Presented by: Ronald O. Nichols LADWP General Manager CMAA Southern California Chapter Water & Wastewater Agency Night Capital Program Updates Presented by: Ronald O. Nichols LADWP General Manager

Major Capital Programs Regulatory Compliance Reservoir Covers & Bypasses Trunk Line Replacement Safe Drinking Water Program Recycled Water Stormwater Capture Customer Conservation Programs Groundwater Cleanup & Management Local Water Supply Program Replace aging pipeline and related infrastructure, including regulator stations, pumping stations, and maintaining the LA Aqueduct Water System Reliability Program

Planned 3-Year Capital Investments Program FY 2011/12 FY 2012/13 FY 2013/14 Safe Drinking Water $188 M $214 M $316 M Local Water Supply $71 M $137 M $165 M Water System Reliability $275 M $300 M $345 M Total $534 M $651 M $826 M 3

Project Delivery In-house Capabilities Design Construction Construction Management Design-Bid-Build is LADWP’s primary method of contract project delivery, but planning to use CM at Risk for Headworks Reservoir Select projects may be a mixture of in- house and contract resources

Professional Services Contracts As-Needed Engineering Services Contracts with several engineering firms Design, Estimating, Value Engineering $10 Million As-Needed Construction Management Contracts with several CM firms CM services, inspection, staff supplementation $12 Million

Safe Drinking Water Program Reservoir Improvements Projects are part of a 20-year compliance agreement Invested over $400 M to date Remaining Five Reservoirs CA Dept. of Public Health Deadlines Estimated Budget Silver Lake Dec 2013 $230 M Ivanhoe Nov 2014 Elysian Aug 2015 $35 M Upper Stone Canyon Jan 2017 $25 M Los Angeles Mar 2022 $130 M Purpose of Presentation and reason for Closed Session 6 6

Safe Drinking Water Program Headworks Reservoir Critical Water Quality Improvement Project Replaces Silver Lake & Ivanhoe Reservoirs Two buried concrete reservoirs with a 110- million-gallon combined storage capacity Innovative Approach: Construction Manager At Risk Webcor, Obayashi, Lyles, a Joint Venture (WEBCOR) Construction Cost: $230 Million WEBCOR is actively seeking qualified subcontractors.

Estimated Contract Amount Safe Drinking Water Program Headworks Reservoir Subcontracting Project Component Subcontracting Opportunity Timeline Estimated Contract Amount Headworks East Reservoir Construction Management & Civil Construction 2/12 to 6/15 $80 M Headworks West Reservoir 2/15 to 2/18 $90 M Headworks Ecosystem Restoration Develop wetlands, landscaping and site improvements at reservoir 2/18 to12/19 $7 M RSC Lower Reach Unit 1A 6,400 feet of 84” - 96” Welded Steel Pipeline in the Griffith Park area Pipeline Construction 2/12 to 10/14 $50 M

Over the next quarter century, we plan to transform our water supply sources INCLUDE PIE CHARTS WITH WATER NOW VS. _____ * Excludes 100,000 AFY of water conservation 9

Local Supply Components Investments Over the Next 5 years Program 5-Year Investment San Fernando Valley Aquifer Groundwater Cleanup $100 M Stormwater Capture $274 M Recycled Water $29 M Expanded Water Conservation $250 M

San Fernando Basin Groundwater Treatment Complex Treatment capacity of up to 125,000 AFY Est. in-service date: 2021 Capital Cost: $600M – $900M Annual O&M Cost: $50M - $70M Draft Draft

Cost Effectiveness of the San Fernando Basin Groundwater Treatment Complex 12

Stormwater Capture Tujunga Spreading Grounds Project Estimated Capital Cost: $24 million Design 90% complete Increased recharge up to 8,000 acre-feet per year expected Estimated project completion by 2015 Competitive Bid Process 13 13

Recycled Water – Key Elements Recycled Water Utilization 59,000 AFY by 2035 Recycled Water Master Plan Existing: 8,000 AFY Planned and potential projects: 21,000 AFY Competitive Bid Process Groundwater replenishment with advanced treated wastewater (30,000 AFY): $415 million Garber Recycled Tank: $2 million LA/Glendale Recycled Tank: $2 million Griffith Park South Recycled Tank and Pump Station: $6 million Internal Construction Expand purple pipe network (29,000 AFY): $495 million

Water Reliability Potential Contracting Opportunities Project Component Contracting Opportunity Timeline Contract Amount* RSC Upper Reach Units 5 & 6 15,700 feet of 78” Welded Steel Pipeline in the San Fernando Valley Area Pipeline Construction 9/11 to 10/15 $106 M RSC Upper Reach Unit 7 13,700 feet of 78” Welded Steel Pipeline in the San Fernando Valley area Tunneling 11/12 to 10/15 $120 M City Trunk Line South Unit 6 1,600 feet of 60” Welded Steel Pipeline in the San Fernando Valley 1/13 to 9/15 $14 M Sunset Blvd Trunk Line Rehabilitation Phase II Slipline 36” Pipeline with HDPE. Fairfax Ave to Cahuenga Blvd. Construction - Sliplining 9/13 to 4/14 $9 M Silver Lake Bypass Pipeline 5,000 feet of 66” Welded Steel Pipeline adjacent to Silver Lake Reservoir 10/11 to 1/14 $40 M *Estimate 15