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Home My WebLink About2020-06-23; Municipal Water District; Resolution 1641RESOLUTION NO. 1641 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, ADOPTING THE WATER DISTRICT'S FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2020-21 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS EXHIBIT4 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has reviewed the proposed final Operating Budget and Capital Improvement Program for Fiscal Year (FY) 2020-21 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 Secretary entitled "City of Carlsbad, FY 2020-21 Preliminary Operating Budget and FY 2020-21 to FY 2034-35 Capital Improvement Program -Preliminary," as amended, if necessary, in accordance with Exhibits 4-A and 4-B attached and incorporated by reference, are adopted as the final Operating and Capital Improvement Budgets for the Carlsbad Municipal Water District for the FY 2020-21 along with any program options and/or adjustments determined by the Board of Directors as set forth in the minutes ofthe Board of Director's meeting of Tuesday, June 23, 2020. 3. That the amounts reflected as estimated revenues for FY 2020-21 are adopted as the budgeted revenues for FY 2020-21. 4. That the amounts designated as FY 2020-21 Budget in Exhibits 4-A and 4-B are appropriated to the fund for which they are designated and such appropriation shall not be increased except as provided in this resolution. 5. That total appropriations may only be increased or decreased by the Board of June 23, 2020 Item #9 Page 79 of 124 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 in an amount up to $100,000 per transfer. ii. The Executive Manager may delegate the authority to make budget transfers. iii. 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. iv. 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. 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 outstanding encumbrances as of June 30, 2020 are continued into FY 2020-21 for such contracts and obligations. 8. All appropriations for Capital Improvement Projects remaining unexpended at June 30, 2020, are appropriated for such capital projects for FY 2020-21. Ill Ill June 23, 2020 Item #9 Page 80 of 124 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 23rd day of June, 2020, by the following vote to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MATT HALL, PRESIDENT , SECRET (SEAL) June 23, 2020 Item #9 Page 81 of 124 Project Name District Score Funding ID Funding Source Prior Appropriation Year 1 (2020-21) Year 2 (2021-22) Year 3 (2022-23) Year 4 (2023-24) Year 5 (2024-25) Year 6-10 (2026-30) Year 11-15 (2031-35) Total Funding Source Abandon Potable Services (New Recycled Services) Multiple Districts High 52051 WATER REPL 1,742,000 Aviara Parkway And Plum Tree Waterline District 2 Low 19021 WATER REPL - Carlsbad Boulevard Waterline Replacement At Terramar District 2 Critical 50481 WATER REPL 2,430,000 College Boulevard - Cannon Road To Badger Lane (375 Zone) District 2 Medium 50131 WATER CONN 1,060,000 College Boulevard - Cannon Road To Badger Lane (490 Zone) District 2 Medium 50121 WATER CONN 1,090,000 Crestview Drive Transmission Main District 2 Low 50331 WATER REPL 240,000 Desalinated Water Flow Control Facility No. 5 District 2 High 50381 WATER CONN 1,904,300 Hydroelectric Generator at Desal Flow Control Facility No. 5 District 2 Medium 50591 WATER CONN 200,000 Limited Access Pipeline Relocation Program Multiple Districts Critical 50351 WATER REPL 1,940,000 Maerkle Reservoir Floating Cover Replacement District 2 Critical 50361 WATER REPL 13,055,000 Maerkle Reservoir Transmission Main District 2 Critical 50011 WATER REPL 6,330,000 Miscellaneous Pipeline Replacement - Recycled District 2 High 19541 RECL REPL - Normally Closed Valve (Install Motorized Valve) District 2 High 50501 WATER REPL 485,000 Orion Center District 2 High 35722 WATER REPL 6,650,399 35725 RECL REPL 2,660,000 Palomar Airport Waterline Realignment District 2 High 50551 WATER REPL 525,000 Pressure Reducing Station Program Multiple Districts Critical 50201 WATER REPL 3,462,000 Recycled Water Line - CWRF To Agua Hedionda Lagoon Multiple Districts Critical 50271 WATER REPL 1,632,594 50272 RECL WATER 3,417,406 Recycled Water Phase 3 - CWRF Expansion District 3 High 52091 WATER REPL 3,517,276 52092 RECL WATER 6,844,124 Recycled Water Phase 3 - Pipelines Multiple Districts Critical 52081 WATER REPL 2,497,529 1,742,000------- 1,100,500----1,000,500100,000- 5,080,000----150,0002,500,000- 1,095,000----35,000-- 1,460,000----370,000-- 240,000------- 10,104,300-----7,950,000250,000 2,275,000-----2,075,000- 4,940,000----1,000,0002,000,000- 13,055,000------- 14,631,000---8,301,000--- 6,010,0002,910,0002,150,000350,000350,000250,000-- 485,000------- 6,789,409-----139,010- 2,715,600-----55,600- 1,000,000------475,000 11,862,0003,000,0003,000,000600,000600,000600,000600,000- 1,632,594------- 3,417,406------- 3,517,276------- 6,844,124------- Capital Projects Water June 23, 2020 Item #9 Page 82 of 124 Project Name District Score Funding ID Funding Source Prior Appropriation Year 1 (2020-21) Year 2 (2021-22) Year 3 (2022-23) Year 4 (2023-24) Year 5 (2024-25) Year 6-10 (2026-30) Year 11-15 (2031-35) Total Funding Source RecycledWaterPhase3-CWRF Expansion District 3 High 52092 RECL WATER 6,844,124 Recycled Water Phase 3 - Pipelines Multiple Districts Critical 52081 WATER REPL 2,497,529 52082 RECL WATER 21,256,331 Recycled Water Phase 3 - Reservoir District 3 High 52101 WATER REPL 690,000 52102 RECL WATER 2,250,000 Santa Fe II Inlet Pipeline Null High 50571 WATER REPL 495,000 SCADA Improvements Multiple Districts Critical 55422 WATER REPL 1,305,000 55423 RECL REPL 357,500 Tri-Agency Water Transmission Pipeline Replacement District 2 High 50081 WATER REPL 6,455,000 Valley and Magnolia Complete Streets District 1 High 60192 WATER REPL 71,000 Water Valve Repair/Replacement Program Multiple Districts Critical 50191 WATER REPL 5,990,000 2,497,529------- 21,256,331------- 980,000------290,000 3,120,000------870,000 2,865,000----2,370,000-- 10,155,600--610,5002,412,5003,209,2001,858,100760,300 2,394,000--398,000337,600631,500381,500287,900 6,455,000------- 71,000------- 20,540,0005,650,0005,110,000960,000960,000940,000930,000- Capital Projects Water June 23, 2020 Item #9 Page 83 of 124 Project Name District Score Funding ID Funding Source Prior Appropriation Year 1 (2020-21) Year 2 (2021-22) Year 3 (2022-23) Year 4 (2023-24) Year 5 (2024-25) Year 6-10 (2026-30) Year 11-15 (2031-35) Total Funding Source Cathodic Protection Program Multiple Districts Critical 50071 WATER REPL 1,426,700 Fire Flow System Improvements Multiple Districts High 50431 WATER REPL 1,710,000 Maerkle Facility Improvements District 2 Critical 50091 WATER REPL 2,235,200 Miscellaneous Pipeline Replacements Multiple Districts Critical 39041 WATER REPL 7,838,366 Recycled Water Condition Assessment Program Multiple Districts Critical 52111 RECL REPL 650,000 Recycled Water Valve & Appurtenance Replacement Program Multiple Districts Critical 52121 RECL REPL 260,000 Reservoir Repair And Maintenance Program Multiple Districts Critical 50241 WATER REPL 5,850,000 Water Infrastructure Condition Assessment Program Multiple Districts Critical 50511 WATER REPL 990,000 Water Loss Monitoring Program Multiple Districts High 50521 WATER REPL 300,000 2,716,700280,000260,000190,000190,000190,000180,000- 2,174,000---264,000100,000100,000- 2,235,200------- 59,028,36621,080,00019,890,0003,000,0002,800,0002,690,0001,730,000- 1,440,000310,000280,00050,00050,00050,00050,000- 2,060,000700,000630,000120,000120,000120,000110,000- 14,490,0003,610,0003,070,000-1,960,000--- 7,750,0002,480,0002,250,000420,000410,000410,000400,000390,000 1,700,000500,000500,000100,000100,000100,00050,00050,000 Maintenance and Operations Water June 23, 2020 Item #9 Page 84 of 124 Project Name District Score Funding ID Funding Source Prior Appropriation Year 1 (2020-21) Year 2 (2021-22) Year 3 (2022-23) Year 4 (2023-24) Year 5 (2024-25) Year 6-10 (2026-30) Year 11-15 (2031-35) Total Funding Source Rancho Carlsbad Groundwater Supply District 2 Low 19621 WATER CONN - 19622 WATER REPL - San Luis Rey Mission Basin Groundwater Supply Multiple Districts Low 50441 WATER CONN 77,500 50442 WATER REPL 77,500 Water Modeling Multiple Districts Low 50581 WATER CONN 300,000 Water, Recycled And Sewer Master Plan Multiple Districts Critical 55432 WATER REPL 543,560 55433 RECL REPL 411,760 1,750,0001,425,000325,000----- 1,750,0001,425,000325,000----- 8,577,5002,500,0006,000,000----- 8,577,5002,500,0006,000,000----- 675,000125,000125,00025,00025,00025,00050,000- 543,560------- 411,760------- Planning Water June 23, 2020 Item #9 Page 85 of 124 Project Name District Score Funding ID Funding Source Prior Appropriation Year 1 (2020-21) Year 2 (2021-22) Year 3 (2022-23) Year 4 (2023-24) Year 5 (2024-25) Year 6-10 (2026-30) Year 11-15 (2031-35) Total Funding Source Carlsbad Water Recycling Facility (Encina Capital Projects) District 3 Critical 52032 RECL REPL 631,710 6,941,7101,300,0001,200,000125,000320,000315,0001,450,0001,600,000 Project Accounting Water June 23, 2020 Item #9 Page 86 of 124 PUBLIC WORKS | UTILITIES: POTABLE WATER OPERATIONS Account: 5016310 Fund: Enterprise ABOUT To ensure that drinking water is available on demand and customers can rely on receiving safe, high quality water that meets all regulatory health standards, the Carlsbad Municipal Water District staff provide ongoing maintenance and repair of the following: Nine storage reservoirs and/or tanks, 455 miles of pipeline, 17 pressure zones, 77 pressure regulating stations, three pumping stations, 14,369 valves, 4,397 fire hydrants and 29,293 potable meters. Staff also provides education and outreach related to water conservation. In fiscal year 2020-21, CMWD will continue to operate and maintain its critical infrastructure systems, while increasing the use of technology to improve and manage the system more efficiently and effectively, thereby extending the useful life of the assets. Optimized asset management reduces the need for infrastructure replacement and reactive response. SERVICES •Operation and maintenance of infrastructure, including reservoirs, pressure regulating stations, pump stations, pipelines, valves, meters and other elements •Delivery of drinking water •Water quality and cross-contamination (between drinking water and recycled water) testing •Regulatory reporting •Water conservation education and outreach 2017-18 Actual 2018-19 Actual 2019-20 Budget 2020-21 Budget Personnel Services Salaries & Wages $2,277,223 $2,269,516 $2,551,421 $2,536,130 Retirement Benefits 1,325,525 998,851 598,737 586,725 Health Insurance 582,255 602,867 449,801 419,940 Other Personnel Expenses 121,517 118,918 125,896 80,675 Personnel Services Subtotal 4,306,520 3,990,152 3,725,855 3,623,470 Operating Expenses Professional & Contract Services 7,236,298 7,162,939 7,970,600 8,659,800 Supplies & Materials 24,875,512 23,564,467 25,797,700 26,133,700 Repair & Maintenance 340,265 242,174 358,450 538,050 Interdepartmental Charges 2,196,626 2,453,099 2,655,773 2,744,695 Other Operating Expenses 5,082,938 5,222,567 4,340,183 4,407,150 Capital Outlay 49,744 79,968 365,000 20,000 Operating Expenses Subtotal 39,781,383 38,725,214 41,487,706 42,503,395 TOTAL EXPENDITURES $44,087,903 $42,715,366 $45,213,561 $46,126,865 Full Time Positions 29.60 29.80 30.30 29.50 Hourly/FTE Positions 0.50 0.50 0.50 0.45 Exhibit 4B June 23, 2020 Item #9 Page 87 of 124 RECENT ACCOMPLISHMENTS •Added advanced metering infrastructure technology to existing meters. Staff can now quickly alert customers to high water usage and potential leaks •Completion of the Potable Water Master Plan •Completion of the Supervisory Control and Data Acquisition or SCADA Master Plan. SCADA is a system of hardware and software that monitors infrastructure, gathers real-time data and allows operators to make changes as-needed remotely •Completion of the Asset Management Plan •Completion of the utility billing system upgrade •Completion of the installation of the Maerkle Reservoir cover replacement project •Established program compliance with California Senate Bill 998, Water Shut-off Protection Act GOALS | OBJECTIVES | PRIORITIES •Meet all federal and state water quality objectives •Meet or exceed the American Water Works Association benchmark for pipeline breaks (1.4 to 12.6 breaks per 100 miles of pipeline, CMWD’s break rate is 1.74 for fiscal year 2018-19) •Meet or exceed the AWWA benchmark for pipeline leaks (1.5 to 11 leaks per 100 miles of pipeline, CMWD’s leak rate is 8.93 for fiscal year 2018-19) •Continue to meet or exceed operational requirements and benchmarks •Complete the design phase of a critical valve replacement project that includes replacement of valves throughout the district •Complete design and agreements for Flow Control Facility No. 5, which will provide CMWD with a direct connection to the Poseidon Water LLC desalinated water pipeline •Begin implementation of the new SCADA Master Plan June 23, 2020 Item #9 Page 88 of 124 PUBLIC WORKS | UTILITIES: RECYCLED WATER OPERATIONS Account: 5026310 Fund: Enterprise ABOUT The Carlsbad Municipal Water District or CMWD provides ongoing treatment, maintenance and repair of the recycled water system’s Carlsbad Water Recycling Facility treatment plant, three storage tanks, four pump stations, three pressure reducing stations, five pressure zones, 93 miles of pipelines, 815 valves and 950 meters. CMWD’s Cross-Connection Control and Backflow Program ensures a safe supply of drinking water by prevention of 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. The Carlsbad Water Recycling Facility treatment plant is next to the Encina Wastewater Authority Treatment Plant. CMWD takes wastewater from that plant and treats it to California Title 22 recycled water quality standards and then delivers that 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 recycled water. Recycled water is not subject to state water conservation requirements. 2017-18 Actual 2018-19 Actual 2019-20 Budget 2020-21 Budget Personnel Services Salaries & Wages $908,012 $849,549 $1,053,002 $1,164,750 Retirement Benefits 501,237 447,110 257,352 266,750 Health Insurance 133,445 126,154 196,340 189,792 Other Personnel Expenses 44,926 47,768 51,846 37,022 Personnel Services Subtotal 1,587,620 1,470,581 1,558,540 1,658,314 Operating Expenses Professional & Contract Services 1,159,795 2,183,790 1,991,087 1,958,200 Supplies & Materials 1,940,254 1,462,839 2,361,500 2,376,300 Repair & Maintenance 12,328 20,923 78,643 103,243 Interdepartmental Charges 365,226 520,537 596,566 682,619 Other Operating Expenses 3,659,778 3,656,891 3,491,482 3,789,982 Capital Outlay 7,259 27,277 50,000 15,000 Operating Expenses Subtotal 7,144,640 7,872,257 8,569,278 8,925,344 TOTAL EXPENDITURES $8,732,260 $9,342,838 $10,127,818 $10,583,658 Full Time Positions 12.40 11.95 12.20 13.00 Hourly/FTE Positions 0.00 0.00 0.00 0.05 June 23, 2020 Item #9 Page 89 of 124 In fiscal year 2020-21, CMWD will continue to use technology to improve and manage the system more efficiently and effectively. The recycled water system is relatively new, built just 30 years ago. CMWD has an opportunity to begin implementing Supervisory Control and Data Acquisition, or SCADA and asset management techniques on a relatively young system, thereby maximizing the lifespan of these assets and reducing replacement costs over the long term. SERVICES •Operation of infrastructure, including the Carlsbad Water Recycling Facility plant, reservoirs, pressure regulating stations, pump stations, pipelines, valves, meters and other elements •Treatment of wastewater to meet State of California Title 22 recycled water requirements •Maintenance of infrastructure •Delivery of recycled water •Water quality testing •Backflow testing •Recycled water conversion program RECENT ACCOMPLISHMENTS •Added Advanced metering infrastructure technology to existing meters allowing staff to quickly alert customers to high water usage and potential leaks •Completion of the Recycled Water Master Plan •Completion of the SCADA Master Plan •Completion of the Asset Management Plan •Completion of design of a 1.5 million-gallon storage tank •Completion of installation of recycled water services project, which will provide an opportunity to connect more customers to the system GOALS | OBJECTIVES | PRIORITIES •Complete construction of a 1.5 million-gallon storage tank •Meet all federal and state water quality objectives •Meet or exceed the American Water Works Association or AWWA benchmark for pipeline breaks (1.4 to 12.6 breaks per 100 miles of pipeline, CMWD’s break rate is 2.15 for fiscal year 2018-19) •Meet or exceed the AWWA benchmark for pipeline leaks (1.5 to 11 leaks per 100 miles of pipeline, CMWD’s leaks rate is 1.07 for fiscal year 2018-19) •Continue to meet or exceed operational requirements and benchmarks June 23, 2020 Item #9 Page 90 of 124