIP are a result of removing the implementation placeholder that had previously been included in the project. This placeholder was intended to fund improvements at the WTPs resulting from the WTP Master Plan. With the recent update of the master plan, these projects have been defined and moved under the relevant project in the Water Treatment Facilities Improvements sub-program.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.30.
Table 4.30 Water Treatment Facilities Planning Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP WTPMP Update NA 0.00 0.00 0.00 0.00 0.00 0.00 0.53 0.00 0.00 0.00 0.53 Total NA 0.00 0.00 0.00 0.00 0.00 0.00 0.53 0.00 0.00 0.00 0.53
2020 CIP WTPMP Update & Implement. Placeholder
0.14 0.21 1.08 1.08 1.08 1.98 1.98 2.42 1.98 1.98 NA 13.94
Total 0.14 0.21 1.08 1.08 1.08 1.98 1.98 2.42 1.98 1.98 NA 13.94
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WATER TREATMENT FACILITIES PLANNING PAGE 4-76
PROJECT SUMMARY
WATER TREATMENT PLANT MASTER PLAN UPDATE Priority: 2 Lead Department: Planning 2021 CIP Total: $529,000 Project Funding: TW rates, partners Purpose and Priority Basis: The purpose of this project is to ensure timely, cost effective and environmentally sound improvements to the District’s water treatment facilities through periodic updates of the Water Treatment Plant Master Plan (WTPMP). The WTPMP also provides a review of upcoming regulatory requirements possibly affecting the water treatment plants so the District can continue to be proactive on regulatory compliance. The master plans may recommend improvements to power and control systems, treatment and solids handling processes and chemical storage facilities. This project is ranked as Priority Level 2 because master plan updates are required to ensure that new regulations, capacity requirements, and other factors are addressed in a timely manner. Scope: Periodically update the WTPMP. Status: The plan was last updated in FY2020 and scheduled to be updated in FY2027. This project also includes funding for improvements recommended in the plans, starting with design in FY2021, followed by construction in FY2022. This program was included in the 2020 CIP at a total cost of $13,943,000. The cost has been adjusted for projects identified in the FY2020 for implementation at the WTPs which are included as separate projects in the CIP. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 529 529 3
Total 529 529 Cost Estimate Accuracy Range: $793,000 to $370,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Plan updates do not have operational impact. Operational impacts for projects recommended in the plan will be evaluated as they are developed.
2021 CIP 4-77
4.6.3. Water Treatment Plant Expansion Sub-Program
The purpose of this sub-program is to increase the competitiveness of the District through expanding services. Service expansion diversifies revenue sources and increases efficiencies through improved utilization of existing assets, such as sharing WTP facilities. Two projects are included in this sub-program, the expansion at the City of Brentwood (CB) WTP and expansion of Randall-Bold (RB) WTP.
The City of Brentwood WTP expansion will serve the ultimate needs of the City of Brentwood and will be fully paid for by the City. The RBWTP expansion is a placeholder project to expand the WTP on behalf of Diablo Water District (DWD). The schedule and costs of the expansion are based on DWD planning studies and the project will be fully paid for by DWD in accordance with the Joint Exercise of Powers Agreement. The WTP expansions are shown as priority level 3 projects due to the uncertainty of the timing of these expansions in light of the recent reductions in water demand.
A summary of the project totals included in each year for the 2021 CIP as well as the costs estimated in the 2020 CIP for comparison purposes is shown in Table 4.31. Increases are a result of inflation.
Table 4.31 Water Treatment Plant Expansion Sub-Program Summary (In million dollar, current dollars) Project FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 TOTAL
2021 CIP CBWTP Expansion
NA 0.00 0.00 0.00 0.00 0.21 4.76 25.00 23.67 0.00 0.00 53.63
RBWTP Expansion
NA 0.00 0.00 0.00 0.00 0.00 0.00 0.21 2.66 14.81 13.53 31.20
Total NA 0.00 0.00 0.00 0.00 0.21 4.76 25.21 26.33 14.81 13.53 84.83 2020 CIP
CBWTP Expansion
0.00 0.00 0.00 0.45 4.60 12.16 24.05 12.32 0.00 0.00 NA 53.58
RBWTP Expansion
0.00 0.00 0.00 3.12 13.13 13.07 0.00 0.00 0.00 0.00 NA 29.32
Total 0.00 0.00 0.00 3.57 17.74 25.22 24.05 12.32 0.00 0.00 NA 82.90
The comprehensive project summary for each project included in this sub-program follow.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WATER TREATMENT PLANT EXPANSION PAGE 4-78
PROJECT SUMMARY
CITY OF BRENTWOOD WATER TREATMENT PLANT
EXPANSION Priority: 3 Lead Department: Engineering 2021 CIP Total: $53,630,000 Project Funding: City of Brentwood Purpose and Priority Basis: The purpose of this project is to meet the anticipated water demands of the City of Brentwood’s customers. This project is ranked as Priority Level 3 as the schedule is unknown due to uncertainty of future demands. Scope: Expansion of the CCWD/City of Brentwood Water Treatment Plant to meet the ultimate needs of the City. Status: Expansion of the treatment plant is anticipated to begin in FY2023 and be completed in FY2027. The expansion schedule depends on the pace of development within the City of Brentwood, which may modify the schedule. This program was included in the 2020 CIP at a total cost of $51,792,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 205 4,755 25,000 23,670 53,360
Total 205 4,755 25,000 23,670 53,360 Cost Estimate Accuracy Range: $80,445,000 to $37,541,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Operating impacts for the future expansion of the CCWD/Brentwood Water Treatment Plant have not been included in the CIP due to the uncertainty in the timing of the project. Operational costs will be paid by the City of Brentwood.
PROGRAM: WATER TREATMENT FACILITIES
SUB-PROGRAM: WATER TREATMENT PLANT EXPANSION PAGE 4-79
PROJECT SUMMARY
RANDALL-BOLD WATER
TREATMENT PLANT EXPANSION
FOR DWD
Priority: 3 Lead Department: Engineering 2021 CIP Total: $31,200,000 Project Funding: DWD Purpose and Priority Basis: The purpose of this project is to meet the anticipated water demands of the Diablo Water District’s customers. This project is ranked as Priority Level 3 as the schedule is unknown due to uncertainty of future demands. Scope: Expansion of Randall-Bold Water Treatment Plant (RBWTP). Status: The Diablo Water District (DWD) has indicated that the expansion will be required between 2023 and 2025.This project includes a placeholder for design and construction of treatment facilities to expand the capacity of the RBWTP. The scope and schedule for the expansion depends on the pace of development within DWD, as well as treatment requirements of other RBWTP partners. This program was included in the 2020 CIP at a total cost of $29,321,000. The cost has been adjusted for inflation. Annual Cost Distribution (in $1,000s):
Priority Prior Years
CIP Years Future Years Total
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 1 2 3 205 2,655 14,810 13,530 31,200
Total 205 2,655 14,810 13,530 31,200 Cost Estimate Accuracy Range: $46,800,000 to $21,840,000 (+50%/-30%) ENR-CCI: 12,525
Operational Impacts: Operating impacts for this future expansion have not been included in the CIP due to the uncertainty in the timing of the project. Operational costs will be paid by the DWD.
2021 CIP AB-1
List of Abbreviations ACWD Alameda County Water District AF Acre-Feet AFY Acre-Feet per Year BMP Best Management Practice BWTP Bollman Water Treatment Plant CBIS Customer Billing and Information System CBWTP City of Brentwood Water Treatment Plant CCWD Contra Costa Water District CEQA California Environmental Quality Act CFS Cubic Feet per Second CIP Capital Improvement Program CMMS Computerized Maintenance Management System CNWS Concord Naval Weapons Station COE United States Army Corps of Engineers CRP Concord Reuse Plan CVP Central Valley Project CVPIA Central Valley Project Improvement Act CWC California Water Commission DSOD California Division of Safety of Dams DWD Diablo Water District EBMUD East Bay Municipal Utility District ECCC East Contra Costa County ECCID East Contra Costa Irrigation District EIR Environmental Impact Report EIS Environmental Impact Statement EMCP Extendable Municipal Commercial Paper ENR Engineering News Record FIS Financial Information System FRC Facilities Reserve Charge FWSS Future Water Supply Study FY Fiscal Year GIS Geographic Information System GSWC Golden State Water Company HRIS Human Resources Information System IRWMP Integrated Regional Water Management Plan JPA Joint Powers Authority LVE Los Vaqueros Expansion LVP Los Vaqueros Project MGD Million Gallons per Day MPP Multi-Purpose Pipeline MOU Memorandum of Understanding MRIP Middle River Intake Project NEPA National Environmental Policy Act O&M Operations and Maintenance OPEB Other Post Employment Benefits
2021 CIP AB-2
List of Abbreviations (continued)
PLRR Pipeline Renewal and Replacement RBWTP Randall-Bold Water Treatment Plant SBX7-7 Senate Bill X7-7, Water Conservation Act of 2009 SCADA Supervisory Control and Data Acquisition SFPUC San Francisco Public Utilities Commission SRF State Revolving Fund SRIP Seismic Reliability Improvement Project S&P Standard & Poors TAF Thousand Acre-Feet TW Treated Water TWFIP Treated Water Facility Improvement Program TWMP Treated Water Master Plan TWRR Treated Water Renewal and Replacement TWSA Treated Water Service Area USBR United States Bureau of Reclamation UW Untreated Water UWFIP Untreated Water Facility Improvement Program UWMP Urban Water Management Plan PUC Public Utilities Commission WTP Water Treatment Plant WTPMP Water Treatment Plant Master Plan 20x2020 Senate Bill X7-7, Water Conservation Act of 2009
2021 CIP IN-1
Index Bollman Water Treatment Plant Improvements ............................................................................................... 4-72 Building and Facility Improvements .................................................................................................................... 4-5 Canal Modernization – Loop Canal .................................................................................................................... 4-57 Canal Modernization – Main Canal ..................................................................................................................... 4-55 Canal Replacement Project ................................................................................................................................ 4-58 CCWD/EBMUD Treated Water Regional Intertie ................................................................................................ 4-40 City of Brentwood Water Treatment Plant Expansion ...................................................................................... 4-78 City of Brentwood Water Treatment Plant Improvements ............................................................................... 4-73 Concord Naval Weapons Station Potable Water Facilities ............................................................................... 4-36 Concord Naval Weapons Station Recycled Water Facilities .............................................................................. 4-37 Contra Costa Canal Facilities Title Transfer ....................................................................................................... 4-67 District-Wide Geographic Information System .................................................................................................... 4-7 East Contra Costa Region Integrated Regional Water Management Plan Update ........................................................................................................................................................ 4-26 Facility Reserve Charge Study Update ............................................................................................................... 4-25 Future Water Supplies Placeholder ................................................................................................................... 4-22 Future Water Supply Study Update ................................................................................................................... 4-24 Large Treated Water Meter Replacements .........................................................................................................4-43 Los Vaqueros Recreation Facilities and Equipment .......................................................................................... 4-29 Los Vaqueros Reservoir Expansion .................................................................................................................... 4-19 Los Vaqueros Watershed and Conservation Land Improvements .................................................................... 4-31 Mallard Slough Channel Rehabilitation ............................................................................................................. 4-60 Pipeline Renewal and Replacements ................................................................................................................. 4-44 Port Chicago Pipeline Phase II ............................................................................................................................ 4-39 Randall-Bold Water Treatment Plant Expansion for DWD ................................................................................ 4-79 Randall-Bold Water Treatment Plant Improvements ....................................................................................... 4-74 Replacement of Fleet Vehicles, Heavy Equipment, and Rental Equipment ..................................................... 4-15 Replacement of Laboratory Equipment .............................................................................................................. 4-9 Replacement of Radio System Equipment ........................................................................................................ 4-11 Replacement of SCADA Equipment .................................................................................................................... 4-12 Replacement of Telecommunications Equipment ............................................................................................ 4-13 Replacement/Upgrade of Computer Systems ..................................................................................................... 4-8 Replacement/Upgrade of Network Systems and Hardware ............................................................................. 4-10 Rock Slough Fish Screen Improvements ........................................................................................................... 4-61 Shortcut Pipeline Refurbishment ....................................................................................................................... 4-62 Transfer Pump Station Improvements .............................................................................................................. 4-63 Treated Water Applicant Funded Projects ......................................................................................................... 4-35 Treated Water Facilities Improvement Program ................................................................................................ 4-45 Treated Water Renewal and Replacement Study Update ................................................................................ 4-48 Treated Water Service Area Master Plan Update ............................................................................................... 4-47 Untreated Water Applicant Funded Projects ..................................................................................................... 4-52 Untreated Water Facilities Improvement Program ........................................................................................... 4-64 Untreated Water Facility Improvement Plan Update ........................................................................................ 4-68 Untreated Water Reservoir Rehabilitation Program ......................................................................................... 4-65 Water Treatment Plant Master Plan Update ...................................................................................................... 4-76 Water Use Efficiency for Regulations ................................................................................................................. 4-21 Water Use Efficiency Incentives .......................................................................................................................... 4-20