Memorandum
TO Patrick Dobbins From Megan Panofsky
DATE 1/13/2025
Subject Updated CIP
MNS was tasked with updating the City of Gonzales’ Capital Improvement Plan (CIP) budget to fund the unanticipated Emergency Infiltration Basin project, as well as to review the budgeted funds alloted for Cleaning, Inspection, and Rehabilitation of the 21-inch Sewer Main project. The following memorandum provides details as to the projects reviewed, and updates made to the CIP to fund the projects.
Emergency Infiltration Basin Project
At the December 11, 2024 Special City Council Meeting, staff reported the Wastewater Treatment Plant was struggling to dispose of wastewater for the following reasons:
1. The last two years of heavy rainfall and regular dam releases from Lake Nacimiento and Lake San Antonio has resulted in higher groundwater along the Salinas River. Groundwater used to be more than 10 feet below the bottom of the disposal beds and it’s now closer to 4 feet. Higher groundwater has decreased the performance of the disposal beds as there’s less storage for the water to drain to.
2. The slow percolation of the disposal beds has made it difficult for public works staff to get a tractor with implements in the disposal beds to rip the bottom of the beds to improve the percolation.
3. The processing facilities ramped up their production for the holiday season and some of the processing facilities exceeded their Industrial Wastewater (IW) allocations in the last two months.
At the December 11, 2024 Special Meeting, the Council authorized staff to proceed with emergency work at the MWWTP to construct the new disposal bed.
The project engaged several consultants, Dudek (design), Polaris Consulting (construction staking), MNS Engineers (Construction Management/Inspection), and contractors, Swift Tectonics (basin construction), Star Sanitation and A&G (haulers), as well as City staff (fence installation, operation). With purchase of a permanent pump pending, MNS estimates the total cost of the project will be approximately $550,000. 21-inch Sewer Truck Line Cleaning, Inspection, and Rehabilitation The 2015 Fermin Lane Trunk Line Sewer and Manhole Inspection Report identified significant repairs needed on the trunk line manholes. To take advantage of the parallel Industrial Wastewater pipeline that can be used as a bypass before being put into service at the completion of the Industrial Wastewater Treatment Facility (IWTF), requires the City to complete the 21-inch rehabiliation project before completion of the IWTF. 201 N. Calle Cesar Chavez, Suite 300
Santa Barbara, CA 93103
Ph 805.692.6921
MNS prepared an estimated cost for the 21-inch rehabilitation project based on the following anticipated scope of work: locate existing manholes, excavate to uncover manhole covers, setup/operate two bypasses, clean out the 21- inch trunk line (anticipating 0 to 12-inches of sediment based on the 2015 report), closed circuit television (CCTV) inspection, rehabilitation of the manholes, minor pipeline rehabilitation, engineering, and construction management.
PM, Engineering $ 45,000
Staking $ 5,000
Excavate Manholes $ 60,000
Cleaning $ 100,000
CCTV Inspection $ 30,000
Bypass $ 65,000
Rehab $ 230,000
CM $ 65,000
Contingency $ 150,000
Total $ 750,000
The current CIP allocates $300,000 to this project, which is a deficit of $450,000.
Updated CIP
To incorporate the $550,000 Emergency Infiltration Basin and the additional $450,000 anticipated for the 21-inch Trunk Line Sewer Rehabilitation, MNS made the following adjustments to the CIP:
1) Updated FY 23/24, removing funds allocated to projects that were not initiated in FY 23/24, and decreasing the funds allotted for the Industrial Wastewater Pretreatment Program by $15,000 to align with actual costs. $550,500 was not spent in FY 23/24, making it available in FY 24/25.
Install New Groundwater Monitoring Wells at WWTP $ 125,000 Wastewater Treatment Plant Upgrades $ 80,000
WWTP Process Optimization $ 25,000
WWTP and Collections Staffing Study $ 5,500
Clean and Video Inspect 21-Inch Trunk Sewer (Along Fermin Lane from Alta Street $ 50,000 Rehabilitate Manholes on 21-inch Sewer (Along Fermin Lane from Alta Street to $ 100,000 Sewer System Condition Assessment $ 150,000
Industrial Wastewater Pretreatment Program $ 15,000
Total $ 550,500
2) Shifted start of the Wastewater Treatment Plant Upgrades Project to FY 25/26, aligning with a July 2025 start.
3) Shifted Install New Groundwater Monitoring Wells at WWTP to FY 25/26. 4) Shifted start of Replace SCADA/Control System to FY 25/26. As the new SCADA/Control System will be associated with the IWTF, this shift is appropriate.
5) Shifted WWTP Process Optimization to FY 26/27. The Wastewater Treatment Plant Upgrades project will develop an interim solution for the City to better operate the WWTP until the IWTF is online, after which operation of the WWTP will change significantly. MNS recommends doing the optimization study after the IWTF is online.
6) Shifted WWTP and Collections Staffing Study to FY 25/26. It is assumed the staffing study is to accommodate increased operational demands with the new IWTF, which is not anticipated to be operational until 2027.
In making the adjustments to the CIP noted above, the CIP budget is balanced. The funds made available from FY 23/24 and FY 26/27 will cover the added costs in FY 24/25 and FY 25/26. Because $50,000 is being used of the original FY 26/27 budget in FY 25/26, cash reserves will need to be monitored to confirm funds are available.
Attachments:
Updated CIP Table
2023 Rate Study CIP
1/13/2025 Updated CIP
FY 23/24 FY 24/25 FY 25/26 FY 26/27
WWT 1 Wastewater Treatment Plan Expansion $ - $ - $ - $ - WWT 2 Wastewater Rate Study $ 10,000 $ - $ - $ -
WWT 3 Wastewater Master Plan $ - $ 25,000 $ 275,000 $ - WWT 4 Groundwater Monitoring Plan $ 15,000 $ - $ - $ -
WWT 5 Install New Groundwater Monitoring Wells at WWTP $ - $ - $ 125,000 $ - WWT 6 Wastewater Treatment Plant Upgrades $ - $ - $ 80,000 $ 125,000 WWT 7 Wastewater Treatment Plant Sludge Removal $ - $ - $ - $ 750,000 WWT 8 Replace SCADA/Control System $ - $ - $ 10,000 $ 100,000 WWT 9 WWTP Process Optimization $ - $ - $ - $ 25,000
WWT 10 Renewal of WWTP WDR $ 20,000 $ - $ - $ -
WWT 11 Sampling, Analysis and Regulatory Report Plan $ 14,000 $ - $ - $ - WWT 12 Spill Prevention, Emergency Response and Staff Training Plans $ 7,500 $ - $ - $ - WWT 13 Wastewater Disposal and Sludge Management Plan $ 14,000 $ - $ - WWT 14 WWTP and Collections Staffing Study $ - $ - $ 5,500 $ - WWT 15 Annual Waste Discharge Requirement Fees (WWTP and IWTF) $ 25,000 $ 28,000 $ 28,000 $ 55,000 WWT 16 CUPA Spill Prevention Control and Countermeasures Plan $ - $ 20,000 $ - $ - WWT 17 Climate Change Adoption Plan $ - $ - $ 25,000 $ - WWT 18 Time Schedule Compliance Plan $ 10,000 $ - $ - $ - WWT 19 Emergency Infiltration Basin $ - $ 550,000 $ - $ - $ 598,000 115,500 $ 273,500 $ 1,055,000 $
$ 351,000 $ 208,000 $ 453,000 $ 1,105,000
$ 235,500 $ (390,000) $ 179,500 $ 50,000
CS 1 Industrial Wastewater Pretreatment Program $ 10,000 $ - $ - $ - CS 2 Update Sewer System Management Plan $ 10,000 $ - $ - $ - CS 3
Clean and Video Inspect 21-Inch Trunk Sewer (Along Fermin Lane from Alta Street to WWTP) $ - 130,000 $ - $
CS 4
Rehabilitate Manholes on 21-inch Sewer (Along Fermin Lane from Alta Street to WWTP) $ 350,000 270,000 $ - $
CS 5 Sewer System Condition Assessment $ 150,000 $ 180,000 $ 400,000 20,000 $ 500,000 $ 180,000 $
$ 330,000 335,000 $ 180,000 $ 180,000 $
$ (70,000) 315,000 $ (320,000) $ - $
IS 1 Conveyance $ - $ 8,400,000 $ - $ -
IS 2 Treatment Facility $ - $ 1,400,000 $ 16,100,000 $ 3,100,000 IS 3 Land, Legal, Engineering Costs $ 100,000 $ 2,230,000 $ 2,400,000 $ 640,000 $ 12,030,000 100,000 $ 18,500,000 $ 3,740,000 $
$ 8,300,000 $ 12,500,000 $ 3,500,000 $ -
$ 470,000 8,200,000 $ (15,000,000) $ (3,740,000) $
$ 13,028,000.00 235,500.00 $ 19,273,500.00 $ 4,975,000.00 $ Funding Sources FY 23/24 FY 24/25 FY 25/26 FY 26/27
Sewer Operations Fund $ 135,500 $ 998,000 $ 773,500 $ 1,235,000 Sewer Operations Fund Totals per Sept 2023 Water/Sewer Rate Studay $ 686,000 $ 538,000 $ 633,000 $ 1,285,000 Δ $ (550,500) $ 460,000 $ 140,500 $ (50,000)
Loans $ 100,000 $ 12,030,000 $ 18,500,000 $ 3,740,000
Grants $ - $ 25,000 $ 275,000 $ -
$ 14,051,000 371,000 $ 20,322,000 $ 6,210,000 $
CIP Totals per Sept 2023 Water/Sewer Rate Study
Δ
CIP Totals
CIP Totals per Sept 2023 Water/Sewer Rate Study
Δ
CIP Totals
WASTEWATER TREATMENT
COLLECTIONS SYSTEM
INDUSTRIAL SYSTEM
Total =
Total
CIP Totals
CIP Totals per Sept 2023 Water/Sewer Rate Study
Δ
City of Gonzales Page 28
Water and Sewer Utility Rate Study 2023
Table 19: Wastewater CIP
City of Gonzales
Water and Sewer Utility Rate Study 2023
2023/24 2024/25 2025/26 2026/27
WASTEWATER TREATMENT Wastewater Treatment Plan Expansion 0 0 0 0 Wastewater Rate Study 10,000 0 0 0
Wastewater Master Plan 25,000 275,000 0 0
Projected Grant Funding (25,000) (275,000) 0 0
Groundwater Monitoring Plan 15,000 0 0 0
Install New Groundwater Monitoring Wells at WWTP 125,000 0 0 0 Wastewater Treatment Plant Upgrades 80,000 125,000 300,000 300,000 Wastewater Treatment Plant Sludge Removal 0 0 0 750,000 Replace SCADA/Control System 0 10,000 100,000 0
WWTP Process Optimization 25,000 25,000 0 0
Renewal of WWTP WDR 20,000 0 0 0
Sampling, Analysis and Regulatory Report Plan 14,000 0 0 0 Spill Prevention, Emergency Responds and Staff Training Plans 7,500 0 0 0 Wastewater Disposal and Sludge Management Plan 14,000 0 0 0 WWTP and Collections Staffing Study 5,500 0 0 0
Annual Waste Discharge Requirement Fees (WWTP and IWTF) 25,000 27,500 27,500 55,000 CUPA Spill Prevention Control and Countermeasures Plan 0 20,000 0 0 Climate Change Adoption Plan 0 0 25,000 0
Time Schedule Compliance Plan 9,500 0 0 0
Subtotal Wastewater Treatment 351,000 208,000 453,000 1,105,000 COLLECTIONS SYSTEM Industrial Wastewater Pretreatment Program 25,000 0 0 0 Update Sewer System Management Plan 10,000 0 0 0
Clean and Video Inspect 21" Trunk Sewer (Along Fermin Ln from Alta St to WWTP) 50,000 50,000 0 0 Rehabilitate Manholes on 21" Sewer (Along Fermin Ln from Alta St to WWTP) 100,000 100,000 0 0 Sewer System Condition Assessment 150,000 180,000 180,000 180,000 Subtotal Collections System 335,000 330,000 180,000 180,000 INDUSTRIAL SYSTEM Industrial Wastewater Reclamation System 8,300,000 12,500,000 3,500,000 0 Subtotal Industrial System 8,300,000 12,500,000 3,500,000 0 TOTAL WASTEWATER CIP $8,986,000 $13,038,000 $4,133,000 $1,285,000