Draft – For Discussion Purposes Only 1

Water Resources Association

January 9, 2012

Davis-Woodland

Water Supply Project

Woodland-Davis Clean Water

Agency • Formed September 15, 2009

• JPA of Davis and Woodland; UC Davis a Participating Agency

• Governing Board - 2 council members from each city + non-voting representative from UC Davis and Yolo County

• Funded by user fees in each city

2

Issues/Concerns

• 100% dependence on groundwater

• Aging water systems

• Degradation of groundwater supplies

• More stringent drinking water regulations

• More restrictive wastewater discharge

regulations

• Household consumer costs (water

softeners, wear and tear on appliances)

3

Aging Water Supply Infrastructure,

City of Davis Wells

4

0

30

15

45

1 4 5 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 26

30 – 50 years is the

typical lifespan of a well

Example Water quality Concern –

City of Davis Well Nitrate Levels

5

Nitrate Trend Analysis - Projections of Peak Trends

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

12/1

9/85

03/1

4/87

06/0

6/88

08/3

0/89

11/2

3/90

02/1

6/92

05/1

1/93

08/0

4/94

10/2

8/95

01/2

0/97

04/1

5/98

07/0

9/99

10/0

1/00

12/2

5/01

03/2

0/03

06/1

2/04

09/0

5/05

11/2

9/06

02/2

2/08

05/1

7/09

08/1

0/10

11/0

3/11

01/2

6/13

04/2

1/14

07/1

5/15

10/0

7/16

12/3

1/17

03/2

6/19

06/1

8/20

Date

Co

ncen

trati

on

(m

g/L

)

Drinking Limit

Action Limit

Well 6 - 95% Confidence Interval

Well 10 - 95% Confidence Interval

Well 11 - 95% Confidence Interval

Well 13 - 95% Confidence Interval

Well 21 - 95% Confidence Interval

Well 22 - 95% Confidence Interval

0

45

70

2007 1986 2020

Co

ncen

trati

on

(m

g/l

)

25

2014 1995

Solid lines are based on historic data

Dashed lines are projected

Compliance with Current and Anticipated Wastewater Discharge

Requirements • 40-year history of tightening regulatory

standards

• Current NPDES Permit requires filtration by

2016-Woodland & 2017-Davis

• Major constituents

of concern:

– Selenium

– Salinity

– Boron

6

Major Wastewater Concerns

Constituent Current/Future

Discharge

Limit

Current

Woodland

Current

Davis

Projected

WDCWA

Salinity (EC,

uohms/cm)

700 (future)

1,660

1,700

<700

Boron, ppb

700 (future)

~2,550

~1,800

<100

Selenium,

ppb

4.4 (Davis)

3.2 (Woodland)

<2 – 8.4

1.2 – 5.6

< 0.1

Source: Current Woodland and Davis Waste Discharge Permits

7

WDCWA – Goals and

Objectives • Improve water supply yield and quality

• Comply with drinking water/wastewater

discharge regulatory requirements

• Provide environmental benefits and minimize

impacts

• Broaden supply portfolio to increase supply

reliability

• Integrate aggressive water conservation element

8

Project Alternatives Analysis

9

• Over two dozen alternatives considered

• River water supply is best long term solution-- sustainable, lowest cost and least environmental impact

• 100% groundwater supply requires additional deep wells and treatment (e.g. manganese) at significant costs.

• Deep Well Alternative Risks include: – sustainability of groundwater basin

– increasingly stringent wastewater requirements (salinity, boron)

– potentially significant environmental impacts (brine disposal).

Solution

• Surface water supply project

– Intake/diversion facility on Sacramento River

– Raw water pipelines to new water treatment

facility near Woodland

– Treated water transmission pipelines to

Woodland and Davis

– Local system improvements in both cities –

distribution pipelines, storage tanks, booster

pumps

10

Raw Water

Transmission Pipelines

Intake/ Pumping Station

Regional Water Treatment Facility

Treated Water

Transmission Pipelines

Local Transmission

and Distribution Facilities

Local Transmission

and Distribution Facilities

11

Water Quality

Constituent Groundwater Sacramento River

Salinity (EC, uohms/cm) 640 – 1,140 190 – 210

Boron, ppb 500 – 2,300 <100

Selenium, ppb 0 - 40 <0.1

Nitrates, ppm 1 - 40 <1

Iron, ppb 0 - 720 0.32

Manganese, ppb 0 - 110 <15

Sources: Woodland & Davis Annual Water Quality Reports

for groundwater; 2009 treated water quality reports for West

Sacramento water treatment plant for Sacramento River

12

Water Supplies - DWWSP

Municipal Groundwater (Woodland: Existing municipal wells;

Davis: Deep aquifer wells only)

CPG Water Rights Purchase (available Apr–Oct; subject to Shasta critical years)

WDCWA Water Right Permit (subject to Term 91 curtailments)

ASR/

Supplemental

Supplies

Note: ASR has the

potential to supersede

municipal groundwater

usage in most years

13

Water Supply

Source

Average % of

Annual Demand

Agency Water Right ~61

CPG ~22

Municipal GW ~14

ASR/Supplemental <3

Selection of Project Delivery

Method

• Study of options began in 2009

– Considered traditional and other

delivery methods

• Formed the Facilities

Procurement

Committee (FPC) to: – Analyze and recommend contracting

method

– Implement procurement process

• DBO Process Approved in

October 2010

14

DBO is…

• Guaranteed price for performance

• More cost-effective operations

• Compliance with drinking water standards

• Guaranteed delivery to meet demands

• Timely project completion

• Facilities repair and replacement program

• Local employment and contracting

• Business ethics policy compliance

• Transfer of risk from public to private

15

DBO is NOT…

• Private ownership

• Establishment or control of water rates

• Changing prices for operation

• Private determination of customer water

quality

• Permanent private operation

• Replacement of city staff

16

Approve

Shortlist

Project Development Program

17

RFQ

Preparation

Qualifications

Submittals

Shortlist

Draft RFP

Preparation

Proposals

Shortlisted

Teams

Approve RFP

Issuance

Negotiations

with Best

Proposer

Select

Team for

Negotiation

Project

Design and

Construction

Testing and

Startup

Program

Operations

Accept

Project

Award DBO

Contract

Phase 1 Phase 2

DWWSP Costs (July 2011 million dollars)

18

Facility Cost

Joint Intake

(Agency Portion) $12.2

Raw Water Pipeline $35.7

Treatment Plant $130.8

Woodland Treated Water

Pipelines $10.1

Davis Treated Water Pipeline $25.9

DBO Company Design &

Construction-Related Costs $37.8

TOTAL $252.5

Component Total Woodland Davis

Agency Administration $2.8 $1.5 $1.3

Contingency $8.7 $4.7 $4.0

Program Management $3.6 $1.9 $1.7

Water Supply $1.9 $1.0 $0.9

Environmental & Permitting $1.4 $0.7 $0.7

Land/ROW Acquisition $1.5 $0.8 $0.7

Pre-Design $5.9 $3.1 $2.8

Construction $252.5 $128.8 $123.7

Woodland and Davis Local

Facilities $51.4 $29.9 $21.5

Costs Expended Since 2009 $7.4 $4.0 $3.4

TOTAL CAPITAL COSTS $337.1 $176.5 $160.6

Construction Costs Capital Costs, 2009-2016

Project Affordability • Cost Saving Measures Already in Place

• JPA – partnerships among Davis, Woodland, UC, and Yolo County

• Joint Intake Agreement with RD 2035

• $1.165m design grant procured

• DBO procurement methodology

• 15%-20% cost savings on other projects (Seattle, San Diego)

• Additional Measures Being Pursued

• Federal and state grants and low-interest loans

• Securing low-cost power for project

• Alternatives for structuring municipal bond debt to reduce rate

impact

• Continued scrutiny of project costs and efficient project

management

19

Milestones Achieved Environmental Impact Report Certified October 2007

Joint Intake Agreement with RD 2035 December 2010

Water Right Purchase Agreement with CPG December 2010

Agreement with UC Davis December 2010

Appropriative Water Rights Obtained (45 TAF) March 2011

Draft RFP Issued to DBO Teams October 2011

Permitting/Property Acquisition Ongoing

Financing/Funding Ongoing

DBO Procurement Ongoing

Public Outreach Ongoing

20

Planned Activities- 2012

• Secure Property for RWTF and pre-fill site

• Complete Property Acquisitions

• Complete rate studies and 218 processes in

Davis and Woodland

• Continue aggressive pursuit of grant funding

• Complete 100% Design of Joint Intake

• Issue Final RFP

21

Project Implementation Schedule,

2010-2016

22

2010 Permitting

Pre-Design

2011 Permitting

Pre-Design

Water Right Permits

DBO Procurement

Financing

2012 Design/Permitting

Financing

DBO Contract

2013 Design/Permitting

Pipelines/Water

Treatment Facility Construction

2015 Intake/Pipelines/Water

Treatment Facility and

Local Facilities

Construction

2014 Pipelines/Water Treatment

Facility/

Local Facilities Construction

Financing

2016 Completion of Construction

Start-up and Operation

D E S I G N C O N S T R U C T I O N O P E R A T I O N