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City of Santa Ana, CAI SEWER RA i E STUDY <br />Figure ES - 3: Projected Revenues and Revenue Requirements — No Revenue Increases <br />2015 2016 2017 2018 2019 <br />® O &M Expenses - ­ Routine Capital Outlay c Transfers <br />r•ab--Revenue — • Target Cash Balance Cash Balance <br />Delaying CIP activities does stretch out available cash; however, continued deferral of needed CIP <br />projects also increases the probability, consequence and cost of asset failure. As a rough approximation, <br />Black & Veatch estimated the cost of continuing to defer CIP projects using the methodology set forth in <br />the American Society of Civil Engineers' (ASCE's) 2012 Failure to Act Economic Report for Water (FAC <br />Report). The FAC Report notes that in addition to the actual repair /replacement costs, there are costs <br />associated with payment of claims to impacted households and businesses. Additionally, if projects are <br />deferred by several years, there is an economic loss due to loss of jobs, lost work days, business <br />closures, traffic delays, street repairs, contamination of receiving waters, etc. Table ES 3 summarizes the <br />cost of not executing the proposed CIP using the FAC Report methodology. <br />Note that Table ES 2 does not include the cost of replacing the asset nor does it include fines that the <br />State may impose for violating Waste Discharge Requirements (WDRs) should sanitary sewer overflows <br />(SSOs) occur. State enforcement actions for WDR violations include fines of $10,000 per day plus $10 <br />per gallon spilled (for spills over 1,000 gallons), and mandated CIP activities through a consent decree. <br />BLACK& VEATCH I Executive Summary <br />65B -172 <br />13 <br />