CITY COUNCIL REGULAR MEETING AGENDA PACKET (2)

Page 3 of 5 rehabilitation or replacement. • Priority Level B- Projects that provide measurable progress toward achieving the City’s goals, but the City has a moderate level of control as to when these projects should be accomplished. o These projects include decommissioning Wells #5-8, lower priority fire water flow improvements, additional booster station rehabilitation projects, and customer meter replacements. • Priority Level C- Projects anticipated to be needed but may still need to define scopes and schedules or meet the criteria for Priority Levels A and B. o These projects include future water supply treatment projects (i.e., disinfection), lower priority pipeline replacements, tank mixers, and other facility rehabilitation projects. Class 5 planning level cost estimates per the Association for the Advancement of Cost Engineering (AACE) were prepared for each project. Class 5 estimates may represent an overestimate of cost by 100 percent or an underestimate of cost by 50 percent. The project cost estimates include administration, design, construction, and a contingency of 30 percent. All costs are tied to a May 2024 ENR Index for San Francisco. The table below provides a cost summary of the recommended CIP based on project category and prioritization. The recommended long-term CIP has been developed to be implemented over a 20-year timeframe. Notably, implementation of the WSMP will require additional City engineering staff to manage projects. The number and timing of staff increases will ultimately depend on the project phasing strategy implemented by the City, but over a 20-year period is estimated to be within the range of $8 million-$12 million. Note that one engineering staff position was already approved in FY24/25 and is not included in this cost range. Implementation of the WSMP will also result in O&M support requirements with the new infrastructure installed. Additionally, existing infrastructure will continue to age and require additional O&M until Repair & Replacement projects are completed. O&M needs will also depend on the project phasing strategy implemented by the City, but over a 20-year period is estimated to be within the range of $12 million-$18 million. When including combined engineering and O&M cost increases, the implementation of WSMP is estimated to have a funding need of $283 million-$289 million over 20 years. O&M Program Improvements The WSMP also identifies a list of recommended O&M program improvements to comply with future regulations and be consistent with industry best practices. The recommendations are Page 423 of 658