Capital Improvement Plan, 2016-20

2015·38 MB·English

by  Santa Clara Valley Water District.

Santa Clara Valley Water District
Fiscal Year 2016-20
Capital Improvement Plan
BOARD OF DIRECTORS
Gary Kremen
Chair, District 7
Dennis Kennedy Barbara Keegan
Vice Chair, District 1 District 2

Richard P. Santos Linda J. LeZotte
District 3 District 4

Nai Hsueh Tony Estremera
District 5 District 6

Submitted by
Beau Goldie
Chief Executive Officer
Presented by
Melanie Richardson
Deputy Operating Officer
May 12, 2015
Table of Contents
OVERVIEW
Overview .............................................................................................I-1
Alignment with Ends Policies .................................................................I-2
CIP Planning Process ............................................................................I-2
Fiscal Year 2016-20 CIP Summary ........................................................I-6
WATER SUPPLY CAPITAL IMPROVEMENTS
Water Supply Overview ........................................................................II-1
Priority Process and Financial Analysis ...................................................II-2
Water Supply Capital Improvements .....................................................II-4
Water Supply Funding Source ...............................................................II-5
Water Supply Project Pages
Storage Facilities ..........................................................................II-7
Transmission Facilities .................................................................II-23
Treatment Facilities .....................................................................II-45
Recycled Water Facilities .............................................................II-63
FLOOD PROTECTION CAPITAL IMPROVEMENTS
Flood Protection Overview ...................................................................III-1
Priority Process and Financial Analysis ..................................................III-2
Flood Protection Capital Improvements & Funding Sources ...................III-3
Flood Protection Project Pages
Lower Peninsula Watershed ..........................................................III-5
West Valley Watershed ...............................................................III-11
Guadalupe Watershed ..............................................................III-15
Coyote Watershed .....................................................................III-19
Uvas/Llagas Watershed .............................................................III-33
Multiple Watersheds ..................................................................III-37
WATER RESOURCES STEWARDSHIP CAPITAL IMPROVEMENTS
Water Resources Stewardship Overview ...............................................IV-1
Priority Process and Financial Analysis ..................................................IV-2
Water Resources Stewardship Capital Improvements & Funding Sources IV-3
Water Resources Stewardship Project Pages
Environmental Commitments .......................................................IV-5
Environmental Enhancements ......................................................IV-7
Mitigation .................................................................................IV-19
Stewardship ..............................................................................IV-21
PB :: 2016–2020 Five-Year Capital Improvement Program 2016–2020 Five-Year Capital Improvement Program :: i
Table of Contents
BUILDINGS AND GROUNDS CAPITAL IMPROVEMENTS
Buildings and Grounds Overview ..........................................................V-1
Priority Process and Financial Analysis ...................................................V-1
Buildings and Grounds Capital Improvements & Funding Sources ...........V-2
Buildings and Grounds Projects Pages ...................................................V-3
INFORMATION TECHNOLOGY CAPITAL IMPROVEMENTS
Information Technology Overview ....................................................... VI-1
Priority Process and Financial Analysis ................................................. VI-1
Information Technology Capital Improvements & Funding Sources ......... VI-2
Information Technology Projects Pages ................................................. VI-3
FINANCIAL PLANNING AND SUMMARY

CIP Financial Planning .......................................................................VII-1
CIP Funding Summary .......................................................................VII-5
Project Funding Schedules
Water Utility Enterprise Fund ..........................................................VII-6
Watershed and Stream Stewardship Fund ......................................VII-8
Safe, Clean Water and Natural Flood Protection Fund ....................VII-9
General Fund .............................................................................VII-10
Information Technology Fund ......................................................VII-10
All Funds ....................................................................................VII-10
APPENDICES
Appendix A – CIP Priority Criteria .......................................................VIII-1
Appendix B – Project List by Priority ....................................................VIII-7
Appendix C – District Partnership Summary List.................................VIII-13
Appendix D – Summary of Capital Expenditures ...............................VIII-17
Appendix E – Feasibility Studies .......................................................VIII-19
Appendix F – Glossary ....................................................................VIII-21
ii :: 2016–2020 Five-Year Capital Improvement Program
Overview
OVERVIEW
The Santa Clara Valley Water District's (District) Fiscal 4. Nonrecurring rehabilitation or major repair to all or
Year 2016-20 Five-Year Capital Improvement Program part of a facility provided the total cost is more than
(CIP) is a projection of the District’s capital funding $50,000
for planned capital projects from Fiscal Year 2015-16 5. Specific planning, engineering study, or design work
through Fiscal Year 2019-20. The purpose of the CIP is related to an individual project which falls within
to document planned District projects to help integrate the above categories
District work with the larger community by aligning 6. Significant one-time investment in tangible goods
District planning with other local agency planning efforts. of any nature, the benefit of which will accrue
over several years. Examples include
The District’s CIP is developed Mission items such as large initial investments
following the guidelines of or improvements in technology or the
Government Code (GC) § 65403 R The mission purchase of a new telephone system.
E
which governs the development AT of the district The CIP includes several Small Capital
and annual review of Capital W Improvement Projects in the various
Improvement Programs developed Y is to provide cost centers. These projects will be
by special districts in the State E
of California. State law requires LL Silicon Valley ongoing and will be used to fund
A multiple small projects to undertake
that the program be reviewed and V
safe, clean repairs, replacements, and minor

updated annually. It also requires A
R modifications to existing water utility,
circulation of the document to all A water for a
watershed or campus facilities. Small
L
agencies having land use authority C healthy life, Capital Improvements generally meet
within the District boundaries A the following criteria:
T
prior to adoption of the program. N environment,
This document is intended A 1. Project cost is less than $1.5 million
to provide the information S and economy. 2. Project can be completed within 2
necessary to facilitate planning fiscal years
and construction of water related 3. Rights-of-Way acquisition is not
infrastructure to meet the needs of Santa Clara County. required.
The proposed funding for the Water Supply Small Capital
The CIP is prepared in accordance with the guidelines
Improvement projects is anticipated to vary each year
established by the Government Finance Officer
based on the work identified in the Water Utility Asset
Association (GFOA). Capital projects in this document
Management Plan. The Almaden Campus Small Capital
are defined by both the accounting criteria for capital
Improvements project and Small Capital Improvements-
investment and Public Contract Code definition of
Watersheds project are funded at a flat rate each year.
public works. They exceed $50,000 in cost, have long-
Unspent funds in these projects will not carry forward
term life spans and are generally nonrecurring. They
from previous years.
usually fall within one of the following six categories.
1. Acquisition of land for public purpose There are some miscellaneous capital expenditures
2. Construction of a significant facility, i.e. a flood incurred by the District that are not captured in the CIP.
protection facility, a water treatment facility, These capital expenditures include certain components
or a building of water purchases, indirect costs to manage and train
3. Addition to or expansion of an existing facility staff that are fully engaged in capital work, and routine
replacement of computers, vehicles and large equipment.
I-1
2016–2020 Five-Year Capital Improvement Program ::
Overview
ALIGNMENT WITH CIP PLANNING PROCESS
ENDS POLICIES The District conducts an annual planning process for
its Capital Improvement Program. The purpose of
The District plans, manages and carries out capital
the planning process is to ensure the capital projects
improvements to comply with the Ends Policies and
included in the CIP:
Executive Limitations established by its Board of
• meet the Board’s priorities and contribute to the
Directors. Under the District’s Policy Governance
objectives of the District’s various programs
Model, Ends Policies describe the outcomes or results
• have identified funding for the duration of the
to be achieved by District staff. Balancing the Ends
projects
Policies are the Executive Limitations, which set limits
• are coordinated with the local jurisdiction’s
on staff activities in fulfilling the Ends.
General Plans.
Program plans or master plans are developed to achieve
The CIP planning process is carried out in accordance
the results established by the Ends Policies and to
with the following Executive Limitations.
further define the goals and objectives of each Ends
Policy. The Board either formally approves the plans
• Executive Limitation EL-4.3.1., “A BAO shall
or provides direction to staff, confirming the goals and
produce an annual Rolling Five-Year Capital
objectives. These plans then become the basis for staff
Improvement Plan with the first year serving as the
to propose and develop individual capital projects.
adopted capital budget and the remaining years in
Project ideas that are proposed by Operation staff must
place as a projected capital funding plan.”
be vetted via a feasibility study and then validated to
• Executive Limitation EL-4.4.1., “A BAO shall
prepare a business case for proceeding with a capital
demonstrate to the Board the planned expenditures
investment. Appendix E contains the project feasibility
for the identified and selected capital projects in
studies that are currently underway. Alignment of the
the Rolling Five-Year Capital Improvement Plan are
CIP with program or master plans provides a direct link
alligned with the Board's capital priorities.”
to Ends Policies and ensures the District’s long-term
capital investments are planned and executed according
The annual CIP process is the responsibility of the CIP
to the Board’s priorities. Three Ends Policies directly
Committee comprised of division managers, with the
drive program or master plans and the types of capital
responsibility to initiate or implement capital projects.
improvements described in the CIP.
The detailed process is a documented ISO procedure. It
includes the following key steps:
• Ends Policy E-2 “There is a reliable, clean water
supply for current and future generations.
• Management review and approval, to ensure staff
• Ends Policy E-3 “There is a healthy and safe
proposed projects are aligned with Board policies
environment for residents, businesses and visitors,
and approved program plans
as well as for future generations.”
• Validation of projects to ensure there is a business
- E-3.1 “Provide natural flood protection for
case for doing the project and that a capital
residents, businesses, and visitors”
investment is the best solution
- E-3.2 “Reduce potential for flood damages”
• Prioritization of all projects, including continuing
• Ends Policy E-4 “There is water resources
and newly proposed projects, to ensure the projects
stewardship to protect and enhance watersheds
in the CIP reflect Board priorities
and natural resources and to improve the quality of
• Financial analysis, to determine the capacity of
life in Santa Clara County.”
the District’s capital funding sources to fund the
proposed capital projects
(See flowchart “CIP Process Alignment with Ends
• Outreach to local jurisdictions within Santa
Policies” on page I-5)
Clara County, to coordinate the District's Capital
I-2 :: 2016–2020 Five-Year Capital Improvement Program
Overview
Improvement Program with their General Plans • Six new projects with a combined cost of $51 million
• Board review and direction at appropriate steps, to were added to the CIP. They are; Vasona Pumping
ensure the CIP reflects Board policies and priorities Plant Upgrade, Canoas Creek Rodent Damage Repair,
• Board adoption of the CIP plan Hale Creek Enhancement Pilot Study, Salt Ponds
A5-11 Restoration, Data Consolidation, and Software
The annual CIP planning process starts with collecting Upgrades & Enhancements.
information on proposed new capital projects in July, • The continuing drought increases the urgency to
followed by preliminary scoping, priority and financial implement the Water Supply Infrastructure Master
analyses to produce a Draft CIP in February. The Draft Plan to provide for long term water supply reliability.
CIP serves as a multi-year plan, together with other long- The funding for this work is identified under the
term planning efforts of the District, is the basis for the Reycled Water Facilities's Expansion Project.
budget for the following fiscal year. This Draft CIP plan • The continuing drought has lead the District to
is also reviewed by local jurisdictions for consistency reprioritize implementing Indirect Potable Reuse
with their General Plans. While the CIP is being reviewed (IPR). Funding to do planning for IPR projects and
by the cities and County the budget is being reviewed begin design for expanding Silicon Valley Advanced
and finalized. The Board concludes the outreach on the Water Purification Center was added to the CIP in
CIP with a public hearing. The first year of the CIP is April 2015.
reconciled with the budget and the two documents are
presented to the board for formal adoption in May.
Board Direction and CIP Outreach
The Board has many opportunities each year to
provide direction on projects contained in the Capital
Improvement Program. The CIP is developed in parallel
with the budget and the water rates. It is presented to
the Board on three separate occasions for review and
input. Early in the process the project list is presented to
the board so they can provide direction to staff, ensuring
that the document is developed in accordance with board
priorities. The direction received is used to develop the
Draft CIP which is reviewed and accepted by the Board
before staff is authorized to release the document for
public review. The CIP is adopted by the Board in May
following a public hearing.
On January 13, 2015 the FY 2016-20 project list and
prioritization criteria were reviewed and endorsed by the
Board. The following are highlights of changes from the
previous year that have been approved as the basis for the
FY 2016-20 CIP:
• To fully fund the Water Supply projects in the
FY 2016-20 CIP, an increase in the groundwater
production charges of 19.7% in North County and
11.6% for South County will be required.
I-3
2016–2020 Five-Year Capital Improvement Program ::
Overview
Each project in the CIP goes through a planning during a project’s planning or design phases. Approval of
phase, design phase and construction phase. a capital project by the Board occurs at the end of the
The Board may determine to not implement a project design phase when the Board approves the plans and
based on various considerations such as financial specifications to solicit bids for construction of the
constraints, environmental impacts or community desire project.
Project Delivery Process
OPPORTUNITIES FOR BOARD DIRECTION ON CAPITAL PROJECTS
Board
Approves
CIP
Design
Board approves
changes, Construction
Board
additions, CEQA *Engineer’s Advertise
Approves
& deletions to Document Report for Bids
Project
previous year’s
CIP
Board Notice of
Awards Contract
Board is notified Board holds Board adopts
of categorical public hearing PS&E and Contract Completion
exemption or and authorizes
adopts/certifies approves ER bidding
CEQA Boa rd re cei ves Board accepts
document reports of bids completed
and awards project
contract
to responsible
bidder with
lowest
responsive bid
* Board approval of the Engineer's Report is required only on projects with zone funding.
Rinconada Water Treatment Plant Residuals Management
I-4 :: 2016–2020 Five-Year Capital Improvement Program
Overview
CIP PROCESS ALIGNMENT WITH ENDS POLICIES
Program Plans or Master Plans FY 2015-2019 CIP
Ends Policy E-2
4 1990 SCVWD Action Plan for reducing 4 32 - Water Supply
There is a reliable, clean
disinfection by-product (Board approved) Capital Projects
water supply for current
and future generations. 4 Integrated Water Resource Plan
(Board Work Studies)
4 1999 Producer-Wholesaler Agreement for
Supply of Recycled Water between SCRWA
and the District (Board approved)
4 2004 Santa Clara Valley Water District Asset
Management Program Implementation Plan
4 2005 Urban Water Management Plan
(Board approved) s
4 2005 Dam Safety Plan e
4 2005 Water Infrastructure Reliability Plan s
4 2006 South County Water Recycling y
MasterPlan (Board approved) l
a
4 2012 Safe, Clean Water Program
n
(Board/Voter approved)
4 2012 Water Supply Infrastructure Master A
Plan (Board approved)
l
a
Program Plans or Master Plans i FY 2015-2019 CIP
Ends Policy E-3.1 & 4 1982, 1986, 1990 Benefit Assessment c 4 18 - Flood Protection
E-3.2 n
Program (Board approved) Capital Projects
Provide natural flood 4 2000 Clean, Safe Creek Program a
protection for residents,
(Board/Voter approved) n
businesses, and visitors.
Reduce potential for flood 4 2001 Stream Maintenance Program (Board i
damages. approved) Annual Watershed Facility F
Inspection Program (for all watersheds)
4 Feasibility Cost Sharing Agreements d
with the US Army Corps of Engineers n
4 2012 Safe, Clean Water Program a
(Board/Voter approved)

n
o
Ends Policy E-4 Program Plans or Master Plans i FY 2015-2019 CIP
4 CEQA commitments t 4 8 - Water Resources
There is water resources a
stewardship to protect 4 Regulatory permitting commitments Stewardship Projects
z
and enhance watersheds 4 Enhancement Program per Clean Safe
i
and natural resources Creeks Program (Board/Voter approved) t
and to improve the 4 Enhancement opportunities determined i
r
quality of life in Santa appropriate by the Board
o
Clara County. • Fish and Aquatic Habitat Collaborative Effort
• Natural Resource Damage Assessment i
• Other r
P
4 2012 Safe, Clean Water Program
(Board/Voter approved)
P
Strategic Support Program Plans or Master Plans CI FY 2015-2019 CIP
4 1990 Facilities Master Plan - Site Analysis 4 3 - Buildings
Report (Board approved) and Grounds
4 2005 Needs Assessment and Plan Feasibility Capital Projects
Study
4 2012 Campus Master Plan (Board approved)
FY 2015-2019 CIP
Program Plans or Master Plans
Strategic Support 4 2001 Information System Master Plan 4 5 - Information
Technology
4 2003 Enterprise-wide Master
Capital Projects
Communication Plan
4 2012 Information Systems Master Plan
I-5
2016–2020 Five-Year Capital Improvement Program ::
Overview
FISCAL YEAR 2016-20 CIP benefit assessments that were approved by voters in
SUMMARY the 80s and 90s. These funds are dedicated to specific
The recommended CIP for FY 2016-20 includes 66 watersheds and the accounting practices to ensure that
priority projects to implement the goals and objectives they are spent and accounted for appropriately have
of the District’s program plans and master plans. These been kept in place. As shown in the chart below, four
projects are grouped into five types of improvements. of the eight funds are used to finance the five types of
capital improvements in the CIP.
• Water Supply Capital Improvements
32 projects contributing to Ends Policy E-2 In November 2012 the voters overwhelmingly approved
• Flood Protection Capital Improvements the Safe, Clean Water and Natural Flood Protection
18 projects contributing to Ends Policy E-3 Program (Safe, Clean Water). This program replaces the
• Water Resources Stewardship Capital Clean, Safe Creeks Program that would sunset in 2016.
Improvements Safe, Clean Water has an expanded focus that includes
8 projects contributing to Ends Policy E-4 funding for important Water Utility projects as well
• Buildings and Grounds Capital Improvements as additional funding for Flood Protection and Water
3 project supporting District efforts to achieve Resources Stewardship projects. The Safe, Clean Water
the Ends Policies program will provide a total of $548 million of special
• Information Technology Capital Improvements parcel tax revenue for operations and capital projects.
5 projects supporting District efforts to achieve the
The District aggressively pursues external funding
Ends Policies
to supplement its principal revenue when practical.
Each of the 66 projects in the CIP has an identified In recent years District projects benefited from $43.4
funding source based on the type of improvement or million in American Recovery and Reinvestment Act
function of the project. (ARRA) funding. A number of District projects are
receiving substantial State funding through grants
The principal sources of revenue for the District are
from the Department of Water Resources (DWR)
property taxes, a special parcel tax and water production
either directly or through local partner agencies. For a
charges for use of groundwater, treated water, and
complete listing of grants and partnerships see
surface water. These revenues are organized into eight
funds. Seven of the eight funds have a specific purpose Appendix C.
and only finance the operational and capital expenditures
related to that purpose. In 2008 the Board decided to • $25 million for Lower Silver Creek from DWR
combine the individual watershed funds into a county- • $8 million for San Francisquito Creek through the
wide watershed and stream stewardship fund to send Joint Powers Authority
the message that the watershed activities are managed • $30 million Upper Berryessa, Lower Berryessa, and
for the benefit of the county. This also streamlines most Lower Penitencia
tracking and accounting activities for staff. The District • $2.5 million for Wolfe Road Recycled Water Pipeline
continues to receive a small amount of revenue from from DWR
DISTRICT PRIORITIES District Funds
Type of Improvement Water Utility Watershed Stream General Fund Safe, Clean Water Information
Enterprise Fund Stewardship Fund Fund Technology Fund
Water Supply  
Flood Protection  
Water Resources Stewardship   

Buildings and Grounds
Information Technology  
This chart identifies which types of improvement are associated with each of the District’s five capital funds.
I-6 :: 2016–2020 Five-Year Capital Improvement Program
Overview
Updated:
The estimated total funding required to CIP FundCiInPg F buyn dTyinpge obfy ITmyppreo ovfe mImepnrto vement
Yes Water Supply $ 1,786
implement the 66 projects defined in
Yes 2000 Flood Protection $ 991
the CIP is $3.45 billion. The District has Yes Water R e$s1o,7u8r6c e s Stewardship $ 110
1800
been and continues to be successful in Yes 1600 Buildings and Grounds $ 6 5
Yes Information Technology $ 2 7
leveraging funding for its capital projects 1400
through partnerships with federal, state, M) 1200 $ 2,979
$ $991
and local agencies. Of the $3.45 billion ars (1000
total funding, $704 million is expected Doll 800
600
from the District’s various partners, such
400
as the U.S. Army Corps of Engineers
200 $110 $65 $27
(USACE), and $2.745 billion from the
0
District. A list of projects that are funded Water Supply Flood Protection Water Resources Stewardship
cooperatively with the District’s partners Buildings and Grounds Information Technology
is summarized in Appendix C. Funding
The chart above shows the distribution by type of improvement, of the
from partners for the cooperative capital projects
$2.979 billion total CIP funding as planned in the FY 2016-20 CIP.
generally come in two ways:
The chart above shows how the $2.979 billion to
• Funds that are made available by the partners
implement the 66 projects is allocated to each of the
when needed, or
five Types of Improvements.
• Funds that are reimbursed by the partners after
the District advances the needed funds.
Of the $2.979 billion in total funding for the 66 projects
identified in the CIP, the Board has appropriated $1.021
Of the $704 million that is expected from the District’s
billion in prior years (through June 30, 2015 the end of
partners, $234 million is advanced by the District
Fiscal Year 2014-15). This year’s CIP process identified
and reimbursed later. This $234 million is included
additional funding needs of $1.958 billion to complete
in the CIP, and increases the District’s total funding
the projects in the CIP, with $182 million allocated
requirement from $2.745 billion to $2.979 billion,
in Fiscal Year 2015-16 and a total of $1.78 billion
to ensure that the District has adequate funding to
proposed for future years. The table shown on page I-8
advance the reimbursement.
breaks down the fiscal year total by the five types of
improvement and by applicable funding sources.
CIP FundCiInP gFu Sncdhinegd Suchlee dule
1200
CIP Funding Schedule
$1,021
Thru FY 15 $ 1,021
1000
FY 16 $ 182 $815
M) 800F Y 17 $ 269
$ FY 18 $ 227
ars ( 600F Y 19 $ 271
oll FY 20 $ 193
D 400
FY 21-30 $ 815 $269 $227 $271
$182 $193
200 2,979
0
Thru FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21-30
The chart above shows how the $2.979 billion is distributed by fiscal year.
I-7
2016–2020 Five-Year Capital Improvement Program ::