15 - Proposed FY 2013-14-15 CIP Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 15 T o: Board of Directors From: Scott Carroll , General Manager Date: March 28 , 2013 Subject: Proposed 2013/14 -15 C IP Summar y The follow ing is staff’s proposed Capital Improvement Plan (CIP) for the next two fiscal years (2013 -14 & 2014 -15). On April 18, 2013, staff will present to the Board projected revenues for th e next two fiscal years, which will consist of the District’s Asset Management Fund . S ta ff Recommendation That the Board of Directors give staff directions on the propo sed Capital Improvement Plan . Analysis Staff defines CIP projects as projects that are identified in the District’s Asset Management Plan and/or e xceeds $100,000 in costs. Projects that are less than $100,000 are funded out of Capital Outlay, with exception of replacing vehicles in the District’s fleet. Purchasing vehicles are not considered public works projects and are funded out of the District ’s Asset Replacement Fund, which is an internal fund for replacing vehicles and office equipment (e.g. computers, printers, copy machines, etc.). The following are more details for the District’s proposed CIP. CIP 2013 -14 1. Project #101 Westside Pump Stati on Abandonment - $400,000 is budgeted for this project, which bring s the total amount to $2,083,475 . Six CMSD sewer pump stations will be abandoned after OCSD completes a new trunk that can accommodate sewage flow from CMSD. OCSD’s project is expected to begin in 2016 -17 in which time, the District should have a total nearly $3 million for the abandonment project. In 2013 -14, the District Engineer will prepare a detail
Board of Directors March 28, 2013 Page 2 of 4 analysis of the projected actual cost for this project to determin e if staff’s estimat e is on target or needs additional money. 2. Force Main Upgrades – Due to the success of the assessment and rehabilitation at 23 rd and Santa Ana force mains, staff is continuing to use the PICA technology to assess Harbor, Victoria, Mendoza and South Coast Pl aza force mains. Staff is anticipating some, if not all, of the force mains identified will need rehabilitation. Staff is proposing to budget $1,000,000 t o rehabilitate 1,200 feet of force mains , if needed . 3. Replace Equipment at Pump Stations – According to the District’s Asset Management Plan, the life expectancy for certain equipment at some pump stations are at an end. Rather then being reactive to replacing equipment when it fails, thus, increasing the risk of a sanitary sewer overflow (SSO), staff be lieves we should follow the Asset Management Plan and be proactive to reducing the risk of SSOs. Staff is proposing to spend $260,000 on replacing equipment at pump stations. 4. Pipe & Valve Replacement at Elden Pump Station – Staff has assessed the pipes an d valves inside Elden Pump Station and determined they need replacement or risk failure and a possible SSO. Staff is proposing $150,000 to complete this work. 5. Emergency Generator at the Yard – The District Yard serves as the alternate Emergency Operations Center (EOC) if the EOC at HQ becomes inhabitable or unable to function as an EOC. A generator is needed at the Yard to ensure power is restored so staff can utilize necessary equipment such as computers, televisions, fax machines, etc. Staff is proposi ng $150,000 for installing a generator at the Yard. The total CIP Budget for FY 2013 -14 is $1,960,000 . CIP 2014 -15 1. Project #101 Westside Pump Station Abandonment - $400,000 is budgeted for this project, which bring s the total amount to $2,483,475 . 2. Proj ect #194 Pump Station Coating & Manhole Rehabilitation - This project will rehabilitate the coating in three pumping stations (Corporation Yard, Mendoza, and South Coast Plaza), and will also rehabilitate 20 sewer manholes with interior structural problems , including deteriorated channels, benches, and walls. Manholes with drop structures needing repair will also be rehabilitated . Staff is proposing $300,000 for this project. 3. Grade 4 Sewer Rehabilitation - For the past three years, the District has been rehabilitating Grade 5 sewer sections because failure was eminent. Soon, all the Grade 5’s will be rehabilitated and it will be time to rehabilitate Grade 4 secti ons before they become Grade 5’s . Staff is proposing to rehabilitate 183 sections at a cost of $568,000.
Board of Directors March 28, 2013 Page 3 of 4 4. Generator at Harbor Pump Station – This is part of Phase II for installing permanent emergency equipment at critical pump stations. There is inadequate space to install a by -pass pump at this station, so staff is recommending a generator be i nstalled to ensure power is immediately restored in the event of a power outage. Staff is proposing to spend $178,500 for this project. 5. Manhole Rehabilitation Project – According to the District’s Asset Management Plan, many manholes that are brick layere d are coming to the end of their life expectancy. Staff is proposing to rehabilitate 36 brick m anholes with spray -on cementitious material that is reinforced with fiberglass strips at a cost of $3 60,5 00 . 6. Hotspot 44 (Bristol & Randolph) – This hot spot loc ation is currently being cleaned four times a year because there are multiple sags along 155 feet of pipe that is located underneath Bristol Street. In addition, this pipe is 63 years old. Staff believe it will be more cost effective to replace the 155 f eet of pipe to reduce the maintenance frequency and the chance of an SSO occurring. Staff is proposing to budget $150,000 to replace this pipe. The total CIP Budget for FY 2014 -15 is $1,957,000 . Strategic Plan Element & Goal This item adh eres to the ob jective and strategy of Strategic Element 7 .0, Finance, which states: “Objective: To ensure the short and long -term fiscal health of the District. Strategy: The District will forecast and plan revenue and expenditures and maintain appropriate reserves a nd investments to provide financial resources to fund current and planned operations and projects.” Legal Review Not applicable Financial Review Funding for the CIP Budget is from the District’s Asset Management Fund. The fund curr ently has a balance of $5,140,000 for FY 2013 -14 and is proje cted to have a balance of $5,138,000 for FY 2014 -15. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the Marc h 28 , 201 3 Board of Directors regular meeting at District Headquarters and on District’s website.
Board of Directors March 28, 2013 Page 4 of 4 Alternative Actions 1. Direct staff to report back with more information. Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager