1. Capital Plan Update and Five-Year CIP
Brian Powell, P.E.
June 15, 2016

2. Primary Objectives for Developing a Capital Plan
Water Supply: Identify needs through build-out Water Conservation: Incorporate permanent water demand adjustment Development: Incorporate changing trends within the service area Timing: Ensure “just-in-time delivery” of projects Value: Leverage existing planning documents to develop a new long-range plan Financial Sustainability: Key component to the Long-Term Financial Plan (LTFP)    
Long-Term Financial Plans
Debt Management
Operational Budgeting
Capital Planning (Expansion & Replacements)
Cost of Service Studies
Rate Stability

3. Long Term Capital Plan
Facility Master Plans are significantly complete
Capital Improvement needs have been identified through build-out

4.       Long Term Capital Plan
Facility Master Plans are significantly complete
Capital Improvement needs have been identified through build-out
Work on the Capital Plan has been initiated
The Five-Year Capital Improvement Plan (CIP) is the first completed element      

5. Capital Plan – Progress Report

6. Capital Plan Progress Five-Year Capital Improvement Program
Validated need-by dates
Prioritized based on need
Updated cost estimates
Vetted with internal stakeholders
Short-term financial needs
Consistent with Finance’s five-year planning horizon
Build-out
Identified needed improvement projects
Validating need-by dates
Vet with internal stakeholders

7. Capital Plan – Five-Year CIP

8. Note: Costs shown are in today’s dollars and exclude external funding.
Five-Year CIP
The total EMWD Funding needs is about $400 million over five years
Water averages about $45.2 million/year over the five-year period
Wastewater is heavily influenced by the TVRWRF 23 MGD Expansion
75 percent of the Recycled Water expenses are in the first two years
Note: Costs shown are in today’s dollars and exclude external funding.

9. Five-Year CIP 1% 7%
35%
57%

10. Five-Year CIP Top 10 Projects in the 5-Year CIP:
Indirect Potable Reuse $ 34.4 M
Perris II Desalter $ 24.4 M
SJV ERRP (SARCCUP) $ 9.0 M
SJV Raw Water Pipeline $ 25.8 M
Western Way Booster $ 12.2 M
Goetz Rd 13.4 MG Tank $ 16.5 M
Perris & Elder PS & PL $ 8.7 M
TVRWRF Parallel Eff. PL $ 8.0 M
Diaz LS Replacement $ 9.4 M
TVRWRF 23 MGD Exp. $ 72.3 M
Total of Top 10 Projects $ M
Percent of 5-Year CIP 55 %

11. Capital Plan - Implementation Schedule & Next Steps

12. Capital Plan Implementation Schedule
The facilities master plans are significantly complete with the critical work elements complete. The Capital Plan is underway with the Five-Year CIP completed. The improvement projects between Year 6 and build-out will be finalized and presented to the Board by September 2016.

13. Capital Plan – Next Steps
Finalize Improvements through Build-out: Complete the vetting process with internal stakeholders for improvement projects through build-out
July 2016 – Present for Board consideration strategic policy decisions that have significant impacts on implementing the long-term Capital Plan
September 2016 – Present the final long-term Capital Plan

14. Contact Information
Brian Powell, P.E.
Director of Groundwater Management & Facilities Planning
(951) Ext. 4278