HomeMy WebLinkAbout2012 Water Master Plan and Financial Plan - Resolution 2013- PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) SS. CITY OFHUNTINGTON
BEACH
COUNTY OF ®RANGE ) LEGALNOTICE
ORDINANCE NO.3970
Adopted by the City Council
I am a citizen of the United States and a onFEBRUARYi9,2013 .
resident of the County of Los Angeles; I ' ORO THE
'CCITIT Y.OF HUNTINUNGTON
am over the age of eighteen years, and BEACH AMENDING
'CHAPTER 14.12 OF THE
`HUNTINGTON BEACH
not a party to or Interested in the notice MUNICIPAL CODE RE-
LATING TO WATER
published. I am a principal clerk of the FEES
H U NTI N GTO N BEACH SYNOPSIS:
The original Water Mas-
ter Plan was adopted in
INDEPENDENT;' which was-adjudged a 1988 as a tool to assist
in planning for adequate
newspaper of general circulation on water with
grow ho keep
September 29, 1961, case A6214, and pace with growth and n-
to
correct system deficien-
cies.
June 11, 1963, case A24831, for the Beginning in 2011, staff
and a consultant began
City. of. :Huntington Beach, County of Work to update the Zoos
Water Master Plan and
Orange and the State of California. Financial Plan.at over-
view of,the updated Wa-
Attached to this Affidavit is a :true and ter Master Plan was
presented to City Coun-
complete copy as was printed and cil January.22,
2013 Study a Session.The
published on the following date(s): final Water Master Plan
is completed and ap-
proved by City.'Council
on February 4,2013.
Thursday, February 28, 2013
E 3 PASSED AND ADOPTED
by the City Council of
the'City of Huntington
Beach- at a regular
meeting held
February 19, -2013 by
certify (or declare) under penalty the following roll call
vote:
of perjury that the foregoing is true AYES: Sullivan, Hardy,
Harper, Boardman,
Carchio, Shaw,
and correct. Katapodis
NOES:None
'ABSTAIN:None
ABSENT:None,
'THE FULL TEXT OF THE
ORDINANCE IS,AVAIL-
ABLE IN THE CITY
CLEExecuted on March 8 2013 This ordinance
is
� This ordinance is effec-
at Los Angeles, California five 30 dot's after
.adoption.
CITY OF HUNTINGTON
BEACH
2000 MAIN STREET
HUNTINGTON'BEACH,
I CA 92648
714-536-5227
�j�ilD JOAN L.FLYNN,CITY
/I,,�/G',r�/"` 'dent
, .
/V(� Published H.B. Indepen-
dent 2/2//13
Signature
7-
Dept. ID PW 13-001-Page 1 of 3
Meeting Date:2/4/2013
CITY OF HUNTINGTON BEACH
g REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 2/4/2013
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
SUBJECT: Adopt Resolution No. 2013-05 approving and adopting the 2012 Water Master
Plan and Financial Plan; approve for introduction Ordinance No. 3970 amending
Municipal Code 14.12.010 to replace the 2005 Water Master Plan; and, adopt
Resolution No. 2013-06 identifying specific water projects on which monies can
be expended
Statement of Issue:
Beginning in 2011, staff and a consultant began work on an update of the Water Master Plan
(WMP) and Financial Plan. An overview of the WMP was presented to City Council at the January
22, 2013 Study Session. The final WMP is completed and is presented for City Council approval.
Financial Impact:
No funding is required. All revenues from the Capital Facilities Charge are deposited to the Water
Master Plan Fund (507).
Recommended Action:
A) Adopt Resolution No. 2013-05, "A Resolution of the City Council of the City of Huntington Beach
Approving and Adopting that Certain Report Entitled "2012 Water Master Plan and Financial Plan
Update, City of Huntington Beach;" and,
B) Adopt Ordinance No. 3970, "An Ordinance of the City of Huntington Beach Amending Chapter
14.12 of the Huntington Beach Municipal Code Pertaining to Water Fees," to replace the 2005
Water Master Plan; and,
C) Adopt Resolution No. 2013-06, "A Resolution of the City Council of the City of Huntington Beach
Identifying the Specific Water Projects from the Approved Water Master Plan on which Capital
Facilities Charge Monies and Capital Surcharge Monies Can Be Expended."
Alternative Action(s):
Do not adopt the 2012 WMP at this time and direct staff on how to proceed.
Analysis:
The original WMP was adopted in 1988 as a tool to assist in planning for adequate water service to
keep pace with growth and to correct system deficiencies. The plan was originally unfunded and
was supplemented in 1990 and 1993. In 1995, the plan was updated and a financing plan was put
in place to fund the identified capital projects on a pay-as-you-go basis. Specifically, funding was
provided by:
HB -307- Item 11. - 1
Dept. ID PW 13-001-Page 2 of 3
Meeting Date:2/4/2013
1. A Capital Facilities Charge on new residential development of$2,400 per each 34-inch
meter equivalent capacity installed, and
2. A Capital Surcharge that was charged on each monthly municipal services (water) bill.
The Capital Surcharge was programmed to sunset on December 1, 2007, with a maintenance
component to continue into perpetuity.
The WMP was last reviewed and updated in 2005 and adopted by City Council in June 2006.
Beginning in 2011, staff and a consultant began work on another update and review of the Master
Plan, the projects therein, and the Financial Plan. This update was completed in late 2012. The
WMP was presented to City Council at the January 22, 2013 Study Session.
The WMP is comprised of eight (8) chapters that examine and analyze various aspects of the City's
water system and any deficiencies that have been identified, taking into account those Master Plan
projects that have already been completed:
1. City Characteristics and Projected Growth
2. Water Demand
3. Water Supply and Reliability
4. Facilities and Operation
5. Storage and Emergency Supply
6. Hydraulic Model Construction, Model Validation & Scenario Modeling
7. Capital Improvement Program
8. Financial Plan
Chapter 8 focuses on the Financial Plan and the remaining projects along with revised cost
estimates. Based on current cost estimates and projected revenue, a shortfall in funding of$13.4
million is projected. The main reason noted for the shortfall is a combination of less than projected
revenue from new residential developments, and a significant increase from the addition of 1.75
miles of new transmission main in the Capital Improvement Program. On the other hand, the
expense to design and build the Southeast Reservoir and Booster Station would essentially be
eliminated if future potential desalination by third party occurs in the City, which would leave a
surplus of $10.5 million in the WMP Fund.
Two alternative solutions for addressing the shortfall are noted.
1. Adopt the WMP as presented, closely monitor project cost and revenue and revisit the
shortfall issue by mid-2017 and make any appropriate policy and/or financial adjustments at
that time, including a decision to prepare another WMP update.
2. Eliminate some scheduled projects or consider alternative funding sources.
Because of the current volatility of construction costs and the potential scenario of having a third
party bear the cost of the Southeast Reservoir and Booster Station construction, staff and the
consultant recommend Alternative 1. If it is determined in mid 2017 that the cost of reservoir/
booster station construction will be the City's responsibility and that a shortfall in funds would occur,
staff can explore another WMP update and determine how to address the shortfall, including the
possibility of using the Water Fund to pay for the remaining project work.
Public Works Commission Action:
The Public Works Commission reviewed the final Water Master Plan as an informational item on
January 16, 2013. The Commission determined that a recommendation of support to the City
Council was appropriate on a 4-0-3 vote (Siersema and O'Connell absent; Herbel abstain).
Item 11. - 2 HB -308-
Dept. ID PW 13-001-Page 3 of 3
Meeting Date:2/4/2013
Environmental Status:
Not applicable. Implemented projects will comply with the California Environmental Quality Act.
Strategic Plan Goal:
Improve the City's infrastructure
Attachment(s):
1. Resolution No. 2013-05, "A Resolution of the City Council of the City of Huntington Beach
Approving and Adopting that Certain Report Entitled "2012 Water Master Plan and Financial
Plan Update, City of Huntington Beach"
2. Ordinance No. 3970, "An Ordinance of the City of Huntington Beach Amending Chapter 14.12
of the Huntington Beach Municipal Code Pertaining to Water Fees," amending HBMC Section
14.12.010 (d)
3. Resolution No. 2013-06, "A Resolution of the City Council of the City of Huntington Beach
Identifying the Specific Water Projects from the Approved Water Master Plan on Which Capital
Facilities Charge Monies and Capital Surcharge Monies can be Expended."
4. Executive Summary—2012 Water Master Plan
5. PowerPoint Presentation
HB -309- Item 11. - 3
ATTACHMENT # 1
RESOLUTION NO. 2013-05
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF HUNTINGTON BEACH APPROVING AND
ADOPTING THAT CERTAIN REPORT ENTITLED "2012 WATER MASTER
PLAN AND FINANCIAL PLAN UPDATE, CITY OF HUNTINGTON BEACH"
WHEREAS, at its meeting of February 04 , 2013, the members of the
City Council of the City of Huntington Beach were requested by City staff to approve that certain report
entitled "2012 Water Master Plan and Financial Plan Update, City of Huntington Beach" (sometimes
referred to as "2012 Water Master Plan" and "Plan"), which Plan was prepared by the engineering firm
of PSOMAS; and
The 2012 Water Master Plan, as a planning study for possible future actions that the City
Council has not approved, adopted or funded and that does not have a legally binding effect on latter
activities, is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to
State CEQA Guidelines section 15262; and
The City Council, at an earlier study session,reviewed the Water Master Plan, and said Plan was
distributed to and reviewed by the City's Public Works Commission on January 16, 2013.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach
as follows:
1. That certain report entitled "2012 Water Master Plan and Financial Plan Update, City of
Huntington Beach," is hereby approved and adopted; and said Plan is further approved for use and
implementation by the City's staff.
2. The 2012 Water Master Plan shall supercede the City Council's approved 2005 Water
Master Plan.
PASSED AND ADOPTED by the City Council the City of Huntington Beach at a regular
meeting thereof held on the th day of Febr uar ,
Mayor
REVIE APPROVED: INITIATED AND APPROVED:
CitpftaAa r ctor of Public Porks
A�/P'P\ROVED AS TO FORM:
� Yf� -
8� City Attorney
13-3629/89921.doc
Res. No. 2013-05
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on February 4, 2013 by the following vote:
AYES: Sullivan, Hardy, Harper, Boardman ,Carchio, Shaw, Katapodis
NOES: None
ABSENT: None
ABSTAIN: None
b`
Clerk and ex-offici �lerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
ORDINANCE NO. 3970
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING
CHAPTER 14.12 OF THE HUNTINGTON BEACH MUNICIPAL CODE
PERTAINING TO WATER FEES
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. Section 14.12.010 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
14.12.010 Service fee. For uses zoned commercial or industrial, the Water Department, as a
condition to granting the application and furnishing water service to the premises, is authorized to
charge and shall collect in advance the following sums for the purpose of reimbursing the City for
the cost of the system and future replacements and extensions thereof: (3302-11/95)
(a) The sum of sixty dollars ($60) for each usable unit on parcels containing less than ten thousand
(10,000) square feet.
A "usable unit" shall be each residential quarter in hotels and motels. (3302-11/95)
(b) For any parcel containing ten thousand (10,000) square feet of area or more, three hundred
dollars ($300) per acre or fraction thereof, or sixty dollars ($60) per usable unit, whichever is
greater. (3302-11/95)
A "usable unit" shall be any unit defined in subsection (a) above. The charge of three hundred
dollars ($300)per acre shall apply to all commercial and manufacturing developments. (3302-11/95)
(c) Those areas served by a water main constructed and charged as determined by another
ordinance or executed agreement may be exempt from the usable unit charge in subsection (a) if
said other ordinance or agreement charge is greater than the charge per subsection(a). (3302-11/95)
(d) All necessary service fees established by the City shall be deposited with the City prior to
approval of the final subdivision map or issuance of a building permit if a subdivision map is
not required. (674-12/57,723-6/59,1001-10/63, 1100-12/64,2022-1/76,2535-3/82)
For uses zoned other than commercial or industrial, the Water Department, as a condition to
granting the application and furnishing water service to the premises, is authorized to charge
and shall collect in advance the Capital Facilities Charge for the purpose of reimbursing the City
for the cost of the system and future replacements and extensions thereof The Capital Facilities
Charge is based on the cost per equivalent dwelling unit (EDU) of existing facilities and the
proposed expansion facilities which shall be set by a resolution of the City Council. All monies
collected as the Capital Facilities Charge shall be used for water projects that are consistent with
the goals and objectives of the Water Master Plan but which projects are specifically identified
in a resolution, and any amendment thereto, adopted by the City Council. (3302-11/95, 3496-5/01,3743-
8/06)
1
13-3637/90180
Ordinance No. 3970
SECTION. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED y the City Council of the City of Huntington Beach at a regular
meeting thereof held on the / day of ,c --� , 2013.
Mayo
ATTYEST: r F INITIATED AND APPROVED:
V City Clerk Director of Pu lic Works
REVIE APPROVED:
APPROVED AS TO FORM:
r �
ager I /
City Attorney
2
13-3637/90180
Ord. No. 3970
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a Regular
meeting thereof held on February 19,2013, and was again read to said City Council at a
Regular meeting thereof held on February 4, 2013, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis
NOES: None
ABSENT: None
I
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
i
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on February 28,2013. f�
In accordance with the City Charter of said City
Joan L. Flynn,City Clerk Cl Clerk and ex-officio Merk
nn'• i
aG .`�/�A— ssistant Citv Clerk of the City Council of the City
of Huntington Beach, California
ORDINANCE NO. 3970
LEGISLATIVE DRAFT
14.12.010 Service fee. For uses zoned commercial or industrial, the Water Department, as a
condition to granting the application and furnishing water service to the premises, is authorized
to charge and shall collect in advance the following sums for the purpose of reimbursing the City
for the cost of the system and future replacements and extensions thereof. (3302-1 l/95)
(a) The sum of sixty dollars ($60) for each usable unit on parcels containing less than ten
thousand (10,000) square feet.
A "usable unit" shall be each residential quarter in hotels and motels. (3302-11/95)
(b) For any parcel containing ten thousand (10,000) square feet of area or more, three hundred
dollars($300) per acre or fraction thereof, or sixty dollars ($60) per usable unit, whichever is
greater. (3302-11/95)
A "usable unit" shall be any unit defined in subsection (a) above. The charge of three
hundred dollars($300) per acre shall apply to all commercial and manufacturing
developments. (3302-11/95)
(c) Those areas served by a water main constructed and charged as determined by another
ordinance or executed agreement may be exempt from the usable unit charge in subsection
(a) if said other ordinance or agreement charge is greater than the charge per subsection (a).
(3302-11/95)
(d) All necessary service fees established by the City shall be deposited with the City prior to
approval of the final subdivision map or issuance of a building permit if a subdivision map is
not required. (674-12/57, 723-6/59, 1001-10/63, 1 100-12/64, 2022-1/76, 2535-3/82)
For uses zoned other than commercial or industrial, the Water Department, as a condition to
granting the application and furnishing water service to the premises, is authorized to charge
and shall collect in advance the Capital Facilities Charge for the purpose of reimbursing the
City for the cost of the system and future replacements and extensions thereof. The Capital
Facilities Charge is based on the cost per equivalent dwelling unit (EDU) of existing
facilities and the proposed expansion facilities which shall be set by a resolution of the City
Council. All monies collected as the Capital Facilities Charge shall be used for water projects
that are consistent with the goals and objectives of the 2405 Water Master Plan but which
projects are specifically identified in a resolution, and any amendment thereto, adopted by
the City Council. (3302-11/95, 3496-5/01, 3743-8/06)
ATTACHMENT #3
RESOLUTION NO. 2013-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
IDENTIFYING THE SPECIFIC WATER PROJECTS FROM THE APPROVED WATER
MASTER PLAN ON WHICH CAPITAL FACILITIES CHARGE MONIES AND CAPITAL
SURCHARGE MONIES CAN BE EXPENDED
WHEREAS, on February 04 , 2013, the City Council of the City of
Huntington Beach gave a first reading to Ordinance No. 3970 ; which ordinance
would amend Huntington Beach Municipal Code Sections 14.12.010(d) to provide that future
monies to be collected from the Capital Facilities Charge and previously collected monies from
the Capital Surcharge shall be expended on water projects that are consistent with the goals and
objectives of the City Council-approved Master Water Plan, but which projects are specifically
identified in an implementing resolution adopted by the City Council; and
The Water Master Plan, as a planning study for possible future actions that the City
Council has not approved, adopted or funded and that does not have a legally binding effect on
latter activities, is statutorily exempt from the California Environmental Quality Act (CEQA)
pursuant to State CEQA Guidelines section 15262.; and
On February 04 , 2013, the City Council, by the adoption of Resolution
No. 2013-05 , adopted and approved the Water Master Plan; and
On February 19 , 2013, it is expected that the City Council will give a
second reading and formally enact into law Ordinance No. 3970 ; which ordinance will
become effective thirty (30) days after its passage; and
Ordinance No. 3970 requires that this implementing resolution also be adopted
by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
1. The effective date of this resolution shall be February 04 , 2013.
2. From and after the effective date of this resolution, Capital Facilities Charge
monies to be collected and previously collected monies from the Capital Surcharge monies may
be expended on the list of water projects contained within the approved Water Master Plan;
which list is attached hereto as Exhibit A and incorporated herein by reference.
13-3629 l 89927 1
Resolution No. 2013-06
3. If any of the water projects listed on Exhibit A are deleted or changed, or if other
water projects, not presently listed, are proposed to be added to the list, such changes shall be
memorialized by an amendment to this resolution.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 4th day of February , 2013.
e
Mayor
REVIE ND APPROVED: INITIATED AND APPROVED:
Ci a er <birector of Public W rks
APPROVED A TO FORM:
l1
City Attorney
13-3629/89927 2
Resolution No. 2013-06
EXHIBIT A
2012 Water Master Plan & Financial Plan Update
Estimated Costs for Remaining Master Plan Projects
�o edt# '� ; � �� �, _ _ Estimated Estimated Estimated Total
DConstruction-V
J'ea ha 'Design c0if"7 Beach Blvd.Pipeline IMPS.d NA $
2013 700,000 $ 700,000
Pipeline Corrosion lid NA 2013 1,200,000 $ 1,200,000
12 Well 13 Permanent Wellhead 2015 200,000 2016 1,800,000 $ 2,000,000
1 Southeast Res.&Booster PS 2018 $1,597,000 2019-20 $17,648,000 $19,245,000
14 Southeast Res.Trans.Main h 2018 $ 503,000 2019-20 $ 5,355,000 $ 5,858,000
New Connection-Overmyer to SE TM 2018 $ 540,900 2019-20 $ 5,409,000 $ 5,949,900
1.75 mi.36"to 42"in Huntngtn.St. $ 500,300 $ 5,003,000
Interconnects @ Overmyer Res. $ 25,600 $ 256,000
PRVs @ SE Res.&AtlantalDwntn Lp $ 15,000 $ 150,000
16: Fire Protection Improvemen tSd NA $ - 2014 $ 300,000 $ 300,000
lCast Iron Main Replacement 2013 $ 200,000 2014 $ 800,000 $ 1,000,000
NA :aj�;d]Well I Re-drill 1 2016 j $ 150,000 2017 $ 1,350,000 $ 1,500,000
Total l 1 $3,190,900 1 $34,562,000
-------------------------- ---------------I-------I-------------------------------------- ------------------ ---- ------------------—------a)Costs estimates as of January 2012(LA ENR=10092).Escalation of design and construction costs will be accounted for in Financial
!Plan-chapter.-Project 14A-was--not-included--in--2005--Master Plan and-total-cost includes subtotals in italics._ ............................
I b)Design Costs range from 5 to 15%of construction costs(except for Project 17 due to extensive potholing),depending on project size
Viand complexity and include preliminary design,final design,potholing,geotechnical,survey,and bidding services.
c)Construction Costs include construction management and City project management.Construction management costs range from 2.5
ito 5%of construction costs for shop drawings,RI'ls,field visits,etc.,but do not include inspection services.City project management
Icosts range from 5 to 9%of construction costs and may include inspection services depending on the project type.
------------------ ------------------------------ --------------- -------------- ----------------------------------------------------- ------------
A Design already complete or costs encumbered.
Res. No. 2013-06
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on February 4, 2013 by the following vote:
AYES: Sullivan, Hardy, Harper, Boardman ,Carchio, Shaw, Katapodis
NOES: None
ABSENT: None
ABSTAIN: None
City- Clerk and ex-officio 61erk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #4
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
EXECUTIVE SUMMARY
ES.1 Purpose
The purpose of this report is to update the City's water master plan and water financing
plan, which were last updated in March 2006 (2005 Water Master Plan and Financing
Plan).
The Water Master Plan evaluates the water system performance and facilities for the
planning period 2010 through 2035, consistent with the City's 2010 Urban Water
Management Plan submitted to and approved on February 23, 2012 by the State
Department of Water Resources. The project includes the evaluation of City growth,
water demands, water supply and reliability, water quality, water storage, emergency
water supply, energy use and recovery, and water system distribution.
The Water Financial Plan evaluates the costs, scheduling and funding of projects
remaining to be paid for in the City's Water Master Plan Capital Improvement Program
(CIP). These projects were recommended in previous City water master plans. The Water
Financial Plan also evaluated the scenario whereby the potential desalination project is
implemented and this source of supply becomes available to the City and other agencies
in the area.
ES.2 City Characteristics and Projected Growth
Of the 17,234 acres of land within the City of Huntington Beach boundaries including the
community of Sunset Beach, which has always been served by the City water system but
was only recently annexed, only 2.2% of the City remains as vacant land (376 acres). It is
anticipated that all of this land will be developed ultimately with the exceptions of land to
be left vacant per City Specific Plans and vacant land in the open space conservation
category. Additionally, some portions of the City's existing land use will have their
densities intensified, specifically including the Beach-Edinger Corridors Specific Plan
and the Downtown Area Specific Plan.
The City's population is projected to increase 10.4% from 204,831 in 2010 to 226,178 in
2035, with total dwelling units increasing from78,664 to 87,029 (10.7%) over the same
twenty-five year period. Historical and projected water service area population and
housing for the City's 2010 Urban Water Management Plan (UWMP) and this master
plan was based on the Center for Demographic Research (CDR) at California State
University Fullerton Orange County Projections (OCP) 2010 data adjusted for the
Downtown and Beach and Edinger Areas. However, it should be noted that since the
preparation of the City's 2010 UWMP, the 2010 Census data has been released. As with
most cities in the State, both Huntington Beach and Sunset Beach populations were
reported substantially less than the CDR's OCP 2010 data. According to the 2010 Census
data, the 2010 population for the City was 189,992 and for Sunset Beach was 971, for a
total water service area population of 190,963. One primary factor behind this lower
projection was vacancy rates, which were reported at 4.8% for the City and 19.7% for
PSOMAS ES-1 December 2012
HB -321- Item 11. - 15
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Sunset Beach, when the City's vacancy rate was reported at 2.65% in the 2005 Water
Master Plan.
ES.3 Water Demand
City water demands have not changed significantly over the past 15 years even though
development has occurred and the City's population has increased. City potable water
supply for the. 15 water years 1995/96 through 2009/2010 averaged 33,286 acre-feet per
year (AFY). Note that a water year is July through June, whereas the City's fiscal year
runs October through September. Based on the City's 2005 Water Master Plan,
unaccounted-for water, which is the difference between water supply and water
consumption, averaged 6.4%. During the five year period from 2005/06 to 2009/10,
unaccounted-for water has averaged 5.4%. In 1995/96 unaccounted-for water was 9.9%
and has been reduced due to a leak detection survey and comprehensive program of water
main replacements undertaken by the City. The current rate of unaccounted-for water is
commendable for a system the size, age, and complexity of the City's.
Total water use per person in the City has historically been less than total water use per
person in Orange County. For comparison, Municipal Water District of Orange County
(MWDOC) reported total water use in their service area for 2009/10 of 485,311 AFY
serving a population of 2,300,021, which equates to 0.211 acre-feet per person. During
the same period, the City of Huntington Beach's usage was 29,468 AFY serving a
population of 204,831 or 0.144 acre-feet per person for the same period.
Existing Water Demand
City domestic water supply averaged 32,367 AFY (28.9 million gallons per day (MGD)
or 20,069 gallons per minute (gpm)) over the three-year period 2005/06 through 2007/08
and this could be taken to be the average or normal year"existing" water system demand.
This period is used because it is relatively current but prior to the nearly two-year
Metropolitan/MWDOC mandated water conservation initiated in 2008/09 due to the
prolonged drought of that time. This value was the average water use reported for a
normal year in the City's 2010 UWMP.
Projected Water Demand
For projecting future average water use in the 2010 UWMP, development and population
projections were used from the 2010 OCP assembled by the CDR as obtained from the
City's Planning Department staff. These data were updated to include some additional
development statistics not included in the OCP developed by City Planning staff. Using
these projections, the 2035 water demand is projected to be 34,657 AFY or
approximately 30.9 MGD, 7.1% higher than the assumed 2010 normal year demand of
32,367 AFY. This increased water demand equates to an annual water demand growth of
approximately 0.27% per year, compounded annually.
Maximum Day Demand (MDD) is the highest daily demand over the year and is
important in water master planning in that an agency must have an adequate supply
capacity to meet this MDD from supply sources. Demands above the MDD including
PSOMAS ES-2 December 2012
Item 11. - 16 HB -322-
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
peak hour demands and fire flows are met from storage facilities such as reservoirs. The
City's MDD is generated using a factor of 1.8 times the average annual demand based on
analysis of existing historical use patterns. The 28.9 MGD or 20,069 gpm of ADD used
as the existing normal year demand equates to a MDD of 52.0 MGD or 36,124 gpm. For
2035 or Build-out, the projected 30.9 MGD or 21,489 gpm equates to a MDD of 55.6
MGD or 38,680 gpm.
ESA Water Supply and Reliability
City water supply has historically come from groundwater production and from
supplemental, treated, imported water purchased from MWDOC, which is a member
agency of the Metropolitan Water District of Southern California (MWD).
As a member agency of OCWD, the City is entitled to produce groundwater from the
Basin. The Basin, which is managed by OCWD, is unadjudicated. The City and other
Basin producers pay a Replenishment Assessment (RA) to OCWD for all groundwater
produced up to a percentage of the producer's total water supplies used to meet demands.
This percentage is called the Basin Production Percentage (BPP), which is set uniformly
for all producers annually by OCWD based on Basin conditions and long-term
projections.
For FY 2011/12, OCWD increased the BPP from 62% to 65% where it was for the
previous few years due to drought conditions and low Basin levels. The RA is currently
set at $254/acre-foot.
In addition to the RA, OCWD charges a Basin Equity Assessment (BEA) for pumping in
excess of the BPP, which is basically a penalty to help maintain the Basin at projected
levels. The BEA, which is set at $512/acre-foot for FY 2011/12, essentially equates the
cost of groundwater pumped over and above the BPP to the rate charged for imported
water from MWDOC. BEA rate will vary slightly between different member agencies of
OCWD, as the rate is adjusted based on each member agency's groundwater pumping
costs.
It benefits the City to use groundwater up to the maximum allowable BPP because
groundwater is less expensive and more reliable than imported water. The City's (FY
2011/12) cost for producing groundwater up to the BPP is $290/acre-foot (including the
RA and energy but not including other well operation and maintenance costs). The City
supplements groundwater with treated, imported water from MWDOC at the current rate
of $798.25/acre-foot exclusive of connection charges, readiness to serve charges, and
other fixed fees.
The City's water supply has averaged 64% groundwater pumped and 36% imported
water purchases over the recent six year period (2004/05 to 2009/10). It should be noted,
however, that the City participates in the In-Lieu or Cyclic Storage Program offered by
OCWD and MWD, when available. This is a groundwater program that refills the Basin
by avoiding pumping from the Basin, and is usually offered in the wetter years and in the
lower demand period of October through April. In-lieu imported water purchases have
PSOMAS ES-3 December 2012
HB -323- Item 11. - 17
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
been approximately 7% of the total city water supply over this six year period, from a
high of 6,850 acre-feet peryear to 0 acre-feet peryear, with imported water purchases not
applicable to this program at approximately 29% for total imported water purchases of
36%. Therefore, for purposes of determining the BPP, the in-lieu water is not counted
and the City's BPP is 71% (100-29) over this period.
The City has a current well supply capacity of approximately 25,050 gpm from ten
existing wells. However, the normal operating capacity of these existing wells is
approximately 18,150 gpm or 72% of total capacity. The reason the normal operating
capacity is less than total capacity is that some of these wells are not operated at 100% of
capacity in consideration of such factors as groundwater level, water quality, availability
of in-lieu water, etc. Additionally, the life of the wells and associated supply equipment
can be prolonged when operating at less than full capacity.
The City is fortunate to overly the Orange County Groundwater Basin (Basin), which has
been able to sustain BPPs from the mid-60s to 70 percent throughout past years. During
preparation of the City's 2010 UWMP, Orange County Water District who manages the
Basin conservatively projected that a BPP of 62 percent could be maintained throughout
the next twenty-plus years. This means that the City can reasonably count on at least 62
percent of its projected demands being met by local groundwater produced from City
wells overlying the Basin. However, due to current favorable basin conditions, the
continuing move toward water conservation, and the expanded GWRS projections,
OCWD staff has indicated that they are looking to increase the BPP to 68% for 2012/13
and feels that agencies could easily use 65% as a conservative BPP projection for long-
term planning.
An analysis of the City's current wells ability to meet a BPP of 65% with projected 2015
(near term) and 2035 (build-out) demands was conducted using normal operating
capacities of the wells and historical demand patterns by month and the result is that
without running the wells beyond the normal operating capacity for long periods of time
in the summer months there could be reliability issues if one or more wells are down for
any reason. If this occurred, the City could still meet these maximum monthly demands
by utilizing additional quantities of imported water and could potentially still catch up to
the BPP by pumping more in the winter months. However, it is recommended that a well
study be conducted to analyze this in more detail as well as evaluate the condition of all
existing wells and their remaining useful life, potential water quality issues that could
relate to high chloride levels in the vicinity of three of the City's wells near the
Peck/Springdale Reservoir complex, and the potential need for replacement wells or new
wells at new sites altogether in the future.
With the potential addition of the potential seawater desalination plant at the AES
Huntington Beach Generating Station property and the ability of the City to draw supply
from this source, the overall water supply reliability of the City would be enhanced.
However, this will not increase City's ability to draw groundwater from the Basin, which
appears to be a potential future need. However, based on the City's 2010 UWMP and this
water master plan update, the City's existing water supply sources are deemed adequate
PSOMAS ES-4 December 2012
Item 11. - 18 HB -324-
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
and reliable into the future to at least 2035, even without considering the potential
desalination project.
Water Quality
The City's water supply, made up of groundwater and imported treated surface water,
consistently meets or exceeds all State and federal potable water quality standards.
Recently adopted and proposed federal and State water quality regulations on the horizon
including a new lower maximum contaminant level (MCL) for arsenic, an upgraded rule
for groundwater disinfection, a MCL for radon, new monitoring requirements for
disinfectant byproducts, and a MCL for hexavalent chromium are not expected to affect
the City's ability to meet future water quality standards based on historic water quality
parameters of the City's supply sources and the City's current disinfection procedures.
However, the City will need to monitor proposed radon regulation with regard to which
radon mitigation program the State opts to follow.
ES.5 Storage and Emergency Supply
The City currently has 55.0 MG of storage capacity located at the Overmyer, Peck,
Springdale and Edwards Hill reservoirs. Booster Stations are located at the Overmyer,
Peck/Springdale, and Edwards Hill sites to pump water from the reservoirs into the Zone
1 distribution system at appropriate pressures. The Reservoir Hill Booster Pump Station,
which is located at the Overmyer site, boosts water from Zone 1 into Zone 2. Zone 2 does
not have the capability to directly pump from a storage reservoir. In addition to pumping
to Zone 1, the Edwards Hill Booster Pump Station also boosts water into Zone 2.
As recommended in the City's last two master plans, a 10 MG storage reservoir, the
Southeast Reservoir, and a 11,000 gpm booster pump station is proposed in the southeast
quadrant of the City at the AES property to ensure water supply reliability and storage for
the area south of the Newport-Inglewood Fault and south of Bolsa Chica. Currently there
are no storage reservoirs or supply sources located south of the fault and an earthquake
on this fault could potentially sever water transmission and distribution pipelines crossing
the fault leaving the southern portion of the City without potable water. With construction
of this Southeast Reservoir and Booster Pump Station, the City will have 65.0 MG of
storage capacity. Along with the potential construction of the desalination plant, this
project will also include the construction of a reservoir and booster pumping station on
the AES site, which could provide the needed reliability south of the fault and allay the
requirement for the City to construct these facilities.
The City's existing storage volume is more than adequate for all operational and the
highest fire flow demand in either of the two pressure zones. Emergency storage is
calculated after required operational and fire flow volumes are depleted. Using this
methodology, the City has 1.23 days of emergency storage volume at existing demands
and 1.16 days at projected year 2035 average demand. With the addition of the 10.0 MG
Southeast Reservoir, the City would have 1.58 days of existing demand and 1.48 days of
projected 2035 demand in storage. These emergency storage volumes place the City
approximately in the middle of 24 water agencies surveyed by the City's Department of
P S Cp A S ES-5 December 2012
HB -325- Item 11. - 19
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Public Works in 2001, after removing the highest and lowest of the 24, as shown on
Table 5-3.
Backup water supply can augment storage during certain specific emergency water
supply scenarios. In this regard, several different emergency storage/supply scenarios
were evaluated including a complete loss of the City's imported water supply coupled
with a 7-day electrical power outage.
Likely causes for an imported water outage or reduction in supply could be a break in an
imported water transmission main or mains or an outage at a water treatment plant caused
by an earthquake or other event. It was determined that the City has sufficient emergency
storage, groundwater supply, and emergency power to withstand an imported water
outage of 31 days or longer coupled with an electric power outage lasting the first 7 days
of this emergency scenario.
Another possible emergency scenario is a complete loss or reduction in the City's
groundwater supply from the Orange County Groundwater Basin, conceivably as a result
of Basin groundwater contamination. It was determined that the City has sufficient
emergency storage and imported water supply capacity to withstand this emergency
scenario as well.
ES.6 Water Transmission and Distribution System Modeling
The City's existing hydraulic network model was originally created by the City in 1998
to analyze the City water transmission and distribution system performance. This model
has been updated and refined over the years. For this master plan, the latest model was
provided by City staff at the outset of the project. The model is in WaterCAD format and
is compatible with Water GEMS modeling software by Bentley Systems. The model is
used routinely by City staff and contains numerous scenarios. It contains all pipes in the
existing water distribution system, and several demand allocations including those
representing existing and estimated future demand conditions for average day, maximum
day, and peak hour demands.
Existing demands were first revised to correspond to the reduced demands experienced
over the past few years, as consistent with the City's 2010 UWMP. Then a series of
validation analyses were conducted to verify that the model adequately simulated
observed operating conditions within the distribution system.
Hydraulic analyses conducted for this project used the existing system model to create a
series of extended period simulation (EPS) analyses using a representative typical week
of diurnal curves from June 2007. These demand curves were then uniformly increased to
reflect conditions that could be expected during a week of maximum demand. Hydraulic
analyses were conducted under existing and future year 2035 demand conditions. These
hydraulic analyses were then used to confirm or develop sizing on capital improvements
and develop system optimization recommendations.
, PSOMA S ES-6 December 2012
Item 11. - 20 HB -326-
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
ES.7 Capital Improvement Program
A financing plan was adopted in 1995 to pay for water system project improvements
identified in that master plan as well as projects remaining from the 1988 Water Master
Plan. The water master plan capital improvement program was last updated through the
2005 Water Master Plan and this plan updates those capital projects based on current and
projected system demands, more refined modeling techniques, potential alternative
capital projects to the Southeast Reservoir and Booster Station project, the status of the
original recommended capital improvement program, and updated cost information.
Remaining Water Master Plan Projects
Water master plan projects that remain to be constructed from the 2005 Water Master
Plan and Financing Plan are listed below, identified by their project numbering from
previous master plans. Projects for which money has been encumbered prior to May 30,
2012 are not included as a remaining master plan project and those encumbered funds are
therefore not included as available.
Project No. 1:Beach Boulevard Pipe Improvements
Dead end pipe segments are to be connected in locations along Beach Boulevard to
improve water supply and fire flow reliability to adjacent areas fronting this
thoroughfare. Both projects, together, total approximately 1,400 linear feet of 12-inch
pipeline. Both of these relatively short connecting pipes will likely involve pipe jacking
across Beach Boulevard.
Project No. 9:Pipeline Corrosion Protection Stape II
Corrosion control will be constructed for the 36-inch OC-35 Transmission Main on
Springdale Avenue from Glenwood Drive (just outside of Peck and Springdale
Reservoirs) to Warner Avenue. Design of this project has been completed, with
construction expected to begin in late 2012.
Project No. 12:Permanent Wellhead Facilities for Well No. 13
Well No. 13, a fairly new well, has been operating with temporary facilities. Building a
permanent well head enclosure will utilize the existing casing but will include a larger
building, new mechanical equipment, improved controls, along with electrical equipment
to allow this pump to operate as a hybrid, using electricity as well as natural gas.
Protect No. 13:Southeast Reservoir and Booster Pump Station
A 10 million gallon storage reservoir and an 11,000 gpm booster pump station was
recommended in the 2005 Water Master Plan in order to increase reliability to this area in
the event of a major earthquake along the Newport-Inglewood Fault. As a part of the
proposed desalination plant plan, it includes construction of a storage reservoir and a
booster pump station that would eliminate the need for the City to construct these
facilities. These new facilities would be available to this area in the event of such an
emergency situation.
PSOMAS ES-7 December 2012
HB -327- Item 11. - 21
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Protect No. 14:Southeast Reservoir Transmission Main
A 10,400 linear foot, 36-inch distribution/transmission main will be constructed from the
potential desalination booster station or City Southeast Reservoir Booster Pump Station
to transmit water to the Downtown Loop. This new line will be interconnected with
existing distribution lines along its route to distribute water to the southeast service area.
This pipeline segment was undersized in the 2005 Water Master Plan at 16- to 24-inches
and needs to be 36-inches in diameter.
Proiect No. I4A:Southeast Reservoir Transmission Main Extension to Overmyer
Modeling conducted with this current master plan also determined that an additional
water transmission pipeline is needed to connect the Southeast Transmission Main to
Overmyer Reservoir to handle day-to-day operations and to maintain water quality
throughout the system. This additional transmission pipeline should have been included
with the previous master plan and will be included as part of this current list of updated
master plan projects.
The project involves a 1.5 mile, 36-inch and 0.25 mile 42-inch pipeline extension from
the Southeast Reservoir Transmission Main at Atlanta Avenue up Huntington Street to
Overmyer Reservoir. Additionally, two pressure regulating stations are needed for the
two interconnects to the smaller diameter distribution system pipelines near the proposed
Southeast Reservoir site and at the tie-in to the 20-inch Downtown Loop.
This project would, of course, only be constructed in conjunction with or following the
construction of the Southeast Reservoir Transmission Main, Project No. 14, above. This
new, 1.75 mile transmission main could be operated under system pressure to move water
from Overmyer Reservoir to maintain levels in the Southeast Reservoir. Along with the
Southeast Booster Station, it could also be operated to back-up Overmyer Reservoir if the
reservoir needs to be taken down for maintenance. In the event desalinated water
becomes available from the Southeast Reservoir and Booster Station, this line could
operate either (1) under system pressure; or (2) under low pressure as a dedicated fill line
to Overmyer Reservoir.
Proiect No. 16: Fire Protection Improvements
To improve fire flow pressures and supply reliability at Peters Landing in Huntington
Harbor, approximately 400 linear feet of 12-inch main will be constructed, tying into the
12-inch pipeline in Pacific Coast Highway. To improve fire flow pressures and supply
reliability at the high density residential area located east of Beach Boulevard and south
of Atlanta Avenue, approximately 300 linear feet of 8-inch water main will be
constructed. Design has been completed, with construction expected to be complete by
summer of 2013.
Proiect No. 17. Cast Iron Main Replacement Prokram
The majority of the cast iron mains within the City Downtown area have been replaced
but approximately 2,000 linear feet remain to be replaced with new mains made of non-
corrosive pipe materials.
PSOMAS ES-8 December 2012
Item 11. - 22 HB -328-
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Proiect No. NA: Well No. I Re-drill
This project was included in the 1995 Water Master Plan to increase its capacity to
around 750 gpm and since it is likely, following the results of the Groundwater Well
Feasibility Study recommended in this master plan, that additional well capacity will be
needed in the future, this project is included herein.
These remaining capital projects are shown on Table ES-1 with their estimated design
and construction cost and anticipated year of design and construction, in January 2012
dollars.
Table ES-1
Estimated Costs for Remaining Master Plan Projects
p tisria rr�ated i
role
..
C#lstn. stitt r fro
'a\ -®..... Estiaed
Beach Blvd.Pipeline Imps.' NA $ 2013 $ 700,000 $ 700,000
9 Pipeline Corrosion-Ild NA $ - 2013 $ 1,200,000 $ 1,200,000
12 Well 13 Permanent Wellhead 2015 $ 200,000 2016 $ 1,800,000 $ 2,000,000
W13 Southeast Res.&Booster PS 2018 $1,597,000 2019-20 $17,648,000 $19,245,000
14 Southeast Res.Trans.Main 2018 $ 503,000 2019-20 $ 5,355,000 $ 5,858,000
14A New Connection-Overmyer to SE TM 2018 $ 540,900 2019-20 $ 5,409,000 $ 5,949,900
1.75 mi.36"to 42"in Huntngtn.St. $ 500,300 $ 5,003,000
' Interconnects @ Overmyer Res. $ 25,600 $ 256,000
PRVs @ SE Res.&Atlanta/Dwntn Lp $ 15,000 $ 150,000
16 Fire Protection Improvementsd NA $ - 2014 $ 300,000 $ 300,000
Cast Iron Main Replacement 2013 $ 200,000 2014 $ 800,000 $ 1,000,000
NA Well 1 Re-drill 2016 $ 150,000 2017 $ 1,350,000 $ 1,500,000
Total $3,190,900 $34,562,000 $37,752,900
a)Costs estimates as of January 2012(LA ENR=10092).Escalation of design and construction costs will be accounted for in Financial
Plan chapter.Project 14A was not included in 2005 Master Plan and total cost includes subtotals in italics.
b)Design Costs range from 5 to 15%of construction costs(except for Project 17 due to.extensive potholing),depending on project size
and complexity and include preliminary design,final design,potholing,geotechnical,survey,and bidding services.
c)Construction Costs include construction management and City project management.Construction management costs range from 2.5
to 5%of construction costs for shop drawings,RFIs,field visits,etc.,but do not include inspection services.City project management
costs range from 5 to 9%of construction costs and may include inspection services depending on the project type.
d)Design already complete or costs encumbered.
Recommendations for Additional Studies
Section 3.3.9 of this Water Master Plan recommends a future extensive well study to
assess the condition of each of the City's existing wells, determine their remaining useful
life, and develop a systematic approach to replacement of wells in their same general
location and/or the addition of new wells at future locations. Because the potential
desalination project would include construction of a storage reservoir and booster pump
station as a part of the desalination project, future projects, including those that may arise
from the above study, could be funded from the savings generated from deleting these
two major projects from the City's Water Master Plan projects (or from savings on any of
the other remaining Water Master Plan projects above).
PSOMAS ES-9 December 2012
HB -329- Item 11. - 23
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
ES.8 Financial Plan
A Financial Plan Model was developed to analyze ability of the Water Master Plan Fund
and its available revenue sources to fund the remaining Water Master Plan CIP included
in Section 7. Two scenarios were analyzed; one with and one without the expenditure for
the Southeast Reservoir and Booster Pump Station (Southeast Reservoir) being funded by
the City, as discussed in the CIP section of this report.
Beginning balances for the Water Master Plan Fund as well as projected revenue from
interest income were generated. Revenue projections from Capital Facilities Charges
(connection fees) were developed by year for an eight year period (FY 2013 through FY
2020), based on population and development projections from the City's 2010 Urban
Water Management Plan. The estimated project costs from the CIP included in Table ES-
1 were input into the model for each scenario along with allowances for inflation due to
deferred construction at a realistic long term rate of 3.5% per year(compounded).
The financial Pro Forma for each scenario is summarized in Tables ES-2 and ES-3 on the
following page. Table ES-2 shows the Water Master Plan Fund Pro Forma with the
Southeast Reservoir Expense being funded by the City and Table ES-3 shows the Pro
Forma with the Southeast Reservoir Expense being funded by a third party.
As shown in Table ES-2 representing the scenario with the Southeast Reservoir expense
funded by the City, there are significant CIP expenditures in FY 2018 through FY 2020
with almost 25 million in future (inflated) dollars in FY 2019. Using the Financial Plan
Model, it is projected that there will be available funds in the Water Fund to cover the
shortfall in the Water Master Plan Fund during the study period. As shown in Table ES-2,
fund transfers are necessary in FY 2019 and FY 2020, totaling approximately $13.4
million because total expenditures for the Water Master Plan Fund under this scenario are
larger than the projected balances. These transfers ensure the CIP projects are funded and
that the Water Master Plan Fund balances remain healthy. The ending balance of $0 at
the end of the study period is appropriate because all of the CIP projects will be
complete, and the Water Master Plan Fund can be closed out.
Table ES-3 illustrates the financial position of the Water Master Plan Fund under the CIP
scenario where the City does not fund the Southeast Reservoir. Under this scenario, the
CIP expenditures during the last three years are significantly less, the reserves remain
healthy, and the City will not need any transfers from the Water Fund. Under this
scenario, the City could opt to transfer the remaining funds, totaling approximately $10.5
million from the Water Master Plan Fund to the Water Fund, which will require a
revision to City's existing ordinance to address the transfer of any excess in the Water
Master Plan Fund to the Water Fund.
PSOMASES-10 December 2012
Item 11. - 24 xB -330-
Cli Y OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Table ES-2
Water Master Plan Fund Pro Forma with Southeast Reservoir Expense
qj&ted-
77�2 X
L
BONN
"M 0 a7
Ift 0
-6
all,
•ctej
EL
Beginning Balance $28,148,928 $26,605,000 $26,003,894 $26,320,227 $24,693,906 $23,661,101 $16,789,376 $0
Capital Facilities Charges $200,735 $201,472 $202,213 $203,328 $204,450 $205,578 $206,713 $207,853
CIP Expenditure ($2,100,000) ($1,138,500) ($214,245) ($2,162,000) ($1,549,156) ($7,376,221) ($22,903,166) ($7,901,592)
Interest Income $355,337 $335,921 $328,365 $332,351 $311,901 $298,917 $212,487 $0
Transfer from (to)the Water Fund $0 t $0 1 $0 1 $0 1 $0 1 $0 1 $5,694,590 $7693,739
Ending Balance $26,605,000 1 $26,003,894 1 $26,320,227 1 $24,693,906 1 $23,661,101 1 $16,789,376 $0 $0
td
Table ES-3
Water Master Plan Fund Pro Forma without Southeast Reservoir Expense
AR M idio
A FT"F, iiaim R
Ji
Otte R
Beginning Balance $28,148,928 $26,605,000 $26,003,894 $26,320,227 $24,693,906 $23,661,101 $21,360,781 $13,128,528
Capital Facilities Charges $200,735 $201,472 $202,213 $203,328 $204,450 $205,578 $206,713 $207,853
CIP Expenditure ($2,100,000) ($1,138,500) ($214,245) ($2,162,000) ($1,549,156) ($2,804,816) ($8,708,954) ($3,004,589)
Interest Income $355,337 $335,921 $328,365 $332,351 $311,901 $298,917 $269,989 $166,446
Transfer from (to)the Water Fund $0 $0 $0 $0 $0 1 $0 1 $0 ($10,498,237)
Ending Balance $26,605,000 $26,003,894 $26,320,227 $24,693,906 $23,661,101 1 $21,360,781 1 $13,128,528 $0
PSOMAS ES-1 1 December 2012
CITY OF HUNTINGTON BEACH
Water Master Plan and Financial Plan Update
Since the timeframe covered by the Financial Plan Model is somewhat long at eight
years, many assumptions in the model such as actual construction costs, inflation factors,
and growth rates may be different than what is modeled, especially in later years. The
City has two different CIP scenarios that significantly affect the Water Mater Plan Fund
balance. Because one of the scenarios involves a third party funding the Southeast
Reservoir expense, the City currently has no way of knowing which scenario will occur.
Additionally, both scenarios have the same level of CIP expenditure for the first five
years, which the Water Master Plan Fund is able to accommodate. Therefore, it is
recommended that the City update the Water Master Plan and Financial Plan in about
2016 and then revisit any rate adjustments, as the City will have a better idea of which
CIP scenario will be in effect and what the remaining capital obligations are at that time.
PSOMAS ES-12 December 2012
Item 11. - 26 HB -332-
ATTACHMENT #5
1/23/2013
Crry OF HUNTINGTON BEACH
WATER MASTER PLAN (WMP) &
FINANCIAL PLAN (FP)
DECEMBER,2012
PREPARED BY:
PSOMAS(PRIMARY CONSULTANT)
ID MODELING(HYDRAULIC MODELING SUBCONSULTANT)
RAFTELIS FINANCIAL CONSULTANTS(FINANCIALSUBCONSULTANT)
4s ' r€xa'.i`a `. "s � ��'�3�, Awl,,q ,'q;�+�, la•� `'
•' `;� g�.:.x to Y. �.��,.ip1S��a;_;F,.LA;y z�4+, :.'s,
Overview
► Purpose
► City Characteristics and Projected Growth
Water Demand
► Water Supply and Reliability
► Storage and Emergency Supply
► Water Transmission and Distribution System
Modeling
► Capital Improvement Program
► Financial Plan
Item 11. - 28 HB -334- 1
1/23/2013
Purpose
Purpose of Water Master Plan (WMP)
► Last updated in 200S
► Evaluates future water system needs for 2010
to 203 S (City growth, water demands, water supply and reliability,
water quality, water storage, emergency water supply, and water system
distribution)
Purpose of Financial Plan (FP)
► Evaluate costs of remaining projects
► Scheduling and funding of remaining projects
► Scenario with desalination
ry
City Characteristics & Projected
o 17,234 Acres, only 2.2% (376 acres vacant)
► Beach-Edinger Corridors Specific Plan and the
Downtown Area Specific Plan
210,000 j ---..........._.... �....._.__.......... - .....__..__—.._
204,831
205,000 +--.___.... ......... ._.......__. .. _...---- ---- -�._ ...--
Difference of 1 3,H8
7.3`r It7V'4 0
.............. ................
200,000
195,040 '
190,963
190,000
I
185,000 '
180,000 .�..- - -- .....
__.._._ _ --
2010 Projected Population 2010 Actual Population
HB -335- Item 11. - 29
1/23/2013
Water Demand Trend
1 S Year Average Demand of 2035 Projected Demand
33,71 1 AFY(20,892 gpm) 34,657 AFY(21,479 gpm)
37,000 ..................................... ......................... .................... .. ............... ............---[ 45 1
36,000 40
mz=Rainfall
35,000 35
—Water Production
M I
34,000 30
.2 -------------- ----------
----------------
33,000 4r 25
m
------------
------- -----
32,000 20
at
31'000 .. ............ ............................. .................- ............ ........- ..................
15
30,0 ............. ...... ................. �.��j4".AAFY-
Oo 10
(18,263
18,263 gpm)
29,000 5
2.,.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Target Goal Per Governor 20,120
30,052 AFY 0 8,624 gpm)
Maximum Day Demand
-41
Maximum Day Demand
J" D Considers peak summer
demand
Use of hydraulic model
Use industry criteria, fire, etc.
g
PL
pus,
J-ft—"
A L K"
Item 11. - 30 HB -336- 3
1/23/2013
Supply Capacity
100,000 >4 Times
93,090
90,000
80,000 ------- ._............__...
70,000
3
60,000
50,000 --.—.................._..--._.... _....__...._.___.._..
40,000 'm• _
30,000
21,479
` 20,000 18 263
10,000
■Ground water a import water
0
2010 Average Day 2035 Projected Maximum Supply
Demand(gpm) Average Day Capacity from
n Demand(gpm) Wells,Imports,&
' t Boosters(gpm)
Reservoir Capacity
70 ....._............_.._........___.-----.__-__._._._._._..._.... ___._.—..._._..._....... _......._........._._._......_._.__ _._ ..........
60 —.......---...._.—......._................._..._..._._—...___ _........___.._._......_.___........._ __...T.._._..._._.....
50
,zg
40
30
20
10
0
Overmyer(MG) T Peck(MG) Springdale(MG) Edwards Hill(MG) Current Storage Storage Capacity
Capacity(MG) With Southeast
Reservoir(MG)
HB -337- Item 11. - 31
1/23/2013
Emergency Storage Capacity
r4k
EC€"of€{uat€ri on Eieacb�; u, "T2 4i"'IV:
r4yithout Soitthcast Reservoir gZDYS damandj y 1.2
4Ytth�Southaast Reservoir(2D15 CemanQj='".. 16
Resuondenfito'2W*City of kt_rWriz6n'9eachsurvev
'16.-_.� ,gy
fPhaenip"x
City of TumorJ, 2.b
City
City,of Pomana ;. ='` 1.5
Cityofi 6iaf- '" 0.6
Palmdale Water D€shirt• '`"r'�,` 2.1 _
Seattle Public Utilities s'iy 1.5
C ty at 5aaamento `'''' z 0.5
City cf Garden Grow 1.1
C€ty of IngEewood j zr;; 1.4
City of SantaOtna" •..c. „re.. ,•�::..,, mE 0.4
Ctvcfttaivance _� �. 0.7 Average of 1.1 days
City cf Torrance ' 0.7
Gty cf 5an Diego " 0.4
Ckt*Y Water Dtstri t' - ' • -?, D.6
Crty;afSacramenio,�;
'6r66Pue€istie3Wa"terMaster-PEans"-;`1'7�
Imne Ranch 41atexr District; ;,
,Capµstrana Beach Water€kutrict;,"3997,
a "CtfyofTustin"-2DDD D.4
a;0
€C+tyyof,LSFestminster'— 99- 03
Yucai a,Ya€IeyWatetOistrict 2.0
*10
Next 'Steps
► Complete Remaining WMP Projects
► Well Assessment Study
Item 11. - 32 HB -338- 5
1/23/2013
ojects Completed Since 2005
► 3.5 miles of Transmission Mains
► Beach Blvd - 1 ,150 LF of 12-inch
► Chlorination Upgrades for Well #13
► Energy Backup System for Well #6, 9, & 10
► Corrosion Protection for 2 miles of 42-inch Main
► Corrosion Protection for 3.5 miles of 30-inch Main
► Fire Protection Improvements -620 LF of 12-inch
► Cast Iron Main Replacement (-26,400 LF)
xx ,
CIPs Remaining (—$38 million)
► Beach Blvd - 1 ,400 LF of 12-inch
► Corrosion Protection 2.5 miles of 36-inch Main
► Permanent Wellhead Facilities for Well #13
► Southeast Reservoir and Booster Pump Station
► Southeast Reservoir Transmission Main (4 miles)
► Fire Protection Improvements (700 LF of 8 and 12-inch)
► Cast Iron Main Replacement (2,000 LF Remaining)
► Well #1 Re-Drill
si+; LAt••
HB -339- Item 11. - 33
1/23/2013
Financial Plan
► Beginning Balance & Revenues
• Water Master Plan
• Water Fund
► CIP
With Southeast Reservoir/Booster Expense
Without Southeast Reservoir/Booster Expense
< geQR
Beginning Balance & Revenues
Water Master Plan Fund
► Beginning balance for the Water Master Plan
Fund is $27.6M for FY 2012
► Revenues for FY 2012
Project Connection Fees: $200K
Interest Income: $300K
Item 11. - 34 HB -340- 7
1/23/2013
Project Fund Balance /SE Reservoir Expense
Chart 3:Water MasterPlan:Fu'nd
si
1 Sza _
,: .
sa m
$6 million at 0%
�Fa
' $ 0 million at 27.
�, says 111.3$er2a#5 fxxn FrxmS. 2D76= r2rFs„ z�
OMEndtng6aiancz —WnBalance Alert Balance
► Assumes Southeast Reservoir/Booster
Constructed from 2018
► Assumes cost to rise 3.5% annually
► Assumes Water Fund will cover the $13 million
shortfall in the Water Master Plan Fund
Project Fund Balance /O SE Reservoir Expense
s. P' Chart 3:Water M aster PIari Fund
a $25}
.s20. ....
S4 k
Asa° ,:. ,•. �
i '�'i3:� #F4�omPx3aFS� fY24Yb"�5•P3'3ctF2 ;.F,X�78 �Pt2uF9�_ fiYa'SC€__
�` End:ng Balance —R9:n 6alanm :�Alert Ba3an:,e
► Assumes Southeast Reservoir/Booster Built by
others as a desalination project
► Assumes cost to rise 3.5% annually
► Assumes Water Master Plan Fund will have
$10.5 million surplus, and can be combined
ith Water Fund (W/City Council Approval)
HB -341_ Item 11. - 35
1/23/2013
Water Master Flan & Financial Plan ;
Discussion
Z 'sz
ui
s„
t �'� �S Y�a•a a .E�� N
uf\
THANK You
Item 11. - 36 HB -342- 9