1. Yazdan (YAZ) Emrani, P.E. Co-Chair, California Report Card Executive Committee Senior VP/Principal, Hall & Foreman, Inc. 2012 California Infrastructure Report Card June 12, 2012

2. Infrastructure Report Card? Why Do We Need That?

3. To Assess the State of Our Infrastructure To Assess the State of Our Infrastructure To Properly Plan for the Future To Properly Plan for the Future To Develop Timely & Adequate Funding Opportunities To Develop Timely & Adequate Funding Opportunities To have a Uniform and Consistent Message To have a Uniform and Consistent Message

4. Historical Reluctance to Fund Infrastructure Renewal u Unexpected Failures u Major Rate Increases “Out of Sight, Out of Mind” Attitude Leads to Two Bad Outcomes:

5. Municipalities and Other Public Agencies Cannot Afford the Problems and Risks Associated with... High-Cost Emergencies & Damage RepairsBecause… System Failures & Liability Claims Customer Outrage from Service Outages

6. Over the next 28 years, California’s Population is Expected to Grow at a Rapid Pace. It is Estimated that by the Year 2040, there will be More than 54,000,000 People that will Call California Home

7. So, What Does That Mean? More Traffic Congestion with Longer CommutesMore Traffic Congestion with Longer Commutes More Expensive Housing that Many Residents May Not be Able to AffordMore Expensive Housing that Many Residents May Not be Able to Afford Crumbling Infrastructure Unable to Meet Increasing DemandsCrumbling Infrastructure Unable to Meet Increasing Demands Less Open Space, More Pollution of Beaches and the CoastLess Open Space, More Pollution of Beaches and the Coast Declining Quality of LifeDeclining Quality of Life

8. OUR GOAL HELP TO IMPROVE CALIFORNIA’S INFRASTRUCTURE FOR A HIGHER QUALITY OF LIFE

9. California Infrastructure Report Card (CAIRC)

10. CAIRC Structure Executive Committee Set the Overall Objectives, Principles, and Methodology Executive Committee Set the Overall Objectives, Principles, and Methodology Working Groups Gathered Data and Developed individual Report CardsWorking Groups Gathered Data and Developed individual Report Cards Review Council Reviewed and Critiqued Methodology and FindingsReview Council Reviewed and Critiqued Methodology and Findings Public Relations Committee Developed PR Material and Contacted Media (over 100 people)Public Relations Committee Developed PR Material and Contacted Media (over 100 people)

11. INFRASTRUCTURE CATEGORIES Aviation Aviation Levees/Flood ControlGrading Criteria Levees/Flood ControlGrading Criteria PortsCondition PortsCondition Solid WasteCapacity Solid WasteCapacity TransportationOperations TransportationOperations Urban Runoff Security Urban Runoff Security Wastewater Wastewater Water Water

12. Assessment Criteria Condition Condition Existing or Near Future Condition AssessmentExisting or Near Future Condition Assessment Capacity Capacity Exiting and future capacityExiting and future capacity Master Plans and Funding Plans availableMaster Plans and Funding Plans available Operations - Very Infrastructure Dependent Operations - Very Infrastructure Dependent Complying with regulatory requirementsComplying with regulatory requirements Having sufficient funding levels for facility maintenance, i.e..Having sufficient funding levels for facility maintenance, i.e.. The number of overflows in wastewater systems The number of overflows in wastewater systems NPDES discharge violations for stormsewer systems NPDES discharge violations for stormsewer systems Security Security

13. So, How Did CA Do? $65 Billion Annual Need

14. Aviation C- C+ Aviation C- C+  Air Travel Demands are Increasing  We Have Limited Existing Capacity  We Face Increasing Restrictions  California Must Ensure Efficient Air Travel and Cargo Transport by Maintaining its Competitive Edge:  Expanding Existing Airports  Building Regional Airports  Annual Investment Need of $300 Million (To Achieve a B Grade – Typical of All Categories)

15. Levees/Flood Control F D  Real Potential for Catastrophic Disaster to Life and Property  235 miles of urban levees and 918 Miles of non-urban levees do not meet design criteria  Annual Investment Need of $2.8 Billion

16. Ports C+ B- Ports C+ B-  Our Ports Provide a Vital Link in the Movement and Supply of our Nation’s Goods & Materials  Ports are Like Mini Cities  Overall Infrastructure is in Good Shape Today, but Projected Cargo will Double by 2020  Infrastructure Must be Upgraded to Facilitate Rail/Truck Cargo Exchange  Annual Investment Need of $1.7 billion

17. Solid Waste B B Solid Waste B B  Solid Waste Systems Operated by a Combination of Public & Private Entities  Recycling has Resulted in 65% Reduction in Solid Waste Delivered to Landfills  Advanced Planning is Underway to Extend Landfill Capacity Through the Year 2037  Needed to Maintain Current $8.0 B Annual Funding is Maintained

18. Transportation D+ C- Transportation D+ C-  141,000 centerlines miles of street, 25,000 bridges throughout 58 counties  Average PCI of 66. If left at current funding level, PCI will be 54 by 2020  The Overall Grade of C- Reflects Concerns About unfunded transit needs,  16 Corridors in LA Area in the top 40 worst congestions sites across US per Texas Transportation Institute’s November 2011 Report  Annual Investment Need of $36.5 Billion

19. Urban Runoff D+ D+ Urban Runoff D+ D+  Water Quality Problems Impact our Daily Enjoyment of Life  Funding for urban stormwater has not kept pace with state and federal regulations  Total Maximum Daily Load (TMDL) are a tool for cleaning polluted water. They are costly to develop and implement  Regional Watershed-Based, Multi-Purpose and Multi-Agency Solutions & Funding are Needed  Annual Investment Need of $6.7 Billion

20. Wastewater C+ C+ Wastewater C+ C+  100,000 Miles of Sewers & 900 Wastewater Treatment Plants  4 billion gallons of Wastewater Generated Every Day by California’s Citizens & Businesses  SWRCD’s WDRs have helped highlight and stabilize collection systems conditions  State database shows efforts being made to improve collection systems  Annual Investment Need of $4.5 billion

21. Water C+ C Water C+ C  Water is Vital to Life for all Californians  Sacramento-San Joaquin Delta - A Vital Role in Water Delivery  Aging facilities risk public safety, water supply reliability, and water quality  Need Sustained Investments will to Increase Sustainability & Ensure Future Water Supply & Reliability  Annual Investment Need of $4.6 Billion

22. This is not good, is it?? We must aim to remedy these problems in the short term. We must aim to remedy these problems in the short term. Emergency repairs can cost anywhere from 5-16 times more than on-time and preventive maintenance Emergency repairs can cost anywhere from 5-16 times more than on-time and preventive maintenance In 2006 we projected an annual need of $ 37 billion. In 2012 that number is $ 65 billion. We are kicking the can down the road. In 2006 we projected an annual need of $ 37 billion. In 2012 that number is $ 65 billion. We are kicking the can down the road.

23. So, What’s the Solution? 1. The “Self-Help” Model 2. Pay As You Go 3. Public Private Partnership (PPP) 4. Environmental Streamlining 5. Optimized Decision Making Tools/ Principles of Effective Asset Management

24. “Just invest in those infrastructure that you want to keep!!!”

26. yemrani@hfinc.com yemrani@hfinc.com 714-665-4522 www.ascecareportcard.org Questions? www.ascecareportcard.org yemrani@hfinc.com www.ascecareportcard.org