Strength through History & Innovation City of Beaumont Salt Mitigation Feasibility Study Summary of Findings

Option #1 – Life Cycle Cost Summary Option 1 - Life Cycle Cost Summary Option 1AOption 1BOption 1C Initial Capital (4-6mgd) $ 95,750,000 $ 93,691,000 $ 94,724,000 Annual O&M $ 2,102,000 $ 2,487,000 $ 2,694, yr O&M Cost (NPV) $ 34,681,000 $ 40,394,000 $ 42,999, Yr. Life Cycle Cost $ 130,431,000 $ 134,085,000 $ 137,723,000 Future Expansion (6- 8mgd) $ 13,589,000 $ 20,339,000 $ 26,437,750

Option #2 – Life Cycle Cost Summary Option 2 - Life Cycle Cost Summary Option 2AOption 2B Initial Capital (6mgd) $ 164,740,000 $ 163,850,000 Annual O&M $ 2,749,000 $ 2,727, yr O&M Cost (NPV) $ 42,530,000 $ 42,103, Yr. Life Cycle Cost $ 207,270,000 $ 205,953,000  Please note that Option 2 does not include costs for additional brine line capacity from YVWD’s wastewater treatment plant to IEBL in San Bernardino. Per YVWD letter dated 11/4/2016, there is no excess capacity in YVWD’s brine line.

Cost Summaries Option #1A – Beaumont Option Total Project Cost $95,744,000 Total Life Cycle Cost $130,431,000 Option #2B – Regionalization Option Total Project Cost $163,919,000 Total Life Cycle Cost $205,953,000  Plus cost for additional brine line capacity between YVWD’s Plant and San Bernardino.

Preliminary Design Major Tasks Wastewater Treatment Plant Record research Survey & Mapping Geotechnical investigation Major equipment selection 20% - 30% design drawings Phasing/constructability analysis Cost estimates Brine Pipeline Utility research Survey & Mapping Field visits to review alignment & conditions Geotechnical investigation 20% - 30% design drawings Phasing/constructability analysis Cost estimates

Preliminary Design (Additional Tasks) CEQA Due to critical timing, the complete CEQA mitigated negative declaration has been added to the Scope of Work during the proposal phase City Council Requests During the City Council workshop on Nov. 2, 2016 the City Council requested the following items be added to Option 1A. 1.Review the opportunity to work with the City of Banning to provide brine disposal and/or regionalize treatment with Banning. 2.Review the opportunity to redirect sewer flow from the area between Interstate 10 and Hwy 60 to YVWD for treatment.

Preliminary Design (Additional Tasks) Design Tasks added to Scope of Work Prepare preliminary design for recycled water storage tank Prepare preliminary design for recycled water pump station SRF Funding Applications (Optional Task) Due to critical timing, preparation of State Revolving Fund loan applications needs to begin right away. Typical timing for application preparation, engineering reports, State reviews, and agreements is 12 months.

Staff Recommendations Option 1A – Beaumont Option 1.Select Option 1A as preferred option a)Add analysis of recycled water cost of service b)Explore opportunities to deliver some flow from new developments to YVWD c)Explore opportunities to regionalize with Banning 2.Approve amendment #1 to WEBB contract for $727,216 for Preliminary Design and $65,622 for SRF funding applications 3.Approve budget adjustment to add $3,900,000 to CIP for FY Authorize staff to begin negotiations to purchase capacity in IEBL and OCSD Treatment Plant 5.Authorize City Manager to send a letter to YVWD to express interest in development of a mutual aid agreement upon completion of the Beaumont brine line to San Bernardino.

Staff Recommendations Option 2B – Regionalization Option 1.Select Option 2 as preferred option 2.Authorize staff to send a letter to BCVWD and YVWD requesting a meeting to discuss Regionalization 3.Authorize staff to prepare a MOU with YVWD and BCVWD to delineate steps necessary to comply with Regional Board order.

Questions & Discussion