Loading...
HomeMy WebLinkAbout2019-09-17; City Council; ; 2019 Potable Water, Recycled Water, and Sewer Master Plan Updates.JOINT CITY COUNCIL AND CARLSBAD MUNICIPAL WATER DISTRICT Staff Report Meeting Date: Sept. 17, 2019 To: From: Mayor/President and City Council/Board of Directors Scott Chadwick, City Manager/Executive Manager CARevie~ Staff Contact: Ken Knatz, Utilities Engineering Manager/District Engineer ken.knatz@carlsbadca.gov or 760-603-7354 Subject: Vicki Quiram, Utilities Director/General Manager vicki.quiram@carlsbadca.gov or 760-438-2722 2019 Potable Water, Recycled Water, and Sewer Master Plan Updates. Recommended Action 1. · Adopt a Resolution of the City Council of the City of Carlsbad approving the 2019 Sewer Master Plan Update, Capital Improvement Program (CIP) Project No. 5543-1. 2. Adopt a Resolution of the Board of Directors of the Carlsbad Municipal Water District approving the 2019 Potable and Recycled Water Master Plan Updates, CIP Project Nos. 5543-2 and 5543-3. Executive Summary On Jan. 24, 2017, the City Council approved Resolution No. 2017-020 authorizing execution of a professional services agreement with H~R Inc. for completion of the Potable Water, Recycled Water, and Sewer Master Plan Updates. That same evening, the Board of Directors of the Carlsbad Municipal Water District (CMWD Board) adopted Resolution No. 1558 approving the same action. The 2019 Potable Water, Recycled Water, and Sewer Master Plan Updates (Master Plans) have been completed and present prioritized infrastructure improvement recommendations that will provide for continued delivery of vital utility services to homes and businesses now and in the future. The capital plans recommended in the Master Plans were developed with unique system models that apply water demands and sewer generation rates based on land uses and population forecasts. The system modeling considered growth projections from the 2015 General Plan, Growth Management Plan and annual Growth Management Plan Monitoring Reports, and the San Diego Council of Governments (SAN DAG) Series 13 projections. In addition, water usage and sewer generation values were adjusted based on water conservation trends. The system models are scalable and baseline assumptions can be easily adjusted to update as development in the city ebbs and flows in the future. The previous master plans were last updated in 2012. These Master Plans are before the City Council and CMWD Board for approval as they provide direction to staff for implementation of the phased and orderly management of the potable water, recycled water and sewer systems that are vital to the health and safety of the September 17, 2019 Item #12 Page 1 of 21 community they serve. The Master Plans support the 2007 Community Values identified in the Carlsbad Community Vision including water con~ervation, recycling and desalination, water quality and greenhouse gas reduction. The Master Plans also support the 2007 City Council approved sustainability guiding principle for a diverse and drought resistant water supply. Discussion Reliable and sustainable utility services are vital to the community in which we live and to the environment we protect. Carlsbad Municipal Water District (CMWD) provides reliable, safe drinking (potable) and recycled water to homes and businesses within the CMWD service area through two intricate infrastructure systems. The City of Carlsbad operates a third infrastructure system that collects wastewater within its service area and safely conveys it from homes and businesses to the Encina Water Pollution Control Facility (EWPCF). A portion of the water from EWPCF is further treated at the Carlsbad Water Reclamation Facility (CWRF) and is redelivered to customers through the recycled water system for landscape irrigation and other industrial-type usesthat require process water. Over the last six years, the economic recession combined with a multiyear drought and water conservation efforts, have resulted in significantly reduced potable and recycled water demands and sewer flows. As the economy rebounded and extreme drought conditions receded, the 2012 Master Plans needed to be adjusted to reflect a "new normal" in water use behaviors and to correspond with the 2015 General Plan and the Growth Management Plan. The result is a reduction in the total demand of water and sewer flow projections. Thus, the capacity of these systems is becoming less of a driver for capital improvements. In contrast, the condition of the systems has become more of a driver, as presented in the 2019 Asset Management Master Plan, which is a separate, companion City Council agenda item. The Master Plans provide system evaluations that assist with continued reliable wastewater, potable water and recycled water service through build-out conditions, which are projected to occur by 2040. The Master Plans address the future hydraulic capacity of the systems with the following objectives: • Incorporate updated land uses and population forecasts using the city's General Plan, Growth Management Plan and annual Growth Management Plan Monitoring Reports and the SANDAG Series 13 projections • Update and incorporate recent trends in water use and sewer generation rates • Incorporate new water supply reliability projects including a new and closer connection to the Claude "Bud" Lewis Carlsbad Desalination Plant and expanded recycled water service • Develop capital improvement recommendations to maintain the city's high level of service to its customers Potable Water Master Plan Update CMWD is a subsidiary district of the City of Carlsbad and provides potable and recycled water services. CMWD's service area covers approximately 82% of the area within the city's boundaries. Currently, CMWD purchases 100% of its potable water supply from the San Diego September 17, 2019 Item #12 Page 2 of 21 County Water Authority (SDCWA), including approximately 17% from local desalinated water. Current CMWD water demand is estimated at 16,900-acre feet per year (AFY), down from an estimated 21,400 AFY in the 2012 Master Plan. By 2040, the demand for potable water is expected to reach 20,700 AFY. This is based on an estimated increase in population of close to 10,000 people and planned commercial/industrial development in the CMWD's service area. A total of 17 CIP projects for needed capacity increases have been recommended for the potable water system. Improvements include the addition of new system interconnect pipelines, storage and appurtenance improvements and upsizing of pipelines to meet fire flow requirements. The ·estimated total for implementing all of the recommendations is $32.2 million. The recommended projects have been broken into immediate, mid-and long-term scheduled horizons. Funds for these projects have been included in the FY 2019-20 CIP 15-year forecast based on a recommended implementation schedule. Recycled Water Master Plan Update CMWD began its recycled water program in 1990 with the preparation of its first Recycled Water Master Plan and now is a leader in the business with over 940 recycled water connections, more than any other water district in San Diego County. One-third of the city's water supply will be recycled water by 2021. CMWD began Phase I of the recycled water system by building pipelines that carried recycled water purchased from neighboring agencies, Vallecitos Water District and Leucadia Wastewater District. Phase I was completed in 1995. Phase II included construction of the 4 MGD (million gallons per day) CWRF, increased supply from the· Meadowlark Water Reclamation Facility (Vallecitos) and other system improvements, including 24 miles of additional recycled water pipeline. Phase II was completed in 2008. In recognition of the value of the program in terms of potable water conservation and as a reliable drought-resilient local source of water for CMWD customers, the state has provided CMWD with over $1 million in grant funding to implement its recycled water system. Phase Ill was started in 2012 and included a 3 MGD expansion of CWRF and 11 miles of additional recycled water pipeline. It was anticipated that Phase Ill would increase demand for recycled water to 7,100 AFY, but due to the drought and economic downturn, demand has been lower than expected. Phase Ill is nearing completion with the final phases of planned pipeline and reservoir construction scheduled for completion in the next fiscal year. This project will continue CMWD's effort to reduce potable water demand by many of the large irrigation water customers adjacent to the build-out of the system that will be converted to recycled water. The Recycled Water Master Plan Update recommends an estimated capital cost of $28.6 million to build-out the remaining segments of the recycled water distribution system in the city and prepare for potential extensions into the City of Oceanside, Vista Irrigation District and Vallecitos Water District. Over the years, these agencies have approached CMWD multiple times to discuss extending the CMWD recycled water system into their areas. The plan recommends that CMWD target four potential golf courses that are just outside the CMWD service area and within the agency districts mentioned above. Before moving ahead, staff will September 17, 2019 Item #12 Page 3 of 21 conduct a preliminary evaluation of these projects to determine project feasibility including benefit/cost ratio analysis and then return to the CMWD Board for policy direction. Sewer Master Plan Update The City of Carlsbad provides wastewater collections services to approximately 74% of the area within city limits. All wastewater flows are conveyed to the EWPCF for treatment and then delivered to the adjacent CWRF for reuse or disposed of through an ocean outfall. The existing average dry weather flows for the Carlsbad Sewer Service Area total approximately 6.24 MGD, down from 7.9 MGD in the 2012 Sewer Master Plan. Growth management data from the 2015 General Plan projects that approximately 10,000 people will be added to the Carlsbad Sewer Service Area at bu ildout, with most of the growth due to single family residential customers. Future average daily wastewater flows are projected to increase by approximately 2 MGD for a total of 8.31 MGD, which is 1.69 MGD less than projected in the 2012 Master Plan, primarily due to water conservation. Five collector system projects for increased capacity have been identified based on model results for peak wet weather flows. The total estimated cost for these projects is $970,000. Funds have been included in the FY 2019-20 CIP 15-year capital forecast for these projects. It is important to note that these capacity improvements are being recommended due to exceedance of system design criteria and not due to an impending sanitary sewer overflow under the build-out modeling scenario. Therefore, additional flow monitoring and analyses will be completed to confirm peak wet weather flows and capacity at specified locations prior to initiating each project. The city is a member of the joint powers authority for the Encina Wastewater Authority (Encina). The total estimated cost for the five sewer collector system projects shown above does not include the city's share of Encina's capital outlay plan, estimated at $95 million over the next 10 years. However, these costs are reflected in the city's FY 2019-20 CIP 15-year capital forecast and are also incorporated into staff's cost of service study and financing strategy. Encina's capital plan impacts wastewater rates. Fiscal Analysis The three utilities divisions (potable water, recycled water and wastewater) each have their own separate dedicated budgets, known as "enterprise funds." Enterprise funds exist to provide a specific service, and they are funded by ratepayers (customers) and user fees. The enterprise fund establishes a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for those services. The monies collected for providing the specific services cannot be used for anything else. The ratepayers also own all of the infrastructure associated with the service being provided. For example, wastewater is a service the city provides its customers. The wastewater ratepayers own all of the wastewater infrastructure, rather than the city. The city is responsible for managing the enterprise fund and providing the service. September 17, 2019 Item #12 Page 4 of 21 The costs associated with recommended projects in the Master Plans are included in the FY 2019-20 CIP 15-year capital forecast and have been incorporated into the 2019 Cost of Service Study, which is on the same City Council agenda as this report. During the recent Master Plan Updates, staff analyzed the resources needed for future master plan implementation. The water, recycled water and wastewater programs are three separate enterprise fonds with a total operating budget of approximately $74.5 million and an annual CIP budget of $22 million. A senior management analyst will be needed in FY 2021 to assist with plan implementation and billing, budget, cost of service studies and rate analysis duties resulting from the redistribution of workload between the finance and utilities departments. Staff will request one new position as part of the FY 2020-21 budget cycle. This is provided for information only at this time. Next Steps If approved, staff will begin to implement the Master Plans. Environmental Evaluation (CEQA) The city and CMWD are proposing an update to the existing Master Plans. The existing Master Plans, adopted in November 2012, were evaluated in a program environmental impact report (PEIR 12-01) prepared and certified by the city. At that time, the PEIR considered and analyzed CIP projects proposed as part of an update to the city's Water Master Plan and Sewer Master Plan (2003) and Water Reclamation Master Plan (1992). The city and CMWD are proposing additional CIP projects be added to the existing Master Plans, in addition to some updates and revisions to the CIP projects considered in the 2012 PEIR. An addendum was prepared in accordance with the California Environmental Quality Act (CEQA) (Public Resources Code § 21000, et. seq.) and the CEQA Guidelines, as amended (California Administrative Code, Title 14, § 15000, et. seq.). The city planner has reviewed the project changes, and the revised Master Plans' PEIR addendum prepared by HDR and found that none of the requirements in CEQA Guidelines Sections 15162 and 15163 for a subsequent or supplement EIR have been triggered, as the addendum explains. Therefore, the revised project is within the scope of the adopted PEIR and use of an addendum to document the project changes is appropriate. CEQA Guideline Section 15164 also notes an addendum need not be circulated for public review but may simply be attached to the PEIR. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Copies of the 2019 Master Plans are available for review in the office of the city clerk. Exhibits 1. City Council Resolution. 2. CMWD Board Resolution. 3. 2019 Utilities Master Plan Executive Summary. 4. Copies of the Master Plans are on file in the office of the city clerk. September 17, 2019 Item #12 Page 5 of 21 RESOLUTION NO. 2019-183 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE 2019 SEWER MASTER PLAN UPDATE, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NO. 5543-1. WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary, desirable and in the public interest to update the Sewer Master Plan; and WHEREAS, the last update to the Sewer Master Plan was completed in 2012 based on 2010 data; and WHEREAS, on Jan. 24, 2017, the City Council approved Resolution No. 2017-020 approving execution of a professional services agreement with HDR Inc. for completion of the Sewer Master Plan Update; and WHEREAS, the 2019 Sewer Master Plan Update was completed by HDR Inc. in accordance with the tasks outlined in their professional services agreement; and WHEREAS, the 2019 Sewer Master Plan Update represents a comprehensive program for the phased and orderly management of facilities to accommodate capacity and other improvement needs; and WHEREAS, the city planner has reviewed the project changes, and the revised Master Plans PEIR addendum prepared by HDR, and found that none of the requirements in CEQA Guidelines Sections 15162 and 15163 for a subsequent or supplement EIR have been triggered; and WHEREAS, the revised project is within the scope of the adopted PEIR and use of an addendum to document the project changes is appropriate; and WHEREAS, Guideline Section 15164 notes an addendum need not be circulated for public review but may simply be attached to the PEIR; and WHEREAS, staff recommends that the City Council approve the 2019 Sewer Master Plan Update. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council of the City of Carlsbad hereby approves the 2019 Sewer Master Plan Update, a copy of which is on file in the office of the city clerk. September 17, 2019 Item #12 Page 6 of 21 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, California and the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California on the 17th day of September 2019, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton. NAYS: None. ABSENT: None. MMif r ~lkc-1111 &Pmez//Dtpu+j i~( BARBARA ENGLESON, City Clerk Ci 'tJ CJerJt (SEAL) September 17, 2019 Item #12 Page 7 of 21 RESOLUTION NO. 1620 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE 2019 POTABLE WATER AND RECYCLED WATER MASTER PLAN UPDATES, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NOS. 5543-2 AND 5543-3. WHEREAS, the Board of Directors of the Carlsbad Municipal Water District (CMWD Board) of the City of Carlsbad, California has determined it necessary and in the public interest to update the Potable Water and Recycled Water Master Plans; and WHEREAS, the last update to the Potable Water and Recycled Water Master Plans was completed in 2012 based on 2010 data; and WHEREAS, on Jan. 24, 2017, the CMWD Board adopted Resolution No. 1558 and entered into an agreement with HOR Inc. to update the Potable Water and Recycled Water Master Plans; and WHEREAS, the 2019 Potable Water Master Plan Update and 2019 Recycled Water Master Plan Update were completed by HOR Inc. in accordance with the tasks outlined in their Professional Services Agreement; and WHEREAS, the 2019 Potable Water Master Plan Update and 2019 Recycled Water Master Plan Update represent comprehensive programs for the phased and orderly management of facilities to accommodate capacity and other improvement needs; and WHEREAS, the city planner has reviewed the project changes, and the revised Master Plans' PEIR addendum prepared by HOR, and found that none of the requirements in CEQA Guidelines Sections 15162 and 15163 for a subsequent or supplement EIR have been triggered; and WHEREAS, the revised project is within the scope of the adopted PEIR and use of an addendum to document the project changes is appropriate; and WHEREAS, Guideline Section 15164 notes an addendum need not be circulated for public review but may simply be attached to the PEIR; and WHEREAS, staff recommends that the CMWD Board approve the 2019 Potable Water Master Plan Update and the 2019 Recycled Water Master Plan Update. September 17, 2019 Item #12 Page 8 of 21 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the CMWD Board approves the 2019 Potable Water Master Plan Update and the 2019 Recycled Water Master Plan Update, copies of which are on file in the office of the city clerk. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California and the City of Carlsbad, California on the 17th day of September 2019, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton. NAYS: None. ABSENT: None. r ~!-leclt,r GtJmez 70( BARBARA ENGLESON, SECRETARY Dep~!j 1 (SEAL) C17j Cler✓ September 17, 2019 Item #12 Page 9 of 21 UTILITIE-S IN ACTION . · Providing Integrated Planning for a Sustainable Future 2 019 Utilities Master Plan Executive Summary ( City of Carlsbad September 17, 2019 Item #12 Page 10 of 21 TABLE OF CONTENTS . SE~T1QN1i WHO WE ARE SECTION Ill FORCASTING FUTURE SECTION IV WORKING TO PREPARING NOW FOR A SUSTAINABLE FUTURE WATER DEMAND AND DEVELOP SMART SEWER FLOWS INFRASTRUCTURE SECTION I PREPARING NOW FOR A SUSTAINABLE FUTURE Reliable, sustainable utility services are vital to the community in which we live and to the environment we aim to protect. Our utility infrastructure connects our community, ~,t. drives our economy, and keeps us ~'ti __ _ healthy and safe. With low failure b rates, the City of Carlsbad is -:JP successfully and effectively ~ managing its water and sewer (J infrastructure. The City did not /P experience any structural condition-caused sewer system overflows in 2018, and the system-wide break rate for the City's potable and recycled water pipelines is six times better than the regional average. The Master Plan process identifies the infrastructure improvements necessary to continue to deliver these vital services. The City's past master plans were developed between 2009 and 2011, prior to the economic General Plan Update recession and extended drought conditions that have changed our water consumption behaviors. Integrated Uti I ity Master Planning Hydraulic Modeling to validate capacity needs Asset Sewer Phased and prioritized CIP September 17, 2019 Item #12 Page 11 of 21 Key Objectives The key objectives addressed in the 2019 Integrated Facilities Master Plan update include: ~T, 1 0 IA\ \ LJ I 1.nI I ' I / -- ....0... B- B-B- Incorporating updated land uses and population forecasts, using the Carlsbad 2015 General Plan, the Carlsbad Growth Management Plan and Growth Management Plan Monitoring Reports, and the San Diego Association of Governments Series 13 projections through 2050. Documenting recent trends in water use and sewer generation rates. Incorporating new water supply reliability projects including a new and closer connection to the Claude "Bud" Lewis Carlsbad Desa lination Plant and expanded recycled water service . Developing capital improvement recommendations to maintain Carlsbad 's high level of service to its customers. Recommending a performance-based asset management approach to extend the useful life of utility assets as well as make sound repair and replacement investments. September 17, 2019 Item #12 Page 12 of 21 .,. /.... (,..,.J ,,, --v l, \ I I I I ,I WHO WEARE City Boundaries !..-_-J Sewer Service Area · c::::J Water & Recycled Water Service Area Carlsbad is a predominantly residential community located 30 miles north of downtown San Diego with an estimated population of 115,000 in 2019. Water and recycled water services to 82% of the City are provided by Carlsbad Municipal Water District, a subsidiary district of the City of Carlsbad. Sewer service to 74% of the City is provided by the City of Carlsbad. The City of Carlsbad owns a combined value of $2.1 billion in water, sewer and recycled water infrastructure. September 17, 2019 Item #12 Page 13 of 21 Water and Recycled Water Infrastructure r:;;::;J squ~re miles EJ service area e ofcity boundary • active potable service connections miles of water mains water storage tanks 47.5 Million Gallons (MG) ~ pressure zones Sewer Infrastructure r:;;:;"J squ~re miles EJ service area a of city boundary • active recycled service connections miles of recycled water mains reclamation plant expanded to 7 MG per Day (MGD) in 2016 & pressure zones lift stations miles of sewer September 17, 2019 Item #12 Page 14 of 21 FORECASTING FUTURE WATER DEMAND AND SEWER FLOWS The median water demand forecast of 20,700 acre feet per year (AFY) or 18.5 million gallons per day (MGD) at buildout in 2035 was determined to be the basis for the Master Plan and capacity analysis of the water distribution system and supply system. This projection is lower than the forecast in the 2012 Water Master Plan, but in line with the projections in the 2015 Carlsbad Urban Water Management Plan. Although the water and sewer service areas do not exactly align, approximately 45 percent of the City's water use returns to the sewer system. The City has the capacity to divert and recycle up to seven MGD of treated sewage from the Encina Wastewater Treatment Plant for use in the City's recycled water system. Water, Recycled Water & Sewer Forecasts 25 -,-----,-------,---~---r------.---~--~--~~-~ -+------+------+------+--------+---+ I 20 -j----t----t---_A~,---1~~------t--------t-l -------t--------t--------t--------:1 -,-, ----t---j--1·---·""',..-,r \ I I •• • • ••iii----~ -i ---+--,\r , , -r -•······· ~ --- , .. Water Dlemand / \ I_ •••• ' I \ ,-•1~--+-----+-----t-----, 15 _ , ~~ r.J ---V-·-'-_.,l'----+---+-------+---+-----+----1-----+-----1 -----t-----t-·--------- 10 -+-----t-------+-----,----t-----t-----+-----t---t---------1 -..... -..... +-... -..... -...... -.. -._.-.. _-+_ -. __ -.. -... -... -+-~-.-... -. --.-~ ... -+1-.... -.-..... ---,-.i,,,~-.. ~. ~-; ... -.. ~.--+.\. -=--=--=--=--=--.1--___ -_.-.... _-... -... -.. -t-.-.. -.,!!-.-!'-.-.-. -:·:_:· 1 _ __5_ewer:..En.ws. ,-1 i 1 1'-'-.-.-•-•-••••• I ~ I j 1 j -•••~••••••••••••-,. 5 -+---1='~-=-,,___--+-----+---+-----+----~=-ah ..... L!e..!::.=.+'-'-----!----------' ,__,,.,., --I -_l -• • • • - ----· ------I-i ,,, -""F----+--I--__.R_="C.'f-Cled.wateiLD.eman9!-~--+:----------;---+-----+----+--~ I I. , i i I ! 0 -+-----+------+------+---+-----+----+------+---+--------I 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 YEAR -Historical ,;, ■ ■ ■ ■ Projected September 17, 2019 Item #12 Page 15 of 21 WORKING TO DEVELOP SMART INFRASTRUCTURE As water conservation efforts have been successful, and buildout of the City comes to completion, the capacity of the water and sewer systems is largely capable of accommodating projected growth. In the Sewer, Water and Recycled Water Master Plans, only a ~andful of capital improvement projects were identified for near term improvements. Those recommended improvements are shown in the maps below. However, part of the City's infrastructure is now exceeding 50 years old. As the system continues to age and deteriorate, the City seeks to sustain high levels of service at acceptable levels of risk, while minimizing cost. To do this, the City will need to increase investments in condition-related capital improvements and continue to implement asset management strategies to proactively maintain high levels of service to its customers. Because of this, an Asset Management Master Plan was developed for the first time. Asset Management driven projects to address aging infrastructure are in the prioritization and assessment phase and are not showri on the maps. We will continue to use smart modelling and data analysis tools to make good utility investment decisions. Capital Improvement Projects (CIP) Potable Water CIP City Boundaries CIP EEH3 Existing System Tank ~ Reservoir September 17, 2019 Item #12 Page 16 of 21 Recycled Water CIP Sewer System CIP City Boundaries CIP ■■■■ Under Design/ Construction EHE Existing System • Tank City Boundaries -CIP EHE Existing System September 17, 2019 Item #12 Page 17 of 21 Industry and City staff experience informs us that age alone is not a good predictor of condition or system investment need. Continued investment in the asset management program is expected to result in lower infrastructure renewal costs than would be required through age-based forecasts. Significant potential savings have been identified through the City's asset management programs including the following: • The cost to replace sewer pipes with moderate sags is approximately $4 million in capital investment. Eventually these pipes will neE?d to be replaced, but using a more frequent cleaning maintenance strategy to manage minor issues is extending the useful life of sewer pipes. This results in lower costs to ratepayers and fewer construction impacts to the community. • Over the next five years, a condition and performance-based asset management approach saves the City approximately $2.6 million per year when compared to the age-based forecast for gravity sewer and manhole renewal. • Over the next 50 years, a condition and performance-based asset management approach saves the City approximately $665 million dollars in unnecessary potable water and recycled water pipeline, valve and service replacement (an average of $13.3 million per year). The water renewal cost forecast is based on break rate and deterioration curves from regional utilities with similar water main infrastructure. September 17, 2019 Item #12 Page 18 of 21 Gravity Sewer Renewal Cost Forecast 6.0 5.0 I Ag~-based ~ 4.0 V'I C: 0 ~ 3.0 +.J V'I 0 u 2.0 1.0 \ \ co . ~2.6+ saving~ per yea,1 from 1d1t1on-ljased vs. age-based appro, ch I ; I ! \ ' ~1 Conditic'>n-basea 0 I : i I I I I I 2020 2022 2024 2026 2028 2030 YEAR As condition assessments are done each year and the data is analyzed, the condition-based forecast will be extended beyond 2024. Water & Recycled Water Renewal Cost Forecast $25 ~---~~---~----~---~---~ -+----~----... ----+-----.---......i••······ Age-based c 0 ·.;:::; IO c.:: C: $20-+-------1-----+-----+-------+--------, l Cumulat ive Performance-based ·; $15 -+-----t-=------~~~'+-------+----------1 c: ...... Condition Assessment 'o :::, ···· ··· Cathodic Protection ] ·· ... ·· .. Valves Q.J c: Limited Access ,§ $ l O -+-----t------++----+--~""' -':a~--:::.a1~-::all"f•· .. ·· .. Replacement ~ +.J V'I 0 u 0-+-----,__-----+-----+-------+----------< 2020 2030 2040 2050 2060 2070 YEAR September 17, 2019 Item #12 Page 19 of 21 The City of Carlsbad's Capital Improvement Program is the foundation of our long-range capital investment for reliable and sustainable infrastructure. It is the planning tool that allows us to schedule and budget funding for projects over time. In any given year, projects could be "added" to the CIP, but may not be scheduled to be funded for several years. Projects get added to the CIP based on criteria that include condition assessments, public health and safety regulations, supporting the community's vision and City Council goals. The CIP project recommendations developed as part of the Master Plan process provide planning information that identifies where system vulnerabilities exist. Through the Master Plan process, we have determined that the proposed CIP projects would not result in any environmental impacts that have not already been addressed in the prior Program Environmental Impact Report, and no new mitigation measures are required. We are committed to continuing to operate and maintain high performing water, recycled water and sewer systems, and ensuring that critical facilities are properly financed to support the health and safety of our community. September 17, 2019 Item #12 Page 20 of 21 www.carlsbadca.gov September 17, 2019 Item #12 Page 21 of 21