+ All Categories
Home > Documents > Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Date post: 23-Dec-2015
Category:
Upload: coleen-boone
View: 218 times
Download: 4 times
Share this document with a friend
73
Part 2 Partners, Benefits & Payments February 27 – March 6, 2003
Transcript
Page 1: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Part 2Partners, Benefits &

PaymentsFebruary 27 – March 6, 2003

Page 2: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

2

Meeting Purpose & Agenda

• Meeting Purpose– Review how partners would work together, how the project

would be paid for, and how the benefits can be quantified• Agenda

– 2003 Studies: Information and Schedule– Current Project & Potential Expansion– CCWD Reimbursement (CCWD Principle #6)– Possible Institutional Structures (CCWD Principle #5)– Cost & Financing (CCWD Principle # 5 and #6)– Value of Benefits

Page 3: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

3

Meeting Guidelines

• Ensure Everyone's Participation– One speaker at a time– Minimize side conversations

• Honor Our Time Limits– Keep comments concise and avoid redundancy – Use ditto to agree with others

• Commit to Being Fully Present– No cell phones, pagers, voicemail, etc.– Ask for what you need from the meeting process

• Respect Each Other– Listen carefully to other participants and try other opinions on for size– Respond to ideas and issues, not individuals

• Identify Yourself– State your name and organization or community

Page 4: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

4

2003 Study Activities

•Extensive public outreach– Now through June 2003

•Provide facts & information

•Key dates– CCWD Board decision -- July 2003

– Potential vote -- November 2003

Where we are now….

Page 5: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

5

Public Workshops

• Today’s Discussion– Potential Project -- Partners, Payments, and Benefits

• Potential CCWD reimbursement from partners• Organization structure and agreements among CCWD and

potential partners• Costs and financing options• Valuing benefits for CCWD and potential partners

• Future Workshops– Part 3 -- Environmental Effects & Mitigation – Impacts and

strategies for addressing potential adverse effects– Part 4 -- Review of CCWD Principles and responses to

comments

Page 6: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Information Available Now

PARTNERS, BENEFITS & PAYMENTS

Reimbursement - Amount other partners would need to reimburse CCWD for shared facilities

Benefits - Value of benefits for CCWD and potential partners (water quality, reliability, environmental, other)

Institutional - Models for how other similar projects are owned and operated by participating agencies

Financing - Financing costs and methods

PARTNERS, BENEFITS & PAYMENTS

Reimbursement - Amount other partners would need to reimburse CCWD for shared facilities

Benefits - Value of benefits for CCWD and potential partners (water quality, reliability, environmental, other)

Institutional - Models for how other similar projects are owned and operated by participating agencies

Financing - Financing costs and methods

Page 7: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Information AvailableFrom Previous Workshops

OPERATIONSDelta Water System - How the Delta water system works and how an expanded reservoir would operate with other partnersPotential Partners - List of potential partners, their needs, and the benefits an expanded reservoir could provide themWater Rights - Description of water rights changes neededWater Quality - Benefits for CCWD and other Bay Area water agenciesReliability - Benefits for CCWD and other Bay Area water agenciesDelta Environment - Environmental benefits for the Delta

FACILITIES & COSTSDelta Intakes - Size of facilities, possible facility layouts for fish screens, and pumping capacityPipelines - Capacity, corridors, and lengthDam - Size, location, safety features, construction schedule, reservoir inundation area, and interim water supply planCost Estimates - Planning level construction and operation & maintenance costs

OPERATIONSDelta Water System - How the Delta water system works and how an expanded reservoir would operate with other partnersPotential Partners - List of potential partners, their needs, and the benefits an expanded reservoir could provide themWater Rights - Description of water rights changes neededWater Quality - Benefits for CCWD and other Bay Area water agenciesReliability - Benefits for CCWD and other Bay Area water agenciesDelta Environment - Environmental benefits for the Delta

FACILITIES & COSTSDelta Intakes - Size of facilities, possible facility layouts for fish screens, and pumping capacityPipelines - Capacity, corridors, and lengthDam - Size, location, safety features, construction schedule, reservoir inundation area, and interim water supply planCost Estimates - Planning level construction and operation & maintenance costs

Page 8: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

8

CCWD Principles for Participation

1. The project improves water quality and reliability for CCWD 2. The project enhances the Delta environment3. The project protects and enhances the fisheries and terrestrial species

benefits provided by the existing Los Vaqueros Project4. The project preserves and increases the recreational opportunities of the Los

Vaqueros Project5. CCWD must maintain control of watershed and operation of the reservoir6. The project protects and reimburses the financial investment made by the

CCWD customers who financed the existing $450 million Los Vaqueros Project

7. The proposal would be placed before the voters of the Contra Costa Water District

Page 9: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

9

CALFED Objectives

• CALFED Objectives– Improve the Bay-Delta ecosystem– Improve water supply reliability– Improve water quality for all beneficial uses

• The CALFED Record of Decision specified the following for the Los Vaqueros Reservoir Studies:

“Expand Los Vaqueros Reservoir by up to 400 thousand acre-feet…with local partners as part of a Bay Area water quality and water supply reliability initiative.”

• CALFED Implementation Commitment– Beneficiaries of the project shall pay for the project

Page 10: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

10

Project Overview

• CALFED is studying whether an expanded Los Vaqueros Reservoir can meet CALFED and Bay Area water agencies’ objectives

• Water Quality• Reliability• Environmental

Enhancement

• Expansion from 100,000 acre-feet up to 500,000 acre-feet maximum capacity

Page 11: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

11

Existing Los Vaqueros Project

• Owned and operated by CCWD• Provides Emergency Storage

– Protects against a catastrophe in the Delta• Improves Water Quality

– Changes the timing and location of diversions– Stores water for blending when Delta water quality is poor

• Enhances Delta Environment– State-of-the-art fish screens– Flexible timing and location of diversion

Page 12: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

12

Existing Los Vaqueros Project

Old RiverIntake Facility

Contra Costa Canal

Los VaquerosReservoir & Watershed

CCWDService Area

Rock SloughIntake Facility

Page 13: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

13

Existing and Potential Facilities for an Expansion Project

Delta Intake and Conveyance

Delta-Los Vaqueros Pipeline & Pump Station

LV-SBA Pump Station & Pipeline

Dam and Recreation

Page 14: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

14

Potential PartnersBay Area Water Agencies

Page 15: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

15

Potential PartnersCALFED Agencies

• Environmental Water Agencies– U.S. Fish & Wildlife Service– National Marine Fisheries Service– California Department of Fish & Game– U.S. Bureau of Reclamation– California Department of Water Resources

Page 16: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

16

Questions and Discussion

• Workshop Process and Public Review– Available Information

• Existing Los Vaqueros Project – Benefits– Facilities– Ownership & Operations

• Potential Partners– Bay Area Water Agencies– CALFED Agencies

Page 17: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

17

Agenda

• 2003 Studies: Information and Schedule• Current Project & Potential Expansion• CCWD Reimbursement (CCWD Principle #6)• Possible Institutional Structures (CCWD Principle # 5)• Cost & Financing (CCWD Principle # 5 and #6)• Value of Benefits

Page 18: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

18

Reimbursement to CCWD

• CCWD Principle #6– The project protects and reimburses the financial investment

made by the CCWD customers who financed the existing $450 million Los Vaqueros Project

• Interpretation– CCWD would share elements of the existing project needed for

the expansion project– CCWD would be reimbursed for existing facilities that would be

shared or rendered unusable– CCWD would retain sole ownership of some project facilities– CCWD would pay for its fair share of the new project

• Considerations– Reimbursement subject to negotiation with potential partners

and CALFED

Page 19: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

19

Reimbursement to CCWD

• Study Team’s initial analysis indicates CCWD’s net reimbursement would be between $100 and $200 million

• The CCWD Board of Directors would determine how to use this reimbursement– Reduce CCWD debt and water rates– Buy additional water quality or reliability benefits– Combination

• CCWD water rates would not increase as a result of the expansion

Page 20: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

20

CCWD spent $450 million on the existing project

Page 21: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

21

CCWD would retain ownership of facilities used only by CCWD

Existing Project Elements Used Only By CCWD

• Conveyance– Transfer Pipeline (from

reservoir)– Los Vaqueros Pipeline

• Watershed Property– Watershed lands not

inundated

Page 22: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

22

Partners would pay CCWD for existing facilities rendered unusable

• Dam• Conveyance

– Old River Pump Station– Transfer Pump Station– Transfer Pipeline (to

reservoir)• Impacted Recreation

Facilities– Marina– Trails– Picnic Areas

Page 23: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

23

Participants would share in the value of existing project elements that contribute to the

expansion project

Participant’s share will be determined by the extent they benefit from the project elements

• Existing Facilities– Old River Intake– Vasco Road Relocation– Utility Relocation– Watershed Improvements– Inundated Area Lands– Existing Mitigation

Page 24: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

24

Participants, including CCWD, would pay their share of the expansion project costs

• New Facilities– Conveyance

• Delta Intakes & Pipelines

• Delta Pump Station• Delta-Los Vaqueros

Pipeline– Los Vaqueros-South Bay

Aqueduct Pipeline & Pump Station

– Recreation Facilities– Dam– Mitigation

Page 25: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

25

Reimbursement to CCWD

• Methodology relies upon “beneficiary pays” commitment• Actual reimbursement amounts depend on the size of facilities and negotiations with CALFED

Agencies and potential partners• These estimates are conservative so that the studies do not overestimate the potential reimbursement• The analysis does not commit any party to a value, including CCWD, Bay Area water agencies or

CALFED Agencies

Existing Los Vaqueros Reservoir Project $450 Million

Cost of the existing Los Vaqueros Reservoir $800 MillionProject with inflation

Net Reimbursement to CCWD $100 to 200 Million

CCWD cost for share of new facilities $250 to 200 Million

CCWD Recovery for existing facilities $350 to 400 Million

2008 Dollars

Actual Dollars

Page 26: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

26

ConclusionsReimbursement to CCWD

• This basis of cost sharing meets CCWD Principle #6– The project protects and reimburses the financial investment made by the

CCWD customers who financed the existing $450 million Los Vaqueros Project

• CCWD maintains benefits of existing reservoir and receives additional water quality and reliability benefits

• Based on these cost sharing principles, the analysis shows a reimbursement between $100 to $200 million to CCWD– Would depend on the benefits CCWD purchases– The CCWD Board of Directors would determine how to use this

reimbursement– Subject to negotiation with potential partners and CALFED Agencies

• CCWD water rates would not increase as a result of the expansion

Page 27: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

27

Questions and Discussion

• Reimbursement Approach• Range of Reimbursement • Rate Reductions and/or New Benefits

Page 28: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

28

Agenda

• 2003 Studies: Information and Schedule• Current Project & Potential Expansion• CCWD Reimbursement (CCWD Principle #6)• Possible Institutional Structures (CCWD Principle # 5)• Cost & Financing (CCWD Principle # 5 and #6)• Value of Benefits

Page 29: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

29

CCWD Retains Control

• CCWD Principle #5– CCWD must maintain control of watershed and

operation of the reservoir• Implementation

– Identify possible institutional structures that could meet the CCWD Principle and potential partners needs

• Considerations– Subject to decisions by potential participants about

their role in project financing and governance

Page 30: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

30

Institutional Definitions

OwnersOwners

Governing Entityfor Repayment

Governing Entityfor Repayment

OperatorOperator ParticipantsParticipants

Entity that operates the facilities & receives

payments for operations

Entities that receive benefits of the project &

make payments to the Governing Entity

Coordinating entity that represents project

participants

One or more entities that finance the project & own

the facilities

Page 31: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

31

Existing Institutional StructureLos Vaqueros Project

• This arrangement would be retained for– Watershed lands not

inundated– Recreation facilities– Other facilities used

solely by CCWD

Owner

CCWD

Owner

CCWD

Governing Entity for Repayment

CCWD

Governing Entity for Repayment

CCWD

Beneficiaries

CCWD Customers

Beneficiaries

CCWD Customers

Operator

CCWD

Operator

CCWD

Page 32: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

32

Existing Institutional StructureContra Costa Canal

Owner

U.S. Bureau of Reclamation

Owner

U.S. Bureau of Reclamation

Governing Entity for Repayment

U.S. Bureau of Reclamation

Governing Entity for Repayment

U.S. Bureau of Reclamation

Beneficiaries

CCWD Customers

Beneficiaries

CCWD Customers

Operator

CCWD

Operator

CCWD

Page 33: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

33

Existing Institutional StructureSouth Bay Aqueduct

Owner

California Department of Water Resources (DWR)

Owner

California Department of Water Resources (DWR)

Governing Entity for Repayment

California Department of Water Resources (DWR)

Governing Entity for Repayment

California Department of Water Resources (DWR)

Participants

SCVWDACWDZone 7

Participants

SCVWDACWDZone 7

Operator

DWR State Water Project

Operator

DWR State Water Project

Page 34: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

34

Other Projects Reviewed

• Central Valley Project, California (Federal/Local)• Cachuma Project, California (Federal/Local)• Central Arizona Project (Federal/Local)• Central Utah Project (Federal/Local)• State Water Project, California (State/Local)• San Luis Project, California (Federal/State)• Hetch Hetchy Project, California (Local/Local)

Page 35: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

35

Possible Partnership Arrangements

• Project ownership dependent on final project partners• Bay Area water agencies could participate as owners or

contractors• CCWD would always be one of the owners• Six institutional structure options identified

Institutional Structure Options Participant 1 2 3 4 5 6 Federal Agencies

State Agencies

CCWD Local Agencies

Institutional Structure Options Participant 1 2 3 4 5 6 Federal Agencies

State Agencies

CCWD Local Agencies

Page 36: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

36

Federal Participation

• Participation Options– Owner– Governing Entity– Participant/Beneficiary

• Considerations– Project provides Federal benefits– Consistent with Federal planning guidelines– Subject to Congressional approval

Page 37: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

37

State Participation

• Participation Options– Owner– Governing Entity– Participant/Beneficiary

• Considerations– May be subject to State Legislature approval– Could be part of the State Water Project

Page 38: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

38

Local Water Agency Participation

• Participation Options– Owner– Governing Entity– Participant/Beneficiary

• Considerations– Fair & equitable agreements on project control and

operations– Flexibility to share water to meet urgent needs– Subject to local water agency approval

Page 39: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

39

CCWD Participation

• Participation Requirements– Owner– Governing Entity– Operator– Participant/Beneficiary

• Considerations– Fair & equitable agreements on project control and

operations– Flexibility to share water to meet urgent needs– Subject to CCWD Board and customer approval

Page 40: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

40

Example Institutional StructureFederal / State / CCWD / Local

Owner

Contra CostaWater District

Owner

Contra CostaWater District

• Environmental Water Account (or its successor)• Central Valley Project• State Water Project• Contra Costa Water District• Other Bay Area Water Agencies

• Environmental Water Account (or its successor)• Central Valley Project• State Water Project• Contra Costa Water District• Other Bay Area Water Agencies

Operator

Contra Costa

Water District

Operator

Contra Costa

Water District

Owner

Other Bay AreaWater Agencies

Owner

Other Bay AreaWater Agencies

Owner

U.S. Bureau ofReclamation

Owner

U.S. Bureau ofReclamation

Governing Entity for Repayment

Special District or Authoritysimilar to Joint Powers

Governing Entity for Repayment

Special District or Authoritysimilar to Joint Powers

Owner

California Dept ofWater Resources

Owner

California Dept ofWater Resources

Participants

OperationsContract

OperationsContract

Water Serviceand Exchange

Agreement

Water Serviceand Exchange

Agreement

Page 41: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

41

Example Institutional StructureFederal / State / CCWD / Local

• Most complex ownership scenario– Maintains CCWD control of operations and watershed– Meets Federal planning and authorization

requirements– Consistent with State requirements– Includes specific agreements on control and

operations for local water agencies• All other scenarios provide a similar level of

control for CCWD

Page 42: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

42

Institutional StructuresConclusion & Discussion

• Conclusions– CCWD could maintain ownership of watershed and

control of reservoir operations– Potential participants included in ownership,

governance, and repayment agreements• Each participant would determine their level of participation

• Questions & Discussion– Possible institutional structures

Page 43: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

43

Agenda

• 2003 Studies: Information and Schedule• Current Project & Potential Expansion• CCWD Reimbursement (CCWD Principle #6)• Possible Institutional Structures (CCWD Principle # 5)• Cost & Financing (CCWD Principle # 5 and #6)• Value of Benefits

Page 44: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

44

Cost and Financing

• CALFED Implementation Commitment– “A fundamental philosophy of the CALFED Program is

that costs should, to the extent possible, be paid by the beneficiaries of the program actions.” CALFED Implementation Commitment included in CALFED ROD

• Considerations - Repayment depends on selection of financing and

repayment mechanisms

Page 45: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

45

Financing Options

• Four probable sources of funds– Federal Appropriations– State General Obligation Bonds– State Revenue Bonds– Local Revenue Bonds

• Source and types of funding determined by each partner’s governing body

• Project would likely be financed by some combination of sources

Page 46: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

46

Financing OptionsFederal Funds

• Federal Appropriations for Construction– Authorized by Congress– Through the U.S. Bureau of Reclamation– Financing costs can be lower than other options – Repayment based on share of benefits

Page 47: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

47

Financing OptionsState Funds

• General Obligation Bonds– Approved by voters– Currently used to fund many CALFED activities– Debt service costs paid by State General Fund– Generally appropriate for projects with broad public benefits

• State Revenue Bonds– Approved by state legislature– Repaid from project revenue– Used to finance the State Water Project– Generally have higher financing costs

Page 48: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

48

Financing OptionsLocal Funds

• Pay-as-You-Go– No interest or debt service costs

• General Obligation Bonds– Generally require voter approval

• Revenue Bonds– Approved by local boards of directors– Some types may require voter approval

• Drinking Water State Revolving Loan Fund– Low interest loans for water utilities (up to $20 million per project)

Page 49: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

49

Project Cost Estimate

• Cost includes the size of project elements:

– Intake Facilities– Pipeline/Pumping

Facilities– New Dam/Reservoir

Facilities• Reimbursement to

CCWD for existing project investment not included

– Additional $100 to $200 million

• Financing costs are not included

Range of Estimated Project Costs

$0

$500

$1,000

$1,500

$2,000

300 TAF 500 TAF 500 TAF

1,000 cfs 1,000 cfs 1,750 cfs

Cos

t ($m

illio

ns)

Inflation to MidPoint Construction

Contingency (20%)

Other Project Costs(22%)

Construction CostsReservoir Size:

Intake Size:

Page 50: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

50

ConclusionsFinancing Options

• Financing methods are available for each of the potential partners– Bay Area water agencies would pay for the benefits

they receive– CALFED Agencies would pay for environmental

benefits• The agencies would determine the method for financing

environmental water actions• CALFED and ultimately Congress and the State Legislature

would determine how costs are repaid

Page 51: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

51

Questions and Discussion

• Possible financing options– Federal– State– Local

Page 52: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

52

Agenda

• 2003 Studies: Information and Schedule• Current Project & Potential Expansion• CCWD Reimbursement (CCWD Principle #6)• Possible Institutional Structures (CCWD Principle # 5)• Cost & Financing (CCWD Principle # 5 and #6)• Value of Benefits

– Summary of benefits– Methods used to value benefits

Page 53: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

53

Part 1 Evaluation of Potential Benefits

• The Study Team evaluated varied ways of operating an expanded reservoir– Single purpose operations

• Delta environmental benefits only• Bay Area water agencies drought reliability only

– Multi-purpose operations• Providing Delta environmental benefits and drought reliability

– Drinking water quality improves for all operations

Page 54: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

54

Part 1 Evaluationof Potential Benefits

• Multi-purpose operations maximize total benefits– Environmental and drought reliability benefits similar to each

single purpose operation– Combined benefits greater than single purpose

• Facility sizes accomplish varied benefits– 300,000 acre-foot reservoir

• Suitable size for single purpose operations– 500,000 acre-foot reservoir with 1,000 cubic feet per second

(cfs) intakes• Suitable size for multi-purpose operations

– Increasing intake size to 1,750 cfs• Provides more flexible reservoir filling and reduced impacts to Delta

environment

Page 55: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

55

Benefits to CCWD

• Water Quality– High quality blending water to last through a 6-

year drought• Reliability

– Up to 20,000 acre-feet of reliable water supplies in each year of an extended drought

– Up to 120,000 acre-feet total of reliable water supplies over an extended drought

• Reimbursement– Between $100 and $200 million to purchase

additional benefits or reduce CCWD costs

Page 56: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

56

Benefits for Bay Area Water Agencies

• High water quality into the future– New intakes would reduce salts and bromide– Larger intakes allow faster reservoir filling when quality is

better– Deeper reservoir with multiple intakes reduces algae– These improvements would improve taste, reduce

treatment costs, improve the ability to meet existing and future water quality regulations, and reduce public health risks

• More reliable water supplies– Up to 60,000 acre-feet of reliable water supplies in each

year of an extended drought– Up to 370,000 acre-feet total of reliable water supplies

over an extended drought

Page 57: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

57

Benefits toDelta Enhancement

• Expanded Los Vaqueros Reservoir Enhances Delta Environment– Reduces impacts to fisheries from existing SBA

diversion• State-of-the-art fish screens• Flexible timing of diversion

– Creates storage and flexibility for Environmental Water that could allow

• Shut downs at state and federal pumps when fish are present (up to 160,000 acre-feet per year)

• Water for wildlife refuges• Water for in-stream flows upstream of Delta

Page 58: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

58

Approach for Valuing Benefits

• The Study Team is developing an approach to assign a dollar value to each of the project benefits– Water Quality

• Consumer Benefits• Agency Benefits• Industrial Benefits

– Reliability– Environmental Water– Recreation

• Approach– Coordinate with the CALFED Common Assumptions Group and the

Bay Area water agencies– Estimate the dollar value of each benefit

Page 59: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

59

Consumer Water Quality Benefits

• Consumer benefit: Reduced salts delivered to consumers– Lower total dissolved solids (TDS) and total hardness (TH)

levels means household appliances and plumbing fixtures last longer, reducing consumer costs

– Valuation of consumer benefit based on estimates of:• Operations modeling of TDS and TH levels delivered• Water quality improvement from Los Vaqueros• Number of households with various types of appliances and plumbing• Cost of appliances• Increased longevity due to water quality improvement

Page 60: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

60

Consumer Water Quality Benefits

• Consumer benefit: Reduced disinfection byproducts (DBPs) delivered to consumers– Current delivered water meets all water quality

standards– Further reductions in DBPs can help meet

more stringent future standards and improve public health

– Valuation based on avoided cost of advanced water treatment to achieve the same benefits

Page 61: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

61

Agency Water Quality Benefits

• Agency Benefit: Decreased costs for treating water– Costs decrease as bromides, turbidity, and total organic carbon

(TOC) are lowered, and temperature fluctuations are reduced (pH and algae)

• Valuation of agency benefits based on estimates of:– Water quality levels in water delivered from

Los Vaqueros– Lowered coagulant usage and ozone

demand at WTPs– Improved operations– Lowered capital/replacement costs– Lower corrosion control costs

Page 62: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

62

Agency Water Quality Benefits

Agency Benefit: Decreased salts delivered to groundwater basins– Agency costs for managing salt balance in

groundwater basin would be reduced• Valuation of this benefit based on estimates of:

– TDS delivered by Los Vaqueros– Avoided cost of future groundwater demineralization

projects

Page 63: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

63

Industrial Water Quality Benefits

• Industrial Benefit: Decreased salts delivered to industrial users– Lower heavy industry costs for treating boiler feed water

and cooling water – Lower manufacturing costs for ultrapure water treatment

• Valuation of industrial benefits based on estimates of:– Reduction in TDS and TH levels in water delivered from

Los Vaqueros– Volume of water used for each category of industry

Page 64: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

64

Reliability Benefits

• Benefit: Increased reliability during dry periods• Valuation of increased reliability based on:

– Current costs of reliability supplies (e.g. transfers, Semitropic Groundwater Banking Program-Phase II, etc.)

– Department of Water Resources tool for estimating the value of supply reliability projects

– Benefit beyond 2030 capped at cost of desalination

Page 65: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

65

Environmental Benefits

• Benefit: Reliable supply of water for environmental purposes

• Valuation of the benefit coordinated with the CALFED Common Assumptions Group, using:– Recent and projected costs of acquiring environmental

water for current conditions– Avoided cost of water management options that would

provide similar benefits after 2030– Future benefit capped at cost of desalination

Page 66: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

66

Recreation Benefits

• Existing recreation benefits would be expanded• Valuation of recreation benefits based on estimates of:

– The value of visitor days– The number of visitor days based on existing Los Vaqueros

Reservoir and other comparable reservoir recreation usage• Recreation activities include:

• Boat fishing• Shore fishing• Picnicking• Hiking/Trail usage• Interpretive Center usage

• ADA access facilities included

Page 67: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

67

Benefits Conclusions

• Approach will assign dollar value for each benefit– Water Quality: consumer, agency, & industrial– Reliability– Environmental Water– Recreation

• Next: Refine approach and perform analysis– Continued coordination with the CALFED Common

Assumptions Group and Bay Area water agencies

Page 68: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

68

ConclusionsProject Requirements

• An expanded Los Vaqueros Reservoir could meet CCWD Principles #5 and #6– CCWD would retain control of the watershed and operation of

the reservoir– An expansion project would protect and reimburse the financial

investment made by the CCWD customers• The project could meet CALFED objectives

– Beneficiaries of the project would pay for the project

Page 69: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

69

Questions and Discussion

• Benefits of an expansion project– Water Quality– Reliability– Environment

• Methods used to value benefits

Page 70: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

70

Contact Information

Marguerite NaillonProject ManagerCALFED Los Vaqueros Reservoir Expansion Studies2300 Stanwell DriveP.O. Box H2OConcord, CA 94524Phone: (925) 688-8018email: [email protected]

www.lvstudies.com

Page 71: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

71

Next Steps

• Comments on Today’s Discussion– Due March 14 by e-mail or regular mail

• Future Workshops (see handout with schedule & locations)

– Mid-April -- Environmental Effects & Mitigation -- Strategies for addressing potential adverse effects

– Late May -- Summary and Response to Comments -- Review of CCWD Principles and answers to comments and issues

Page 72: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Information Available in April 2003

EFFECTSDelta Habitat and Fisheries - Impacts and benefitsDelta Water System - Impacts to legal water usersLand Impacts - Impacts and benefits for habitat and species in the watershed and along pipeline corridors, including impacts to previous mitigationRecreation - Impacts to recreation facilities in the watershedCultural Resources - Impacts to cultural resources in the watershedPublic Safety - Flood safety impacts downstream of dam

MITIGATION & ENHANCEMENTMitigation - Approaches for identified impactsEnhancement - Opportunities to achieve net benefit for biological resources and Delta environmentLand Acquisition - Land needs for mitigationReservoir Recreation Facilities - Replacement and new facilities

EFFECTSDelta Habitat and Fisheries - Impacts and benefitsDelta Water System - Impacts to legal water usersLand Impacts - Impacts and benefits for habitat and species in the watershed and along pipeline corridors, including impacts to previous mitigationRecreation - Impacts to recreation facilities in the watershedCultural Resources - Impacts to cultural resources in the watershedPublic Safety - Flood safety impacts downstream of dam

MITIGATION & ENHANCEMENTMitigation - Approaches for identified impactsEnhancement - Opportunities to achieve net benefit for biological resources and Delta environmentLand Acquisition - Land needs for mitigationReservoir Recreation Facilities - Replacement and new facilities

Mid-April

Page 73: Part 2 Partners, Benefits & Payments February 27 – March 6, 2003.

Information Available in Summer 2003

REVIEW

CCWD PRINCIPLES

Review of how each Principle can be met

ISSUE RESPONSE

Respond to issues raised by public, stakeholders, and other involved parties

REVIEW

CCWD PRINCIPLES

Review of how each Principle can be met

ISSUE RESPONSE

Respond to issues raised by public, stakeholders, and other involved parties

Late May


Recommended