The URL can be used to link to this page

Home My WebLink About2022-06-14; Municipal Water District; Resolution 1673RESOLUTION NO. 1673 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, ADOPTING THE WATER DISTRICT'S FINAL OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2022- 23 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS EXHIBIT 5 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has reviewed the proposed final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year (FY) 2022-23 and has held such public hearings as are necessary prior to the adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District, as follows: 1.That the above recitations are true and correct. 2.That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled "Fiscal Year 2022-23 Preliminary Operating Budget," presented at the Joint Special Meeting on May 24, 2022 as Exhibit 1 to Item No. 8, as amended, if necessary, and "Strategic Digital Transformation Investment Program and Capital Improvement Program," presented at the Joint Special Meeting on June 7, 2022 as Exhibits 3 and 4 to Item No. 13, as amended, if necessary, in accordance with Attachments A-A3, B-B2, C and D of Exhibit 4 of Item No. 7 presented at this Joint Special Meeting on June 14, 2022, are adopted as the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for the Carlsbad Municipal Water District for FY 2022-23 along with any program options and/or adjustments determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 14, 2022. 3.That the amounts reflected as estimated revenues for FY 2022-23 are adopted as the budgeted revenues for FY 2022-23. 4.That the amounts designated as FY 2022-23 Budgets in Attachments A and B to this Exhibit 5 are appropriated to the fund for which they are designated, and such appropriation shall not be increased except as provided in this resolution. June 14, 2022 Item #7 Page 169 of 454 5.That total appropriations may only be increased or decreased by the Board of Directors by passage of a resolution amending the budget except as provided in this resolution. 6.That the following controls are placed on the use and transfer of budget funds: A.No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or Executive Manager as described below. i.The Executive Manager may authorize all transfers of funds from account to account within the same fund. ii.The Executive Manager may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for said specific purpose. iii.The Executive Manager may authorize increases in purchased water appropriations in an amount equal to the same percent that water sales exceed the amount of the original revenue estimate. iv.The Executive Manager may authorize budget adjustments to increase the appropriation for the Workers' Compensation and Risk Management Funds' operating budgets in an amount equal to the increases in costs of estimated claims expenses. v.The Executive Manager may authorize budget adjustments to increase the appropriation for unforeseen legal expenses and liabilities. vi.The Executive Manager may delegate the authority to make budget transfers. B.The Board of Directors must authorize any increase in the number of authorized permanent personnel positions above the level identified in the final Budget. The Executive Manager may authorize the hiring of temporary or part time staff as necessary within the limits imposed by the controls listed above. 7.That all appropriations for outstanding encumbrances as of June 30, 2022 are continued into FY 2022-23 for such contracts and obligations. 8.That interest earned on grants may be appropriated during the year for the purpose for which the grant was received. 9.That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2022, are appropriated for such capital projects for FY 2022-23. June 14, 2022 Item #7 Page 170 of 454 10.That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended at June 30, 2022, are appropriated to FY 2022-23 in their respective project budgets. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission, and the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency held on the 14th day of June, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Blackburn, Bhat-Patel, Acosta, Norby. None. Hall. �FAVIOLA MEDINA, City Clerk Services Manager (SEAL) June 14, 2022 Item #7 Page 171 of 454 Project Name NewProject District Score FundingID Funding Source PriorAppropriaƟon Year 1(2022-23)Year 2(2023-24)Year 3(2024-25)Year 4(2025-26)Year 5(2026-27)Year 6-10 (2028-32)Year 11-15 (2033-37)Total Funding Source Abandon Potable Services (New Recycled Services)NO Citywide Medium 52051 WATER REPL C-Tank Access Road Repair and Electrical Improvements YES 2 Medium 23011 RECYREPL 23012 RECYCONN Carlsbad Boulevard Waterline Replacement at Terramar NO 2 CriƟcal 50481 WATER REPL Carlsbad Water Recycling Facility (Encina Capital Projects)NO 3 High 52031 WATER REPL 52032 RECL REPL Carlsbad Water Recycling Facility IrrigaƟon and Landscape NO 3 High 52131 RECL REPL Carlsbad Water Recycling Facility Roof Replacement NO 3 Low 47491 RECL REPL Cathodic ProtecƟon Program NO Citywide CriƟcal 50071 WATER REPL College Boulevard - Cannon Road To Badger Lane (375 Zone)NO 2 Medium 50131 WATER CONN College Boulevard - Cannon Road To Badger Lane (490 Zone)NO 2 Medium 50121 WATER CONN Crestview Drive Transmission Main NO 1 Medium 50331 WATER REPL Desalinated Water Flow Control Facility No. 5 NO 2 High 50381 WATER CONN Fire Flow Capacity System Improvements NO 1 High 50431 WATER REPL Hydroelectric GeneraƟon at Water FaciliƟes NO 2 Medium 50591 WATER CONN Limited Access Pipeline RelocaƟon Program NO 1,3 CriƟcal 50351 WATER REPL Maerkle Facility Improvements NO 2 CriƟcal 50091 WATER REPL Maerkle Reservoir FloaƟng Cover Replacement NO 2 CriƟcal 50361 WATER REPL Maerkle Reservoir Solar Project NO 2 Medium 47221 WATER REPL Maerkle Reservoir Transmission Main NO 2 Medium 50011 WATER REPL Normally Closed Valve (Install Motorized Valve)NO 3 High 50501 WATER REPL Orion Center NO 2 High 35722 WATER REPL 35725 RECL REPL Palomar Airport Waterline Realignment NO 2 CriƟcal 50551 WATER REPL Poinseƫa Lane - Cassia Road to Skimmer Court (Reimbursement Agreement)NO 3 Medium 50451 WATER CONN Pressure Reducing StaƟon Program NO Citywide CriƟcal 50201 WATER REPL Rancho Carlsbad Groundwater Supply NO 2 Low 50611 WATER CONN 50612 WATER REPL Recycled Water CondiƟon Assessment Program NO Citywide High 52111 RECL REPL Recycled Water Phase 3 - Reservoir NO 3 High 52101 WATER REPL 52102 RECL WATER Recycled Water Pipeline Replacement NO 2 Medium 19541 RECL REPL Recycled Water Valve and Appurtenance Replacement Program NO Citywide High 52121 RECL REPL Reservoir Repair and Maintenance Program NO Citywide High 50241 WATER REPL San Luis Rey Mission Basin Groundwater Supply NO Citywide Low 50441 WATER CONN 50442 WATER REPL Santa Fe II Inlet Pipeline NO Null High 50571 WATER REPL 1,925,825----500,000500,00050,000875,825 1,575,000----1,325,000-250,000- 315,000----265,000-50,000- 4,730,000------1,300,0003,430,000 599,944-------599,944 9,032,7101,252,000252,000223,0001,879,000895,000474,000366,0003,691,710 175,000-------175,000 225,000-------225,000 3,096,700280,000260,000190,000190,000190,000190,000190,0001,606,700 1,278,383----1,000,000-28,200250,183 1,562,600----1,250,000-12,600300,000 856,000-----535,00021,000300,000 10,811,601------707,30110,104,300 2,174,000----264,0001,700,000-1,500,0001,710,000 1,853,000-----1,425,00028,000400,000 4,940,000----1,000,0002,000,000-1,940,000 2,735,200------500,0002,235,200 11,032,844-------11,032,844 250,000------249,170830 6,330,000----4,557,0001,000,000-773,000 985,000------500,000485,000 6,789,409-------6,789,409 2,715,600-------2,715,600 2,310,000------560,0001,750,000 600,000-------600,000 13,062,0003,000,0003,000,000600,000600,000600,000600,000600,0004,062,000 1,750,000-1,425,000-125,000---200,000 1,750,000-1,425,000-125,000---200,000 1,540,000310,000280,00050,00050,00050,00050,00050,000700,000 980,000-------980,000 3,320,000------200,0003,120,000 6,460,0002,910,0002,150,000350,000350,000350,000350,000-- 2,080,000700,000630,000125,000125,000120,000-120,000260,000 14,490,0003,610,0003,070,000---1,960,000-5,850,000 8,280,0002,500,0005,500,000280,000----277,500277,500 6,080,000-6,000,00080,000----77,50077,500 Carlsbad Municipal Water District: 15-year Capital Improvement Program Project Schedule Attachment A June 14, 2022 Item #7 Page 172 of 454 Project Name NewProject District Score FundingID Funding Source PriorAppropriaƟon Year 1(2022-23)Year 2(2023-24)Year 3(2024-25)Year 4(2025-26)Year 5(2026-27)Year 6-10 (2028-32)Year 11-15 (2033-37)Total Funding SourceSanLuisReyMissionBasinGroundwater Supply NO Citywide Low 50442 WATER REPL Santa Fe II Inlet Pipeline NO Null High 50571 WATER REPL Santa Fe II Reservoir Site Electrical Improvements NO 3 Medium 50461 WATER REPL SCADA Improvements NO Citywide CriƟcal 55422 WATER REPL 55423 RECL REPL Tri-Agency Water Transmission Pipeline Replacement NO 2 High 50081 WATER REPL Valley and Magnolia Complete Streets NO 1 High 60192 WATER REPL Water Infrastructure CondiƟon Assessment Program NO Citywide CriƟcal 50511 WATER REPL Water Loss Monitoring Program NO Citywide High 50521 WATER REPL Water Modeling NO Citywide CriƟcal 50581 WATER CONN Water System RehabilitaƟon and Replacement NO Citywide CriƟcal 39041 WATER REPL Water Valve Repair/Replacement Program NO Citywide CriƟcal 50191 WATER REPL 3,029,650----2,500,000-34,650495,000 183,581------150,00033,581 10,155,600----610,5002,412,5003,209,2003,923,400 2,394,000----398,000337,600631,5001,026,900 6,455,000----1,836,0301,000,000-3,618,970 71,000-------71,000 8,620,0002,480,0002,250,000450,000420,000420,000410,000410,0001,780,000 1,890,000550,000550,000110,000110,000110,000110,000-350,000 425,000----25,00025,00025,000350,000 65,028,36621,080,00019,890,0003,000,0003,000,0003,000,0002,800,0002,690,0009,568,366 22,500,0005,650,0005,110,0001,000,000960,000960,000960,000940,0006,920,000 Carlsbad Municipal Water District: 15-year Capital Improvement Program Project Schedule June 14, 2022 Item #7 Page 173 of 454 Attachment B PUBLIC WORKS | UTILITIES: POTABLE WATER OPERATIONS Account: 5016310 Fund: Enterprise ABOUT To ensure drinking water is available on demand and customers can rely on receiving safe, high- quality water, the Carlsbad Municipal Water District provides ongoing maintenance and repair of the following: nine storage reservoirs or tanks, 455 miles of pipeline, 17 pressure zones, 71 pressure regulating stations, three pumping stations, 14,369 valves, 4,441 fire hydrants and 30,320 potable meters. CMWD purchases potable water from its wholesale water provider, the San Diego County Water Authority, which includes desalinated water from the Carlsbad Desalination Plant. SERVICES •Operate infrastructure, including reservoirs, pressure regulating stations, pump stations, transmission and distribution pipelines, valves, meters, and other apparatus •Deliver safe drinking water and fire flow demand •Meet water-related health, safety and environmental regulations •Comply with state and federal drinking water standards for sampling and reporting •Clean tanks and perform required maintenance on potable reservoirs •Educate the public regarding water conservation and rebate programs, perform leak detection studies and comply with conservation laws •Coordinate with other water agencies and the San Diego County Water Authority on regional water-related projects 2019-20 Actual 2020-21 Actual 2021-22 Budget 2022-23 Budget Personnel Services Salaries & Wages 2,459,473$ 2,456,258$ 2,906,467$ 3,020,543$ Retirement Benefits 569,526 853,829 635,085 707,921 Health Insurance 515,622 532,524 508,263 456,572 Other Personnel Expenses 111,934 932,144 128,488 142,351 Personnel Services Subtotal 3,656,555 4,774,755 4,178,303 4,327,387 Operating Expenses Professional & Contract Services 7,345,483 7,339,768 8,534,600 8,568,654 Supplies & Materials 23,299,719 25,652,887 27,412,700 28,010,084 Repair & Maintenance 185,173 299,762 452,050 361,250 Interdepartmental Charges 2,663,442 2,722,945 2,969,197 3,161,356 Other Operating Expenses 8,581,187 6,479,626 4,274,370 5,267,601 Capital Outlay 20,567 415,639 - 19,500 Operating Expenses Subtotal 42,095,571 42,910,627 43,642,917 45,388,445 TOTAL EXPENDITURES 45,752,126$ 47,685,382$ 47,821,220$ 49,715,832$ Full Time Positions 30.30 29.50 30.55 30.95 Hourly/FTE Positions 0.50 0.45 0.20 0.00 June 14, 2022 Item #7 Page 174 of 454 RECENT ACCOMPLISHMENTS • Began implementation of the recently completed Potable Water Master Plan • Completed design of the new Supervisory Control and Data Acquisition system • Awarded Utility of the Future recognition from the Water Environment Federation for 2021 • Completed cost of service study updates and received guidance from the CMWD Board on three years of future rates • Performed 2021 Lead and Copper sampling to comply with the new Lead and Copper Rule • Completed the Urban Water Management Plan Update • Replaced potable water pipeline crossings under Interstate 5, which received the 2022 Outstanding Project Award from the American Society of Civil Engineers • Completed tank maintenance and cleaning on one potable reservoir • Completed the Poinsettia 61 pressure regulating station GOALS • Optimize asset management by increasing the use of technology to improve and manage the infrastructure system more efficiently and effectively • Minimize costs while continuing to provide high levels of service at acceptable risk • Work with the state’s Department of Water Resources and the State Water Resources Control Board on implementation of Senate Bill 606 and Assembly Bill 1668, which require the setting of agency water use efficiency standards, performance measures and variances • Create inventory of lead service lines to comply with the new EPA Lead and Copper regulations • Update the Drought Response Plan and the Potable Water Master Plan • Stay within industry benchmark for water main breaks of 3.4 to 19.4 breaks per 100 miles of pipeline, per the American Water Works Association • Comply with state conservation requirements, including reducing potable water use by at least 25% compared to 10-year average from 1999-2008. • Initiate construction of the Palomar Airport waterline replacement project, water main replacements in the downtown and coastal areas, one new pressure regulating station and replacement of two existing pressure regulating stations SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET • Added one Management Analyst position to support financial management of the Utilities department, include maintaining financial models, managing funding sources, cost of service study updates and more • Added one Utility Locator position to reduce costs related to contract agreements for markouts and allow current staff to focus on core job duties related to infrastructure maintenance Performance Measure FY 2021 Actual FY 2022 Estimated FY 2023 Projected Pipeline breaks per 100 miles of pipe 2.0 <3.4 <3.4 Potable water use reduction compared to baseline average 20% 25% 25% June 14, 2022 Item #7 Page 175 of 454 Attachment B PUBLIC WORKS | UTILITIES: RECYCLED WATER OPERATIONS Account: 5026310 Fund: Enterprise ABOUT The Carlsbad Municipal Water District provides ongoing water treatment and maintenance and repair of the recycled water system’s three storage tanks, four pump stations, three pressure reducing stations, five pressure zones, 95 miles of pipelines, 815 valves and 961 meters. CMWD’s Cross- Connection Control and Backflow program ensures a safe supply of drinking water by preventing cross-contamination from the recycled system into the potable system, in accordance with federal and state regulations. CMWD also purchases and delivers recycled water from the Vallecitos Water District’s Meadowlark Water Reclamation Facility. CMWD owns the Carlsbad Water Recycling Facility which is located next to the Encina Wastewater Authority treatment plant. CMWD takes treated wastewater from that plant and further treats it to State of California Title 22 recycled water quality standards and then delivers this water to customers for irrigation and certain industrial uses. This effort reduces the amount of wastewater that would normally be released by the wastewater treatment plant into the ocean outfall, reduces dependence on imported drinking water, and provides customers with a reliable local supply of water for non- potable purposes. Recycled water is not subject to state water conservation requirements. 2019-20 Actual 2020-21 Actual 2021-22 Budget 2022-23 Budget Personnel Services Salaries & Wages 1,036,826$ 1,033,183$ 1,279,473$ 1,354,365$ Retirement Benefits 247,059 375,927 290,484 310,948 Health Insurance 135,911 141,496 212,783 189,818 Other Personnel Expenses 48,125 4,712 57,315 63,152 Personnel Services Subtotal 1,467,921 1,555,318 1,840,055 1,918,283 Operating Expenses Professional & Contract Services 1,180,930 1,339,480 2,045,680 2,008,860 Supplies & Materials 2,783,276 2,397,182 3,084,500 3,034,650 Repair & Maintenance 34,144 61,170 68,943 66,743 Interdepartmental Charges 591,195 690,574 837,662 936,905 Other Operating Expenses 2,035,264 1,491,538 2,226,950 3,234,080 Capital Outlay 11,183 67,841 - 7,000 Operating Expenses Subtotal 6,635,992 6,047,785 8,263,735 9,288,238 TOTAL EXPENDITURES 8,103,913$ 7,603,103$ 10,103,790$ 11,206,521$ Full Time Positions 12.20 13.00 13.30 12.75 Hourly/FTE Positions 0.00 0.05 0.10 0.50 June 14, 2022 Item #7 Page 176 of 454 SERVICES • Operate and maintain infrastructure, including the Carlsbad Water Recycling Facility, reservoirs, pressure regulating stations, pump stations, pipelines, valves and meters • Treat wastewater to meet State of California Title 22 recycled water requirements • Meet health, safety and environmental regulations of recycled water • Deliver recycled water • Test water quality, cross connections and backflows • Perform annual backflow tests at 278 sites and 619 recycled use site walk-through inspections • Convert sites from potable water to recycled water as service becomes available RECENT ACCOMPLISHMENTS • Began implementation of the 2019 Recycled Water Master Plan • Completed design of the new Supervisory Control and Data Acquisition system • Conducted pre-build activities for the recently completed design of a 1.5-million-gallon storage tank, and applied approximately $900,000 grant from the U.S. Bureau of Reclamation towards its funding • Connected 25 customers to the new recycled pipeline segment • Completed cost of service study updates and received guidance from the CMWD Board on three years of future rates GOALS • Commence construction of a 1.5-million-gallon storage tank • Complete Segment 5 retrofit conversions and connect customers to the expanded system • Stay within industry benchmark for water main breaks of3.4 to 19.4 breaks per 100 miles of pipeline, per the American Water Works Association • Maintain recycled water cost at or below 75% of potable water cost Performance Measure FY 2021 Actual FY 2022 Estimated FY 2023 Projected Pipeline breaks per 100 miles of pipe 0 <3.4 <3.4 Cost of recycled water as percent of potable water cost 71% 71% 73% June 14, 2022 Item #7 Page 177 of 454