Capital Improvement Program

The District provides water service to a population of more than 220,200 people, which is expected to increase to 308,000 by the year 2050.  This growth, as well as the maintenance of existing assets, requires long-term capital planning.  The process is dynamic, due to the evolving needs of the community, the water supply issues, and changing regulations. As such, capital planning is part of the District’s overall strategic planning. The capital planning process involves identifying current needs, future needs, and prioritizing them based on certain operating assumptions.  The primary objective of this planning effort is to support an orderly and efficient program of expansion, new water supply, replacement, and betterment, while maintaining a stable long-range financial plan.

To accommodate growth requires that the District invest $299 million in capital assets through ultimate build-out.  The Fiscal Year 2017 Capital Budget is $10.7 million for 89 projects and the Six-Year Capital Improvement Program (CIP) totals approximately $89.8 million for 107 projects.

Capital Improvement Projects

The Fiscal Year 2017 Capital Improvement Program (CIP) Budget consists of 89 projects.  The cost for the work planned for Fiscal Year 2017 is $10.7 million.  Of the 89 projects planned for Fiscal Year 2017, four (4) are designated as reimbursable projects with an estimated cost totaling $14,000.  These reimbursable projects are built by the developer and reimbursed by the District.

The following shows how the $10.7 million of projects are broken down into four categories:

 Capital Facilities  $   3.7 million
Replacement or Renewal Projects $   5.9 million
Capital Purchase Projects $   1.1 million
Developer Reimbursement Projects $   14.0 thousand

 

 

 

 

 

 

 

The Six-Year CIP and Fiscal Year 2017 Capital Budget are consistent with the District’s Water Facilities Master Plan (formerly known as Water Resources Master Plan), current capacity fees, and the District’s strategic financial objectives.

Assumptions and Criteria

The CIP is developed based on the District’s Water Facilities Master Plan incorporating historical data, growth, developers’ input, SANDAG projections, and long-term economic outlook.

The Water Facilities Master Plan was built using several major assumptions and design criteria as follows:

  1. Utilizing historical water demands for each land use type in the District to calculate future demands.
  2. Using maximum day peaking factors that vary with demand level.
  3. Utilizing land use as planned by the City of Chula Vista.
  4. Providing ten days of emergency water supply through a maximum of five days in covered reservoirs and a minimum of five days from interconnections with adjacent agencies.
  5. Inclusion of emergency operational storage to meet the five-day covered storage requirement into the ten-day outage supply requirement.

CIP Justification

The justification for each project is determined by whether it is required due to growth (Expansion), new water sources (New Supply), improvements or upgrades (Betterment), or to replace an existing asset (Replacement).  As these projects are completed and placed into service, there may be an impact on the Operating Budget by increasing costs in the areas of maintenance, energy, or chemicals.

The CIP projects are identified and are prioritized based on the following criteria:

  1. Safety, restoration of service, immediate obligation, Board directed, or critical system need.
  2. System upgrades or requirements to maintain system reliability in the next few fiscal years.
  3. Need to meet the future growth of the system.
  4. Project requirement may be reduced in capacity or may have low probability of need in the future.

The following are the four categories of CIP projects:

New Water Supply

Facilities required to support new sources of water are funded from new supply fees or user rates.

Expansion

Facilities required to support new or future users are funded from capacity fees or user rates.

Betterment

Facilities required because of inadequate capacity or new requirements that benefit existing users are funded from availability, betterment fees, or rates.

Replacement

Facilities required to renew or replace existing facilities that have deteriorated or have exceeded their useful life are funded from user rates.

–    For Contracting Opportunities and RFP’s please refer to the Contracting/Bids section tab.