See BDCP Chapter 8

3

1 Chapter 8 2 Implementation Costs and Funding Sources

Contents

4 Chapter 8 Implementation Costs and Funding Sources...................................................................... 815 8.1 Introduction............................................................................................................................81

6 8.2 Cost Estimate..........................................................................................................................827 8.2.1 Scope and Purpose of the Cost Analysis.......................................................................828 8.2.2 Common Assumptions for Cost Estimation..................................................................839 8.2.2.1 Cost Periods ...........................................................................................................8310 8.2.2.2 Cost Contingency ...................................................................................................8411 8.2.2.3 Financial Assumptions............................................................................................8412 8.2.2.4 Delta Real Estate Values and Acquisition...............................................................8513 8.2.2.5 Staff Salary Costs and Benefits Multiplier............................................................81014 8.2.3 Conservation Measure Costs......................................................................................81015 8.2.3.1 CM1 Water Facilities and Operation....................................................................81016 8.2.3.2 CM2 Yolo Bypass Fisheries Enhancement............................................................81417 8.2.3.3 CM3 Natural Communities Protection and Restoration......................................81718 8.2.3.4 CM4TidalNaturalCommunitiesRestoration......................................................82019 8.2.3.5 CM5 Seasonally Inundated Floodplain Restoration.............................................82320 8.2.3.6 CM6ChannelMarginEnhancement....................................................................82521 8.2.3.7 CM7RiparianNaturalCommunityRestoration...................................................82622 8.2.3.8 CM8 Grassland Natural Community Restoration.................................................82823 8.2.3.9 CM9 Vernal Pool and Alkali Seasonal Wetland Complex Restoration .................83024 8.2.3.10 CM10NontidalMarshRestoration......................................................................83125 8.2.3.11 CM11 Natural Communities Enhancement and Management............................83226 8.2.3.12 CM12 Methylmercury Management ...................................................................83527 8.2.3.13 CM13InvasiveAquaticVegetationControl.........................................................83728 8.2.3.14 CM14 Stockton Deep Water Ship Channel Dissolved Oxygen Levels ..................83829 8.2.3.15 CM15 Localized Reduction of Predatory Fishes...................................................84030 8.2.3.16 CM16 Nonphysical Fish Barriers ..........................................................................84131 8.2.3.17 CM17 Illegal Harvest Reduction...........................................................................84332 8.2.3.18 CM18 Conservation Hatcheries ...........................................................................84433 8.2.3.19 CM19 Urban Stormwater Treatment...................................................................84634 8.2.3.20 CM20 Recreational Users Invasive Species Program...........................................84635 8.2.3.21 CM21NonprojectDiversions...............................................................................84836 8.2.3.22 CM22AvoidanceandMinimizationMeasures....................................................85037 8.2.3.23 Property Tax and Assessment Revenue Replacement.........................................85138 8.2.4 Plan Administration Costs .......................................................................................... 85239 8.2.5 MonitoringandResearchActionCosts......................................................................85440 8.2.6 Changed Circumstances Costs.................................................................................... 85741 8.2.7 Summary of Estimated Costs...................................................................................... 861

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1 8.2.7.1 Undiscounted Average Annual and 50Year Total Costs of Plan 2 Implementation ...................................................................................................861

3 8.2.7.2 Present Value of Average Annual and 50Year Total Costs of Plan 4 Implementation ...................................................................................................8615 8.3 Funding Sources ...................................................................................................................8646 8.3.1 Scope and Purpose of Funding Sources......................................................................8647 8.3.2 SummaryofFundingSources.....................................................................................864 8 8.3.3 StateWaterProject....................................................................................................870 9 8.3.4 Participating State and Federal Water Contractors ...................................................87310 8.3.4.1 SWP and CVP Funding Responsibilities................................................................87311 8.3.4.2 Financing through Bonds .....................................................................................87812 8.3.4.3 History of Financing Large Water Infrastructure Projects in California ...............87913 8.3.4.4 Funding Assurances from Participating State and Federal Water 14 Contractors...........................................................................................................88115 8.3.5 StateFundingSources................................................................................................88416 8.3.5.1 NewWaterBonds................................................................................................88417 8.3.5.2 ExistingStateBondsandOtherPrograms...........................................................88618 8.3.5.3 ExistingStateGrants............................................................................................89419 8.3.6 Federal Funding Sources............................................................................................. 89920 8.3.6.1 Existing Federal Authorizations............................................................................89921 8.3.6.2 New Federal Authorizations............................................................................... 810922 8.3.6.3 Existing Federal Grants ......................................................................................811023 8.3.6.4 Other Federal Funding Sources..........................................................................811824 8.3.7 OtherFundingSources.............................................................................................811925 8.3.7.1 Interest Income..................................................................................................811926 8.3.7.2 Endowment........................................................................................................811927 8.3.7.3 State Tax Credit for Donation of Conservation Lands........................................812028 8.4 Funding Assurances............................................................................................................812029 8.4.1 Additional Funds Needed for Restoration, Management, or Monitoring................812130 8.4.2 Actions Required in the Event of a Shortfall in State or Federal Funding ................812231 8.4.3 Funding for Management and Monitoring After the Permit Term ..........................812232 8.5 References Cited ................................................................................................................812333 8.5.1 Literature Cited.........................................................................................................812334 8.5.2 Personal Communications........................................................................................8126 35

Implementation Costs and Funding Sources Chapter 8

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Tables

2 81 Land Acquisition Assumed for Cost Estimate of Protection and Restoration 3 Conservation Measures .................................................................................................. 854 82 Restoration Opportunity Area Land Value Assumptions.................................................885 83 NonROA Delta Land Value Assumptions ........................................................................ 896 84 SummaryofIntakeandConveyanceFacilityFeatures..................................................8117 85 Cost Estimate for Water Facility Construction...............................................................8148 86 CostEstimateforYoloBypassFisheriesEnhancement.................................................817 9 87 LandAcquisitionScheduleforReserveSystem.............................................................819

10 88 CostEstimateforLandAcquisitiontoProtectExistingNaturalCommunities..............820

11 89 Cost Estimate for Tidal Natural Communities Restoration............................................822

12 810 Cost Estimate for Seasonally Inundated Floodplain Restoration ..................................824

13 811 Cost Estimate for Channel Margin Improvements ........................................................826

14 812 Cost Estimate for Riparian Natural Community Restoration.........................................828

15 813 CostEstimateforGrasslandNaturalCommunityRestoration......................................829

16 814 CostEstimateforVernalPoolComplexEstablishment.................................................831

17 815 Cost Estimate for Nontidal Freshwater Marsh Restoration ..........................................832

18 816 Cost Estimate for Reserve Management and Endowment............................................83519 817 Cost Estimate for Methylmercury Site Characterization and Project Design 20 Surveys........................................................................................................................... 837

21 818 Cost Estimate for Invasive Aquatic Vegetation Control.................................................838

22 819 Cost Estimate for Stockton Deep Water Ship Channel Dissolved Oxygen Levels..........839

23 820 Cost Estimate for Localized Reduction of Predatory Fishes ..........................................84124 821 Cost Estimate for Nonphysical Barriers Program ..........................................................84325 822 Cost Estimate for Illegal Harvest Reduction ..................................................................84426 823 Cost Estimate for Conservation Hatcheries...................................................................84527 824 Cost Estimate for Urban Stormwater Treatment ..........................................................84628 825 Cost Estimate for Recreational Users Invasive Species Program...................................84829 826 Cost Estimate for Nonproject Diversions.......................................................................85030 827 Cost Estimate for Avoidance and Minimization Measures............................................85131 828 Cost Estimate for Property Tax and Assessment Revenue Replacement......................85232 829 Cost Estimate for Implementation Office......................................................................85433 830 Cost Estimate for Effectiveness and Compliance Monitoring .......................................85634 831 Cost Estimate for Potential Research ............................................................................85735 832 CostEstimateforChangedCircumstances....................................................................86136 833 Undiscounted Capital Outlays by Plan Implementation Phase and Element................86237 834 Undiscounted O&M Outlays by Plan Implementation Phase and Element ..................86238 835 Present Value of Capital Outlays by Plan Implementation Phase and Element............863

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1 836 Present Value of O&M Outlays by Plan Implementation Phase and Element ..............863 2 837 Summary of Estimated Funding by Entity, Sources, and Plan Component ...................865 3 838 Potential Funding Source by Conservation MeasureWater Facilities and 4 Operation, Yolo Bypass Enhancement, and Avoidance Measures ................................867 5 839 Potential Funding Source by Conservation MeasureHabitat Protection, 6 Restoration, and Management...................................................................................... 868 7 840 Potential Funding Source by Conservation MeasureOther Aquatic Stressors...........869 8 841 BDCP Funding Provided by Participating State and Federal Water Contractors ..........874 9 842 Capital CostsCost of Conveyance Facilities Funded by State and Federal Water 10 Contractors .................................................................................................................... 877 11 843 Potential Financing Plan with Series of Four Revenue Bonds .......................................879 12 844 Costs of LargeScale Water Projects in California, Sorted by Per Capita Costs .............880 13 845 Personal Income in California Counties Receiving Water from the State and 14 Federal Water Projects .................................................................................................. 882 15 846 Estimated Funding for 2014 Water Bond Relevant to the BDCP...................................885 16 847 Past General Obligation Water Bonds in California.......................................................886 17 848 Proposition 1E Funding Opportunities .......................................................................... 888 18 849 Proposition 84 Funding Opportunities .......................................................................... 890 19 850 2012 Funding for Interagency Ecological Special Studies Projects, 20 by Funding Source.......................................................................................................... 891 21 851 Delta Science Program Historical Funding Opportunities .............................................893 22 852 Ecosystem Restoration Program 20102011 Funding...................................................897 23 853 Appropriation History of the CVPIA Restoration Fund from the Annual Energy 24 and Water Appropriations Bill ..................................................................................... 8101 25 854 Summary of CVPIA Restoration Funding Potentially Relevant to Conservation 26 Measures ..................................................................................................................... 8102 27 855 Potential Funding from California BayDelta Restoration Appropriations, by 28 Federal Agency and Associated Plan Component .......................................................8104 29 856 SacramentoSan Joaquin Delta Islands and Levees Program Appropriations ............8108 30 857 NMFS Office of Habitat Conservation Funding Allocations .........................................8108 31 858 Federal Funding Share for LargeScale Habitat Restoration Programs .......................8110 32 859 USFWS Cooperative Endangered Species Conservation Grant Programs ...................8112 33

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Acronyms and Abbreviations

BDCP or Plan Bay Delta Conservation Plan BiOp biological opinion CALFED CALFED BayDelta Restoration Program Caltrans California Department of Transportation CVP Central Valley Project CVPA Central Valley Project Act CVPIA Central Valley Project Improvement Act DBEEP DeltaBay Enhanced Enforcement Project DHCCP Delta Habitat Conservation and Conveyance Program DRERIP Delta Regional Ecosystem Restoration Implementation Plan DWR California Department of Water Resources EIR environmental impact report EIS environmental impact statement EPA U.S. Environmental Protection Agency ERP Ecosystem Restoration Program ESA Endangered Species Act Fish & Game Code California Fish and Game Code GIS geographic information system GPS global positioning system HCP habitat conservation plan IAV invasive aquatic vegetation IEP Interagency Ecological Program MAF million acrefeet mg/L milligrams per liter MHHW mean higher highwater MLLW mean lower lowwater MPTO Modified Pipeline/Tunnel Option NAVD88 North American Vertical Datum of 1988 NCCP natural community conservation plan NCCPA Natural Community Conservation Planning Act NMFS National Marine Fisheries Service NRCS Natural Resources Conservation Service O&M operations and maintenance PRC Public Resources Code Reclamation Bureau of Reclamation ROA restoration opportunity area

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SFCWA State and Federal Contractors Water Agency State Water Board State Water Resources Control Board SWP State Water Project TMDL total maximum daily load USC United States Code USFWS U.S. Fish and Wildlife Services USGS U.S. Geological Survey

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1 Chapter 8 Implementation Costs and Funding Sources 2

3 8.1 Introduction 4 Thischapter outlinestheestimatedcostsassociated with implementationoftheBDCP(orPlan)over 5 theproposed 50yearterm ofthe Planand,forsome components ofthePlan, beyondthedurationof 6 thePlan.ThefederalEndangered SpeciesAct(ESA)requiresthathabitatconservationplans(HCPs) 7 specifytheapplicantwill ensurethatadequatefundingfortheplan will beprovidedfor8 conservation actions that minimizeandmitigateimpactsoncoveredspecies(UnitedStatesCode 9 [USC]1539(a)(2)(A)). The NaturalCommunity ConservationPlanning Act(NCCPA)requiresthat 10 naturalcommunity conservationplans(NCCPs)containprovisionsthat ensureadequatefunding to11 carryouttheconservationactionsidentifiedin thePlan(California Fish andGameCode[Fish& 12 GameCode]2820(a)(10)). 13 Basedontheestimatedimplementationcosts,thischapteridentifiesthepotential sourcesoffunding 14 for Plan implementation and the mechanismsthat will beusedto securesuchfunds.Thischapter 15 alsodescribesthebasisfor the assurancesprovided bythePlanparticipantsthatadequatefunding 16 will be available from the applicantsandthestateandfederal governmentstocoverthecostsof 17 Plan implementation. 18 Thechapterisorganizedasfollows. 19 Section8.2, Cost Estimate, describesthecostestimate,includingcommon assumptionsfor cost 20 estimation,andthecostsassociatedwith theconservationmeasures, Plan administration, 21 monitoringandresearchactions,andchangedcircumstances. 22 Section8.3, Funding Sources, describesfundingfromtheStateWaterProject(SWP),stateand 23 federalwatercontractors,andfromstateandfederalfunds. 24 Section8.4, Funding Assurances, describesthefunding assurancesrelatedtoadditional funds 25 thatmaybeneededforrestoration,management,ormonitoring; the potential failureofbond 26 measures;andmanagementandmonitoringafterthepermitterm. 27 Becauseofthelarge geographic scaleofthePlan,the complexityoftheimplementationactions,and 28 extendedtimeframeover whichtheseactionswill occur,theprocessofestimatingthecostsofthe 29 Plan involved a number ofassumptionsaspresented andexplainedin varioussectionsofthis30 chapter.Costsidentified in thischapter areoftenata programmaticlevelandareintendedto 31 estimatefundinglevelsneededtoimplementthe Plan.Thecost estimatewill beusedbythe32 ImplementationOfficetodevelopannual capital and operating budgetsthatwill includecost33 controlsasdescribedinChapter6, Plan Implementation.Appendix8.A, Implementation Costs 34 Supporting Materials providesadditional detailon the data and assumptionsused to estimatecosts35 presentedinthischapter. 36 TheDeltaisanecosystemofnational significance.Consistent with thebeneficiarypaysprinciple 37 andinrecognitionof publicbenefitsassociatedwithenvironmentalrestorationofthisimportant 38 region,itisassumedthat a stateandfederalinvestmentwill be availableandnecessaryto 39 implementtheBDCP,asdescribedinSection8.3, Funding Sources. This public contributionisfurther

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1 justifiedbythefactthatthere arestressorscontributingto the declineoftheDeltaecosystemand 2 dependentspeciesthatare notdirectlyrelatedtooperationsofthe SWPandCentralValleyProject 3 (CVP).Publicfundingforprogramsofthisnatureisconsistent withotherHCPsandrestoration 4 effortsthat involvelarge ecosystemsofnationalsignificance suchastheLowerColoradoRiver, 5 PlatteRiver,Chesapeake Bay,GreatLakes,andFlorida Everglades.Manyoftheselargescale 6 restorationeffortssharesimilargoalsof theBDCPtoincrease watersupplyreliability andtorestore 7 ecosystemfunctionand endangeredspeciespopulations.

8 8.2 Cost Estimate 9 8.2.1 Scope and Purpose of the Cost Analysis 10 TheBDCPidentifiesarangeofactionsthatwill beimplemented overthetermof thePlantomeet 11 thebiological goalsandobjectivesdescribedintheconservation strategy and to complywiththe 12 requirementsoftheESA and the NCCPA. The cost analysis conductedfortheBDCP quantifiesboth13 theoverallestimatedcostofthe BDCP andtheestimatedcostofspecificplancomponents.These 14 estimateswereusedtoestablishthefundingrequirementsforplanimplementation overthecourse15 ofa 50year termandbeyondthe permitterm.Theseestimateswillalsoguidefuturedecisions 16 regarding theallocation of fundingresponsibilitiesamongthe plan participants,includingCalifornia 17 Department ofWaterResources(DWR),theU.S. Departmentofthe Interior,BureauofReclamation18 (Reclamation),andparticipating state andfederalwatercontractors.Asistypicallythecaseof 19 NCCPs and HCPs, plan costs will beborne bytheapplicantsand thestateandfederalgovernments. 20 SeeSection8.3, Funding Sources, foradescriptionoftheproposedfunding plan. Notethatthis 21 chapterisnota financing plantosupporttheissuanceofbonds ortoprovideabasisforthe 22 establishmentofnew funding mechanisms;nordoes itestablish thefinalallocationof costor 23 repaymentresponsibility; rather, financing plans will bepreparedseparatelyby variousfunding 24 agenciesand throughfuturediscussionsbetweenstate andfederal agencies. 25 Specifically,theanalysissetforthinthischapteraddresses costsrelatedtothefollowing 26 componentsoftheBDCP:27 Conservation measures, describedinChapter3, Conservation Strategy. 28 Water facilities construction and operations. This categorycoversthoseconservation 29 measuresrelatedtowater facilitiesandwateroperations.The costsassociated withthese 30 measuresincludethedevelopment ofnewwaterconveyanceand otherwatermanagement 31 facilitiesthatwillbelocated both within and around the Delta. This categoryalsoincludes32 actionsassociatedwiththeoperationsofbothexistingandnew facilities. 33 Natural community restoration and protection. Thiscategory includesconservation 34 measuresassociatedwiththepreservation,restoration,andprotection of natural 35 communities. 36 Other stressors. Thiscategorycoversconservationmeasuresdesignedtoreduce thedirect 37 andindirectadverseeffectsofvariousstressorsonecological functions,coveredspecies, 38 andnaturalcommunities.Suchstressorsincludetoxic contaminantsandotherfactors 39 affectingwaterquality,nonnativespecies,harvest,hatcheries,diversionsunrelatedtothe 40 SWPortheCVP,predators,andmigrationbarriersandotherimpedimentstomovement.


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1 Program administration. Thiscategoryconsistsofexpendituresnecessarytoadminister the 2 BDCP.Itincludesthestartupcostofestablishing the ImplementationOfficeand theongoing 3 costsofadministration,includingexpensesassociatedwithpersonnel,officesandother 4 facilities,equipment, vehicles,contractedservices,andother overheadandrelatedexpenses. 5 Theapproach totheadministrationoftheBDCPisdescribedin Chapter7, Implementation6 Structure. 7 Monitoring and adaptive management.Thiscategoryincludesthe startupandongoing costs 8 ofthemonitoring, research,andadaptivemanagementprograms, includingexpensesrelated to9 researchanddata collection,management,andanalysis.TheBDCPmonitoringandadaptive10 managementprogramsare describedinChapter3, Conservation Strategy. 11 Changed circumstances. Thiscategorycoversthecostof implementingmeasurestorespondto 12 changedcircumstances.ThosemeasuresaresetforthinChapter 6, Plan Implementation. Costs 13 relatedtothemitigation of effectsonnatural communitiesand coveredspecies areincludedin14 thecostestimatesoftheconservationmeasures. 15 Thecostanalysisincludessectionsdescribing how funding needswereestimatedforeachPlan 16 component,includingtheassumptionsanddatausedtodetermine theleveland timing offunding 17 neededoverthecourseofPlanimplementation.Manyofthe cost estimatesarebasedonconceptual18 and engineering designsforwaterfacilities andhabitat restorationprojectsavailableatthetimeof 19 Planformulation. 20 Thecostsofmanyofthe mitigationmeasures intheenvironmental impact report 21 (EIR)/environmentalimpactstatement(EIS) overlap with many of thecostsoftheconservation 22 measures.Costsassociatedwith EIR/EIS mitigationmeasuresthatarenotaccountedforinthe 23 conservationmeasuresare describedinAppendix8.A, Implementation Costs Supporting Material.

24 8.2.2 Common Assumptions for Cost Estimation 25 To estimate Plan costs, a detailedcostmodelwasconstructedusinglinkedspreadsheetsthat 26 enabledall majorcostcategoriestobedevelopedindependently (Appendix8.A, Implementation 27 Costs Supporting Materials).The modelstructurewasbased onandrefinedfromcostmodels 28 developedforotherlarge,complexregionalHCPsandNCCPs.The goalofthe costmodel wasto 29 allowforconservativeestimates ofallexpensesoftheImplementationOfficeandotherentitieswith 30 implementationresponsibility overthepermittermtoensurethat total programcostswould notbe31 underestimated.ThecostmodelprovidesbudgetscenarioestimatesthattheImplementationOffice 32 willusetoprojectoverthelifetimeofthe Plan annual fundingneedsforPlan implementation(see 33 Chapter6, Plan Implementation,fordetailson theannualbudgetingprocess).Thecostmodel was 34 designedtodemonstratethatall costs havebeenaccountedfor andreasonablyestimated.Someof 35 theassumptionsusedtoestimate costsapplytoallof thecost estimatespresentedinthischapter. 36 Thesecommonassumptionsaredescribedinthefollowing subsections(also seeAppendix8.A, 37 Implementation Costs Supporting Materials).

38 8.2.2.1 Cost Periods 39 Costestimates werepreparedin 5yearincrements,startingwiththefirstyearinwhichregulatory 40 authorizations areissuedbythefish and wildlifeagencies,andconcludingatthe expirationofthe 41 permitterm.Thetimingoftheincurrenceofcostsisbasedon thescheduleofimplementation 42 presentedinChapter 6, Plan Implementation.Averageannual costs are summarizedforthenear


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1 term(years1 through10),early longterm(years11through15), andlatelongterm(years16 2 through50) phasesofPlanimplementation.Additionally,atthe endofthepermitterm,certain 3 managementcosts willcontinue in perpetuity.Thesecostswillbefundedthrough a nonwasting 4 endowmentorotherappropriatemechanisms.Coststhatwillbefundedbythe endowmentinclude 5 thoserelated toreservemanagement,administration,andlandusemonitoring.Endowmentfunding 6 andcoststhatwillbeincurredfortheconservationmeasuresthatrequirelongtermmanagement 7 aredescribedinSection8.2.3.11, CM11 Natural Communities Enhancement and Management.

8 8.2.2.2 Cost Contingency 9 TheAmericanAssociation ofCostEngineersdefines contingency asaspecificprovisionfor10 unforeseeableelementsofcostwithinthedefinedprojectscope.Costuncertaintiesmayresultfrom 11 notfullycompletedproject designsatthetimeofpermitting, unforeseenandunpredictable 12 conditions, or uncertaintieswithinthe definedprojectscope. Theamountof contingencywill 13 dependonthestatusofproject designsat thetimeof permitting,procurement,andconstruction; 14 andthecomplexityanduncertaintiesof thecomponentpartsof theproject.Forplanning studies, 15 standardcontingenciestypically rangebetween20and30%, but maybeashigh as50% for16 experimentalorspecialconditions.CostestimatesdevelopedformajorPlanelements,suchaswater 17 facilities,tidalnaturalcommunityrestoration,andYoloBypassimprovements, includevarious 18 contingenciesasspecificcostline items. In thosecaseswhere costcontingencyhasnotbeen19 explicitlyfactoredintoa costestimate,a 20%contingencyis added.

20 8.2.2.3 Financial Assumptions 21 Costsestimatesforindividual conservationmeasures presented inSection8.2.3, Conservation22 Measure Costs arereportedinundiscounted2012dollars.1 Costsnotalreadyexpressedin2012 23 dollarshavebeenconvertedto 2012dollarsusingvariousprice indices,includingconsumerprice 24 indicespublishedbytheU.S.DepartmentofLaborandcivilworksconstructioncostindices 25 publishedbyUSACE.Costsarereportedintermsofonetimecapital outlays, aswell as ongoing 26 operationalcosts.The summaries of total BDCP capital and operatingcostspresentedin 27 Section8.2.7, Summary of Estimated Costs arereportedinbothundiscounted 2012 dollars and 28 discountedpresentvaluedollars.2 Whenfuturecostsareconvertedtopresentvalue,a3%real 29 discountrateisused.3 Therealdiscountratewasselectedtobeconsistentwith currentlongterm

1 Thismeanstheestimatesexcludefutureinflation.Reportingcostsin(inflationadjusted) constantdollars allowsforamoreaccuratecomparisonofrelative expenditureovertime.These estimates,however,arenot indicativeofnominaldollaroutlaysthat willbe requiredoverthepermit periodand shouldnot be useddirectlyfor financialplanning, whereuse ofnominalvalueswouldbe most appropriate.

2 Discountingfutureoutlaysto presentvalueallowsforanassessmentof theeconomiccostoftotalprogramexpenditures whencostsare expectedtobe spreadovera longspanof time.Thisisbecauseadollarreceived (orexpended)inthefuturedoes nothavethesamevalueasadollarreceived(orexpended)today.Considerreceiving$100todayversus receiving$100tenyearsfrom today.Bydeferring thereceipt ofthe money by tenyears,itcould beinvestedandearna return overthisperiod. Forexample,ifthe rateofreturnoninvestment were5%,over tenyearsit would growin valueto$163.Underthisscenario,the future value tenyears henceof $100 todayis$163.Thesame principleholds inreverse.Thevalueofreceiving(orexpending)$100tenyearsfrom todayisequivalent toreceiving(orexpending)$61today. Thatis,the present value of$100received(orexpended)10 yearsfromtodayis $61 becausethat amountifinvestedtodaywouldyield$100 tenyearsfrom now.

3 Therealdiscount rateisroughlyequalto thenominal rateofinterestlessthelongtermrateofinflation.


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1 (40year)nominalbond yieldsof about5% and alongterm expectedrateofinflationof 2%, as 2 indicatedbythecurrentspread between nominalandinflationindexed30yearU.S.Treasury notes.

3 8.2.2.4 Delta Real Estate Values and Acquisition 4 TheImplementationOfficemayobtaininterests inlandforthe purposeofphysicalrestoration 5 actions,resourceprotection,andwaterfacilitiesdevelopment throughvariousmeans,includingthe 6 acquisitionoffeetitleoreasement.Landacquisitioncostsassociated with Plan implementation are 7 basedontheassumptionssetforthinthissection. 8 8.2.2.4.1 Land Acquisition Requirements 9 Landacquisitionfor conservationmeasuresotherthan CM1 Water Facilities and Operation will10 occurinamannerconsistentwiththeimplementationschedule fornatural communityprotection11 andrestorationconservationmeasuresasdescribedinTable62, Implementation Schedule for 12 Natural Community Protection and Restoration Conservation Measures, ofChapter6, Plan13 Implementation.4 Someacquiredacreage willservemultipleprotectionand/orrestoration 14 objectives,whichresultsindifferencesbetweentheamountof acreage listedinTable 62andthe 15 amountofacreagethatmayneedtobeacquiredforPlanimplementation.Thesedifferencesare 16 summarizedin Table 81. 17 Table 81. Land Acquisition Assumed for Cost Estimate of Protection and Restoration Conservation 18 Measures (acres)

Conservation Measure Chapter 6 Table 62

Cost Assumption Reason for Difference

BDCP Reserve System CM3 Natural Communities Protection and RestorationValley/foothillriparian 750 750Vernal poolcomplex 600 600Alkaliseasonalwetlandcomplex 150 150Grassland 8,000 8,000 Note:1/6of 3,000acrericeorriceequivalent

requirement listedinTable62canbesatisfiedthroughthe8,000acregrasslandreserve.Thisdoesnot entailadditional landacquisition.

Managed wetland (salt marshharvestmousehabitat)

1,500 1,500

Managed wetland (naturalcommunity)

6,600 6,600

Cultivatedlands(nonrice) 48,125 48,125 Cultivatedlands(rice) 500 1,500 Requirement 500acresof rice perTable62plus

1/3of the3,000acrericeorriceequivalentrequirement.

Cultivatedlands(riceorequivalent) 3,000 0 Requirement forriceorriceequivalent acresis counted under cultivated lands (rice),CM3

LandacquisitionforCM1isdiscussedinSection8.2.3.1, CM1 Water Facilities and Operation.


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Conservation Measure Chapter 6 Table 62

Cost Assumption Reason for Difference

grasslandreserve,CM8grasslandsrestoration, and CM10nontidalmarshrestorationacreage requirements.

NontidalMarsh 50 50 TotalBDCPReserveSystem 69,275 67,275 Natural CommunityRestoration CM4 Tidal Natural Communities Restoration

65,000 60,273 65,000acresof tidal wetlandrestoration,of which 60,273acresexpected tobe acquired from privatelandownersand4,727acresexpectedtocomefromexisting publiclyowned land.

CM5 Seasonally Inundated Floodplain Restoration

10,000 11,105 1,105acresaddedtoaccommodate leveefootprints neededforrestoration

CM6 Channel Margin Enhancement(miles)

0 63 63acresaddedtoaccommodateleveefootprintsneededforenhancement actions

CM7 Riparian Natural Community Restoration

5,000 971 Of the5,000acresof riparianhabitat, 4,029are expected tobe developedonlandsacquiredaspart of CM5and CM6.Riparian restoration associatedwithCM4willrequireacquisitionof anadditional971acres.Thus,CM7has a net landacquisition requirement of only971acres.

CM8 Grassland Natural Community Restoration

2,000 2,500 2,000acresofgrasslandrestorationperTable62 plus1/6of the3,000acre riceorriceequivalent requirement.

CM9 Vernal Pool and Alkali Seasonal Wetland Complex RestorationVernalpool complex 67 67Alkaliseasonalwetland 72 72 CM10 Nontidal Marsh RestorationNontidal marshrestoration 1,200 2,200 1,200acresofnontidal marshrestoration perTable

62plus1/3of the3,000acrericeorriceequivalentrequirement.

Managedwetland 500 500TotalNatural Community Restoration 83,839 77,751 TotalAcquisitionandRestoration 153,114 145,026

1 2 8.2.2.4.2 Land Value Assumptions 3 Differentlandvalueassumptions applytoDeltalandswithintheRestorationOpportunityAreas 4 (ROA)andlandsoutsideofthese areastoreflectdifferencesinsoilcharacteristics,productivity,and 5 marketopportunities.


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1 ROA Land Value Assumptions.Forcost estimation, ROAlandsaregroupedintothefollowing land 2 usecategories.5 3 Fieldandpasturecropproduction (pasture, hay, grain, and otherfieldcrops) 4 Vegetablecrop production5 Orchard 6 Vineyard7 Nativevegetation 8 Theacreageweightedaveragevalue ofland in each ROA is summarizedinTable82. Theestimates 9 are derived from value ranges published by the California ChapteroftheAmerican SocietyofFarm 10 ManagersandRural Appraisers(CSFMRA)in 2009. Thefollowing CSFMRAvaluerangeswereused 11 toestimatevaluesforeachland usecategory.Inallcases,thevalueissettothe average of the low12 and middle values of the CSFMRA valuerange.6 13 Field and pasture.CSFMRARegion1(Subregion:SouthSutter,WesternPlacer,Solano, and 14 YoloCounties)landvalues for ClassII/IIIcroplandwereused toestimatevaluesfortheCache 15 Slough, Suisun Marsh,and YoloBypass ROAs.CSFMRA Region3 (Subregion:San Joaquin 16 County)landvaluesforDeltalandswereusedtoestimatevaluesfortheCosumnes/Mokelumne, 17 SouthDelta,andWestDeltaROAs.18 Vegetable crops.CSFMRA RegionI(Subregion:SouthSutter,WesternPlacer,Solano,andYolo19 Counties)landvaluesforClass I/IIcroplandwereusedtoestimatevaluesfortheCacheSlough, 20 Suisun Marsh, and Yolo Bypass ROAs.CSFMRARegion3(Subregion: San Joaquin County) land 21 valuesforDeltalandswereusedtoestimatevaluesfortheCosumnes/Mokelumne,SouthDelta, 22 andWestDelta ROAs. 23 Orchards.CSFMRARegionI(Subregion:SouthSutter,WesternPlacer,Solano,and Yolo24 Counties)landvaluesforpearorchardswereusedtoestimatevaluesforthe Cache Slough, 25 Suisun Marsh, and Yolo Bypass ROAs.CSFMRARegion3(Subregion: San Joaquin County) land 26 valuesforcherryorchardswereusedtoestimatevaluesforthe Cosumnes/Mokelumne, South 27 Delta, andWestDelta ROAs. 28 Vineyards.CSFMRARegionI(Subregion:SouthSutter,WesternPlacer,Solano,andYolo 29 Counties)land valuesforvineyardswereusedtoestimatevaluesfortheCache Slough, Suisun 30 Marsh,andYoloBypassROAs.CSFMRARegion3 (Subregion:San Joaquin County)landvalues 31 forwine grapeswereusedtoestimatevaluesfortheCosumnes/Mokelumne,SouthDelta,and 32 WestDelta ROAs.

5 CaliforniaDepartmentofWater Resources(DWR)landuse survey data atthedetailedanalysisunitlevelwere usedtoclassify existingROA landuses. The DWRLandand Water UseProgramcollectslandusedataand developswateruseestimates usedinstatewidewaterplanning. Itaccomplishesthis by conductingsurveysofagricultural, urban andenvironmentallanduses,anddeveloping annualestimatesofland usesonaregional basis. Since 1986,DWRhascompiledlandusesurveydata intogeoreferenceddigital maps.Thesmallestlevelof resolutionfor thesemapsisthe detailedanalysisunit,the smallest studyarea usedbyDWR,generally defined byhydrologicfeaturesorboundariesororganizedwaterservice agencies.In the major agriculturalareas,a detailedanalysisunit typically includes100,000 to 300,000 acres.

6 Acomparison oftheCSFMRAlandvalueswithasampleof parcellevelassessmentvalues(updatedto reflectcurrent marketconditions)foreachROAshowedthat ROA landvaluestendedtoclusterinthe bottom thirdof theCSFMRA valuerangefor eachcropclassification.


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1 Native vegetation.Landvaluesfornativevegetationwerederivedfromparcellevelcounty 2 assessment data for each ROA.7

3 Table 82. Restoration Opportunity Area Land Value Assumptions Restoration Opportunity Area and Yolo Bypass Average Fee Title Valuea ($/Acre)

CacheSlough ROA $4,100 Cosumnes/MokelumneROA $5,600 SouthDelta ROA $5,500 SuisunMarshROA $3,600 West Delta ROA $3,200 Yolo Bypass $4,200 Notes: a Average feevalueistheacreageweightedaveragevalue(rounded tonearest $100)basedonthe hypotheticaltidalnaturalcommunities restoration footprintsused to costCM4,exceptin thecase ofYolo Bypass,whereit istheacreageweighted average valueforthe entirebypass.

4 5 NonROA Land Value Assumptions.Asimilarprocedurewasused toestimatelandvaluesfor 6 agricultural andnativevegetationland usesforthebroaderDelta. InthecaseofnonROAland,the7 expectedvaluewas setto themidpoint oftheCSFMRA valuerangebecauseofthe higherfractionof 8 primefarmlandoutsideoftheROAs. Land values byConservation Zoneand land usecategoryused 9 laterinthechaptertoestimate landacquisitioncosts forterrestrialconservationmeasuresand 10 waterfacilitiesare shown inTable83. 11 8.2.2.4.3 Easement Values 12 EasementvaluesintheDelta varywidely,dependingontypeof easementandrestrictionsplacedon 13 landuse.Expressedasapercent offeetitlevalue,surfaceeasementcostsmay range between10%14 and90%whilesubsurfaceeasementsmayrangebetween30and50% (Davispers.comm.).For 15 estimatinglandeasementcosts, theupperendof theserangeswas used. Habitat conservation 16 easements,whichtypicallyentailsignificantrestrictionson landuse,weresetto 80%ofthe feetitle 17 value;agriculturaleasementsweresetto60%of feetitlevalue;andsubsurfaceeasementswereset 18 to40%offeetitlevalue. Theamount of landthat will beacquiredbyfeetitleversuseasement is 19 expectedtovarybyconservation measure.Therelativesharesofeachthatwereassumedforcost 20 estimationarepresentedas part of each conservation measures costestimate. 21

7 Parcelswithassessments madebetween2000 and 2009and having atleasttwothirds oftheirland usesclassifiedasnativevegetation were usedtoestimate the averagevalueoflandclassifiedasnativevegetationintheROAs.AssessedvalueswereadjustedusingtheU.S.Departmentof AgriculturesCalifornialandvalueindex fornonirrigatedfarmlandtoreflectchanges inrurallandvaluessince the timeofthe assessment (U.S. Department ofAgriculture2010).


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1 Implementation Costs and Funding Sources Chapter 8

Table 83. NonROA Delta Land Value Assumptions

Conservation Zone County

CSFMRA Region

FeeTitle Value $/Acre (2012 dollars)a

Native Veg.b

Range land

Pasture/ Alfalfa

Field Crop

Truck Crop

Orchard/ Vineyard

1 Solano RegionOne:SouthSutter, WesternPlacer,Solano andYoloCounties

$1,621 $3,259 $3,180 $7,261 $8,744 $9,539

2 Yolo RegionOne:SouthSutter, WesternPlacer,Solano andYoloCounties

$1,621 $3,259 $3,180 $7,261 $8,744 $9,539

3 Yolo,Sacramento

RegionOne: SouthSutter, WesternPlacer,Solano andYoloCounties

$1,621 $3,259 $3,180 $7,261 $8,744 $9,539

4 SanJoaquin,Sacramento

RegionThree:LodiRegion

$1,621 $3,259 $11,659 $13,779 $15,899 $17,489

5 SanJoaquin,Sacramento

RegionThree:DeltaLands

$1,621 $3,259 $3,710 $6,095 $8,479 $17,489

6 SanJoaquin,Contra Costa

RegionThree:DeltaLands

$1,621 $3,259 $3,710 $6,095 $8,479 $17,489

7 SanJoaquin RegionThree:Westside

$1,621 $3,259 $8,479 $10,599 $12,719 $17,489

8 SanJoaquin,Contra Costa,Alameda

RegionThree:Westside

$1,621 $3,259 $8,479 $10,599 $12,719 $17,489

9 Contra Costa RegionThree:Westside

$1,621 $3,259 $8,479 $10,599 $12,719 $17,489

10 Contra Costa RegionThree:Westside

$1,621 $3,259 $8,479 $10,599 $12,719 $17,489

11 Solano RegionOne: SouthSutter, WesternPlacer,Solano andYoloCounties

$1,621 $3,259 $3,180 $7,261 $8,744 $9,539

Notes: a Averagefeevalue(roundedtonearest$100)for specificland usecategoriesbycounty.Feevaluesbased onmidpoint CSFMRAland valueestimateforCSFMRAregionalestimate for which countyislocated.

b Thenativevegetationlandcosts arebased on parcellevelcounty assessor data for DeltaROA footprints, adjustedforwhentheparcel was placed on the taxroll.Theestimate onlyappliesto Delta lands classified as nativevegetationbyDWR anddoesnotapplyto rangeland.Rangeland values are drawnfrom California Society of FarmManagers andRuralAppraiserspublications. The differentialinrangeland values reflects therelativeurban development pressuresinthedifferentcounties. WithinthelegalDeltaitself,landvaluesreflect verylimiteddevelopment opportunities.Therewouldbe a significant differencedependingon whichsideofthelegalDeltalinethepropertylays.Landsclassified asnative vegetationhaveverylimitedornoagriculturalpotentialand therefore muchlowerland valuesthan othercategories.CSFMRA=California Chapterofthe American Society of FarmManagersand Rural Appraisers.


2

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1 8.2.2.4.1 Land Acquisition Transaction Costs 2 Purchaseofinterests inland,eitherthroughfeetitleorthrougheasements,forthepurposeof 3 carryingoutrestorationactions,ensuringtheprotectionofresources,andundertakingconstruction 4 ofwaterfacilities,isassumedtoinvolvetransactional costs inadditionto thepricepaidforthat 5 propertyinterest.Forcostestimation,thesecostsareassumed to average 10%of thefeetitlevalue 6 oftheacquiredland.This assumptionisbasedona detailedparcellevelanalysisofexpected 7 transactioncostsincludingcostsforduediligence,preacquisitionsurveys,andrealestate and8 legalservicescompletedforCM4.

9 8.2.2.5 Staff Salary Costs and Benefits Multiplier 10 TheImplementationOffice will build a stafftooversee orcarryouttheactionsoutlinedinthePlan 11 (Chapter7, Implementation Structure).The salary cost estimates associatedwiththesepersonnel 12 needsarebasedonproposedfiscalyear20082009 salaryscales forreferencepositionsinvarious 13 departmentsoftheCalifornia NaturalResourcesAgency(CaliforniaDepartment ofFinance2008), 14 updatedto2012dollars(seeAppendix8.A, Implementation Costs Supporting Materials, forsalary 15 assumptions).Abenefitsmultiplierof1.35isapplied tosalaryandwagecoststo accountforcertain 16 assumedbenefits,suchaspaidleave, health insurance, and pensions.8 Salary and benefit cost 17 estimatesare markedupanadditional15%toaccommodatedifferences in state salary and benefit 18 compensationratescomparedtorates forthefederalandprivatesectors.

19 8.2.3 Conservation Measure Costs 20 Thissectiondescribesthe data, methods,andassumptionsused toestimatethecostof 21 implementingtheconservationmeasures.Estimationmethodsdifferbyconservationmeasure, 22 depending ontheconceptualand engineeringdesignandcostdata available at the time of plan 23 formulation.The approach taken for each conservation measure andthesourcesofdata andother 24 information usedfortheanalysisaredescribedinthe followingsubsections.

25 8.2.3.1 CM1 Water Facilities and Operation 26 Costestimatesfor CM1 Water Facilities and Operation arepresentedforthedesign,project 27 management, construction management of the water conveyance facilities;theintakeand 28 conveyanceconstructioncosts;theconstructioncostcontingency; land acquisition; annual 29 operation,maintenance,power,and capital replacement. The constructionandoperatingcost 30 estimateswerepreparedbytheDeltaHabitatConservationandConveyanceProgram(DHCCP)and 31 arebasedonthe Modified Pipeline/Tunnel Option (MPTO) 2013 Conceptual Engineering Report 32 (MPTOCER2013). 33 FacilityfeaturesaresummarizedinTable84. Estimatedcosts forlandacquisition,facility 34 construction,andfacilityoperationaresummarizedin Table 85.Thefollowingdataand 35 assumptionsunderliethecostestimates.

8 Themultiplier isbasedonaverage benefitspaidbystateandlocalgovernmentsasapercentoftotalemployee compensation in2009, asreported bythe U.S.BureauofLabor Statistics(BLS2009).


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Table 84. Summary of Intake and Conveyance Facility Features

Item Quantities Intake capacity 9,000cfs Intake pumping plants 3at 3,000cfseach Installedpowerdemand 5060megawatts Surge towers 5 each, oneat eachpumpingplant site Tunnels Two40footdiameterat 30.2miles,two29foot diameterat 11.5miles

total, and one 20footdiameterat2.5miles Canals Approximately10,000feet of canalsegments connecting themodified

Clifton Court Forebay with existing approach canals to the Banks and Jones PumpingPlants

Box culvert siphons 3Forebaytotalacreage 3,195acres(includesemergencyspillway inundation areaassociated with

the Intermediate Forebayandthe totalfinalarea for the modifiedCliftonCourtForebay)

Newbridges None Estimated NonState Owned Acreage

Required for RightOfWay, Staging, and Borrow Site Footprints, by Land Use and County

Surface Acreage Alameda/

Contra Costa Sacramento San Joaquin Total Agfieldcrop/grazing 1,394 865 2,346 4,605 Agtruck crop 3 288 90 381Agorchard 5 194 0 199Agvineyard 9 100 0 109Semiagricultural 129 67 85 281Urban 36 39 23 98 Native 365 130 228 723 Total surface acreage 1,941 1,683 2,772 6,396 Subsurface AcreageAgfieldcrop/grazing 19 85 501 605Agtruck crop 0 42 51 93Agorchard 0 5 0 5Agvineyard 0 71 0 71 Semiagricultural 2 8 16 26 Urban 0 5 4 9Native 1 10 90 101 Total subsurface acreage 22 226 662 910ag= agriculture;cfs=cubic feetper second

2 3 Land acquisition.Thecostestimatefor landacquisitionand relatedexpendituresis$161.2 million. 4 Thecostestimateiscomposedof fiveparts:(1)feetitleacquisitionof landforfacilityrightofway 5 andconstruction,(2)easementacquisitionofsubsurfacerightofway,(3)purchaseofaffected 6 mineralrights along thefacilityrightofway, (4)realestate transactioncost,and (5)contingency.


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1 Theestimatedcostofeachcost elementisshowninTable85. Acquisitionof surfaceacreagefor 2 facilityrightofwayandconstructionisexpectedtocomprise themajorityofthecostforland 3 acquisition.

4 Facility construction.Constructionoftheconveyancefacility,including contingencyand 5 constructionmanagement, isestimatedtocost$14.4 billion.Directconstructioncoststallyto$9.2 6 billionandderive fromtheDHCCP Modified Pipeline/Tunnel Option (MPTO) 2013 Conceptual 7 Engineering Report (DHCCP2013).Theestimateofdirectconstructioncostisbased ona 10% 8 engineeringdesignlevelandhas anexpectedaccuracy rangeof +50%to25%,perthecost 9 estimatingclassificationsystem developedbytheAssociationfor theAdvancementofCost 10 Estimating(2011).Contingencies fortunnelconstructionand otherconstructionelementsare$2.64 11 billionand$657.7million,respectively.Estimatedcostoffinal design and construction/project 12 managementis$1.9 billion. 13 Theestimateofdirectconstructioncostreliesonacombinationofunitpricesdevelopedforsimilar 14 workinvariouslocations aroundtheUnitedStates;historical unitpricescompiledovertimeby15 DHCCP staff;averageunit prices recordedbytheCalifornia DepartmentofTransportation(Caltrans) 16 (2007a);budgetaryvendorpricing; andestimatesdevelopedspecificallyforportionsof work by 17 DHCCPcostestimators.Unitpriceswereconvertedto2012dollarsusing Reclamationindex charts 18 orothermethods(Bureau ofReclamation2011a). 19 Facilityconstructionelementswereseparatedintoalogicaldivisionof worksuchas constructing20 riverintakestructures,pumping plants,conveyancepipelines, canals,culvertsiphons,tunnels, 21 bridges,utilities,forebays,controlsandcommunicationsinfrastructure,andpowersupplyandgrid 22 connections.Majorprojectcomponentswerefurthersubdividedintosubcomponentsuntildiscrete 23 activitiescouldbeidentifiedandeitherunitpricesora detailedestimatecould beapplied. 24 Thefollowingkeyassumptionswereadopted toestimatedirectconstructioncost. 25 Landwillbeacquiredtoprovide enoughsoilto constructeach facility(e.g.,canalandforebay26 embankments,pumpingplantpads).Theseborrowsiteswillbewithina 5mile haul(one way, 27 using offhighway equipment). 28 Allexcessor unsuitablesoilwillbedeposited(spoiled)within a 1mile haul from the facility29 (oneway, using offhighway equipment). 30 Thesoil can bedewateredeffectively. 31 Theinstallationofsheetpile cofferdamswilloccurduringallowableseasonalwindows; 32 however,oncecofferdamsareinplace,workwithinthecofferdamwill occur year round. 33 Tunnelingworkmaycontinueatallhoursonall days;allother workisexpectedtobe34 performedona 5day,10hourshiftbasiswithtwo shiftsperday. 35 Laborratesarebasedonprevailingwagedeterminationsmadeby theDirectorofIndustrial36 RelationsfornorthernCalifornia and Sacramento, San Joaquin, Yolo,Solano and Contra Costa 37 Counties.Employercostaswellasoverheadwascalculatedand specialshiftarrangements were 38 factoredforovertime. 39 EquipmentratesarebasedonUSACE guidelines(2005),Caltrans (2007b)LaborSurchargeand 40 Equipment Rental Rates, and quotesfromnorthernCaliforniaequipmentrentalcompanies, 41 updatedto2012dollars.


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1 Materialcosts arebasedon quotesreceivedfromvariousnorthernCaliforniamaterialvendors. 2 Pumpingplantequipmentquoteswereprovided bymajornational andinternationalsuppliers 3 (e.g.,pumps,valves).4 Facility operation and capital replacement. Estimatedfacilityoperation andcapital replacement 5 costsoverthe50yearpermitperiodtotal$1.456 billion.Operatingcostsarecomposedofthree 6 components:(1)power costsforpumpingandotheroperations,(2)otherfacilityO&M,and(3) 7 capitalreplacement. 8 Estimatedcostsforpowerarederivedfromdynamically simulateddiversionflowsusingCALSIMII 9 andoperating rulesintheDelta SimulationModelII(seeChapter5, Section5.2, Methods, for 10 descriptionsofthesehydrologic models).DHCCPcostestimators usedsimulationresultsto 11 characterize typical diversion volumesduringwet,normal,and dryyearhydrologicconditions. 12 Powerrequirementsforpumpingareafunctionofthepumpingflowrate,total dynamic head,and 13 combinedefficiencyofthepumpsandmotors.Powerrequirements forpumpingwereincreasedby 14 15%toaccountforallotherprojectpoweruses(e.g.,heating, ventilating,and airconditioning;15 generaloperationsandmaintenance[O&M];lighting).Annual powercostsarebasedona 16 combinationofWesternAreaPowerAdministration unitenergycosts,estimatesofbulkpower 17 purchasedinnorthernCalifornia, andanestimateof CVPgeneratedpowerfor40%ofpumped 18 water.Theestimateaccountsfor pricingdifferentialsinpeak andoffpeakpowerpurchases. 19 GeneralO&Mcostsinclusiveofsalary costs, including benefits andoverhead,andnormal operating 20 and facility maintenance costs areassumedtobegininyear11 ofplanimplementationandaverage 21 $18.85millionperyear throughtheendofthepermitperiod.GeneralO&Mcostsarebasedon 22 similarcostsforexisting SWPoperations. 23 Replacementcostsformajorequipment (e.g.,pumps,motors,highvoltage switchgear) are assumed 24 tobegininyear 21ofplan implementationandaverage $15millionperyear through theend ofthe25 permitperiod.Thecapitalreplacementrateisderivedfromthe initialcapitalcostestimateandrates26 ofdepreciationandreplacementobservedforexistingSWPfacilities.


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Table 85. Cost Estimate for Water Facility Construction

Conservation Measure Cost Items

Average Annual Expenditure by Plan Implementation Period

(Millions) 50Yr

Permit Term Total

Expenditure (Millions)

Near Term (Yrs 110)

Early LongTerm (Yrs 1115)

Late LongTerm

(Yrs 1650) Capital Costs Land AcquisitionSurfacefootprint, staging,borrowsites $8.6 $0.0 $0.0 $85.5Subsurfaceeasements $0.4 $0.0 $0.0 $4.3Mineralrights and gas wellrelocation $3.2 $0.0 $0.0 $32.3Duediligence&transactioncosts $1.2 $0.0 $0.0 $12.2 Subtotal $13.4 $0.0 $0.0 $134.3 Contingency(20%) $2.7 $0.0 $0.0 $26.9

Total Land Acquisition $16.1 $0.0 $0.0 $161.2 ConstructionRiverintake #2with pumping plant $34.9 $0.0 $0.0 $348.8 Riverintake #3with pumping plant $27.1 $0.0 $0.0 $270.7 Riverintake #5with pumping plant $30.3 $0.0 $0.0 $303.2 Intermediateforebay& flow controlstructures $7.1 $0.0 $0.0 $70.9 ByronTract Forebay& flow controlstructures $61.9 $0.0 $0.0 $619.4 Northtunnels&shafts $101.8 $0.0 $0.0 $1,017.9 Maintunnels&shafts $622.0 $0.0 $0.0 $6,219.6 Access,powerdelivery&utility relocations $31.7 $0.0 $0.0 $316.5 Communications&control $2.3 $0.0 $0.0 $23.4 Subtotal $919.0 $0.0 $0.0 $9,190.4 Tunnelingcontingency $264.2 $0.0 $0.0 $2,641.7 Allother contingency $65.8 $0.0 $0.0 $657.7

Construction w/ Contingency Subtotal $1,249.0 $0.0 $0.0 $12,489.8 Projectmanagement,constructionmanagement,and final design

$192.0 $0.0 $0.0 $1,919.9 Total Construction $1,441.0 $0.0 $0.0 $14,409.7

Total Capital $1,457.1 $0.0 $0.0 $14,570.9 Operations & Maintenance (O&M) CostsPower $0.00 $6.25 $6.25 $250.0 Facility O&M $0.00 $18.85 $18.85 $754.0 Capitalreplacement $0.00 $0.00 $12.91 $452.0

Total O&M $0.00 $25.10 $38.01 $1,456.0 Notes:The50yeartotalexpenditures are moreprecisethan the annualaverages andmaynotsum directlyfrom the annual averages due to rounding error.O&M= operations and maintenance

2

3 8.2.3.2 CM2 Yolo Bypass Fisheries Enhancement 4 With CM2 Yolo Bypass Fisheries Enhancement, theImplementationOffice willprovideforthe5 implementationof physicalmodificationswithin the YoloBypass toenhancefloodplainhabitat for6 spawningandrearingsplittailandrearinghabitatofjuvenile SacramentoRiversalmonids,as 7 describedinChapter3, Conservation Strategy.Themeasureincludesdevelopmentofafisheries 8 enhancementplanforthe Yolo Bypasstodeterminethebestapproachesforachieving biological9 objectives.


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1 Acquisitionof flood andleveeeasementsneededforCM2isestimatedtocost$33million. 2 Modificationofexistingandconstructionofnewbypassfacilitiesareestimated to cost$682million. 3 Estimatedcostsaresummarizedin Table86. Thecostestimates arebasedonthefollowing data 4 andassumptions.5 Easements. Modification ofexistingandadditionof newfloodeasementsmayberequiredinthe 6 eastern,central,andwesternpartsofthebypass.Additionally,modificationoftheexistingbypass 7 facilitiesmayrequire additional easements to accommodate leveefootprints.Theflood easement8 costestimateisbasedon farmincomelossesinthebypassestimatedbyHowittetal.(2012). This 9 studyestimatedmorefrequentand longerduration bypassfloodingunderCM2couldresultinloss 10 ofagriculturalincomeof approximately$740,000 peryear.The floodeasementcostestimateisset 11 tothecapitalizedvalueoftheselossesoverthe50yearpermitperiod,whichis $19.8million. In12 additiontothecostoffloodeasements,alumpsumallowanceof$5.2millionis addedtothe13 estimatetoaccountforpossibleeasements neededtoaccommodateleveefootprints.Transaction 14 costand20%contingencyaddan additional$8.0millionto the estimate. 15 Construction. ThepreferreddesignofYoloBypassimprovements will not be determineduntil 16 completionofthefisheries enhancement plan.Forpurposesofcostestimation,constructionofthe 17 followingproposedimprovementshasbeenassumed. 18 Fremont Weir fish ladder replacement.TheexistingFremontWeir Denilfishladderwillbe 19 removedand replacedwithanewsalmonid passage facility. Specificdesigncriteriahavenotyet 20 beendetermined.Thisfacilitywillincorporatemonitoringtechnologiestoallowforcollectionof 21 information toevaluateitsefficacyatpassing adultfishes. 22 Experimental sturgeon ramps.Oneormoreexperimental rampswill beconstructedatthe 23 FremontWeirtoallowfortheeffectivepassageofadultsturgeonandlamprey.Specificdesign 24 criteriafortherampshave not yetbeendetermined.Thisfacilitywillincorporatemonitoring 25 technologies toallowforcollectionofinformationtoevaluate itsefficacyatpassing adultfishes. 26 Deep fish passage gates and channel. Toenhanceadultfishpassage through theFremont27 Weir,aspartofmodificationstotheFremontWeir,adeepfish passagenotch will becutthrough 28 a much smallersectionoftheFremont Weirtoan elevationof11.5feetNorthAmericanVertical 29 Datumof1988(NAVD88).Thisnotchwillbefittedwithoperable fishpassagegatesthatwill30 allow controlledflowinto theYolo Bypass.Afishpassagechannelwillbe excavatedtoconvey 31 waterfromtheSacramentoRivertothe newfish passage gatesandfromthefish passagegates 32 totheTuleCanal. 33 Stilling basin modification.Modificationswillbemadeto theexistingFremontWeirstilling 34 basintoensurethat thebasindrainssufficiently into thedeepfishpassagechannel. 35 Sacramento Weir improvements. Modificationswill bemade toreduceleakageatthe 36 SacramentoWeirand thereforereduce attractionoffishfromthe YoloBypasstotheweir. For 37 comparative analysis purposes, the fisheries enhancement plan willreviewthebenefitsand 38 necessityofconstructingfishpassagefacilitiesatthe SacramentoWeirtoreducejuvenile fish39 strandingandimproveupstreamadult fishpassage. Thisaction mayrequireexcavationofa 40 channeltoconveywaterfromthe SacramentoRivertotheSacramentoWeirandfromthe 41 SacramentoWeirtothetoedrain,constructionofnewgatesat a portionofthe weir,andminor 42 modifications tothestillingbasinoftheweirtoensureproperbasindrainage.Specificdesign 43 criteriaforrampshavenotbeen determined.Itisnotcertain atthistimewhetherthe 44 SacramentoWeirimprovementswillberequired.


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1 Tule Canal/toe drain and Lisbon Weir improvements. The fisheries enhancementplanwill 2 includephysicalmodificationstopassageimpediments,including road crossings and 3 agricultural impoundments in the TuleCanal/toedraintoimprovefishpassageandsurvival. 4 Thecostestimateassumesthe replacementofthreeexistingstructuresatthenorthernendof 5 theTule Canal with bridgesorotherstructuresto allow adult fishpassage.LisbonWeirwillbe 6 redesignedtoimprovefishpassagewhilemaintainingorimprovingwatercaptureefficiencyfor 7 irrigation.8 Lower Putah Creek improvements.LowerPutahCreekwillberealignedtoimproveupstream 9 anddownstreampassage ofChinook salmon and steelhead in Putah Creekandfloodplain10 restorationtoprovidebenefitsformultiplespeciesonexisting public lands. 11 Fremont Weir modification.TheFremontWeirwillbemodifiedtomanagethetiming, 12 frequency,anddurationof inundationof theYoloBypasswithSacramentoRiverflows.Itwas 13 assumedasectionoftheFremontWeirwillbeloweredto17.5feet(NAVD88)andfittedwith 14 operablegatesthatwill allow for controlledflowintotheYoloBypasswhentheSacramento 15 Riverstageattheweirexceeds17.5feet. Newfloodchannelswould beexcavatedtoconnectthe 16 SacramentoRivertothenewgate structureandtoconnectthenew gatestructuretotheYolo 17 Bypass.18 Yolo Bypass modification.TuleCanal/toedrainchannelcapacitieswillbereducedthrough 19 grading, removing existingberms,levees,andwatercontrolstructures,constructingbermsor 20 levees,reworkingagriculturaldeliverychannels,and providing earthworkorstructurestothe21 extentnecessarytoimprovethe distribution(e.g.,wettedarea)andhydrodynamic 22 characteristics(e.g.,residence times,flowramping,andrecession)ofwatermovingthroughthe 23 YoloBypass.Thefisheriesenhancementplanwillincludemodificationstoallowwaterto24 inundate in certain areas of the bypass to maximize biological benefits.Itwillkeepwateraway 25 fromotherareastoreduce strandingofcoveredfishspeciesin isolatedponds,minimizeeffects26 onterrestrialcoveredspecies(e.g.,giantgarter snake),and accommodateotherexistingland 27 uses(e.g.,wildlife,public, andagriculturaluseareas).Ifnecessary,landswill beacquired,infee28 titleandthroughconservationorfloodeasements. 29 Westside option.Thefisheriesenhancementplan will includea feasibilitystudyandevaluation 30 ofa gatedchannelto provideflows into YoloBypass along the westside.Potential flowsources 31 aretheSacramentoRiver,Colusa BasinDrainorSacramentoRiverflowsthroughKnights 32 LandingRidgeCut,or augmentationofother westerntributaries. Somemodificationofthe 33 existingconfigurationofthediscontinuouschannels alongthe westernedgeoftheYolo Bypass 34 mayalsoberequired.Ifeffectiveatmeetingbiologicalobjectives,thisoptioncouldbe included 35 inthe implementationof theconservationmeasure.Itisuncertain at this timewhether a gated 36 channelwillneedtobeconstructed. 37 Forcostestimation,itisassumedYoloBypassenhancementelementswillbe constructedbetween38 year 1and10ofPlan implementation.Lowand high construction costsforeachelementwere 39 estimatedbyDHCCP(DeltaHabitatConservationandConveyanceProgram2010).The midpointsof 40 theserangesaresummarizedhere. TheseareClass4costestimateswithanexpectedaccuracy 41 rangeof+120to60%. A50%contingencyisaddedtothedirect constructioncostestimateto42 accountforthesubstantialcost uncertaintiesassociatedwith thebypassconstructionelementsat 43 thisstage intheplanning process.Total construction costs,includingcontingency,areestimatedat 44 $682million.


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Table 86. Cost Estimate for Yolo Bypass Fisheries Enhancement



(Millions)a 50Yr Permit Term Total Expenditure (Millions)

Near Term (Yrs 110)

Early LongTerm

(Yrs 1115)

Late LongTerm

(Yrs 1650) Capital Costs Land AcquisitionEasementcosts $2.5 $0.0 $0.0 $25.0Duediligence&transactioncosts $0.3 $0.0 $0.0 $2.5 Subtotal $2.8 $0.0 $0.0 $27.5Contingency(20%) $0.6 $0.0 $0.0 $5.5

Total Land Acquisition $3.3 $0.0 $0.0 $33.0 ConstructionPlanning,preliminaryengineering &permitting $3.0 $0.0 $0.0 $30.0 PM/CM/finaldesign $10.1 $0.0 $0.0 $101.1 Fremont Weirfishfacilities $16.1 $0.0 $0.0 $161.3 Othercivil/siteWorknear FremontWeir $1.1 $0.0 $0.0 $11.2 Sacramento Weir $4.9 $0.0 $0.0 $49.5 Lisbon Weir $2.4 $0.0 $0.0 $24.3 LosRioscheck structure $1.8 $0.0 $0.0 $17.5PutahCreekgatestructure $1.7 $0.0 $0.0 $17.5 PutahCreekrealignment $1.2 $0.0 $0.0 $12.1West Sidesupplyelement $3.0 $0.0 $0.0 $30.3 Subtotal $45.5 $0.0 $0.0 $454.7 Contingency(50%) $22.7 $0.0 $0.0 $227.3

Total Construction $68.2 $0.0 $0.0 $682.0 Total Capital $71.5 $0.0 $0.0 $715.0 Inundiscounted2012dollars.The 50year total expendituresare more precise than the annual averages and maynot sum directly from theannual averages due to rounding error.PM=project management; CM =constructionmanagement

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3 8.2.3.3 CM3 Natural Communities Protection and Restoration 4 With CM3 Natural Communities Protection and Restoration, theImplementationOfficewill provide5 fortheestablishmentofa reservesystemtoprotect, restore,andenhanceareas ofexistingnatural 6 communitiesandcovered specieshabitat,protectandmaintainoccurrencesofselectedplant 7 specieswith verylimited distributions, andprovidehabitatconnectivityamongthevariousBDCP


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1 conservationlandsinthereservesystem.Thissectionpresents landacquisitioncostsforthe 2 protectionof existing natural communities.9 3 Land acquisition. The costestimateforlandacquisition neededfortheimplementationofCM3is 4 $460.1million.The Planimplementationperiodinwhichlandwould beacquiredisbasedonthe 5 scheduleshown in Table87.The costestimateissummarizedin Table88. Thecostestimateis 6 comprisedoffourparts:(1)feetitleacquisitionofreserveland,(2)easementacquisitionofreserve 7 land,(3) real estatetransactioncost,and (4)contingency.Acreagesusedforcostestimationare 8 thoseshown inTable82. Thisschedule isderivedfromtheimplementationscheduleinTable62,9 Implementation Schedule for Natural Community Protection and Restoration Conservation Measures, 10 ofChapter6, Plan Implementation.10 Specificassumptionsusetoestimatefeetitle, easement,and11 transactioncostsareasfollows. 12 Feetitle cost.Forcostestimation,itisassumedfeetitleinterestinland neededforthe13 protectionof specificnatural communitieswould be purchased. Thisincludesestablishment of 14 reservesforvernalpool complex,alkaliseasonalwetlandcomplex, valley/foothillriparian, 15 grassland, managed wetland, nontidal perennial aquatic, and nontidalfreshwaterperennial16 emergentwetland.Purchaseoffeetitleinterest inlandforthesepurposesisestimatedtocost 17 $114.8million.Theestimateisbasedontheweighted averagevalue of landin each 18 ConservationZonefrom which land willneedtobe acquired.Calculationdetailsareprovidedin 19 Appendix8.A, Implementation Costs Supporting Materials. 20 Easement cost.Forcostestimation,itis assumedconservationeasementswouldbeusedto 21 secure80%ofthecultivated habitatreserve.Thecostestimate forconservationeasementsis22 $228.6million.11 Theestimateisbasedon theweighted average valueofland in each 23 Conservationzonefrom which landfor thecultivatedhabitatreservewillneedtobeacquired. 24 CalculationdetailsareprovidedinAppendix8.A, Implementation Costs Supporting Materials. 25 Transaction and contingency costs.Transactionandcontingencycostestimatesare$40.1and 26 $76.7million, respectively.12

9 Thecostsforacquiringlands neededforthe restorationof naturalcommunitiesare not countedhere. Rather,theyareincludedaspartofthe costestimatesforthe natural communities restorationconservation measures (CM4CM10).

10 Theseassumptionshavebeen developedonlyforthepurposesof thecost estimate and donotreflectpermit conditions. Actualacquisitionby conservationzoneandperiod willlikelydifferfrom theseassumptionsbutisexpectedtobe withintheestimatedoverall cost.

11 Conservationeasementcost issetto 80% of thefeetitlelandvalue, per Section8.2.2.4.3. 12 Thecostanalysisassumesthat feetitleand easement purchaseswouldhavesimilartransactioncosts peracre, which wouldaverage 10%of thefeetitlevalueofthe land. Becauseeasementcostisset to 80% offeetitle value, thecalculation oftransactioncostin Table 88is($114.8 +$228.6/0.8)x 0.1=$40.1 million.


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Table 87. Land Acquisition Schedule for Reserve System

Conservation Measure

Total Acquisition Requirement

(acres)

Percent of Acquisition by 5Year Time Periods

NearTerm

Early LongTerm Late LongTerm

1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 30 31 to 35 36 to 40 41 to 45 46 to 50 CM3 Natural Communities Protection and RestorationValley/foothillriparian 750 53% 47% 0% 0% 0% 0% 0% 0% 0% 0% Vernal poolcomplex 600 33% 33% 33% 0% 0% 0% 0% 0% 0% 0% Alkaliseasonalwetlandcomplex 150 0% 80% 3% 3% 3% 3% 3% 3% 0% 0% Grassland 8,000 13% 13% 13% 13% 13% 13% 13% 13% 0% 0%Managedwetland 8,100 23% 36% 7% 7% 7% 7% 7% 7% 0% 0% Cultivatedlands 49,625 16% 16% 13% 11% 11% 11% 11% 11% 0% 0%Nontidal marsh 50 20% 30% 10% 10% 10% 10% 10% 0% 0% 0% Total Acquisition 67,275 17% 19% 12% 11% 10% 10% 10% 10% 0% 0%


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Table 88. Cost Estimate for Land Acquisition to Protect Existing Natural Communities



(Millions)a 50Year

Permit Term Total

Expenditure (Millions)a

Near Term (Yrs 110)


Late LongTerm (Yrs 1650)

Capital Costs Land AcquisitionFeetitlecosts $3.98 $2.87 $1.73 $114.8 Easementcosts $7.29 $5.98 $3.59 $228.6 Duediligence&transactioncosts $1.31 $1.03 $0.62 $40.1

Subtotal $12.59 $9.88 $5.95 $383.5 Contingency(20%) $2.52 $1.98 $1.19 $76.7

Total Land Acquisition $15.10 $11.85 $7.14 $460.1 Notes: a Inundiscounted2012dollarsThe50year total expendituresaremore precisethan theannual averages and maynot sum directly from the annual averagesdue toroundingerror.

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3 8.2.3.4 CM4 Tidal Natural Communities Restoration 4 With CM4 Tidal Natural Communities Restoration,theImplementationOfficewillprovideforthe 5 restorationof65,000acresoftidalperennialaquatic,tidalmudflat,tidalfreshwateremergent 6 wetland,andtidalbrackishemergentwetlandnaturalcommunitiesinthe ROAs(Figure3.22, 7 Conservation Zones and Restoration Opportunity Areas, inChapter3, Conservation Strategy).Tidal8 naturalcommunitieswillberestoredalongacontiguousgradientencompassingshallowsubtidal9 aquatic, tidal mudflat, andtidalmarshplain.Therestoration willbephasedtodevelop19,150acres 10 byyear10,29,800acres(cumulative)byyear15,and65,000 acres(cumulative)byyear40ofPlan 11 implementation.Thecostestimateofacquisitionof landneeded forimplementationof CM4 is12 $376.5million.Thecostestimateforconstructingandrestoringtidalnaturalcommunitieson 13 acquiredlandsis$1.49billion. ThecostestimateforCM4issummarizedinTable89,and is based 14 on the following data and assumptions. 15 Land acquisition. Forcost estimation,itisassumedpurchaseoffeetitleinterestin60,273 acresof16 landwillberequired.Theremainderofthelandneededtomeet CM4s65,000acrerestoration 17 targetisassumedtocome fromland already owned by the state. Thecostestimateforpurchasing 18 feetitleinterestin60,273acresoflandacrossfivedifferentrestorationopportunityareas(ROAs)is 19 $293.9million.Theestimatederivesfrom theweightedaverage valueof land withineachof thefive 20 ROAsin whichCM4 will be implemented.13 Calculation detailsareprovidedinAppendix8.A, 21 Implementation Costs Supporting Materials.Transactionandcontingencycostsaddan additional22 $82.6milliontotheestimate,bringingthetotalcostforland acquisitionto $376.5million.

13 Landrequirementsfor eachROA werederivedfrompreliminarytidal marshrestoration footprints based onmodelingconductedfor theeffectsanalysis (Chapter 5, Effects Analysis, andAppendix 5.E, Habitat Analysis).


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1 Construction. Tidalnaturalcommunityrestorationisestimatedto cost$1.53 billion.Abreakdown 2 ofrestoration costsbymajorconstructionelementis provided in Table89. 3 Grading and fill costs.Restorationcosts,especiallyinthe WestDelta,arestrongly influenced 4 bytheamountofmassgrading andfillrequiredtoachievedesired elevationsfortidaland5 subtidal areas.Thecostestimateassumesrestoration willnot occurin themostdeeplysubsided 6 partsoftheDelta.Massgrading andfillassumptionsusedtoestimaterestoration costforeach7 ROAareasfollows. 8 Suisun Marsh.Thecostestimateassumesnomassgradingwillberequired.SuisunMarsh 9 has a relatively high potential forestuarinedepositiontoraiseelevationsfromsubtidalto10 intertidalcomparedtotheDelta ROAs.Inaddition, becauseof theregionalgeomorphic 11 setting ofSuisunMarsh,thetidesignalis notexpectedtobe ascompressedas modeledin12 thelongterm,resultinginarelativelyhighextentofintertidalareacreatedwithoutfill 13 placement.14 West Delta. RestorationareasonsubsidedWestDelta islandswillbefilledwith 15 hydraulically placeddredgedmaterial tocreatea mixofapproximately20%intertidaland 16 80%subtidal area inallexceptthemostdeeplysubsidedareas (deeperthanapproximately 17 9feetbelowmeanlowerlowwater(MLLW).DutchSloughsitemassgradingwillconsistof 18 landbasedfillplacement(from localborrowandtheIronhouse Sanitaryparcel),perthe 19 currentDWRrestorationplan(PhilipWilliams &Associates2006).Existing artificial fill20 aboveintertidalelevationswill beremovedatnocosttotheproject.WestDeltafillcostsare 21 basedonestimatedcostsofplacingdredgedmaterial andtheplanninglevelcostestimate 22 forDutchSlough. 23 Cache Slough, South Delta, and CosumnesMokelumne. FortheseROAs,thecostestimate 24 assumesnomassgradingwillbe required.Somecutandfillmay berequired.Toestimate25 thevolumeoffillrequired,itisassumed that lands with elevations upto1footabovemean 26 higherhighwater(MHHW)willbeloweredto theMHHWelevation. Thecut material will27 thenbeplacedin shallowsubtidal areastoraisethem uptotheMLLWelevation.Costsfor 28 theCacheSloughROAarebasedontheassumptionthatearthmoving willbephasedover 29 severaldecades,requiringinterimstockpilingof fill material ononeormoreparcels.Cut 30 andfillareasarebroadlycategorizedbasedonanticipatedhauldistances,andtheneedfor 31 interimstockpiling.Unitcosts forcutandfilloperationsare based on gradingand fill costs 32 fora sampleofregionaltidal marshrestorationprojects.33 Temporary and permanent levees. Temporary and permanent leveeswillbe requiredto34 protectlandsadjacenttotherestorationareas.Thecostestimateforleveesisbasedona total of35 44milesofpermanentleveesalong theuplandedgesofthe ROAs,32milesofpermanentlevees 36 onsubsidedareasintheinteriorsofthe ROAs,and50milesof temporaryleveesthatwillneed 37 tobebreachedorremovedasrestorationprogresses.Thetypicalleveeheightforpermanent 38 leveeswascalculatedasthedifferencebetweentheFederalEmergencyManagementAgency 39 100yearfloodelevationandatypicalgroundelevation,plusanallowanceforsettlement, 40 freeboard,andfuturesealevelrise.Typicalgroundelevation wasestimatedbyROAandby 41 leveetype.Settlementwasestimatedfor eachleveetypewithin an ROAas a functionof levee42 heightandapproximatedepthofunderlying peatsoils.Acrest widthof16feetwasassumedfor 43 alllevees,withaverage sideslopesof5:1and2:1(horizontal : vertical)on theoutboardand 44 inboardsides,respectively.Unitcostsforleveefillwerederivedfromcostsforsimilar 45 constructedprojectsandranged from$5to$31 percubic yard, dependingon anticipatedsoil


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strength and distance of fill materialsource.Itwasassumedthatthefillnecessaryforlevee constructionwouldbeobtainedfromsourceswithintheROA.For islandlevees,itwasassumedthatmaterialwouldbeimportedfromoffsitelocationsbybarge andconveyorsystem.

Restoration and vegetation.A unitcostof$3,700peracre wasappliedtoeachROAsfootprint area toestimatethecostofrestorationelementsotherthanmass grading and levees. is the unit iscostwasderivedfromdataon costsfor largescaletidal marshrestorations thathavebeen completed(orareinfinalstagesofdesign)intheSanFranciscoBay,includingNapaSaltPonds, SouthBaySalt Ponds(multiplesites),EdenLandingEcological Reserve,BahiaWetlands, Petaluma Marsh,CooleyLanding,OuterBairIsland,andBlacklockMarsh(SuisunBay).Projects locatedinSan FranciscoBaywere usedasanaloguesbecauseof thelackoflargescaletidal marshrestorationprojectswithin theDeltatoserveasreference sites.

Contingency.Eachrestorationsitewillhave itsownuniquecharacteristics,causingactual constructioncoststodifferfrom theestimatessetoutin this section.Factorsthat may affect actual costsincludetherelocationof existingutilities, improvementsnecessary forsiteaccess, andaccommodationforaphasedapproachtoconstruction.A35% contingencywasappliedto directconstructioncoststo accountfortheseunknowns.

17 Table 89. Cost Estimate for Tidal Natural Communities Restoration



(Millions)a 50Year Permit Term Total Expenditure (Millions)a

Near Term (Yrs 110)

Early LongTerm (Yrs 11

15)

Late LongTerm (Yrs 16

50) Capital Costs Land AcquisitionFeetitlecosts $7.4 $8.8 $5.0 $293.9 Duediligence&transactioncosts $0.5 $0.6 $0.4 $19.8 Subtotal $7.8 $9.3 $5.4 $313.8 Contingency(20%) $1.6 $1.9 $1.1 $62.8

Total Land Acquisition $9.4 $11.2 $6.5 $376.5 ConstructionPermitting,planning,design,CM $8.0 $9.5 $5.5 $318.4 Massgrading $1.0 $1.1 $0.7 $38.4Temporarylevees $6.5 $7.7 $4.4 $257.7 Longtermlevees $8.3 $9.8 $5.6 $329.1 Restoration&vegetationestablishment $7.1 $8.4 $4.9 $283.7 Subtotal $30.8 $36.5 $21.1 $1,227.4 Contingency $7.7 $9.1 $5.2 $305.8

Total Construction $38.4 $45.6 $26.3 $1,533.1 Total Capital $47.8 $56.8 $32.8 $1,909.7 Notes:The50yeartotalexpenditures are moreprecisethan the annualaverages andmaynotsum directly from the annualaverages duetoroundingerror. a Inundiscounted2012dollarsCM=constructionmanagement


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1 8.2.3.5 CM5 Seasonally Inundated Floodplain Restoration 2 Under CM5 Seasonally Inundated Floodplain Restoration, theImplementationOfficewill providefor3 therestorationof10,000 acresof seasonallyinundatedfloodplainalong the San JoaquinRiver 4 downstreamofVernalisandalong Oldand/orMiddleRivers.CM5 providesflexibilityforrestoration 5 actions to occur along anymajor channelin thenorth, east,andsouthDelta.Toestimate 6 implementationcost,thefollowing assumptionsaboutthelocationoffloodplain restorationwere 7 adopted.8 Approximately7,000 acresoffloodplainwillberestoredalong theSanJoaquin Riverbetween 9 VernalisandFrenchCampSlough by setting back approximately 40milesofexisting levees. 10 Anadditional3,000acresoffloodplainwillbe restoredalong Oldand/orMiddleRiversby 11 setting back approximately 17 milesofexistinglevees. 12 Inrestorationareas,existingleveeswill besetbackan averageof1,450feetfromthechannel 13 margin.14 Giventheselocationassumptions, landacquisition is estimated tocost$74.3 million.Leveesetback 15 andfloodplainrevegetationisestimatedtocost$867.7million.CostsaresummarizedinTable810, 16 and are based on the following data and assumptions. 17 Land acquisition.Land acquisitionand relatedexpendituresforCM5areestimatedtocost$74.3 18 million.Thecostestimateisbasedonpurchasing feetitleinterestin5,330acres neededforlevee19 footprints,gradedbenches andotherwatersiderestorationfeatures,atacostof $33.5million, and20 securinganadditional5,775acresintherestoredfloodplainthrough flood easement,ata costof 21 $21.5million. Bothestimatesare basedontheweightedaverage valueof land withinthefloodplain 22 restorationzonesusedforcostestimation.14 CalculationdetailsareprovidedinAppendix8.A, 23 Implementation Costs Supporting Materials.Transactionandcontingencycostsaddan additional24 $19.3milliontotheestimate,bringingthetotalcostforland acquisitionto $74.3million.15 25 Construction. Thecostestimateforconstructionofleveesetbacks andrevegetationis$867.7 26 million.A breakdownof leveesetbackcostsbymajor construction elementis providedin Table27 810. 28 Levee setback cost.Thedirectconstructioncostestimatefor57 milesof leveesetbacksis 29 $528.9million.Theestimateisbasedonthecostofsimilarsetbackleveesrecentlyconstructed30 along the Feather and Bear rivers.Direct constructioncostfor theseprojectsaveraged$9.331 millionpermile.The estimateincludesallowancesforremoving existinglevees,excavatingand 32 backfilling borrow pits, surfacing roads, and excavating floodplain swalesandbenches. 33 Revegetation cost.Thecostestimate forfloodplainrevegetationis$49.6million.Atotal of34 4,830acresareestimated torequirerevegetationatanaverage costof$10,270peracre.The

14 Easementcostsaresetto 60%offeetitlevalue,perSection 8.2.2.4. Easement costsforfloodplainrestoration arevaluedlowerthanconservationeasementsbecause theseeasements willoftencome intheform offloodeasements, whichhavefewer restrictionsthanconservation easementsandthereforeshouldcostless.

15 Thecostanalysisassumesthat feetitleand easement purchaseswouldhavesimilartransactioncosts peracre, which wouldaverage 10%of thefeetitlevalueofthe land. Becauseeasementcostisset to60% offeetitle value, thecalculation ofdue diligenceandtransactioncostin Table 810 is($33.5+$21.5/0.6) x 0.1 = $6.9 million.


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averageperacrecostisbasedon revegetationcostsforsimilarsetbackleveeprojectsrecently constructedontheFeatherandBearrivers.

3456 7891011121314

Permitting, planning, design, engineering, and construction management.Allowancesforpermitting,planning, design,engineering, andconstructionmanagementarethe sameasthose usedforthe projectsontheFeatherandBearrivers 18%ofdirectcostforpermitting, planning,design,and engineeringand7%ofdirectcostforconstructionmanagement.

Flood control cost share. Costsharing withstatefloodmanagementprogramsmaybepossible.For purposesofestimating total Planimplementationcost,itisassumedBDCP will beresponsibleforbetween50and75%oftotalCM5 costs. The50% costsshareisbasedonBDCPpayingforroughly onethirdofleveesetbackcosts andallthecostsforlandacquisitionandrevegetation.The75%cost shareisbasedonBDCP paying forroughlytwothirdsofleveesetbackcostsandallthecostsforland acquisition andrevegetation.Underthe twocostsharescenarios, BDCPcostforCM5ranges between$471and$706.5million.ThesummaryoftotalBDCPcost presentedinSection8.2.7, Summary of Estimated Costs, usesthemoreconservative 75%costshareassumption.

15 Table 810. Cost Estimate for Seasonally Inundated Floodplain Restoration



(Millions)a 50Year Permit Term Total Expenditure (Millions)a

Near Term (Yrs 110)


Late LongTerm (Yrs 1650)

Capital Costs Land AcquisitionFeetitlecosts $0.00 $0.67 $0.86 $33.5Easementcosts $0.00 $0.43 $0.55 $21.5 Duediligence&transactioncosts $0.00 $0.14 $0.18 $6.9 Subtotal $0.00 $1.24 $1.59 $61.9Contingency(20%) $0.00 $0.25 $0.32 $12.4

Total Land Acquisition $0.00 $1.49 $1.91 $74.3 ConstructionSetback leveeconstruction $0.00 $10.58 $13.60 $528.9 Revegetation $0.00 $0.99 $1.28 $49.6 Subtotal $0.00 $11.57 $14.87 $578.47 Permitting,planning,design,CM $0.00 $2.08 $2.68 $104.1 Constructionmanagement $0.00 $0.81 $1.04 $40.5 Subtotal $0.00 $14.46 $18.59 $723.1 Contingency(20%) $0.00 $2.89 $3.72 $144.6

Total Construction $0.00 $17.35 $22.31 $867.7 Total Capital $0.00 $18.84 $24.22 $942.0 BDCP Cost Share50% $0.00 $9.42 $12.11 $471.0 75%b $0.00 $14.13 $18.17 $706.5 Notes:The50yeartotalexpenditures are moreprecisethan the annualaverages andmaynotsum directly from the annualaverages duetoroundingerror. a Inundiscounted2012dollarsb Thecostsummary tablesinSection8.2.7, Summary of Estimated Costs, usethemore conservative75%cost share assumption.


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1 8.2.3.6 CM6 Channel Margin Enhancement 2 With CM6 Channel Margin Enhancement,theImplementationOfficewillprovideforthe 3 enhancementof20linearmilesof channel margin in the Delta. Forthecostanalysis,it isassumed 4 that channel marginenhancementwill entailcreating low benchesthatsupportemergent 5 vegetationandhigherelevation benchesthat supportriparianvegetationalongexistinglevees. 6 Largewoodymaterial(e.g.,tree trunksandstumps)maybeanchoredintoconstructedlowbenches 7 orinexistingriprappedleveestoprovidesimilarhabitatfunctions. 8 ThecostestimateforCM6is$120.2 million. Table 811providesabreakdownofthecostestimate, 9 whichis basedonthefollowing data andassumptions. 10 Land acquisition. Channelmarginenhancementprojectsarenotexpectedtorequiresignificant 11 amounts ofland acquisition. Somelandacquisitionmayberequiredtoaccommodatechannel 12 marginrestorationinhighlyconstrainedchannelswherelevees mayneedto besetbackabout100 13 feetorless.Thesesetbackswouldalso mitigate thelossofchannelmarginalong theSacramento 14 Riverduetoconstructionofthe threeCM1conveyanceintakesinthenorthDelta.Toaccountforthis 15 possibility,itisassumedthat 5.2milesof the 20milesofchannelmarginenhancementwouldentail 16 settingbackleveesapproximately100feet.Thislineardistanceequatestotwicetheamountof 17 channel marginthat would belostto the construction ofthethreeintakesinthenorthDelta,which 18 istwicethe amount neededtomitigatethatloss.Anestimated 63acreswouldbeneededforthese 19 leveesetbacks.16 Thecostestimatetoacquirethislandinfeetitle,including allowancesfordue 20 diligence,othertransactioncosts,andcontingencyis $0.52 million. 21 Construction. Thecostestimateforconstructionof channel marginenhancements is $119.7 22 million.Costestimatesforsetback levee construction andchannelmarginenhancementsinareas 23 wheresetbackleveeswillnotbe requiredarebasedonthefollowinginformation. 24 Levee construction. Thecostestimatefor5.2milesof setba

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