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Home My WebLink About2012-11-26 - Citizens Advisory Committee Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING Monday, November 26, 2012, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE MEMBERS Daniel Mole, Chair Oscar Bugarini Sr. Bill Guse, Vice Chair Fred Hebein Lindon Baker Joe Holdren Carl Boznanski Modesto Llanos Gus Bruner Greg Myers Rick Buck Cheryl Spencer-Borden 1. PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 2. PRESENTATIONS 2.1. Bay Delta Conservation Plan - Presentation by Brett Barbre, Director, Metropolitan Water District of Southern California 3. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 3.1. Appointment of Chair and Vice Chair for Calendar Year 2013 4. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 4.1. Launch of New YLWD.com and Bottled Water Label Contest 4.2. Future Agenda Items 5. ADJOURNMENT 5.1. The next Citizens Advisory Committee meeting will be held Monday, December 17, 2012 at 8:30 a.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 2.1 AGENDA REPORT Meeting Date: November 26, 2012 Subject: Bay Delta Conservation Plan - Presentation by Brett Barbre, Director, Metropolitan Water District of Southern California ATTACHMENTS: NaM6 Description: Type: 010412 FINAL - PFM (2).Pdf Bay Delta Conservation Plan Backup Material 10/2/2012 The PFM Group Bay Delta Conservation Plan Economic Fsenejlts anti Financing Cost Muniapal Water District of Orange County October 3,2012 SCWC - Why is Delta Conveyance Needed? 10/2/2012 Metropolitan Water District IRP Regional Strategies ' Promote regional water use efficiency 20% reduction in regional per capita water use ' Develop regional partnerships/incentive programs to achieve multi-benefit projects ' Achieve a Delta solution to restore sustainable supply reliability and eco-system conditions ' Implement programs to allow a full CRA in dry years ' Provide a buffer against shorter-term risk Engage in lower-cost planning/feasibility actions to prepare new supply options for long-term risks 3 Metropolitan/MWDOC Objectives ' Reduce risks ` Protect and enhance water quality ' Ensure water supply reliability ' Sound investments 4 10/2/2012 Major Risks in the Delta �eisrnic risk — irn�acL �n levees anU i i��Uin� ' Sea level rise — long term climate change ' Environmental risks —fish and other environmental constraints affect operations ' Water quality impacts — salinity, etc. s Delta Conveyance Improvements SWP&CVP Reliability South Exports Only LL � a 6 Metropolitan's share^' 25% 0 5 � 4 0 a W 3 6.0 a 4.7 v 2 d Exports will be 1 minimal for 1.5 to 2.0-3.0 1.0-1.5 3yearsfollowing O an earthquake Pre-Court Existing Potential Future Earthquake (D-1641) (Bio Op) Fish Listings Risk Includes work completed by the BDCP Steering Committee effort 6 10/2/2012 \A/I•►-�+ \A/ill i+ ��c+� VVI IQl VVIII Il \..VJI : Governor and Secretary of the Interior Announce Project on July 25, 2012 ' Two tunnels ' 3lntakes 9 000 cfs capacity ' Research, monitoring, and "tangible ecosystem restoration goals" October 3,2012 a 1 1 Investing In Conveyance: The Seismic Retrofit • Cost of the water conveyance project would be covered by public water agencies and their ratepayers -$14 billion (2012 dollars) Project would be financed over many years No state general fund dollars involved • Broader funding sources, including potentially voter approved bonds, would pay for environmental improvements October 3,2012 9 BDCP Capital Costs-Original Estimate $13 billion for Conveyance (2011 dollars) VP/ SWP Public Water Users Benefits J • • October 3,2012 10 10/2/2012 Conveyance $14 billion $83 million Water Contractors Bay Delta Conservation Plan Costs (2012 dollars) Improvements Capital (Ann al) Funding Source -. • Contractors/Other Metropolitan's share is approximately 25 percent The$14 billion estimate per the Governor's announcement(July 2s,2012) Other cost information from Dec-2010 BDCP document 11 BDCP Debt Financing • Traditional fixed rate tax-exempt revenue bond financing • Consistent with DWR practices • 35-40 year term • Four bond issues during construction (10-12 years) • Total Annual Debt Service: $1 .1 billion • Annual cost (based on equal shares): $150-300/af • Assumes that costs are distributed over all the water • Both federal and state users pay 10/2/2012 Dated Date 6/1/2015 6/1/2017 6/1/2018 6/1/2020 Delirery Date 6/1/2415 6/1/2017 6/1/2019 6/1/2020 Last Mani ity 2055 2057 2058 2460 $3,931,145,000 93,804,754,004 $5,915,645,000 $2,595,274,004.00 _111-in TIC 6.135% 6.133°/0 6.132% 6.134% Cost of Issuance S2,DDO,D00 $2,000,000 S2,DOO,DDO $2,000,000 Undemreiteffs Discount S6/bond $6/bond s6/hond $6/bond Ca ita&ed Interest '_Yeafs 1 Yeas 2 Yew 2 Y eaca Annual Debt Service - $1.1 Billion Base • .. ... :.. !lIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIII ... ■IIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIII 1�1111111111111111111111111111111111111 .. I . . . . . . . .. ... 2051 2056 0 2015 Series 0 2017 Series 0 . :Series 0 2020 Series 7 10/2/2012 Annual Debt Service - $1.3 Billion 3 year delay $1,400 r 0 ;.. $1,200 r $1,000 s800 -------------- s600 --------------------- ------- sAOO $200 ----------------------- so I I.I I I.I I I.I.I I I.I I I.I.I.I.I I I.I I I.I.I I I.I I I.I IL 2oi6 2021 2026 2031 2o36 2041 2o46 2051 2056 2o6i 0 2015 Series 0 2017 Series 0 2019 Series 0 2022 Series Annual Debt Service - $1.44 Billion 200 bps increase $1,500 - r $1,300 $1,100 $900 ----------------------------- - $700 $500 $300 ------------------------- --- $100 mmm 2oi6 2021 2026 2031 2036 2041 2046 2051 2056 2015 Series 2017 Series 0 2oi8 Series 0 2020 Series 8 10/2/2012 The Math is Simple Average annual water = 5.9 million acre-feet $1.1 billion divided by 5.9 million acre-feet = $186/af $300 S2so $245/af S2oo S1so 186/af S1oo Sso 5- 2016 2020 2024 2028 2032 2036 2040 2044 2048 20s2 —Baseline —200 bps increase —3 Year Delay Important Considerations Capitalized interest affects final cost $200 million t $20/af ' Schedule - delay is the enemy of the project Inflation and escalation determine the impact of delay What will the final cost really be? 10/2/2012 1Nhat is the Per-Capita Cos#of 0#her Supply ImprovemerrtPrvjects? Historical Cost Comparisons sz,000 si,soo � si,s00 .. si,a00 `� si,zoo �9 Si3Ooo a sa0o S 5500 � sil00 500 � 50 San Fran�sm PLJC East bay Ml1Q MW6-Deka !m provements as-r�;w r e-r�r�;earcoua�r�e�s�.a 9 Major Water Projects Were a Larger Percent of Assessed Value in the Past ,, ,, Project 3,2012 20 10 1 1 Hoover Dam Was Less Than Half the Cost of the Colorado RiverAqueduct • CRAwas funded at market interest rates(4-5%)without subsidies October 3,2012 21 Cost Comparison (per acre-foot)* Metropolitan isaornmMed tomeetingf turead&"wl water sup*tweds through kxd resoumes and aonserwatm $3,000 $1,000- $2,500 $960- 2,300/AF $1,600- 2,000/AF 2,000/AF LL $2,000 $300- $1,500 ,300/AF U ocalSupp a $1,000 Q- WP with BDCP N $500 $0 Stormwater Groundwater Recycled Desalinati Recovery *MWD estimates based on 20101RP Update workgroup process All supply costs exclude Water Stewardship Rate and indirect costs SWP costs include proposed improvement cost of$200 1acre foot 22 10/2/2012 Economic Benefits of BDCP • Economic impacts due to loss of Delta supplies due to Seismic, Flood, and Sea Level Rise: Estimated 65,000 to 230,000 jobs lost Billions of dollars of economic activity depending on duration and timing � Water supply reliability and water quality improvements ' Salinity ' Drinking Water Quality ` Avoid regulatory shortages Job Stimulus ' Construction of Delta Water Conveyance (129,000 jobs) ` Ecosystem restoration (40,000 jobs) "Significant Economic Benefits" October 3,2012 zs Example: Salinity Benefits to Santa Ana River * SWP salinity averages about 270 mg/L over past 20 years ` BDCP conveyance will reduce salinity substantially ` Economic Benefits: ' Santa Ana River salinity at Prado Dam will be lower ' MWD Diemer plant blend can be lower than 500 mg/L ' OCWD can replenish groundwater with lower salinity imported water October 3,2012 za 10/2/2012 Conclusion and Observations BDCP will be a major undertaking ' The BDCP and conveyance project is cost-competitive with other options � �IG l.ol lveyal lce prof el.l �IGI'.JJ GI IJUI G u ia� Na�� investments are not stranded ' Water quality benefits are substantial ' Effective water management (e.g., storm water capture, conjunctive use) requires lower salinity from the State Water Project The conveyance solution has broad economic benefits in terms of jobs and economic activity Action today is an investment in the future V - _ �,, •State& Federal Pumping Plants