AGENDA. WATER RESOURCES COMMITTEE Santa Fe Irrigation District. Tuesday, February 27, :00 a.m.

Transcription

1 AGENDA WATER RESOURCES COMMITTEE Santa Fe Irrigation District Tuesday, 9:00 a.m. Held at the Santa Fe Irrigation District 5920 Linea de Cielo, Rancho Santa Fe, CA CALL MEETING TO ORDER ORAL COMMUNICATIONS Opportunity for members of the public to address the Committee (Government Code Section ) Individuals may address the Committee regarding items not appearing on the posted agenda, which are within the subject matter jurisdiction of the Board, at any time. Comments and inquiries pertaining to items listed on the agenda will be received during the deliberation of the agenda item. Speakers are asked to state their name, address, and topic, and to observe a time limit of three (3) minutes each. Members of the public desiring to address the Committee are asked to complete a speaker s card, available at the table near the entrance and present it to the Board Secretary prior to the start of the meeting. ACTION AND DISCUSSION ITEMS 1. Approval of February 1, 2018 Meeting Minutes (pages 3-4) 2. Review Draft Fiscal Year 2019 Capital Improvement Budget and Draft Updated 10 Year Capital Improvement Program (pages 5-18) 3. Review Update of SFID AMMP Asset Valuation (pages 19-27) REPORTS 4. FY18 Capital Improvement Projects Status Report (verbal) 5. Engineering Services Manager s Report (verbal) 6. Operations Manager s Report (verbal) 7. General Manager s Report (verbal) 8. Committee Members Comments (verbal) INFORMATION ITEMS None

2 ADJOURN Next Scheduled meeting: Thursday, May 3, 2018 at 9:00 a.m. Agenda page 2

3 MINUTES SANTA FE IRRIGATION DISTRICT WATER RESOURCES COMMITTEE February 1, 2018 Santa Fe Irrigation District 5920 Linea del Cielo, Rancho Santa Fe, CA PRESENT: Chairman Kenneth Dunford, Director Andy Menshek, General Manager Michael Bardin, Executive Assistant Kim Johnson, Engineering Services Manager Bill Hunter, Operations Manager Cor Shaffer, Associate Civil Engineer Marissa Potter, and Engineering Assistant Carlisle Rowlands were present. Chairman Dunford called the meeting to order at 9:04 a.m. ORAL COMMUNICATIONS - None ACTION AND DISCUSSION ITEMS: 1. APPROVAL OF DECEMBER 13, 2017 MEETING MINUTES The Committee approved the minutes as submitted. 2. ALTERNATIVE WATER SUPPLY DEVELOPMENT REPORT REPORTS GM Bardin presented the item and responded to questions from the Committee. This item was for the Committee s information only. No action was requested or required of the Committee. 3. FY18 CAPITAL IMPROVEMENT PROJECTS STATUS REPORT ESM Hunter provided a status update on current projects and responded to questions from the Committee. 4. ENGINEERING SERVICES MANAGER S REPORT ESM Hunter discussed an update to the District Asset Valuation which affects replacement costs for District s infrastructure. 5. OPERATIONS MANAGER S REPORT OM Shaffer reported on the following: 1 February 1, 2018 Agenda page 3

4 R. E. Badger Filtration Plant recently completed the annual shutdown for maintenance and repairs. Several fire hydrants in the District have recently been hit; however, the Distribution staff respond quickly, sometimes arriving before Fire Department personnel. A consultant has been selected for the San Dieguito Reservoir Inundation Study. Lake Hodges Oxygenation System construction is set to be completed in May, He is collaborating with multiple agencies on an updated Mutual Aid Agreement, set for completion in May, The San Diego County Water Authority will perform a free chlorine burnout in the regional water transmission system, tentatively scheduled for May, The burnout will affect the water distribution system from Lake Skinner south throughout the County. 6. GENERAL MANAGER S REPORT GM Bardin reported on the following: He is working on a supplemental agreement relating to Lake Hodges local water sharing with San Dieguito Water District. EM Hunter s Asset Valuation Update is important to the District and will contribute to resetting of Capacity Fees. 7. COMMITTEE MEMBERS COMMENTS Vice President Dunford reported he will be away for the part of March and April; subsequently, the April will be canceled. INFORMATION ITEMS None ADJOURN Chairman Dunford adjourned the meeting at 11:09 a.m. Kenneth Dunford, Chairman 2 February 1, 2018 Agenda page 4

5 DATE: TO: FROM: General Manager SUBJECT: Review Draft Fiscal Year 2019 Capital Improvement Budget and Draft Updated 10 Year Capital Improvement Program RECOMMENDATION: It is the Staff recommendation that the : DISCUSSION: 1. Review and discuss the Draft Fiscal Year 2019 Capital Improvement Budget; 2. Review and discuss the Draft Updated 10-year Capital Improvement Program, and; 3. Take other action as appropriate. Draft FY19 Capital Improvement Budget: Staff has developed the Draft Capital Improvement (CIP) Budget for Fiscal Year 2019 (FY19). Capital Improvements are relatively large projects which may span multiple fiscal years. Each year, the budget reflects estimated expenditures for the portions of the projects that are planned to cover replacements, improvements, and additions to the existing water distribution system and joint facilities. As shown on the FY19 CIP Summary Spreadsheet, included as Attachment A, the FY19 Capital Budget includes seven (7) Capital Projects with total projected FY19 expenditures of $9,094,200. Six (6) projects are continuing from FY18. The total projected carryover from the FY18 capital budget is $600,000. New appropriations for FY19 total $8,494,200. The total FY19 Capital Improvement Budget includes funding for both General District projects and Joint Facilities projects. As shown on Table 1, funding for Joint Facilities Projects is shared between Santa Fe Irrigation District (SFID) and San Dieguito Water District (SDWD) based upon ownership percentages. Table 1 FY17 Capital Improvement Budget Components for SFID and SDWD FY19 Budget / Projected Expenditures GENERAL DISTRICT PROJECTS JOINT FACILITIES PROJECTS COMBINED SFID SDWD SUBTOTAL GENERAL DISTRICT SFID SDWD SUBTOTAL JOINT FACILITIES TOTAL $1,225,000 $0 $1,225,000 $4,511,700 $3,357,500 $7,869,200 $9,094,200 Agenda page 5

6 The following summarizes key points associated with the FY19 Capital Improvement Budget: General District Projects The FY19 CIP Budget includes two General District Projects: Glencrest Road Pipeline Relocation Project 1800, is a project that was originally included in the FY18 budget, and has been delayed to FY19 to accommodate a change in schedule by the City of Solana Beach. The City of Solana Beach will be implementing road improvements along Glencrest that will require the relocation (lowering) of a segment of the District s waterline. Although the existing pipeline is relatively old, it was not originally planned for near term replacement since it does not have a history of performance or capacity problems. However, since the District s pipeline is within the City s right-of-way the District is required to accommodate the road improvement schedule. In addition to lowering approximately 200 feet of 8-inch pipeline, the project will also require replacements of two services and a fire hydrant. The City s road improvement project has been delayed. Therefore the pipeline relocation schedule has been moved to FY19. Automated Metering Program Phase 4 Project 1900, includes the upgrade of approximately 1500 existing manually read meters to automated meters. Phases 1 and 2 were implemented in FY17 and Phase 3 was implemented in FY18. Joint Facilities Projects The FY19 CIP Budget includes five Joint Facilities Projects. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Although the projects are being combined into one package, the design and subsequent construction shall be configured to manage and monitor the budgets of each joint facilities project separately. The design package including all five Joint Facilities Projects will be completed in FY18. Construction of all of the projects will be initiated in FY19 and completed in FY20. Clearwell Seismic Improvements Project J-1700, includes enhancements to the existing 50-year old clearwell to improve reliability during a seismic event. The clearwell is a 13 million gallon buried concrete tank used to store treated potable water at the R.E. Badger Water Filtration Plant (Plant). Washwater Tank Seismic Improvements Project J-1751, includes enhancements to the existing 50-year old washwater tank to improve reliability during a seismic event. The project also includes improvements identified during an assessment of the tank s condition during pre-design. The 1 million gallon above ground steel washwater tank is 82.5 feet tall and 46 feet in diameter. The water in the tank is used to backwash filters at the Plant. Mechanical Dewatering Improvements Project J-1752, includes improvements to enhance the reliability of solids thickening and dewatering facilities at the R.E. Badger Water Filtration Plant. Handrail Improvements at San Dieguito Reservoir Project J-1753, will replace the existing handrails that were installed in 1918 with new handrails that comply with current safety standards. Agenda page 6

7 San Dieguito Dam Concrete Refurbishment Project 1754, is a preventative maintenance project that will repair weathered areas of concrete on the dry side of the San Dieguito Reservoir Dam in order to avoid the impacts of more significant deterioration. Attachment B provides an excerpt from the draft FY19 Budget document that includes a narrative description of the individual FY19 Capital Improvement Projects. Draft FY19 Updated 10-year Capital Improvement Program (CIP): In order to plan for future capital improvement requirements, SFID maintains a 10-Year Capital Improvement Program (CIP). The 10-Year CIP defines and prioritizes project requirements for a fixed 10 year planning period. Each year, SFID updates the 10-Year CIP in order to incorporate new information, confirm project priorities, and modify specific project schedules as appropriate. Attachment C provides the recommended Draft FY19 update of the 10-year CIP. As described at the November 16, 2017 Board Meeting, the start dates for selected capital projects have been moved outside of the 10 year budget period to defer approximately $15 million of capital expenditures, and reduce near term rate impacts. The movement of selected Joint Facilities Projects outside of the 10 year planning period was supported and approved by San Dieguito Water District Staff. Staff will present a detailed overview of the proposed Draft FY19 Capital Improvement Budget and Updated 10-Year CIP at the meeting. FISCAL IMPACT: No direct fiscal impact with this review of this item. Attachment A: Attachment B: Attachment C: Draft FY19 Capital Improvement Budget Summary Draft FY19 Capital Improvement Budget Narrative Recommended FY19 Updated 10 Year CIP Prepared by: Approved by: William Hunter, Engineering Services Manager Michael J. Bardin, General Manager Agenda page 7

8 ATTACHMENT A Capital Improvement Budget Summary Fiscal Year 2019 Total Estimated Total Projected Projected FY19 Budget Project Cost Appropriations Expenditures FY18 FY2019 Projected Number PROJECT of Project Through FY18 Through FY18 Carryover Appropriation Expenditures GENERAL DISTRICT 1800 Glencrest Road Pipeline Relocation 75,000 75, ,000-75, Automated Metering Program Phase 4 1,150, ,150,000 1,150,000 GENERAL DISTRICT CIP SUBTOTAL $ 1,225,000 $ 75,000 $ 0 $ 75,000 $ 1,150,000 $ 1,225,000 JOINT FACILITIES 1750 Clearwell Seismic Improvements 2,400, , , ,145,000 1,145, Washwater Tank Seismic Improvements 3,375, , ,100 1,562,200 1,562, Mechanical Dewatering Improvements 9,100, , ,000 4,074,000 4,074, Handrail Improvements at San Dieguito Reservoir 600, , , , , , San Dieguito Dam Concrete Refurbishment 688, , , , , ,000 JOINT FACILITIES CIP SUBTOTAL $ 16,163,000 $ 2,035,100 $ 1,510,100 $ 525,000 $ 7,344,200 $ 7,869,200 CIP PROGRAM TOTAL $ 17,388,000 $ 2,110,100 $ 1,510,100 $ 600,000 $ 8,494,200 $ 9,094,200 Agenda page 8

9 Attachment B DRAFT FY19 Capital Program Narrative CAPITAL IMPROVEMENT BUDGET Water utility systems require longterm investment in extensive capital facilities. As service demands increase and regulatory requirements become more stringent, the need for wellconceived, rational capital planning cannot be overemphasized. The District s customer interests are best served though a wellmaintained and welloperated water system that is funded sufficiently to support utility infrastructure needs. The annual capital budget is used to systematically implement the District s longrange capital planning efforts. The projects are a reflection of established goals that are derived from the District Strategic Business Plan, Urban Water Management Plan, Asset Management Master Plan, Joint Facilities Master Plan, and other key District planning documents. Within this framework of major objectives and goals established for the District, management must plan and control capital expenditures. This planning encompasses the anticipation of long and shortterm customer needs for water service, selection and design of proper facilities to meet customer needs, timely purchase or construction of required infrastructure, and timely replacement and retirement of fixed assets. Capital Improvements are relatively infrastructure projects that may span multiple fiscal years. The budget identifies the total appropriations required to accommodate portions of Capital projects that are planned for a oneyear period as well as appropriations required to accommodate planning, design, and/or construction contracts that span multiple fiscal years. The budget also establishes projected FY19 Capital project expenditures. The following sections summarize the Capital Improvement Projects included in FY19. CAPITAL IMPROVEMENTS The FY19 Capital Budget includes seven (7) Capital Projects with total projected FY19 expenditures of $9,094,200. Six (6) projects are continuing from FY18. The total projected carryover from the FY18 capital budget is $600,000. New appropriations for FY19 total $8,494,200. The projected expenditures for FY19 Capital Program Distribution System (District Improvements) is $1,225,000. District Improvement Projects include the Glencrest Road Pipeline Relocation, and Phase 4 of the Automated Metering Program. The projected expenditure for FY19 Capital Program Joint Facilities projects is $7,869,200. This total Joint Facilities budget amount will be shared with the San Dieguito Water District. Joint facility projects include completion of designs for the Clearwell Seismic Improvements, Washwater Tank Seismic Improvements, Mechanical Dewatering Improvements, Handrail Improvements at the San Dieguito Reservoir, and San Dieguito Dam Concrete Refurbishment. Agenda page 9

10 DISTRICT IMPROVEMENT PROJECTS Projects in this category are designed to meet the District s facility and infrastructure needs including replacement of aging infrastructure, and new facilities required to meet system safety, capacity, redundancy, reliability, regulatory mandates, and other performance requirements. Project J1800 Strategic Goal #4 Project Description Glencrest Road Pipeline Relocation Projected FY19 Expenditures = $75,000 Total Capital Cost = $ 75,000 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. The District has an existing 8inch water pipeline located within City of Solana Beach s rightofway along Glencrest Road. The City of Solana Beach is designing improvements to Glencrest Road that include lowering the road elevation for a distance of approximately 200 feet in the vicinity of the District s pipeline. In order to accommodate the new road elevation, the District will need to lower a segment of the pipeline and replace two potable water services and a fire hydrant. The District s pipeline is old but does not have any history of failure or capacity problems. Therefore, it was not planned to be replaced in the near future. However, in order to accommodate the City s construction schedule, the District s pipeline would need to be lowered in FY19. Therefore, this project includes the design and construction of the pipeline improvements required to accommodate the new roadway elevation. Project Location Agenda page 10

11 Project J1900 Automated Metering Program Phase 4 Projected FY19 Expenditures = $1,150,000 Total Capital Cost = $1,150,000 Strategic Goal #1 Project Description Phase4 Automated Meter Installation Locations Ensure an adequate, diverse, and reliable supply of quality water that meets customer needs. This is the fourth phase of a planned phased program for the implementation of a fixed based automated metering system. Phases 1 and 2 were completed in FY17 and included the installation of approximately 1,325 automated meters (includes the total for meters installed by SFID Staff as well as meters installed by an outside contractor), two antennae base stations, and automated metering system operating software. Phase 3 will be completed in FY18 and include the installation of approximately 1,195 meters and one additional antennae base station. Phase 4 will be implemented in FY19 and includes the installation of approximately 1,580 meters within seven (7) meter route locations (routes 701, 702, 703, 706, 305, 308, and 309) throughout the District service area. There total number of SFID meters is approximately 7,624. Following Phase 4 approximately 4,100 manual meters will have been replaced with automated meters, or approximately 54% of the total number of meters. Agenda page 11

12 JOINT FACILITIES TREATMENT PLANT AND LOCAL WATER SYSTEM IMPROVEMENT PROJECTS As joint owners of the R.E. Badger Filtration Plant, the San Dieguito Water District (SDWD) and the Santa Fe Irrigation District (SFID) share capital improvement expenses. The Projects for FY19 are planned for the replacement, upgrade, and enhancement of the water treatment and other jointly owned local water system facilities. The following provides a summary description for the FY19 Joint Facilities Capital Improvement Projects. The Capital Costs shown are the total cost for both SFID and SDWD. As indicated in each separate project description below, in order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Although the projects are being combined into one package, the design and subsequent construction shall be configured to manage and monitor the budgets of each joint facilities project separately. Project J1750 Clearwell Seismic Improvements Projected FY19 Expenditures = $1,145,000 Total Capital Cost = $2,400,000 Strategic Goal #4 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. Project Description The Clearwell is a 13 million gallon buried concrete tank located at the R.E. Badger Water Filtration Plant site that stores treated potable water. The tanks is 252 feet X 329 feet and its depth varies between 16 and 25 feet. The Clearwell was built in the middle 1960s. This project includes the design and construction of improvements to enhance the facilities ability to withstand seismic events. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Design was initiated in FY17 and will be completed in FY18. Construction will occur between FY19 and FY20. Inside the Buried Clearwell Structure at R.E. Badger Agenda page 12

13 Project J1751 Washwater Tank Seismic Improvements Projected FY19 Expenditures = $1,562,200 Total Capital Cost = $3,375,000 Strategic Goal #4 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. Project Description The Washwater Tank is a 1 million gallon above ground steel tank located at the R.E. Badger Water Filtration Plant site. The tank has a diameter of 46 feet and is 82.5 feet tall. The tank was built in 1968 to store water used for backwashing of the filters at the Plant. This project includes the design and construction of improvements to enhance the Washwater Tank s ability to withstand seismic events. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Design was initiated in FY17 and will be completed in FY18. Construction will occur between FY19 and FY20. Existing Washwater Tank at R.E. Badger Agenda page 13

14 Agenda page 14

15 p Project J1752 Mechanical Dewatering Improvements Projected FY19 Expenditures = $4,074,000 Total Capital Cost = $9,100,000 Strategic Goal #4 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. Project Description The ability to efficiently manage the solids removed (and generated) as part of the water treatment process is a critical component of water treatment. Historically, a large portion of the solids removed at the R.E. Badger Water Filtration Facility has been discharged to the San Dieguito reservoir. This project includes the design and construction of improvements to enhance the ability to remove and manage solids at the R.E. Badger Water Filtration Facility. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Design was initiated in FY17 and will be completed in FY18. Construction will occur between FY19 and FY20. Existing Solids Dewatering Facilities at R.E. Badger Agenda page 15

16 Project J1753 Strategic Goal #4 Handrail Improvements at the San Dieguito Reservoir Projected FY19 Expenditures = $500,000 Total Capital Cost = $600,000 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. Project Description The San Dieguito Reservoir was constructed in The existing handrails do not meet current safety standards. This project will design and construct new handrails that comply with current safety standards. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Design was initiated in FY17 and will be completed in FY18. Construction will occur between FY19 and FY20. Existing Handrail at the San Dieguito Reservoir Dam Agenda page 16

17 Project J1754 San Dieguito Dam Concrete Refurbishment Projected FY19 Expenditures = $588,000 Total Capital Cost = $688,000 Strategic Goal #4 To plan for, provide and maintain District facilities and other physical assets in a manner that achieves reliable and efficient operations over the long term. Project Description Various inspections of the Dam identified surface wear on the exterior face of the San Dieguito Dam that requires refurbishment. This is a preventative maintenance project that includes the design and construction work required to repair the concrete surface in the areas identified. In order to improve economy of scale and enhance efficiency, all five of the FY19 Joint Facilities Project are being combined into one design package. Design was initiated in FY17 and will be completed in FY18. Construction will occur between FY19 and FY20. Existing Concrete Surface on the Dry Side of the San Dieguito Reservoir Dam Agenda page 17

18 ATTACHMENT "C" DRAFT Recommended FY19 Updated 10 Year Capital Improvement Program FY17 to FY26 All Numbers in Thousands of Dollars March 1, 2018 (Feb iteration) Project # Estimated Total Capital Cost Distribution System Pressure Reducing Stations Description Actual Expenditures through FY16 FY17 Actual Expenditures FY18 Estimated Expenditures FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 TOTAL 10 YEAR CIP (FY17FY26) J1501 $ 5,000.0 Group 3 PRS Project (PRS Project 5,6, & 7) $ $ 2,675.3 $ $ $ $ $ $ $ $ $ $ 2,675.3 Pipeline Improvements J1502 $ 3,500.0 Government Road Pipeline $ 93.0 $ 19.3 $ 1,673.0 $ 1,714.7 $ $ $ $ $ 3,407.0 J1503 $ 4,300.0 Lago Lindo Pipeline $ 40.8 $ $ $ $ 1,825.0 $ 1,934.2 $ $ $ 4,259.2 J1800 $ 75.0 Glencrest Road Pipeline Relocation $ 75.0 $ 75.0 JTBD $ 3,000.0 Group 3 Pipeline and Valve Project $ $ $ $ 1,000.0 $ 1,500.0 $ 3,000.0 JTBD $ 3,688.8 La Granada Pipeline and PRS Elimination Project $ $ $ $ $ JTBD $ 2,582.6 Larrick Reservoir Drain Line Project $ $ $ $ $ $ JTBD $ 3,936.5 Final PRS Replacement Project $ $ $ $ $ $ Automated Metering Program $ J1600 $ Automated Metering Program Phase 1 $ 20.4 $ $ 52.9 $ $ $ $ $ $ $ $ $ J1700 $ Automated Metering Program Phase 2 $ $ $ $ $ $ $ $ $ $ $ J1900 $ 1,000.0 Automated Metering Program Phase 3 $ $ 1,000.0 $ $ $ $ $ $ $ $ $ 1,000.0 JTBD $ 1,150.0 Automated Metering Program Phase 4 $ $ $ 1,150.0 $ $ $ $ $ $ $ $ 1,150.0 JTBD $ 1,150.0 Automated Metering Program Phase 5 $ $ $ $ 1,150.0 $ $ $ $ $ $ $ 1,150.0 JTBD $ Automated Metering Program Phase 6 $ $ $ $ $ $ $ $ $ $ $ Subtotal Distribution System $ 3,664.1 $ 1,205.1 $ 1,225.0 $ 1,150.0 $ 2,573.0 $ 2,214.7 $ 1,825.0 $ 2,434.2 $ 1,000.0 $ 1,500.0 $ 18,791.1 Other District Assets Technical Programs J1601 $ IT Program: Financial (Enterprise) Software $ 64.3 $ $ $ $ $ $ $ $ $ $ $ JTBD $ IT Program: Document Management System $ $ $ $ $ $ $ $ $ $ JTBD $ IT Program: Performance Management Reporting $ $ $ $ $ $ $ $ $ Water Resources J1504 $ Advanced Water Purification (Potable Reuse) Evaluations $ 41.6 $ $ 75.0 $ $ $ $ $ $ $ $ $ 75.0 Buildings and Property J1402 $ Corporate Yard, Phase 3 $ $ $ $ $ 74.9 $ $ $ $ Subtotal Other District Assets $ $ $ $ $ $ $ 74.9 $ $ $ $ 1,205.9 Joint Facilities (SFID Cost) REB Plant Improvements J1351 $ 2,786.3 Electrical Distribution and Substation Improvements $ 2,422.0 $ $ $ J1350 $ Chlorine Dioxide Generation & PACL Feed Improvements $ $ $ 18.5 $ J1750 $ 1,656.0 Clearwell Seismic Improvements $ 24.8 $ 51.1 $ $ $ $ $ $ $ $ $ 1,656.0 J1751 $ 1,856.0 Washwater Tank Seismic Improvements $ 31.7 $ $ $ $ $ $ $ $ $ $ 1,856.0 J1752 $ 5,005.0 Mechanical Dewatering Improvements $ 95.5 $ $ 2,241.0 $ 2,241.5 $ $ $ $ $ $ $ 5,005.0 JTBD $ 3,795.0 Filter Washwater Improvements $ $ 1,746.0 $ 1,746.0 $ 3,795.0 JTBD $ New Flocculators $ $ $ $ $ $ 60.5 $ $ $ JTBD $ New Sludge Collection Equipment $ $ $ $ $ $ 96.3 $ $ $ J1753 $ Handrail Improvements at San Dieguito Reservior $ 6.8 $ 50.4 $ $ $ $ $ $ $ $ JTBD $ 3,487.0 Filter Improvements $ $ $ $ $ $ $ $ $ $ 1,568.5 $ 1,918.5 SDR Improvements $ J600 $ 4,125.0 San Dieguito Pump Station Replacement $ 1,867.1 $ 1,828.2 $ $ $ $ $ $ $ $ $ $ 2,257.9 JTBD $ 1,809.0 SDR Perimeter Vegetation Removal $ $ $ $ $ $ $ $ $ J1754 $ SD Dam Concrete Refurbishment $ 57.3 $ $ $ $ $ $ $ $ JTBD $ 3,130.2 SDR Dredging Project $ $ $ $ $ Pipeline Improvements $ J603 $ 82.5 Relocate Fiberoptic Cable $ 21.7 $ $ $ $ 60.8 $ $ $ $ $ 60.8 JTBD $ 2,597.6 New Parallel Flume Pipeline from CPS to SDR $ $ $ $ 1,169.8 $ 1,169.8 $ $ $ $ 2,597.6 JTBD $ 1,252.1 Reline or Replace 15in Drain Line to SDR $ $ $ $ $ 1,102.1 $ $ $ $ 1,252.1 JTBD $ 2,817.2 Reline or Replace Existing 30in SDPS Forcemain to Plant $ $ $ 1,265.3 $ 1,265.3 $ $ $ $ 2,817.2 JTBD $ 7, Inch CCP Pipeline Rehabilitation $ $ $ $ $ $ Subtotal Joint Facilities (SFID Cost) $ 2,529.5 $ 1,271.1 $ 4,511.7 $ 4,327.4 $ 2,625.4 $ 2,798.9 $ 2,915.8 $ 1,902.8 $ 1,695.8 $ 1,568.5 $ 26,146.9 SFID TOTAL ALL PROJECTS $ 6,399.6 $ 2,651.2 $ 5,736.7 $ 5,477.4 $ 5,198.4 $ 5,263.6 $ 4,815.7 $ 4,837.0 $ 2,695.8 $ 3,068.5 $ 46,143.8 Joint Facilities (SDWD Cost) REB Plant Improvements J1351 $ 2,279.7 Electrical Distribution and Substation Improvements $ 1,981.6 $ $ $ J1350 $ Chlorine Dioxide Generation & PACL Feed Improvements $ $ $ 15.0 $ J1750 $ Clearwell Seismic Improvements $ 11.1 $ 23.0 $ $ $ $ $ $ $ $ $ J1751 $ 1,519.0 Washwater Tank Seismic Improvements $ 26.0 $ 86.5 $ $ $ $ $ $ $ $ $ 1,519.0 J1752 $ 4,095.0 Mechanical Dewatering Improvements $ 78.1 $ $ 1,833.0 $ 1,834.5 $ $ $ $ $ $ $ 4,095.0 JTBD $ 3,105.0 Filter Washwater Improvements $ $ 1,428.5 $ 1,428.5 $ 3,105.0 JTBD $ New Flocculators $ $ $ $ $ $ 49.5 $ $ $ JTBD $ New Sludge Collection Equipment $ $ $ $ $ $ 78.8 $ $ $ J1753 $ Handrail Improvements at San Dieguito Reservior $ 5.2 $ 37.6 $ $ $ $ $ $ $ $ JTBD $ 2,853.0 Filter Improvements $ $ $ $ $ $ $ $ $ $ 1,301.5 $ 1,551.5 SDR Improvements $ J600 $ 3,375.0 San Dieguito Pump Station Replacement $ 1,527.6 $ 1,495.8 $ $ $ $ $ $ $ $ $ $ 1,847.4 JTBD $ 1,346.7 SDR Perimeter Vegetation Removal $ $ $ $ $ $ $ $ $ J1754 $ SD Dam Concrete Refurbishment $ 42.7 $ $ $ $ $ $ $ $ JTBD $ 2,329.8 SDR Dredging Project $ $ $ $ $ Pipeline Improvements $ J603 $ 67.5 Relocate Fiberoptic Cable $ 17.7 $ $ $ 49.8 $ $ $ $ $ 49.8 JTBD $ 1,933.4 New Parallel Flume Pipeline from CPS to SDR $ $ $ $ $ $ $ $ $ 1,933.4 JTBD $ Reline or Replace 15in Drain Line to SDR $ $ $ $ $ $ $ $ $ $ $ JTBD $ 2,096.8 Reline or Replace Existing 30in SDPS Forcemain to Plant $ $ $ $ $ $ $ $ $ 2,096.8 JTBD $ 5, Inch CCP Pipeline Rehabilitation $ $ $ $ $ $ Subtotal Joint Facilities (SDWD Cost) $ 2,060.1 $ 1,013.2 $ 3,357.5 $ 3,218.3 $ 1,953.6 $ 2,110.2 $ 2,299.2 $ 1,556.8 $ 1,351.1 $ 1,301.5 $ 20,221.5 TOTAL JOINT FACILITIES PROJECTS $ 4,589.6 $ 2,284.3 $ 7,869.2 $ 7,545.7 $ 4,579.0 $ 4,909.1 $ 5,215.0 $ 3,459.6 $ 3,046.9 $ 2,870.0 $ 46,368.4 TOTAL ALL CIP PROJECTS (BOTH SFID & SDWD) $ 8,459.7 $ 3,664.4 $ 9,094.2 $ 8,695.7 $ 7,152.0 $ 7,373.8 $ 7,114.9 $ 6,393.8 $ 4,046.9 $ 4,370.0 $ 66,365.4 FY18 Column Shows Estimated Expenditures Agenda page 18 Date and Time of Last Update: 2/21/2018, 10:35 AM

19 DATE: TO: FROM: SUBJECT: General Manager Review Update of SFID AMMP Asset Valuation RECOMMENDATION: It is the Staff recommendation that the : 1. Review and discuss the Updated SFID Asset Management Master Plan (AMMP) Asset Valuation, and; 2. Take other action as appropriate. DISCUSSION: The Santa Fe Irrigation District s (SFID) 2008 Asset Management Master Plan (AMMP) prepared by Dexter Wilson Engineering, Inc. (DWE) presented a valuation of the major infrastructure components owned by SFID (both SFID s independently-owned infrastructure and facilities owned jointly with the San Dieguito Water District) to assist SFID in long-term capital expenditure planning. DWE has prepared an update of SFID s AMMP Asset Valuation. The updated valuation is provided in Attachment A. The updated asset values are based on more recent cost assumptions. For example, updated pipeline cost estimates were based on actual bid results for SFID projects. Table 1 provides a comparison of the 2008 valuation with the updated valuation. Table 1 Comparison of the 2008 AMMP SFID Asset Valuation with the Updated Asset Valuation 2008 VALUATION UPDATED VALUATION SFID ONLY ASSETS $213,033,400 $397,555,000 SFID PORTION OF JOINTLY OWNED ASSETS* $75,375,800 $ 91,114,800 TOTAL SFID ASSET VALUATION $288,409,200 $488,669,800 *Note: The total value of Jointly Owned Assets is $161,040,200 and the SDWD Portion of Jointly Owned Assets is approximately $69,925,400. Agenda page 19

20 As shown on Table 1, the updated asset valuation is substantially higher than the 2008 valuation. The primary reason for the increase, is that construction cost associated with pipeline replacements has increased significantly over the past 10 years. The valuation also includes enhancements derived from SFID s pressure reducing station replacement program, and assumes the complete implementation of the automated meter replacement program. Detailed tables included in the Asset Valuation Update Memo compare the cost of multiple asset types (pipelines, valves, treatment facilities, etc.) and the basis for the updated valuation for each asset type. The memo also provides an estimate of useful life for the various asset types and general annual capital replacement planning estimates. The cost included in the Asset Valuation Update Memo are for construction only. The total capital cost would require the addition of soft costs (Design, Construction Management, District Labor, construction contingencies, and others) that typically equate to 40% of the construction cost. Staff will provide an overview of the Updated SFID Asset Management Master Plan (AMMP) Asset Valuation at the meeting. FISCAL IMPACT: No direct fiscal impact with this review of this item. Attachment A: Memorandum Update of SFID AMMP Asset Valuation Prepared by: Approved by: William Hunter, Engineering Services Manager Michael J. Bardin, General Manager Agenda page 20

21 ATTACHMENT "A" MEMORANDUM TO: Bill Hunter, P.E., Santa Fe Irrigation District FROM: Natalie Fraschetti, P.E., Dexter Wilson Engineering, Inc. DATE: February 20, 2018 SUBJECT: Update of SFID AMMP Asset Valuation The Santa Fe Irrigation District s (District) 2008 Asset Management Master Plan (AMMP) prepared by Dexter Wilson Engineering, Inc. presented a valuation of the major infrastructure components owned by the District (both the District s independently-owned infrastructure and facilities owned jointly with the San Dieguito Water District) to assist the District in long-term capital spending planning. The purpose of this memorandum is to provide the District with an updated valuation of assets and annual capital replacement planning recommendations. The annual capital replacement planning recommendations are based on the valuation of the asset divided by the estimated useful life of the asset. For example, the estimated replacement value of the District s 3,127 valves is $20,787,000. At an estimated useful life of 50 years, the annual capital replacement planning recommendation is $416,000. Table 1 presents the 2017 asset valuation and Table 2 presents the annual capital replacement planning recommendations. Agenda page 21

22 TABLE 1 SFID ASSET VALUATION SUMMARY Asset Count or Length in feet Total Value SFID Assets Corporate Yard -- $ 20,000,000 Larrick Reservoir -- $ 8,307,000 Larrick Pump Station -- $ 1,400,000 Pressure Reducing Stations 33 $ 17,490,000 Pipelines 830,788 $ 291,347,000 Valves 3,127 $ 20,787,000 AMI Meter Towers 5 $ 135,000 Water Meters 7,585 $ 4,776,000 Water Services 7,544 $ 26,988,000 Fire Hydrants 1,265 $ 6,325,000 Subtotal $ 397,555,000 Joint Facility Assets, SFID Share Cielo Pump Station -- $ 2,751,840 SDR Dam -- $ 10,262,070 SDR Pump Station -- $ 2,860,000 REB Hydro Plant -- $ 2,825,900 REB Plant -- $ 35,750,000 Pipelines 68,164 $ 35,975,735 Meters 5 $ 689,278 Subtotal $ 91,114,822 TOTAL SFID ASSET VALUE $ 488,669,822 Agenda page 22

23 TABLE 2 SFID ANNUAL CAPITAL REPLACEMENT SPENDING (CONSTRUCTION COST ONLY) Asset Annual Capital Replacement (in thousands of dollars) SFID Assets Corporate Yard $ 400 Larrick Reservoir $ 166 Larrick Pump Station $ 28 Pressure Reducing Stations $ 350 Pipelines $ 2,913 Valves $ 416 AMI Meter Towers $ 7 Water Meters $ 191 Water Services $ 540 Fire Hydrants $ 127 Subtotal $ 5,137 Joint Facility Assets, SFID Share Cielo Pump Station $ 55 SDR Dam $ 103 SDR Pump Station $ 57 REB Hydro Plant $ 57 REB Plant $ 715 Pipelines $ 370 Meters $ 14 Subtotal $ 1,370 TOTAL $ 6,507 The four tables provided in Attachment A provide a comparison of the 2008 AMMP valuation and the current valuation, as well as the basis of developing the asset valuation for each asset class. NJF:FF:sg Agenda page 23

24 Attachment A Agenda page 24

25 ASSET CLASS TABLE A-1 ASSET VALUATION COMPARISON 2008 AMMP VALUATION 2017 VALUATION NOTES/COMMENTS * TABLE A-2 ANNUAL CAPITAL REPLACEMENT SPENDING COMPARISON (in thousands of dollars) ASSET CLASS 2008 AMMP RECOMMENDATION 2017 RECOMMENDATION SFID ASSETS SFID ASSETS Corporate Yard $ 20,000,000 $ 20,000,000 - Corporate Yard $ 400 $ 400 Larrick Reservoir $ 7,500,000 $ 8,307,000 - Larrick Reservoir $ 150 $ 166 Larrick Pump Station $ 750,000 $ 1,400,000 - Larrick Pump Station $ 15 $ 28 Pressure Reducing Stations $ 6,650,000 $ 17,490,000 Revised basis of design Pressure Reducing Stations $ 133 $ 350 Pipelines $ 121,521,231 $ 291,347,000 - Pipelines $ 1,215 $ 2,913 Valves $ 23,936,250 $ 20,787,000 Revised count Valves $ 479 $ 416 AMI Meter Towers -- $ 135,000 Implementation of the AMI AMI Meter Towers -- $ 7 Water Meters $ 2,949,225 $ 4,776,000 Project Water Meters $ 118 $ 191 Water Services $ 18,726,750 $ 26,988,000 - Water Services $ 375 $ 540 Fire Hydrants $ 11,000,000 $ 6,325,000 Revised count Fire Hydrants $ 220 $ 127 Subtotal $ 213,033,456 $ 397,555,000 - Subtotal $ 3,105 $ 5,137 SFID s PORTION OF JOINTLY-OWNED ASSETS SFID s PORTION OF JOINTLY-OWNED ASSETS Cielo Pump Station $ 2,293,200 $ 2,751,840 - Cielo Pump Station $ 46 $ 55 SDR Dam $ 8,599,500 $ 10,262,070 - SDR Dam $ 86 $ 103 SDR Pump Station $ 2,365,000 $ 2,860,000 - SDR Pump Station $ 47 $ 57 REB Hydro Plant $ 1,650,000 $ 2,825,900 - REB Hydro Plant $ 33 $ 57 REB Plant $ 30,250,000 $ 35,750,000 REB Plant $ 605 $ 715 Pipelines $ 29,668,061 $ 35,975,735 Revised count Pipelines $ 297 $ 370 Meters $ 550,000 $ 689,278 Revised count Meters $ 11 $ 14 Subtotal $ 75,375,761 $ 91,114,822 - Subtotal $ 1,125 $ 1,370 TOTAL $ 288,409,217 $ 488,669,822 TOTAL $ 4,230 $ 6,507 * All asset categories were adjusted for increased costs based on bid results or ENR. This field is completed for other factors in addition to increased costs. Agenda page 25 Dexter Wilson Engineering, Inc \\ARTIC\Docs\ \ _Master Asset Valuation.xlsxTbl A-1 & A-2 February 2018

26 TABLE A-3 SFID ASSET VALUATION FOR CAPITAL REPLACEMENT AND IMPROVEMENT Asset Count Feet Annual Useful Cost/Foot Capital Detailed Source of "Count" Life, Total Cost or Cost/Unit Replacement, or "Feet" years $1,000 Detailed Source of "Cost/Ft" or "Cost/Unit" Corporate Yard 1 - $20,000, $20,000,000 $400 - Cost verified with $/ft based on recent similar local public agency project. Larrick Reservoir 1 - $6,822, $8,307,000 $ Estimate with LA-CCI Adjustment for April 2017 and for Jan 2009 Larrick Pump Station 1 - $1,400, $1,400,000 $28 - Pump quote with standard unit costs. Pressure Reducing Stations 33 - $530, $17,490,000 $350 Includes 2 OMWD Connections $530k from Group 3 PRS bids (same as 2017 FY17 10 Yr CIP). Pipelines ,601 $ $3,450,754 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 27-6,804 $ $4,592,660 - District Geodatabase as of 4/30/2017 $25 per inch diameter per foot 24-25,513 $ $15,307,646 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 20-30,015 $ $16,208,304 - District Geodatabase as of 4/30/2017 $27 per inch diameter per foot 18-5,815 $ $3,139,860 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 16-27,248 $ $13,078,811 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 14-9,542 $ $4,007,541 - District Geodatabase as of 4/30/2017 $30 per inch diameter per foot 12-54,839 $ $23,032,546 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$35 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) ,896 $ $45,158,335 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$40 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 8-381,575 $ $122,103,962 - District Geodatabase as of 4/30/2017 SFID Bid results-group 2 Pipelines-$40 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 6-140,798 $ $33,791,620 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot 4-26,067 $ $6,256,046 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot, minimum $ ,422 $ $341,213 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot, minimum $ ,839 $ $681,297 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot, minimum $ $ $17,588 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot, minimum $ $ $178,024 - District Geodatabase as of 4/30/2017 $40 per inch diameter per foot, minimum $240 Total Pipelines - 830, $291,347,000 $2, Valves - 30" 1 - $ 34, $34,500 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 24" 22 - $ 31, $693,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 20" 14 - $ 28, $399,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 18" 8 - $ 25, $204,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 16" 41 - $ 16, $676,500 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 14" 7 - $ 13, $94,500 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 12" $ 10, $1,123,500 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 10" $ 6, $1,680,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 8" $ 6, $5,280,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 6" 1,655 - $ 6, $9,930,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 4" 87 - $ 6, $522,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 3" 20 - $ 6, $120,000 - District Geodatabase as of 4/30/2017 Gate valve quote + 50% for install, minimum $6k 2" 5 - $ 6, $30,000 - District Geodatabase as of 4/30/ Total Valves 3, $20,787,000 $ Anticipated # of towers at buildout SFID AMI Costs, includes installation by Sensus AMI Towers & System 3 - $45, $135,000 $7 Water Meters - - Water Meter 5/8" 13 - $ $6,451 - SFID AMI Costs, includes installation by Sensus Water Meter 3/4" 3,694 - $ $1,833,037 - SFID AMI Costs, includes installation by Sensus Water Meter 1" 2,480 - $ $1,367,522 - SFID AMI Costs, includes installation by Sensus Water Meter 1.5" $ $934,547 - SFID AMI Costs, includes installation by Sensus Water Meter 2" $ 1, $359,895 - Provided 5/11/17 by JD via SFID AMI Costs, includes installation by Sensus Water Meter 3" 13 - $ 2, $35,822 - Springbrook query "Meters Inventory SFID AMI Costs, includes installation by Sensus Water Meter 4" 10 - $ 3, $35,766 - Installed" Sensus quote plus 20% for install Water Meter 6" 7 - $ 6, $43,604 - Sensus quote plus 20% for install Water Meter 8" 3 - $ 9, $29,761 - Sensus quote plus 20% for install Water Meter 10" 1 - $ 12, $12,833 - Sensus quote plus 20% for install Temporary Meter 41 - $ 2, $116,051 - Assume 3-inch meter Total Water Meter 7, $4,776,000 $ Water Services - - Water Service 5/8" 13 - $ 3, $44,850 - Length unknown. Use 2018 Rate Table. Water Service 3/4" 3,694 - $ 3, $12,744,300 - Length unknown. Use 2018 Rate Table. Water Service 1" 2,480 - $ 3, $8,717,200 - Length unknown. Use 2018 Rate Table. Water Service 1.5" $ 4, $3,992,000 - Length unknown. Use 2018 Rate Table. Water Service 2" $ 4, $1,306,175 - Assumed to be the same as Water Length unknown. Use 2018 Rate Table. Water Service 3" 13 - $ 5, $69,875 - Meters. Length unknown. Use 2018 Rate Table. Water Service 4" 10 - $ 5, $53,750 - Length unknown. Use 2018 Rate Table. Water Service 6" 7 - $ 5, $37,625 - Length unknown. Use 2018 Rate Table. Water Service 8" 3 - $ 5, $16,125 - Length unknown. Use 2018 Rate Table. Water Service 10" 1 - $ 5, $5,375 - Length unknown. Use 2018 Rate Table. Total Water Services 7, $26,988,000 $ District Geodatabase as of 4/30/ Fire Hydrants 1,265 - $5, $6,325,000 $127 TOTAL $397,555,000 $5,137 Costs are construction costs (not fully burdened District costs) Costs are for facilities only (i.e. no land/property) Costs do not include technology systems (software), vehicles Agenda page 26 Dexter Wilson Engineering, Inc \\ARTIC\Docs\ \ _Master Asset Valuation.xlsxTblA-3.SFID Assets February 2018

27 Asset Count Feet Cost/Foot or Cost/Unit TABLE A-4 JOINT FACILITIES (SFID SHARE) ASSET VALUATION FOR CAPITAL REPLACEMENT AND IMPROVEMENT Useful Life, years Total Cost SFID Share SFID Share Cost Annual Capital Replacement, $1,000 Detailed Source of "Cost/Ft" or "Cost/Unit" Pipelines 54" CCP 9,450 $1, $12,757, % $7,782,219 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 54" CML&C 10,840 $1, $14,634, % $8,385,655 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 42" CCP 180 $1, $188, % $115,119 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 36" CCP 340 $ $306, % $175,573 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 30" CCP 406 $ $304, % $174,532 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 30" CML&C 406 $ $304, % $185,519 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) 24" PVC C $ $79, % $48,787 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot (Same as unit cost for FY17 10 Yr CIP) Total Pipelines 21, $28,575,900 $16,867,405 $ Meters " Venturi Meter 1 $170, $170, % $170,000 Equipment quote + install 1-8" Venturi Meter 1 $74, $74, % $74,000 Equipment quote + install 1-20" Venturi Meter 1 $160, $160, % $160,000 Equipment quote + install 1-10" Venturi Meter 1 $74, $74, % $74,000 Equipment quote + install 1-24" Venturi Meter 1 $170, $170, % $170,000 Equipment quote + install Total Meters 5 50 $648,000 $648,000 $ 13 - Valves - 54" Butterfly valve 7 $37, $262, % $160,125 Gate valve quote + 50% for install, minimum $6k 42" Butterfly valve 1 $36, $36, % $22,265 Gate valve quote + 50% for install, minimum $6k 36" Butterfly valve 1 $35, $35, % $20,352 Gate valve quote + 50% for install, minimum $6k 30" Butterfly valve 3 $34, $103, % $59,337 Gate valve quote + 50% for install, minimum $6k 24" Butterfly valve 9 $31, $283, % $172,935 Gate valve quote + 50% for install, minimum $6k 20" Butterfly valve 1 $28, $28, % $17,385 Gate valve quote + 50% for install, minimum $6k 10" Butterfly valve 1 $6, $6, % $3,660 Gate valve quote + 50% for install, minimum $6k 8" Butterfly valve 1 $6, $6, % $3,660 Gate valve quote + 50% for install, minimum $6k 6" BO 10 $6, $60, % $36,600 Gate valve quote + 50% for install, minimum $6k 4" CAV 24 $6, $144, % $87,840 Gate valve quote + 50% for install, minimum $6k Total Valves $966,000 $584,159 $ 12 - REB Plant * 1 50 $ 65,000, % $35,750,000 $ 715 Local plant expansion with ENR adjustment REB Hydro Plant 1 50 $5,138, % $2,825,900 $ SFID Study Cielo Pump Station 1 50 $4,800, % $2,751,840 $ Estimate with LA-CCI Adjustment for April 2017 and for Jan 2009 Pipelines (Cielo PS) - 48" CML&TC 372 $1, $446, % $256,202 $25 per inch diameter per foot 36" CML&TC FM 9,790 $ $8,811, % $5,051,548 $25 per inch diameter per foot 36" CML&TC 9,481 $ $8,532, % $4,891,770 $25 per inch diameter per foot 24" CML&TC 81 $ $48, % $27,972 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot 18" CML&TC 67 $ $36, % $20,825 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot 18" CML&TC FM 88 $ $47, % $27,197 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot 18" HDPE Flume 6,762 $ $3,651, % $2,093,278 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot 14" CML&TC FM 55 $ $22, % $13,162 $30 per inch diameter per foot 12" CML&TC FM 35 $ $14, % $8,428 SFID Bid results-group 2 Pipelines-$30 per inch diameter per foot 10" CML&TC 34 $ $13, % $7,780 SFID Bid results-group 2 Pipelines-$40 per inch diameter per foot Total Pipelines 26, $21,625, % $12,398,163 $ Meters (Cielo PS) - 36" Electromag flowmeter 2 $36, $72, % $41,278 Electromag quote + 50% for install Total Meters 2 50 $72, % $41,278 $ 1 - Valves (Cielo PS) - 36" Butterfly valve 3 $35, $106, % $61,056 Gate valve quote + 50% for install, minimum $6k 24" Butterfly valve 8 $31, $252, % $144,472 Gate valve quote + 50% for install, minimum $6k 18" Butterfly valve 2 $25, $51, % $29,238 Gate valve quote + 50% for install, minimum $6k 12" Butterfly valve 2 $10, $21, % $12,039 Gate valve quote + 50% for install, minimum $6k 10" Butterfly valve 2 $6, $12, % $6,880 Gate valve quote + 50% for install, minimum $6k 4" BO 10 $6, $60, % $34,398 Gate valve quote + 50% for install, minimum $6k 8" CAV 1 $6, $6, % $3,440 Gate valve quote + 50% for install, minimum $6k 3" CAV 8 $6, $48, % $27,518 Gate valve quote + 50% for install, minimum $6k 2" MAV 1 $6, $6, % $3,440 Gate valve quote + 50% for install, minimum $6k Total Valves $562, % $322,481 $ 6 - SDR Pump Station 1 50 $5,200, % $2,860,000 $ Estimate with LA-CCI Adjustment for April 2017 and for Jan 2009 Pipelines (SDR PS) - 30" CML&C 372 $ $279, % $153,619 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot 24" CML&C 9,790 $ $5,874, % $3,230,829 SFID Bid results-group 2 Pipelines-$25 per inch diameter per foot 15" CML&C 9,481 $ $4,266, % $2,346,480 $30 per inch diameter per foot Total Pipelines 19, $10,419, % $5,730,927 $ 57 - Valves (SDR PS) - 30" Butterfly valve 2 $34, $69, % $37,950 Gate valve quote + 50% for install, minimum $6k 24" Butterfly valve 2 $31, $63, % $34,650 Gate valve quote + 50% for install, minimum $6k Total Valves 4 50 $132, % $72,600 $ 1 - SDR Dam * $17,900, % $10,262,070 $ Estimate with LA-CCI Adjustment for April 2017 and for Jan 2009 TOTAL $161,040,227 $91,114,822 $1,370 * Costs for the REB Plant and the SDR Dam represent ballpark estimate of capital expenses rather full replacement costs. Agenda page 27 Dexter Wilson Engineering, Inc \\ARTIC\Docs\ \ _Master Asset Valuation.xlsxTableA-4.Joint Assets February 2018