Pasadena Water and Power

ADOPT A RESOLUTION OF THE CITY COUNCIL IN SUPPORT OF THE CALIFORNIA WATERFIX

AND CALIFORNIA ECO RESTORE

Presented byGary Takara

City Council

September 18, 2017

Agenda Item 12

Pasadena Water and Power

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 15061 (b)(3); and

• Adopt a Resolution in support of the California WaterFix and California Eco Restore

2

Pasadena Water and Power

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

Pasadena Water and Power

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

Pasadena Water and Power

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

Pasadena Water and Power

Delta Issues

• Reverse Flows –Pumps redirect river flows> Entrain and trap fish

(endangered Delta Smelt)

> Introduce higher salinity

5

Pasadena Water and Power

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

Pasadena Water and Power

Water Delivery With and WithoutCalifornia WaterFix

4.70

3.70

5.00

1.200.84

1.21

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Existing Conditions Future without CA WaterFix Future with CA WaterFix

Vo

lum

e (

MA

F)

Average Conveyance(1)

SWP & CVP Contractors Metropolitan Water District

(3)

(2)

(4)

(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.

(2)

360 TAF Reduction

(30%)

Pasadena Water and Power

California WaterFix

8

• 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

Pasadena Water and Power

California WaterFix Benefits

9

• 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

Pasadena Water and Power

California Eco Restore

10

• 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

Pasadena Water and Power

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%

Pasadena Water and Power

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)1.7 1.7 1.7

MWD Unit Costs ($/Acre-Foot) $122 $157 $196

Water Usage for an Average Pasadena

Single Family Household (Billing Units)13

Pasadena Water and Power

$20$38

$63

$96

$133

$169

$206

$246 $249 $252 $255 $258 $261 $264 $267

$0.21

$0.40

$0.66

$1.01

$1.40

$1.78

$2.17

$2.59 $2.62 $2.65 $2.69 $2.72 $2.75 $2.78 $2.81

$0.26

$0.50

$0.83

$1.26

$1.75

$2.23

$2.71

$3.24 $3.28 $3.32 $3.36 $3.40 $3.44 $3.48 $3.52

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$0

$50

$100

$150

$200

$250

$300

$350

$400

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Mo

nth

ly C

os

t fo

r A

ve

rag

e S

F H

ou

se

ho

ld

MW

D C

os

t S

ha

re B

as

ed

on

6%

Sc

en

ari

o (

$ M

illi

on

)

Fiscal Year (July 1 to June 30)

MWD Cost Share

Monthly Cost for Average SF Household (MWD Sales of 1.7 MAF)

Monthly Cost for Average SF Household (MWD Sales of 1.36 MAF)

Cost for MWD & City’s Average Single Family Household

-- 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.

~ 5% Increase for an Average Household Bill

Pasadena Water and Power

Alternative Resource Unit Costs

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

CentralizedProject

(SpreadingGrounds)

On-site DirectUse (Cisterns &

Rain Barrels)

On-SiteInfiltration (Rain

Gardens)

Sub-RegionalDirect Use (Park

Storage &Irrigation)

Sub-RegionalInfiltration

(NeighborhoodRecharge)

CommercialGreen Street

Co

st

per

Ac

re-F

oo

t

Stormwater Capture Alternatives

$1,100

$7,200

$3,300

$1,300$1,800

$900

Pasadena Water and Power

Alternative Resource Unit Costs

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Recycled Water (Irrigation) Recycled Water (Recharge) Seawater Desalination

Co

st

per

Ac

re-F

oo

t

Recycled Water & Desalination Alternatives

$1,500

$2,100

$2,400

Pasadena Water and Power

2011 WIRP Alternative Local Resources

$2,228

$5,950$6,532

$3,630$4,190

410

807

32 106

577

0

100

200

300

400

500

600

700

800

900

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Satellite MBROn-Site Non-

Potable Reuse(Irrigation)

GraywaterReuse

(Irrigation)

ResidentialRain Barrel(Irrigation)

ResidentialRain Gardens

(Recharge)

Residential &Commercial

Infiltration Strip& Bioswale(Recharge)

Vo

lum

e (

AF

/Year)

Co

st

per

Ac

re-F

oo

t

Alternative Local Resources (Based on 2010 Cost)

Cost per AF Volume

Pasadena Water and Power

Large Scale Alternative Resources

$2,410

$960

$1,925

$1,660$1,800

$745

56

100

56

165

34

360

0

100

200

300

400

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

San DiegoClaude

"Bud" Lewis

OrangeCountyWater

District

PoseidonHuntington

Beach(Proposed)

MWDRegionalRecycled

Water(Proposed)*

San DiegoPure Water(Proposed)

MWD's Shareof California

WaterFix(Proposed)**

Cap

acit

y (

1,0

00 A

F/Y

ear)

Co

st

per

Ac

re-F

oo

t

Cost per AF Capacity

* Cost does not account for groundwater pumping.

**Cal WaterFix @ 6% Interest Scenario ($268M ÷ 360 TAF)

Pasadena Water and Power

Cost to Replace Full Delta Supply (MWD’s Share of 1,200 TAF)

$21.4

$9.2

$21.4$19.6

$42.4

$4.3

$0

$10

$20

$30

$40

$50

San DiegoClaude "Bud"

Lewis

Orange CountyWater District*

PoseidonHuntington

Beach(Proposed)

MWD RegionalRecycled Water

(Proposed)

San Diego PureWater

(Proposed)

MWD's Shareof California

WaterFix(Proposed)

Cap

ital

Co

st

($ B

illi

on

)

* Cost includes upgrade from 100 MGD to 130 MGD capacity.

Pasadena Water and Power

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

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Pasadena Water and Power

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

Pasadena Water and Power

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%

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Pasadena Water and Power

California WaterFix - Conclusion

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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.

Pasadena Water and Power

QUESTIONS?

23