TO: Honorable Board of Directors
FROM: Andrew Damron, General Manager
REPORT BY: Matt Lemmon, Engineering Director
SUBJECT: Consideration of Proposed FY 2025/26 Capital Project Appropriations Request and Update of FY 2025/26 - FY 2034/35 Ten-Year Capital Improvement Plan
RECOMMENDATION
title
Consider Proposed FY 2025/26 Capital Project Appropriation Request, Update of FY 25/26 - FY 34/35 Ten-Year Capital Improvement Program, and provide direction to staff.
body
EXECUTIVE SUMMARY
The proposed FY 25/26 Capital Project Appropriation and the Ten-Year Capital Plan constitute the proposed Capital Improvement Program for NapaSan. Details of the Capital Improvement Plan and Ten-Year Financial Forecast are attached.
Consistent with Policy and Adopted Master Plans
The proposed Ten-Year Capital Plan includes recommendations from the Treatment Plant Master Plan (2022) and the Collection System Master Plan (2021).
Summary of Projects
The FY 25/26 capital plan can be broken down into five categories:
1) Collection System Projects ($10,792,900) including the 2025, 2026, and 2027 collection system rehabilitation projects, manhole rehabilitation, manhole raising coordinated with City paving projects, 54/60" and 66" trunk CCTV inspection, and the Milliken trunk rehabilitation project.
2) Treatment Plant Projects ($7,082,300) including the 2025 and 2026 treatment plant improvements, the 2027-2028 WWTP electrical improvements, a new storage building, WWTP pavement maintenance, and the digester coating project.
3) Recycled Water Projects ($35,000) including NBWRA membership.
4) Equipment Replacements ($865,200) including treatment plant and pump station equipment, lab equipment, and vehicle replacements.
5) Other Projects ($593,100) including SCADA upgrades and development review.
A complete list of projects and descriptions is attached to this staff report.
Use of Debt
The Ten-Year Financial Plan includes issuing debt to fund several major capital projects. Design work for the replacement of key components of the electrical system is scheduled to begin in FY 2025/26, with debt issuance planned for FY 2027/28 to align with the construction phase of the project.
The second phase of the 66-inch Trunk Main Rehabilitation project, from Imola to Kaiser Road, is scheduled to begin construction in FY 2028/29.
An upgrade to the Recycled Water Pump Station is also included in the capital plan. Design for this project is complete, and funding from the American Rescue Plan Act was used to support the design phase. Construction is expected to begin in FY 2031/32, with the remaining costs anticipated to be covered through debt financing.
FISCAL IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
What is the revenue source? |
Sewer service charges, capacity charges, loan proceeds, federal grants, interest earnings and other miscellaneous revenues. |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
The Capital Improvement Plan is necessary to replace infrastructure that has reached the end of its useful life, has insufficient capacity, does not meet regulatory requirements, or poses a hazard to the health and safety of NapaSan's customers or employees. Projects are also necessary to meet anticipated capacity needs. |
|
Is the general fund affected? |
Yes |
|
Future fiscal impact: |
Appropriations for the FY 2025/26 capital projects are proposed to be $19,368,500. Also, current year unspent funding for incomplete projects as of June 30, 2025, are anticipated to be carried forward into FY 2025/26. The total Ten-Year Capital Plan projection, not including funds appropriated in FY 2024/25 that may be carried forward, is $238,221,950. See attachments for further details. |
|
Consequences if not approved: |
The proposed FY 2025/26 - FY 2034/35 Ten-Year Capital Improvement Plan is in draft form and is presented here only for information, discussion, and direction. The direction that is provided will be incorporated into the proposed FY 2025/26 - FY 2034/35 Ten-Year Capital Improvement Plan. |
ENVIRONMENTAL IMPACT
The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
None.