HomeMy WebLinkAbout20 Water Department CIP ReviewAgenda Item # 20
To: Board of Directors
From: Neil Kaufman
Date: July 15, 2015
Subject: Review of the Water Department Capital Improvement Program
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is informational.
2. HISTORY
The Water Department constructs capital improvements that fall into two general categories:
1) New facilities that are needed to accommodate growth with the service area
2) Replacement of existing facilities that are undersized, in poor condition or have
exceeded their useful life
New facilities that are needed to accommodate growth are funded by Facilities Fees.
Replacement of existing facilities is funded by rates. There are situations where an existing
facility that is planned for replacement may be upsized in order to accommodate future
growth. An example would be replacement of an existing 84ch main in poor condition with a
12-inch main. In such cases, the incremental cost of upsizing is funded by Facilities Fees with
the remainder funded from rates.
The 2012 Water System Master Plan describes the planned Water Department Capital
Improvement Program (CIP). A copy of the CIP is attached.
For 2012 and 2013, the only projects identified were the Meter Box Retrofit project and the
SCADA replacement project. The CIP planned for completion of the SCADA replacement
project in 2015 and the completion of the Meter Box Retrofit project in 2017.
The CIP identified a number of small pipeline and lateral projects to address areas with
marginal fire flow and service pressures. These projects were planned for the period of
2014-2016. The CIP identified restarting the annual pipeline replacement program in 2016 at
a funding level of $1,000,000 per year. The CIP also identified a number of Facilities Fees
projects starting in 2015.
3. NEW INFORMATION
The Meter Box Retrofit and SCADA replacement projects are ongoing. Completion of the
Meter Box Retrofit project is expected in 2019. Completion of the SCADA replacement project
is expected in 2017.
Due to the poor condition of a number of pipeline segments, the Water Department found it
necessary to adjust the project priorities identified in the CIP. The annual pipeline
replacement program was restarted in 2013. About 2,300 feet of main was replaced in 2013
and about 4,400 feet of main was replaced in 2014. About 4,900 feet of main is currently
scheduled for replacement in 2015.
The Water Department has not yet addressed those areas with marginal fire flow and service
pressures. None of the Facilities Fees projects have been undertaken since the level of new
growth within the service area has not yet justified the need for these projects.
"Unaccounted-for Water" (UAW) is typically considered the difference between water
production and water sales. In the District's case, "sales" would also include water used by
unmetered customers and other unmetered approved uses such as fire -fighting and water
quality maintenance. UAW typically consists of three main components:
• Metering errors (both production and customer -end)
• Water system leakage
• Theft and unauthorized use
The District will be required to do
Management Plan. It is expected tf
requirements for water utilities to
Department expects to be focused on
current its level of UAW in the 2015 Urban Water
iat sometime in 2016, the State of California will issue
reduce their levels of UAW. Therefore, the Water
pipeline replacement for the next few years.
For 2016, it is planned to conduct a pipeline replacement project in Tahoe Donner to address
pipelines in poor condition. Locations currently identified are:
• Bavarian Way
• Falcon Point Place
• Julian Avenue
• Kitzbuhel Road
• Sitzmark Way
• Sitzmark Tank Site
• Sun Valley Road
For 2017, it is planned to complete the pipeline and meter box replacement in the Biltz Tract
and continue pipeline replacement in Tahoe Donner to address pipelines in poor condition.
Locations currently identified are:
• Dulzura Street
• Palisade Street
• Skiview Loop
• Skislope Way
• Snowpeak Way
For 20181 it is planned to replace all of the small diameter mains and meter boxes in the
Gateway Park area and perform pipeline replacement in Sierra Meadows area to address
pipelines in poor condition. Locations currently identified are:
• Donner Way
• Spring Lane
• Tahoe Drive
• Vista Avenue
• Star Pine Road
• Sugar Pine Road
In addition to the pipeline replacement work, it is expected that two pumping stations
will be replaced in the next few years. The Ponderosa Palisades and Martiswoods
pump stations are currently anticipated. Replacement of the Martiswoods pump
station will also involve removal of the Martiswoods elevated tank.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this Workshop item. Increased costs
associated with accelerated water main replacement will be offset by increased revenue
associated with the proposed FY16 water rate increase.
5. RECOMMENDATION
Receive this report and provide comment.
Michael D. Holley
General Manager / Water Utility Manager