ADOPT A RESOLUTION OF THE CITY COUNCIL IN SUPPORT OF THE CALIFORNIA WATERFIX AND CALIFORNIA ECO RESTORE
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1 ADOPT A RESOLUTION OF THE CITY COUNCIL IN SUPPORT OF THE CALIFORNIA WATERFIX AND CALIFORNIA ECO RESTORE Presented by Gary Takara City Council September 18, 2017 Agenda Item 12
2 Recommendations Find that adopting a resolution in support of the California WaterFix and the California Eco Restore is exempt from the California Environmental Quality Act per Guidelines Section (b)(3); and Adopt a Resolution in support of the California WaterFix and California Eco Restore 2
3 Sacramento -San Joaquin Delta Sacramento & San Joaquin Rivers form the Sacramento- San Joaquin Delta ( Delta ) > Wetland consisting of marshes, levees, islands, and waterways > Home to more than 500 plants & wildlife including the endangered delta smelt > 1,150 square miles in area > 1,100 miles of levees & 700 miles of waterways > 4.9 million acre-feet ( MAF ) per year in water supplies to 25 million people & 3 million acres of agricultural land. 3
4 Delta Major Hub of Water Exports South Delta diversion at the Clifton Court Forebay > Two large pumping plants > Harvey Banks for the SWP > Bill Jones for the CVP 1
5 Delta Major Hub of Water Exports South Delta diversion at the Clifton Court Forebay > Two large pumping plants > Harvey Banks for the SWP > Bill Jones for the CVP Central Valley Project ( CVP ) > U.S. Bureau of Reclamation ( USBR ) > Constructed in the 1940s > 2.2 MAF/year for central California agricultural & farm land State Water Project ( SWP ) > California Department of Water Resources ( DWR ) > Constructed in the 1960s > 2.7 MAF/year for central & southern California municipal and institutional > Conveyed via California Aqueduct 2
6 Delta Issues Reverse Flows Pumps redirect river flows > Entrain and trap fish (endangered Delta Smelt) > Introduce higher salinity 5
7 Delta Issues Levee Vulnerability > Large seismic event and subsidence may breach levees > Re-direct flows and impact downstream users > Introduce chemicals & increased turbidity > Costly repairs Supply Reliability > Global warming & rising sea levels 6
8 Water Delivery With and Without California WaterFix Average Conveyance (1) SWP & CVP Contractors Metropolitan Water District (4) Volume (MAF) (3) TAF Reduction (30%) Existing Conditions Future without CA WaterFix Future with CA WaterFix (2) (2) (1) All deliveries assumed with 2025 climate change impacts. (2) Future scenarios analyzed under a range of outflow requirements & operating criteria. (3) Future without CA WaterFix ranged from 3.5 to 3.9 MAF. (4) Future with CA WaterFix ranged from 4.7 to 5.3 MAF.
9 California WaterFix 3 intakes and 34 miles north of Clifton Court Forebay > Each rated at 3,000 CFS Main Tunnels > Two tunnels, 40-foot diameter and 30-miles in length > Up to 150 feet below ground surface Schedule > Construction 13 years > Operational by mid-2030s 8
10 California WaterFix Benefits Dual conveyance > Provides operational flexibility > Allows for operations in a dynamic fishery environment > Diversion of excess flood flows for dry-year storage & emergencies Reduce risks for climate change > North intakes are at a higher elevation Improved flow patterns in the Delta > Reduced diversion in the south Delta which lessens reverse flows > Reduce risk of fish entrainment Reduce seismic and subsidence risks > Tunnels are reinforced & below grade Improved water quality > Lower total dissolved solids, salinity & bromide 9
11 California Eco Restore Restore and protect +30,000 acres of Delta habitat by 2020 > Restore floodplains, tidal habitat, and aquatic and riparian habitat Work in progress: > Restored 1,900 acres of habitat > 3,900 acres are under construction & 23,200 acres under permitting > Restored 1.2 miles of aquatic waterways & planning and permitting 5.5 miles Planning & implementation cost $300 million > Funded primarily by CVP and SWP contractors 10
12 California WaterFix Cost Capital cost at $16.7 billion (2017 dollars) > Contingency of 36% or $3.7 billion > $401 million in capital mitigation Operation, maintenance, and mitigation cost > $64.4 million in 2033 (2017 dollars) > Facilities operational by 2033 SWP contractors cost share at 55% > Negotiating with CVP contractors on cost share Metropolitan Water District ( MWD ) is the largest SWP contractor with 45.8% rights > 5 of 29 SWP contractors will not benefit from California WaterFix > MWD s cost share 47.1%
13 California WaterFix Cost Costs are in 2017 Dollars Interest Rate Scenario (Term 40 Years) Description 4% 6% 8% Total Capital & Mitigation Costs $16.7 Billion $16.7 Billion $16.7 Billion Total SWP Annual Financing and O&M Cost at 55% in 2033 $438 Million $567 Million $709 Million MWD Annual Cost Share at 47% in 2033 $207 Million $268 Million $334 Million MWD Annual Volumetric Sales (Million Acre-Feet) MWD Unit Costs ($/Acre-Foot) $122 $157 $196 WaterUsage for an Average Pasadena Single Family Household (Billing Units) 13
14 MWD Cost Share Based on 6% Scenario ($ Million) ~ 5% Increase for an Average Household Bill $400 MWD Cost Share $350 Monthly Cost for Average SF Household (MWD Sales of 1.7 MAF) $3.24 $3.28 $3.32 $3.36 $3.40 $3.44 $3.48 $3.52 Monthly Cost for Average SF Household (MWD Sales of 1.36 MAF) $300 $250 $200 $150 $100 $0.50 $50 $0.40 $0.21 $0.26 $0 Cost for MWD & City s Average Single Family Household $38 $20 $2.59 $2.62 $2.65 $2.69 $2.72 $2.75 $2.78 $2.81 $2.71 $2.23 $2.17 $1.75 $1.78 $1.40 $1.26 $246 $249 $252 $255 $258 $261 $264 $267 $1.01 $0.83 $206 $0.66 $169 $133 $96 $ Fiscal Year (July 1 to June 30) -- MWD s cost share of the California WaterFix does not include other water related increases. -- Monthly costs for an average single family household are based on a 60% imported MWD water. $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Monthly Cost for Average SF Household
15 Alternative Resource Unit Costs $14,000 $12,000 Cost per Acre-Foot $10,000 $8,000 $6,000 $4,000 $7,200 $3,300 $2,000 $0 Centralized Project (Spreading Grounds) $1,100 On-site Direct Use (Cisterns & Rain Barrels) $1,800 On-Site Infiltration (Rain Gardens) Sub-Regional Direct Use (Park Storage & Irrigation) $900 Sub-Regional Infiltration (Neighborhood Recharge) $1,300 Commercial Green Street Stormwater Capture Alternatives
16 Alternative Resource Unit Costs $4,500 $4,000 Cost per Acre-Foot $3,500 $3,000 $2,500 $2,000 $2,100 $2,400 $1,500 $1,500 $1,000 Recycled Water (Irrigation) Recycled Water (Recharge) Seawater Desalination Recycled Water & Desalination Alternatives
17 2011 WIRP Alternative Local Resources Cost per Acre-Foot $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $2, $5, $6,532 Cost per AF $3, Volume $4, Volume (AF/Year) $0 Satellite MBR On-Site Non- Potable Reuse (Irrigation) Graywater Reuse (Irrigation) Residential Rain Barrel (Irrigation) Residential Rain Gardens (Recharge) Residential & Commercial Infiltration Strip & Bioswale (Recharge) 0 Alternative Local Resources (Based on 2010 Cost)
18 Large Scale Alternative Resources $3,000 Cost per AF Capacity Cost per Acre-Foot $2,500 $2,000 $1,500 $1,000 $500 $2, $ $1, $1, $1, $ Capacity (1,000 AF/Year) $0 San Diego Claude "Bud" Lewis Orange County Water District * Cost does not account for groundwater pumping. Poseidon Huntington Beach (Proposed) MWD Regional Recycled Water (Proposed)* San Diego Pure Water (Proposed) MWD's Share of California WaterFix (Proposed)** 0 **Cal 6% Interest Scenario ($268M 360 TAF)
19 Cost to Replace Full Delta Supply (MWD s Share of 1,200 TAF) $50 $42.4 Capital Cost ($ Billion) $40 $30 $20 $10 $21.4 $9.2 $21.4 $19.6 $4.3 $0 San Diego Claude "Bud" Lewis Orange County Water District* *Cost includes upgrade from 100 MGD to 130 MGD capacity. Poseidon Huntington Beach (Proposed) MWD Regional San Diego Pure Recycled Water Water (Proposed) (Proposed) MWD's Share of California WaterFix (Proposed)
20 Risks of Not Moving Forward with California WaterFix Increasing regulatory constraints > Impacts to water operations result in reduced diversions > In ability to capture storm flows for drought and emergency supplies > Threatened fish species requiring higher outflows and decline in water supply Threats from earthquakes and subsidence > Levee failures and flooding > Introduce higher turbidity and chemicals > Costly repairs Climate change > Rising sea levels and introducing higher salinity into water supplies 19
21 Risks of California WaterFix Political Risks > Strong opposition challenging the project Taking of additional water True cost of project & rate impacts Alternatives (conservation, recycled water, desalination, storm water capture) > Potential litigation costs and project delays Construction Overruns > Very large and complex project Rate Impacts > MWD s cost allocation is volumetric based > PWP will always be dependent on MWD imported water 20
22 Local & Regional Water Supply Pasadena s water supply > Local groundwater & spreading credits 40% > Imports from MWD 60% MWD s imported water supply > SWP water provides 60% Preserving investments made in the SWP > City is 1.2% of MWD s sales > MWD has 45.8% of rights to the SWP water Water Integrated Resources Portfolio > Local resources (groundwater, conservation, recycled water, stormwater) Southern California s water supply > SWP water 30% 21
23 California WaterFix -Conclusion The threat to the water supply and reliability is greater if no action is taken. California WaterFix supports the 2009 Delta Reform Act co-equal goals of improving the State s water reliability while protecting, enhancing, and restoring the Delta ecosystem. 22
24 QUESTIONS? 23
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