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Home My WebLink AboutStaff Report 2306-1685Item No. 3. Page 1 of 2 2 5 8 0 Utilities Advisory Commission Staff Report From: Dean Batchelor, Director Utilities Lead Department: Utilities Meeting Date: January 3, 2024 Staff Report: 2306-1685 TITLE Discussion and Update on Utilities Department Five-Year Capital Improvement Program Progress and Projections RECOMMENDATION Staff recommends the Utilities Advisory Commission receive the update on the five-year capital improvement program, shown in the attached tables. BACKGROUND Utilities Engineering oversees and implements the capital improvements program (CIP) for the Utilities Department. The attached tables summarize implementation of the electric, gas, water, and wastewater CIP projects over the past five years (i.e., fiscal year 2019 to present), including their originally planned construction year, actual construction year, proposed budget, and contract amount. The attached tables also show the currently planned CIPs, including fiber optic construction, for the next five years (i.e., present to fiscal year 2028). ANALYSIS Water-Gas-Wastewater (WGW) CIP projects have generally been implemented within the planned timeframe and allocated budget amounts. The exceptions are projects that were delayed in fiscal year 2019 due to the Upgrade Downtown (UGDT) project, which was a large, multi-departmental CIP project that included water, gas, electric, fiber, traffic signal, sidewalk curb ramps, and sidewalk widening in the downtown area. The Electric Utility has been impacted by staff vacancies, material shortages post-COVID, an unexpected substation transformer replacement project, and a shift in priorities to supporting Grid Modernization. These factors have led to the delay of some planned work which is being incorporated into upgrades need for the Grid Modernization Project. Staff will be available during the Utilities Advisory Commission meeting to answer any questions regarding the summary tables and the implementation and status of individual projects. Item No. 3. Page 2 of 2 2 5 8 0 FISCAL/RESOURCE IMPACT This is an informational report and there is no fiscal or resource impact. STAKEHOLDER ENGAGEMENT None ENVIRONMENTAL REVIEW None required. ALTERNATIVE ACTIONS None ATTACHMENTS Attachment A: WGW CIP Project Summary Attachment B: Electric CIP Project Summary AUTHOR/TITLE: Dean Batchelor, Director of Utilities Staff, Tomm Marshall, Assistant Director of Utilities Electric Staff, Matt Zucca, Assistant Director of Utilities WGW Table 1 Capital Improvement Program Project Status Summary for Fiscal Years 2019 to 2028 (as of November 2023) Water, Gas, and Wastewater Engineering FY'19 Notes: All three FY'19 CIP projects were postponed due to the Upgrade Downtown (UGDT) project. UGDT was a $16.4M, multi-departmental CIP project which included water, gas, electric, fiber, traffic signal, sidewalk curb ramps, and sidewalk widening. WGW Engineering team managed the project during the design, solicitation, and construction phases. The project received zero bids after going through a formal solicitation process, therefore extra time and efforts were spent to negotiate a contract with a contractor who had the capacity and resources to perform the work. It was also time-consuming to coordinate with various City departments and the contractor on a regular basis, provide extensive outreach to the property owners in the Downtown District and the public, manage high-volume construction related paperwork and tasks, etc. At that time, WGW Engineering was short-staffed and all available staff was reassigned to assist with this high-profile and multifaceted project. Unfortunately, the regular CIP projects were impacted. As a result, WMR 27 and GMR 23 were postponed and SSR 28 scope was reduced by about 50% (from 20,000 LF to about 9,000 LF) and construction was delayed a year. Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments WMR 27 FY'19 Postponed due to Upgrade Downtown Project. GMR 23 FY'19 Postponed due to Upgrade Downtown Project. SSR 28A FY'19 FY'19 $250,000 $236,401 8/14/18 - 9/26/18 Sewer main replacement at Junior Museum and Zoo (JMZ) was prioritized. SSR 28B FY'19 FY'20 $3,965,600 $1,930,066 8/21/19 - 6/15/20 Project scope was reduced and construction was delayed due to short-staffing. FY'20 Notes: As indicated in the FY'20 Financial Plans, UTL Engineering started implementing the every-other-year construction for large main replacement projects. This schedule is more realistic to reflect the required duration for design, solicitation practice, Staff Report/Council approval process, contract setup, and pre-construction preparation. This staggered schedule (water and wastewater constructing every even year and gas construction every odd year) also eases scheduling difficulties for inspection coverage due to shared inspection staff across water, wastewater, gas, and large development services projects. The previous impacted projects were shifted to FY'20 (WMR 27) and FY'21 (GMR 23) accordingly. Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments WMR 27 FY'20 FY'20 $6,500,000 $4,146,435 10/21/19 - 7/2/20 On target SSR 29 FY'20 FY'20 $4,508,339 $2,040,841 2/3/20 - 11/6/20 On target with about 50% reduced scope. FY'21 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GMR 23 FY'21 FY'21 $7,620,000 $6,417,876 3/8/21 - 7/29/22 On target Corte Madera Reservoir Rebuilt FY'21 FY'21 $7,000,000 $5,545,000 2/2/21 - 4/1/22 On target FY'22 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments WMR 28 FY'22 FY'22 $8,500,000 $7,819,336 4/18/22 - 6/5/23 Completed SSR 30 FY'22 FY'22 $4,130,000 $3,444,302 3/28/22 - 2/24/23 Completed FY'23 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GMR 24A FY'23 FY'23 $1,500,000 $1,411,059 1/1/23 - 3/31/23 On target GMR 24B FY'23 FY'24 $8,500,000 TBD 1/30/24 - 5/31/25 Delayed due to grant application's late response. FY'24 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments WMR 29 FY'24 FY'24 $8,500,000 $6,956,400 11/27/23 - 5/6/24 On target Park Reservoir Upgrade FY'24 FY'25 $7,000,000 TBD TBD Delayed due to non-responsive proposals when seeking consultants to design the tanks. SSR 31 FY'24 FY'24 $7,300,000 $7,707,055 7/31/23 - 5/6/24 Const cost for work on El Camino Real came in higher than estimated, used reseve $ FY'25 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GMR 25 FY'25 TBD $10,000,000 TBD TBD Expected to be on target FY'26 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments WMR 30 FY'26 TBD $8,500,000 TBD TBD Expected to be on target Dahl Reservoir Upgrade FY'26 TBD $7,000,000 TBD TBD May be delayed since Park Reservoir Upgrade project is delayed. SSR 32 FY'26 TBD $11,000,000 TBD TBD Expected to be on target FY'27 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GMR 26 FY'27 TBD $10,000,000 TBD TBD Expected to be on target FY'28 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments Page 1 of 2 WMR 31 FY'28 TBD $8,500,000 TBD TBD Expected to be on target SSR 33 FY'28 TBD $11,000,000 TBD TBD Expected to be on target Legend: WMR = Water Main Replacement GMR = Gas Main Replacement SSR = Sanitary Sewer Replacement Notes: *The proposed budget included construction contract, 10% contingency, staff time for design & construction management, street cut fee, soil compaction testing, and all other associated costs. **The listed construction contract amount excludes 10% contingency. Table 1 Capital Improvement Program Project Status Summary for Fiscal Years 2019 to 2028 (as of November 2023) Water, Gas, and Wastewater Engineering Page 2 of 2 Table 1 Capital Improvement Program Project Status Summary for Fiscal Years 2019 to 2028 (as of November 2023) Electric and Fiber Optic Engineering FY'19 Project Original Const Year Actual Const Year Proposed Budget*Actual Construction Period Status/Comments Utility Control Center Upgrades FY'18 FY'19 $522,017 $519,204 07/01/18 - 06/30/19 Project Completed FY'20 Project Original Const Year Actual Const Year Proposed Budget*Actual Construction Period Status/Comments Colorado 115/60 kV Transformer FY'19 FY'20 $3,377,671 $2,375,018 07/01/19 - 06/30/20 Work in progress FY'21 Project Original Const Year Actual Const Year Proposed Budget*Actual Construction Period Status/Comments Caltran Modification FY'18 FY'21 $2,471,000 $2,419,907 07/01/19 - 06/30/21 Project Completed Colorado 115/60 kV Transformer FY'19 FY'21 $1,016,384 $232,954 07/01/19 - 06/30/21 Project Completed FY'23 Project Original Const Year Actual Const Year Proposed Budget*Actual Construction Period Status/Comments UG46 FY'19 FY'23 $4,018,052 $3,443,285 07/01/19 - 06/30/23 Project Completed Capacitor Bank Installation FY'22 FY'23 $2,300,000 $2,265,166 07/01/22 - 06/30/23 Project Completed Foothills Underground Program FY'21 Ongoing $12,000,000 $4,494,104 07/01/21- 06/30/26 On-going AMI Project FY'16 Ongoing $11,552,898 $5,293,930 07/01/22-07/01/25 On-going Substation Security Upgrades FY'16 On-going $5,000,000 $2,078,888 07/01/22-07/01/25 On-going Substation Breaker Replacement FY'20 Ongoing $3,000,000 $1,138,886 07/01/20-07/01/25 On-going FY'24 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GridMod FY'24 TBD $10,000,000 TBD TBD Expected to be on target FTTP FY'24 TBD $10,000,000 TBD TBD Expected to be on target FY'25 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GridMod FY'25 TBD $25,000,000 TBD TBD Expected to be on target FTTP FY'25 TBD $10,000,000 TBD TBD Expected to be on target FY'26 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GridMod FY'26 TBD $25,000,000 TBD TBD Expected to be on target FTTP FY'26 TBD $10,000,000 TBD TBD Expected to be on target FY'27 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GridMod FY'27 TBD $50,000,000 TBD TBD Expected to be on target FTTP FY'27 TBD TBD TBD TBD Pending Council's direction FY'28 Project Original Const Year Actual Const Year Proposed Budget*Contract Amount**Construction Period Status/Comments GridMod FY'28 TBD $50,000,000 TBD TBD Expected to be on target FTTP FY'28 TBD TBD TBD TBD Pending Council's direction Page 1 of 1