CAPITAL INVESTMENT PLAN APPENDIX Realizing the Benefit of Sound Investments. For Fiscal Years 2016/17 and 2017/18

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1 CAPITAL INVESTMENT PLAN APPENDIX Realizing the Benefit of Sound Investments For Fiscal Years 2016/17 and 2017/18 July 2016

2 TABLE OF CONTENTS Introduction... 1 Capital Investment Plan Development... 3 Major Objectives for Fiscal Year 2016/17 and 2017/ How to Use This Document... 8 Guidelines for Proposals Three-Year Outlook Index Alphabetically by Program Title Individual Appropriation Descriptions List of Tables Table 1 CIP Programs... 1 Table 2 Key Appropriation Information... 9 Table 3 Proposal Guidelines Table 4 Evaluation Criteria and Multiplier List of Figures Figure 1 New CIP s by Program... 4 Figure 2 FY 2016/ /18 Biennium CIP by Program 10-year Window 2011/12 through 2020/ Figure 3 Appropriation Number Naming Convention /17 and 2017/18 Budget i Capital Investment Plan

3 CAPITAL INVESTMENT PLAN INTRODUCTION The primary focus of the Capital Investment Plan (CIP) Appendix is to provide information on all capital programs and projects that are scheduled to begin or will be underway during FY 2016/17 and FY 2017/18., accomplishments, objectives and financial projections are provided for each capital program and appropriation. Every project with work planned for the two budget years is listed under the individual appropriation descriptions starting on page 21. Capital expenditures for FY 2016/17 and FY 2017/18 are estimated to be $246 million and $240 million, respectively, and are planned to be funded by a combination of current operating revenues (R&R and PAYGO) and debt. The total FY 2016/17 and FY 2017/18 capital budget of $486 million includes all anticipated costs for labor including administrative overhead, construction and professional services contract costs, right of way, materials, operating equipment, and incidental expenses. It does not include a contingency amount. CIP Structure The CIP is structured into three levels. In descending order, they are: 1. PROGRAM 2. APPROPRIATION 3. PROJECT The highest level of the CIP structure is Program. Programs are comprised of one or more appropriations. There are 12 capital programs described in Table 1. Under each capital program, there is one to several appropriations, each with multiple projects. Table 1 Capital Programs Program System Flexibility/Supply Reliability Water Quality/Oxidation Retrofit Colorado River Aqueduct (CRA) Reliability Definition s under this program will enhance the flexibility and/or increase the capacity of Metropolitan s water supply and delivery infrastructure to meet current and projected service demands. s under this program will add or upgrade facilities to ensure compliance with water quality regulations for treated water at Metropolitan s treatment plants and throughout the distribution system. s under this program will replace or refurbish facilities and components on the CRA system in order to reliably convey water from the Colorado River to Southern California. 2016/17 and 2017/18 Biennial Budget 1 Capital Investment Plan

4 Program Treatment Plant Reliability: Diemer Plant Jensen Plant Mills Plant Skinner Plant Weymouth Plant Distribution System Reliability Right of Way & Infrastructure Protection Prestressed Concrete Cylinder Pipe (PCCP) Reliability Regulatory Compliance Minor Capital s Cost Efficiency & Productivity System Reliability Regional Recycled Water Supply Program Definition s under this program will replace or refurbish facilities and components at Metropolitan s five water treatment plants in order to continue to reliably meet treated water demands. s under this program will replace or refurbish existing facilities within Metropolitan s distribution system including reservoirs, pressure control structures, hydroelectric power plants, and pipelines in order to reliably meet water demands. s under this program will refurbish or upgrade above-ground facilities and rights-of-way along Metropolitan s pipelines in order to address access limitations, erosion-related issues, and security needs. s under this program will refurbish or upgrade Metropolitan s PCCP feeders to maintain reliable water deliveries without unplanned shutdowns. s under this program will provide for prudent use and management of Metropolitan s assets in compliance with regulations and codes, other than water quality. s under this program will execute refurbishments, replacements, or upgrades at Metropolitan facilities that cost less than $250,000. s under this program will upgrade, replace, or provide new facilities, software applications, or technology that will provide economic savings that outweigh project costs through enhanced business and operating processes. s under this program will improve or modify facilities throughout Metropolitan s service area in order to utilize new processes and/or technologies, and to improve facility safety and overall reliability. These include projects related to Metropolitan s Supervisory Control and Data Acquisition (SCADA) system and other Information Technology projects. s under this program are planned to demonstrate the feasibility of recycling wastewater for recharge of groundwater basins within Southern California, for development of a potential regional recycled water supply system. 2016/17 and 2017/18 Biennial Budget 2 Capital Investment Plan

5 CAPITAL INVESTMENT PLAN DEVELOPMENT Background The projects that comprise the CIP have been identified from many Metropolitan studies of projected water needs as well as ongoing monitoring and inspections, condition assessments, and focused vulnerability studies. Staff continues to study operational demands on aging facilities and has made recommendations for capital projects that will maintain infrastructure reliability and ensure compliance with all applicable water quality regulations, and building, fire, and safety codes. Staff has also studied business and operations processes and proposed projects that will improve efficiency and provide future cost savings. Additionally, several projects have been identified and prioritized to address uncertain and/or reduced allocations from the State Water. CIP Development Process The CIP is structured to reflect Metropolitan s strategic goals of providing a reliable supply of high-quality water at the lowest cost possible. As part of the CIP development process, all new and existing projects are evaluated against an objective set of criteria to ensure existing and future capital investments are aligned with Metropolitan s priorities for water supply reliability, water quality, and public safety. A team comprised of staff from Water System Operations, Water Resource Management, Real Property Development and Management, Engineering Services, Finance, and Business Technology evaluate and rate all projects. Those projects that directly support reliability, quality, and safety are budgeted for inclusion in Metropolitan s CIP. This rigorous evaluation process has resulted in a thorough review and assessment of all proposed capital projects by staff and managers prior to submittal to the evaluation team. Staff continues to conduct comprehensive field investigations that identify critical replacement and refurbishment projects and a variety of necessary facility upgrades related to infrastructure reliability as well as regulatory compliance. schedules are evaluated regularly in order to plan for necessary capital investments in infrastructure reliability and to accommodate the urgency of each project. Additionally, current demand projections that account for ongoing conservation, planned increased local supply production, and the economy, have been evaluated to ensure that demand and growth-related projects are appropriately scheduled. An iterative process is employed to first score and rank every new and existing project, and then solicit feedback from project sponsors, customers, and resource providers in order to establish schedules and cash flow requirements. Those schedules, along with analyses of facility shutdown requirements, environmental permitting timeframes, and contracting process requirements, also enable resource managers to identify staffing needs. The final schedule and implementation plan for FY 2016/17 and FY 2017/18 are reflected in the budget and objectives for each of the individual programs described later in this document. 2016/17 and 2017/18 Biennial Budget 3 Capital Investment Plan

6 Evaluation Before a project is included in the CIP, it is evaluated and rated against an established set of criteria. Staff is required to submit proposals for all projects that include scope, justification, alternatives, impacts of re-scheduling work for a later time, impact on operations and maintenance costs, and an estimate of total project cost. For existing projects, staff must also provide justification for continuing the project, explain any changes since inception of the project, and describe critical phases for the upcoming years. Guidelines for project proposals start on page 10. The evaluation criteria cover four characteristics or objectives for capital projects: Justification, Directive, Service Disruption, and Cost/Productivity/Sustainability. In addition, a multiplier is applied to a project rating to factor in a risk assessment. See page 13 for a description of each criterion and the risk multiplier. New s for FY 2016/17 and FY 2017/18 As a result of the project evaluation and prioritization process, a total of 53 new projects, excluding Minor Capital projects, have been recommended by the CIP Evaluation Team to either proceed as proposed, or be staged to perform only a portion of the work in the biennial budget period, and have been incorporated into the capital programs. Ten new, unbudgeted projects totaling $375 million were authorized by the Board during the 2014/ /16 fiscal years to acquire property in Riverside, Imperial, and Los Angeles County, construct solar facilities at the Weymouth and Jensen treatment plants, replace control valves at the Garvey Pressure Control Structure, relocate a portion of the Middle Feeder in the City of Monterey Park, improve employee housing at the CRA villages, upgrade the Sepulveda Canyon Control Facility, construct a Demonstration-Scale Recycled Water Treatment Plant, and perform urgent PCCP repairs on the Sepulveda Feeder. Figure 1 shows a breakdown of the new projects, including the ten projects described above, identified by capital program. The total estimate of expenditures for all new projects is $513 million. Figure 1 New Capital s by Program Total New s $513 million (non-escalated) 2016/17 and 2017/18 Biennial Budget 4 Capital Investment Plan

7 MAJOR OBJECTIVES FOR FISCAL YEAR FY 2016/17 and FY 2017/18 Below, grouped by CIP Program, are descriptions of capital project major activities anticipated to be underway or completed over the next two fiscal years. Water Quality/Oxidation Retrofit Weymouth Plant Oxidation Retrofit Complete construction, testing, and start-up of new ozonation and chemical feed facilities and commence ozone system operation. Treatment Plant Reliability Weymouth Plant Complete rehabilitation of all internal components of the filters, replace the filter media, and start replacement of filter valves. Diemer Plant Complete rehabilitation of four flocculation/sedimentation basins and upgrade of the plant s 24 filter buildings, including valve replacement and seismic strengthening on the east side of the plant. Commence construction of seismic upgrades and control room improvements at the Administration Building. Jensen Plant Complete replacement of the filter valves in Module No. 1; complete the refurbishment of four LADWP lagoons; and continue upgrade of the plant electrical systems. Distribution System Reliability Complete the replacement of the liner and floating cover at the Palos Verdes Reservoir. Commence construction of Stage 2 relining of the Etiwanda Pipeline, the relining of 9 miles of the Orange County Feeder, and relocation of a portion of the Middle Feeder. Complete final design of the Sepulveda Canyon Control Facility improvements (Bypass Line). Commence construction of the Orange County Region Operations and Maintenance Facility. Right of Way and Infrastructure Protection Commence construction of pipeline protection and access improvements in the Orange County Region. Certify the Programmatic EIR for the Western San Bernardino County Region. Complete design of pipeline protection and access improvements in the Los Angeles, Riverside and San Diego County Regions. Prestressed Concrete Cylinder Pipe Reliability Commence pipe procurement, valve procurement, and construction to rehabilitate the remaining PCCP portions of the Second Lower Feeder. Continue annual electromagnetic inspections of all PCCP pipelines. 2016/17 and 2017/18 Biennial Budget 5 Capital Investment Plan

8 Colorado River Aqueduct Reliability Complete construction of the sand trap equipment upgrades and the canal improvements to replace deteriorated concrete panels and install parapet walls to increase canal freeboard. Commence construction of the pumping plant overhead crane improvements and discharge line isolation couplings. Commence construction of 6.9 kv Switch House seismic retrofit. Complete design of the pumping plant sump system rehabilitation and main pump power cable replacement. System Reliability LaVerne Shop Facilities Commence construction of remaining utility extensions and final building improvements. Commence procurement of replacement fabrication and machine shop equipment. Information Technology Complete the installation of communication infrastructure and equipment to replace outdated PBX-based equipment with unified Internet Protocol based technology. Complete the initial phase of upgrades to replace the control and electrical system protection facilities at the Hiram Wadsworth Pumping Plant. Complete design and begin replacement of input/output components and operating systems for approximately 300 Remote Terminal Units that monitor and control Metropolitan s treatment plants and distribution system. Headquarters Building Complete final design and commence construction of seismic upgrades to Metropolitan s Headquarters Building in Los Angeles. Supply Reliability/System Flexibility Complete final design of upgrades to the Greg Avenue Pump Station. Regulatory Compliance Chlorine Containment Complete construction of the Chemical Unloading Facility chlorine containment system. Cost Efficiency and Productivity Continue design and installation of a new, enhanced corporate project controls and reporting system that will replace the outdated Management Information System. Complete design and begin construction of a 1-megawatt solar power facility at the Jensen plant. Regional Recycled Water Supply Complete design and begin construction of a demonstration-scale recycled water treatment plant for a Regional Recycled Water Supply Program. 2016/17 and 2017/18 Biennial Budget 6 Capital Investment Plan

9 Financial ions The CIP budget for FY 2016/17 and FY 2017/18 is estimated to be $246 million and $240 million, respectively, and is planned to be funded by a combination of current operating revenues (R&R and PAYGO) and debt. All of the projects in the CIP are reviewed as part of the biennial budgeting process. Considerations for timing of nearby projects and facility shutdowns, urgency, aging infrastructure, updated service demand projections, and regulatory requirements are taken into account. d capital expenditures are updated on a regular basis as new projects are added, other projects are completed, construction cost estimates are refined or contracts awarded. From time to time projects that have been undertaken are delayed, redesigned or deferred for various reasons and no assurance can be given that a project in the CIP will be completed in accordance with its original schedule. Funds required for the CIP for FY 2016/17 and FY 2017/18 have been estimated based on anticipated project progress and estimated costs for the new biennium budget period. Planned capital expenditures for FY 2016/17 are approximately $22 million less than what was budgeted for FY 2015/16. This decrease in planned expenditures reflects a normal readjustment of project budgets throughout the previous and current fiscal years as a result of favorable bids on construction contracts and schedule changes to optimize use of resources as well as facility shutdown planning. Actual expenditures in FY 2015/16 are projected to be about $33 million less than budgeted. Therefore, planned expenditures in FY 2016/17 of $246 million reflect an increase from actual expenditures in FY 2015/16 of approximately $11 million. This increase reflects initiation and ongoing construction on several projects where design and permitting activities have been completed. Examples include liner repairs and cover replacement at the Palos Verdes Reservoir, refurbishment of the settling basins and replacement of the filter valves at the Diemer plant, rehabilitation of the filters at the Weymouth plants, rehabilitation of the sand traps at three of the CRA pumping plants, and canal improvements on the CRA. One additional project to design and construct a 1 mgd recycled water demonstration treatment plant is also planned to move into construction during FY 2016/17. Figure 2 depicts the actual and projected capital expenditure profile, excluding the extraordinary land purchases, for the 10-year period from FY 2011/12 through FY 2020/21. Figure 2 FY 2016/ /18 Biennium CIP by Program 10-year Window 2011/12 through 2020/ /17 and 2017/18 Biennial Budget 7 Capital Investment Plan

10 HOW TO USE THIS DOCUMENT The core of this section is the Individual Appropriation Summary, which provides information for each capital project that is scheduled to begin or will be underway during FY 2016/17. The Individual Appropriation Summary is ordered by Appropriation title, starting on page 21. For assistance in locating a specific appropriation, refer to page 18. Explanation of Capital Appropriation Numbers Appropriation numbers are comprised of a five-digit number. The five-digit number uniquely identifies an appropriation. If an appropriation has not yet received board approval, the first three numeric digits represent the fiscal year the appropriation was identified (e.g., 167 is FY 2016/17), the last two numeric digits uniquely identify the new appropriation placeholder number. If by board action, the authority to perform work and funding has been established, the five-digit numbers in the placeholder number change to the appropriation number. Figure 3 shows examples of the placeholder and appropriation numbers. Figure 3 Appropriation Number Naming Convention Prior to Board Approval & Funding Fiscal Year & Unique No. After Board Approval & Funding Appropriation No. 2016/17 and 2017/18 Biennial Budget 8 Capital Investment Plan

11 Explanation of Individual Appropriation Summary Each project planned to be underway during the FY 2016/ /18 biennium is included in the Individual Appropriation Summary. The information provided reflects appropriation and project details current as of the time of publication and is subject to change. Key Information For each appropriation, key information is highlighted at the top of the Individual Appropriation Summary page and includes total appropriation estimate, appropriated amount, FY 2016/17 and FY 2017/18 biennial estimate, total projected cost through June 30, 2016, estimated percent complete and estimated completion date. Table 2 provides an explanation of each item. Table 2 Key Appropriation Information Item Description The total estimate of cost from inception to completion of budgeted projects in an appropriation. It includes a contingency amount and actual expenditures if projects in the appropriation are complete or underway. The total appropriation estimate may have: (a) no funding authorization from the Board; (b) partial funding from the Board; or (c) complete funding from the Board. Appropriated Amount Biennial Total ed through June 30, 2016 Amount of expenditures the General Manager is authorized by the Board to spend on projects in an appropriation. The amounts shown reflect actual appropriated amounts as of December 31, of expenditures from July 2016 through June It does not include a contingency amount. Actual expenditures to date and estimate of expenditures through June d Percent Complete d percent of work to be completed through June d Date Fiscal year in which all of the budgeted projects in an appropriation will be completed according to the current schedule. 2016/17 and 2017/18 Biennial Budget 9 Capital Investment Plan

12 Guidelines for Proposals Proposal Sponsors are required to submit proposals for all projects to be considered for inclusion into the CIP for FY 2016/17 and FY 2017/18. The projects are evaluated, rated and prioritized based on the contents of the proposals. The following guidelines are provided to the sponsors. Table 3 Proposal Guidelines Section Appropriation and No. (if existing) and Title Sponsoring Group Total GM Business Plan Guideline If a proposed project has been previously authorized by the Board, provide the Appropriation and numbers along with the Title. If not previously authorized, provide a project title. Indicate the Group sponsoring the project, as follows: 1) Office of General Manager 2) Water System Operations 3) Water Resource Management 4) Engineering Services 5) Business Technology 6) Real Property Development and Management 7) Office of Chief Financial Officer 8) External Affairs 9) General Counsel Department 10) General Auditor Department 11) Ethics Office Show the total estimate of cost from inception to completion of a project, including administrative overhead and contingency, as applicable. Indicate which GM Business Plan Strategic Initiative or Core Goal the proposed project best supports. Current Phase Indicate the phase (Study, Preliminary Design, etc.) as of the date proposal submitted. % Complete Now Phase percent complete as of the date proposal submitted. Description Changes to Existing Describe the project scope of work. For an existing project, describe any changes to the project scope, budget, or schedule over the past two years. Justification Describe the nature of the issue to be addressed by the project. What is the problem? Consider issues such as: Operational flexibility Water supply/facility expansion Aging/deteriorated infrastructure Process failure/improvement Maintenance capability Seismic vulnerability Obsolescence (vendor support, parts, technology, etc., ) Security 2016/17 and 2017/18 Biennial Budget 10 Capital Investment Plan

13 Section Guideline Regulatory Compliance (water quality, environmental, health and safety, etc.) Cost savings Revenue generation Environmental benefits Energy savings Health & Safety What is the function of the facility/component being addressed by the proposed project? Why is it important? Include an explanation of how the project addresses any of the above issues and provide documentation, when applicable, to substantiate the need for the project. Directive Regulatory/Legal Settlement: Indicate if this is related to a written citation or directive, verbal/written directive, or in-house identification (includes environmental mitigation mandated by a MND or EIR). Special Initiative/Directive: Indicate if the project is specifically identified in one of the core or strategic initiatives; identified via Area Study, System Overview Study, etc.; and/or what phase(s) of the project have been authorized by the Board such as study, preliminary design, final design, or construction by contract. Service Disruption Cost Efficiency and Productivity Alternatives Background Information Schedule Describe how Metropolitan s day-to-day operations could be impacted if the project is not approved. Consider business as well as water system operations, including maintenance activities. Describe potential cost, water, and/or energy savings, revenue generation, productivity gains, etc., that justify the project. Include a pay-back period. Provide a brief description of any potential project scope alternatives, including any opportunities to stage the work. Include if it is possible to only perform a portion of a project to meet foreseeable customer needs. Consider the possibility of new technology, changing demands, as well as environmental impacts and economies of scale. Describe any reasonable projects, processes, or other initiatives available as alternatives to the project. Discuss both positive and negative aspects of each alternative. If possible, explain what other similar companies are doing about this or similar issue. Provide any other supplemental information (e.g. detailed history of a problem, supporting technical information, shutdown constraints, etc.) that will help in evaluating the project. This can also be attached to the proposal. Indicate the proposed beginning and end dates for all appropriate phases. 2016/17 and 2017/18 Biennial Budget 11 Capital Investment Plan

14 Section Detailed Guideline Include an itemized list of all costs for the project, as follows: 1) Direct Labor with additives at the indicated rate 2) Equipment and Materials 3) Incidental Expenses 4) Professional/Technical Services (e.g., consultants) 5) Right-of-Way and Land Purchases (e.g., easements, fee title, escrow fees) 6) Operating Equipment Use and Rental 7) Contract Payments (e.g., construction contracts) 8) Administrative Overhead at the indicated rate 9) Contingency All new project proposals and existing projects must include this estimate. Post-Implementation O&M Impacts, Costs and Benefits Approvals To the extent available/known, provide a description of the impacts, costs, and/or benefits this capital project is anticipated to have on Metropolitan s current and future O&M expenses and services upon completion (e.g. labor, maintenance, and equipment costs; enhanced reliability; improved water quality, etc. For example, Ozone generators will substantially increase electrical consumption by approximately $1 million annually and the number of new pieces of equipment will require periodic maintenance per the manufacturer s recommendations beginning in FY 2015/16. PDR and future studies will provide additional detail on the overall lifecycle costs ). This is required for projects greater than $2 million and whose planned implementation date is within the next five fiscal years. 1) Person submitting and/or sponsoring the proposed project 2) Team manager of the person submitting and/or sponsoring the project 3) Unit manager of the person submitting and/or sponsoring the project 4) Section manager of the person sponsoring the project (e.g., all new and existing WSO-sponsored projects) 5) Group manager sponsoring the project (e.g., all new WSO-sponsored projects) 6) manager signs in concurrence. (e.g., Engineering and IT organizations) 2016/17 and 2017/18 Biennial Budget 12 Capital Investment Plan

15 Evaluation Criteria The evaluation criteria cover four characteristics or objectives for capital projects: Justification, Directive, Service Disruption, and Cost/Productivity/Sustainability. In addition, a multiplier is applied to a project rating to factor in a risk assessment. Table 4 provides a description of the criteria and multiplier. Table 4 Evaluation Criteria and Multiplier Criteria Justification Directive Service Disruption Cost/Productivity/Sustainability Description Assessment of the overall importance of a project. Criterion looks at whether or not a project supports the following: Supply reliability Infrastructure reliability Regulatory compliance GM Business Plan Other goals (e.g., cost savings, revenue generation, and energy savings) Assessment of whether or not a project is specifically identified in one of the core or strategic initiatives, if any permitting agency such as the California State Department of Safety of Dams has issued a directive or citation to take corrective actions, and/or the current Board authorized scope of work: Regulatory/Legal Settlement Special Initiative/Directive Board authorization Assessment of not doing a project. Criterion evaluates the following: Impact to Metropolitan s business operations Impact to water system operations (e.g., system delivery and/or reliability, cascading impact on system due to failure, etc.) Assessment of whether or not a project improves cost efficiency/ productivity, specifically: Cost/benefit analysis Increased productivity Sustainability Customer service Multiplier Risk Assessment Description Assessment of the probability of: Facility/component/process failure Workplace health and safety Water quality or environmental impact Missed opportunity (e.g., available resources, shutdown, revenue generation, cost savings, supply) Not meeting service demands 2016/17 and 2017/18 Biennial Budget 13 Capital Investment Plan

16 Capital Investment Plan Summary Narratives For each appropriation, narratives include the scope and purpose of the program, accomplishments through FY 2015/16, and objectives for FY 2016/17 and FY 2017/18. In these narratives, major activities, milestones and actions are highlighted. Following each narrative is a description for each project planned to be underway during the two-year budget period. Capital Investment Plan Summary Three-Year Outlook Capital Program and Appropriations Appn. No. FY 2016/17 FY 2017/18 FY 2018/19 Cost Efficiency & Productivity Program $7,002.5 $5,499.0 $474.7 DVL Recreation Facilities Power Reliability and Energy Conservation , Termination of Center for Water Education Ground Lease Business Operations Improvement , , Controls and Reporting System , Colorado River Aqueduct Reliability Program $33,603.6 $48,298.3 $41,810.6 Cabazon Radial Gate Facility Improvements White Water Siphon Protection , ,440.7 CRA - Conveyance Reliability , , ,430.3 CRA - Pumping Plant Reliability , CRA - Electrical/Power Systems Reliability , , ,399.6 CRA - Reliability for FY2006/07 through FY2011/ , , ,041.5 CRA Main Pump Reliability , , ,735.0 CRA - Reliability for FY2012/13 through FY2017/ , , ,184.6 Distribution System Reliability Program $54,784.7 $45,195.4 $55, Conveyance and Distribution System - Rehabilitation , ,383.4 Reservoir Cover and Replacement , , Dam Rehabilitation & Safety Improvements /17 and 2017/18 Biennial Budget 14 Capital Investment Plan

17 Capital Program and Appropriations Conveyance and Distribution System - Rehabilitation for FY2006/07 through FY2011/12 Appn. No. FY 2016/17 FY 2017/18 FY 2018/ , , ,121.9 Hydroelectric Power Plant Improvements , ,377.1 Conveyance and Distribution System - Rehabilitation for FY2012/13 through FY2017/ , , ,849.8 Pipeline Rehabilitation and Replacement Minor Capital s Program $4,512.7 $4,210.2 $4,159.5 Capital Program for s Costing Less Than $250,000 for FY2012/13 through FY2013/14 Capital Program for s Costing Less Than $250,000 for FY2014/15 through FY2015/16 Capital Program for s Costing Less Than $250,000 for FY2016/17 through FY2017/ , , , , , , ,267.4 System Reliability Program $21,886.6 $42,559.4 $40,287.8 Infrastructure Reliability Information System , , All Facilities - Security Systems Improvement Information Technology System - Infrastructure , Information Technology System - Security LaVerne Shop Facilities Upgrade , , ,635.9 Water Operations Control , , ,232.0 Union Station Headquarters Improvements , ,807.4 IT Infrastructure Reliability , , Operations Support Facilities Improvement , , ,906.5 Prestressed Concrete Cylinder Pipe Rehabilitation $14, $25, $32, Assess the Condition of Metropolitan's Prestressed Concrete Cylinder Pipe PCCP Rehabilitation and Replacement , , ,397.6 Sepulveda Feeder PCCP Rehab , , ,488.9 Second Lower Feeder PCCP Rehab , , , /17 and 2017/18 Biennial Budget 15 Capital Investment Plan

18 Capital Program and Appropriations Appn. FY 2016/17 FY 2017/18 FY 2018/19 No. Regional Recycled Water Supply Program $3,077.2 $6,817.7 $3,337.2 Demonstration-Scale Recycled Water Treatment Plant , , ,337.2 Regulatory Compliance Program $6,989.3 $5,959.6 $3,262.0 Chlorine Containment and Handling Facilities , CRA - Discharge Containment , ,262.0 Right of Way & Infrastructure Protection Program $5,832.0 $7,398.0 $10,021.9 Right of Way & Infrastructure Protection , , ,021.9 System Flexibility/Supply Reliability Program $1, $6, $7, Water Delivery System Improvements , ,542.5 Verbena Property Acquisition , , Treatment Plant Reliability Program $64,384.9 $35,593.2 $49,391.9 Weymouth Water Treatment Plant Improvements , , ,705.8 Jensen Water Treatment Plant Improvements , Diemer Water Treatment Plant Improvements , , ,052.1 Mills Water Treatment Plant Improvements Diemer Water Treatment Plant Improvements for FY2006/07 through FY2011/12 Weymouth Water Treatment Plant Improvements for FY2006/07 through FY2011/12 Jensen Water Treatment Plant Improvements for FY2006/07 through FY2011/12 Mills Water Treatment Plant Improvements for FY2006/07 through FY2011/12 Weymouth Water Treatment Plant Improvements for FY2012/13 through FY2017/18 Diemer Water Treatment Plant Improvements for FY2012/13 through FY2017/18 Mills Water Treatment Plant Improvements for FY2012/13 through FY2017/ , , , , , , , , , , , , /17 and 2017/18 Biennial Budget 16 Capital Investment Plan

19 Capital Program and Appropriations Jensen Water Treatment Plant Improvements for FY2012/13 through FY2017/18 Appn. No. FY 2016/17 FY 2017/18 FY 2018/ , , ,433.3 Water Quality/Oxidation Retrofit Program $28, $6, $1, Skinner Water Treatment Plant Oxidation Retrofit Diemer Water Treatment Plant Oxidation Retrofit Weymouth Water Treatment Plant Oxidation Retrofit , , ,182.1 Enhanced Bromate Control , /17 and 2017/18 Biennial Budget 17 Capital Investment Plan

20 Index Alphabetically by Appropriation Title Appropriation Title Appropriation No. All Facilities - Security Systems Improvement Assess the Condition of Metropolitan's Prestressed Concrete Cylinder Pipe Business Operations Improvement Cabazon Radial Gate Facility Improvements Capital Program for s Costing Less Than $250,000 for FY2012/13 through FY2013/14 Capital Program for s Costing Less Than $250,000 for FY2014/15 through FY2015/16 Capital Program for s Costing Less Than $250,000 for FY2016/17 through FY2017/ /17 and 2017/18 Biennial Budget 18 Capital Investment Plan Page No Chlorine Containment and Handling Facilities Conveyance and Distribution System - Rehabilitation Conveyance and Distribution System - Rehabilitation for FY2006/07 through FY2011/12 Conveyance and Distribution System - Rehabilitation for FY2012/13 through FY2017/ CRA - Conveyance Reliability CRA - Discharge Containment CRA - Electrical/Power Systems Reliability CRA - Pumping Plant Reliability CRA - Reliability for FY2006/07 through FY2011/ CRA - Reliability for FY2012/13 through FY2017/ CRA Main Pump Reliability Dam Rehabilitation & Safety Improvements Demonstration-Scale Recycled Water Treatment Plant Diemer Water Treatment Plant - Improvements Diemer Water Treatment Plant - Improvements for FY2006/07 through FY2011/

21 Appropriation Title Diemer Water Treatment Plant - Improvements for FY2012/13 through FY2017/18 Appropriation No. Page No Diemer Water Treatment Plant - Oxidation Retrofit DVL Recreation Facilities Enhanced Bromate Control Hydroelectric Power Plant Improvements Information Technology System - Infrastructure Information Technology System - Security Infrastructure Reliability Information System IT Infrastructure Reliability Jensen Water Treatment Plant - Improvements Jensen Water Treatment Plant - Improvements for FY2012/13 through FY2017/18 Jensen Water Treatment Plant - Improvements Program for FY2006/07 through FY2011/ LaVerne Shop Facilities Upgrade Mills Water Treatment Plant - Improvements Mills Water Treatment Plant - Improvements for FY2012/13 through FY2017/ Mills Water Treatment Plant - Improvements FY2006/07 through FY2011/ Operations Support Facilities Improvement PCCP Rehabilitation and Replacement Pipeline Rehabilitation and Replacement Power Reliability and Energy Conservation Controls and Reporting System Reservoir Cover and Replacement Right of Way & Infrastructure Protection Second Lower Feeder PCCP Rehab /17 and 2017/18 Biennial Budget 19 Capital Investment Plan

22 Appropriation Title Appropriation No. Sepulveda Feeder PCCP Rehab Skinner Water Treatment Plant - Oxidation Retrofit Termination of Center for Water Education Ground Lease Union Station Headquarters Improvements Verbena Property Acquisition Water Delivery System Improvements Water Operations Control Weymouth Water Treatment Plant - Improvements Weymouth Water Treatment Plant - Improvements for FY2006/07 through FY2011/12 Weymouth Water Treatment Plant - Improvements for FY2012/13 through FY2017/18 Page No Weymouth Water Treatment Plant - Oxidation Retrofit White Water Siphon Protection /17 and 2017/18 Biennial Budget 20 Capital Investment Plan

23 All Facilities - Security Systems Improvement : $19,600,000 Total ed Through June 30, 2016: $18,200,000 Appropriated Amount: $19,600,000 d Percent Complete: 93% Biennial : $759,000 d Date: 2018 This appropriation was established to mitigate security threats district-wide and provide security improvements based upon a comprehensive threat assessment matrix developed by staff that identifies potential risks of physical, chemical and biological threats, as well as necessary modifications and improvements at all facilities. Major components of this appropriation consist of physical security improvements, facility screening, and water quality monitoring enhancements. To mitigate security threats district-wide and improve the security of Metropolitan personnel and property. Through FY 2015/16, twelve projects have been completed. Physical Security Improvements At All Facilities Total d 13,743, Continue implementation and oversight 2016/17 and 2017/18 Biennial Budget 21 Capital Investment Plan

24 Assess the Condition of Metropolitan's Prestressed Concrete Cylinder Pipe : $7,870,000 Total ed Through June 30, 2016: $ 7,500,000 Appropriated Amount: $7,870,000 d Percent Complete: 95% Biennial : $300,000 d Date: 2018 This appropriation was established to perform pre-stressed concrete cylinder-pipe (PCCP) inspection on Metropolitan's 163 miles of PCCP line, perform soil studies and geotechnical investigations and to preform structural risk analysis. To identify areas of potential PCCP failures which could result in major property damage, personal injury, and disruption to essential services. PCCP inspections, soil studies and geotechnical investigations authorized by this appropriation have been completed. Total d Structural Risk Analysis of PCCP 418, Complete structural analysis 2016/17 and 2017/18 Biennial Budget 22 Capital Investment Plan

25 Business Operations Improvement : $9,600,000 Total ed Through June 30, 2016: $ 4,900,000 Appropriated Amount: $6,500,000 d Percent Complete: 51% Biennial : $4,287,800 d Date: 2019 This appropriation was established to assess and implement projects ensuring customer service, efficiency/productivity, risk management and reliability of Metropolitan's business applications. To ensure reliability, efficiency and effectiveness of Metropolitan s business applications. Through FY 2015/16, four projects have been completed. Major project milestone in FY 2014/15 and FY 2015/16: Oracle Upgrade Completed deployment Accounts Payable Automation Completed deployment Total d Budget System Replacement 1,607, Begin design Enterprise Content Management - Phase I 1,944, Begin design PeopleSoft ELM Upgrade 1,232, Begin design 2016/17 and 2017/18 Biennial Budget 23 Capital Investment Plan

26 Cabazon Radial Gate Facility Improvements : $5,000,000 Total ed Through June 30, 2016: $550,000 Appropriated Amount: $456,000 d Percent Complete: 11% Biennial : $91,900 d Date: 2022 This appropriation was established to convert the Cabazon Radial Gates Facility from an "active" spillway, which requires an operator to activate the gates, to a "passive" spillway which does not require an operator, by replacing both radial gates with a weir structure. Work includes: design, environmental documentation, purchase of materials and construction by contract. To divert flow in the event of an emergency shutdown of the Colorado River Aqueduct into the San Gorgonio Wash, and ultimately into the Whitewater River. No major milestones were achieved. Cabazon Radial Gate Facilities Improvement Total d 4,954, Complete final design 2016/17 and 2017/18 Biennial Budget 24 Capital Investment Plan

27 Capital Program for s Costing Less Than $250,000 for FY2012/13 through FY2013/ : $10,000,000 Total ed Through June 30, 2016: $7,900,000 Appropriated Amount: $10,000,000 d Percent Complete: 79% Biennial : $1,451,100 d Date: 2017 This appropriation was established to implement capital projects costing less than $250,000 on the distribution system, conveyance system, and treatment plants during FY 2012/ /14. In addition to the scheduled projects, the need invariably arises for additional unscheduled capital projects where there is no viable alternative but to perform the work. The common driver for most of the projects in this appropriation is infrastructure reliability. To increase operational reliability and efficiency, and decrease maintenance costs Through FY 2015/16, twenty-nine projects have been completed. Total d Minor Cap FY 2012/13 9,704, Continue design and construction of remaining projects. 2016/17 and 2017/18 Biennial Budget 25 Capital Investment Plan

28 Capital Program for s Costing Less Than $250,000 for FY2014/15 through FY2015/ : $8,000,000 Total ed Through June 30, 2016: $ 2,000,000 Appropriated Amount: $5,000,000 d Percent Complete: 25% Biennial : $3,830,400 d Date: 2019 This appropriation was established to implement capital projects costing less than $250,000 on the distribution system, conveyance system, and treatment plants during FY 2014/ /16. In addition to the scheduled projects, the need invariably arises for additional unscheduled capital projects where there is no viable alternative but to perform the work. The common driver for most of the projects in this appropriation is infrastructure reliability. To increase operational reliability and efficiency, and decrease maintenance costs. Through FY 2015/16, two projects have been completed. Total d Minor Cap FY 2014/16 6,572, Continue design and construction of remaining projects. 2016/17 and 2017/18 Biennial Budget 26 Capital Investment Plan

29 Capital Program for s Costing Less Than $250,000 for FY2016/17 through FY2017/ : $9,100,000 Total ed Through June 30, 2016: $ 0 Appropriated Amount: $ 0 d Percent Complete: 0% Biennial : $ 3,441,400 d Date: 2021 This appropriation was established to implement capital projects costing less than $250,000 on the distribution system, conveyance system, and treatment plants during FY 2016/ /18. In addition to the scheduled projects, the need invariably arises for additional unscheduled capital projects where there is no viable alternative but to perform the work. The common driver for most of the projects in this appropriation is infrastructure reliability. To increase operational reliability and efficiency, and decrease maintenance costs. This is a new appropriation; no projects have been completed. Total d Minor Cap Appn. FY 2016/18 9,100, Identify and evaluate projects and begin preliminary design 2016/17 and 2017/18 Biennial Budget 27 Capital Investment Plan

30 Chlorine Containment and Handling Facilities : $162,000,000 Total ed Through June 30, 2016: $153,000,000 Appropriated Amount: $162,370,000 d Percent Complete: 94% Biennial : $6,882,000 d Date: 2018 This appropriation was established to construct facilities that handle and contain chlorine to prevent a chlorine release and to comply with security and safety regulations; and other related facilities that handle chlorine to meet water treatment process requirements. Since its inception, new chlorine containment and handling facilities have been completed at all five water treatment plants. To enhance hazardous chemical safety by reducing the potential for exposure to plant personnel or the public of a release of chlorine, and ensure compliance with current California Fire Code requirements. Through FY 2015/16, seventeen projects have been completed. Major project milestone in FY 2014/15 and FY 2015/16: CUF Chlorination Containment Facility - Continued construction Total d CUF Chlorination Containment Facility 40,045, Complete construction 2016/17 and 2017/18 Biennial Budget 28 Capital Investment Plan

31 Conveyance and Distribution System - Rehabilitation : $119,500,000 Total ed Through June 30, 2016: $70,000,000 Appropriated Amount: $72,595,700 d Percent Complete: 59% Biennial : $3,622,200 d Date: 2024 This appropriation was established to plan and implement multiple projects throughout the Distribution System. The common driver for many of the projects in this appropriation is infrastructure reliability. To maintain the reliability of the distribution system through specific repair and rehabilitation projects on Metropolitan's distribution pipelines, reservoirs, and control structures. Through FY 2015/16, forty-three projects have been completed. Major project milestones in FY 2014/15 and FY 2015/16: Garvey Reservoir Sodium Hypochlorite Pump & Piping - Completed final design Orange County Feeder Lining Repair - Began final design Total d Orange County Feeder Lining Repair 34,267, Begin construction Upper Newport Bay Blow-off Structure Rehab 1,422, Continue final design 2016/17 and 2017/18 Biennial Budget 29 Capital Investment Plan

32 Conveyance and Distribution System - Rehabilitation for FY2006/07 through FY2011/ : $182,700,000 Total ed Through June 30, 2016: $66,100,000 Appropriated Amount: $72,139,000 d Percent Complete: 36% Biennial : $28,531,000 d Date: 2022 This appropriation was established to plan and implement multiple projects throughout the Conveyance and Distribution System. The common driver for many of the projects in this appropriation is infrastructure reliability. To maintain the reliability of the distribution system through specific repair and rehabilitation projects on Metropolitan's distribution pipelines, reservoirs and control structures. Through FY 2015/16, five projects have been completed. Major project milestones in FY 2014/15 and FY 2015/16: OC-88 Pump Station Upgrades - Defined scope Santa Ana River Bridge Seismic Upgrade - Began construction Etiwanda Pipeline Lining Replacement Completed Stage 1 construction; began Stage 2 construction Collis St. Valve Replacement - Completed final design Palos Verdes Reservoir Sodium Hypochlorite Pump - Began construction Lake Mathews Discharge Facility Upgrades - Continued design Orange County Feeder Relocation in Fullerton Completed construction 2016/17 and 2017/18 Biennial Budget 30 Capital Investment Plan

33 Allen McColloch Pipeline Cathodic Protection Collis St. Valve Replacement and Repair By-Pass at station on the Palos Verdes Feeder DVL Inlet / Outlet Tower Debris Screen Rehabilitation Total d 2,155, Begin construction 3,198, Begin construction 2,850, Begin construction Etiwanda Pipeline Lining Replacement 45,702, Continue construction Lake Mathews Discharge Facility Upgrades 7,289, Begin construction OC-88 Pump Station Upgrades 9,730, Begin design Orange County Feeder Cathodic Protection System Rehabilitation Palos Verdes Reservoir Sodium Hypochlorite Pump and Piping Replacement Santiago Lateral Sta Butterfly Valve Replacement 758, Begin construction 3,227, Complete construction 1,835, Begin construction 2016/17 and 2017/18 Biennial Budget 31 Capital Investment Plan

34 Conveyance and Distribution System - Rehabilitation for FY2012/13 through FY2017/ : $332,500,000 Total ed Through June 30, 2016: $23,000,000 Appropriated Amount: $35,110,000 d Percent Complete: 7% Biennial : $33,552,200 d Date: 2025 This appropriation was established to plan and implement multiple projects throughout the Conveyance and Distribution System. The common driver for many of the projects in this appropriation is infrastructure reliability. To maintain the reliability of the distribution system through specific repair and rehabilitation projects on Metropolitan's distribution pipelines, reservoirs and control structures. Through FY 2015/16, one project has been completed. Major project milestones in FY 2014/15 and FY 2015/16: Orange County C&D Team Support Facility - Completed final design DVL East Dam Power Line Realignment - Completed final design Sepulveda Canyon Control Facility Bypass - Began preliminary design Garvey Reservoir Control Structure Valve Upgrades - Began construction Middle Feeder Relocation for SCE Mesa Substation - Began final design San Diego Pipeline 3 Blowoff to Pump Well Conversion Completed construction Upper Feeder Protection Completed construction Middle Feeder Blow-off Valve Replacement Sta Completed design 2016/17 and 2017/18 Biennial Budget 32 Capital Investment Plan