|
vv,KfsF f2aiF SYUUYI City of Santa Ana, CA
<br />million value in Figure ES 3 represents the cost of repairing or replacing the portion of main impacted. It
<br />does not represent the replacement cost of the entire system. Black & Veatch has spread out the critical
<br />projects identified for the CIP over five years.
<br />Table ES -1: Annual Inspection and Replacement Schedule Based on Risk Profile (2012 Dollars)
<br />Years
<br />$213,400
<br />$213,400
<br />$213,400
<br />Year2
<br />$1,624,500
<br />$1,624,500
<br />$1,837,900
<br />Year3
<br />$831,000 $2,189,800
<br />$3,020,800
<br />$4,858,700
<br />Year4
<br />$2,189,800
<br />$2,189,800
<br />$7,048,500
<br />Year 5
<br />$4,190,500
<br />$4,190,500
<br />$11,239,000
<br />Total
<br />$1,044,400 $6,498,000
<br />$11,239,000
<br />$1,752,000
<br />After the 5 -year period, Black & Veatch recommends that the CIP include annual R &R distribution
<br />system projects and addressing non - distribution system (booster stations, reservoirs, etc.) assets. Table
<br />ES 2 summarizes a proposed CIP for the next 5 -year period. At a minimum, Black & Veatch suggests that
<br />the City invest approximately $10 million annually into infrastructure needs.
<br />Table ES - 2: Annual R &R Schedule for FY 19/20 through FY 23/24 (2014 Dollars)
<br />Yearl
<br />$5,000,000
<br />$1,007,300
<br />$1,153,300
<br />$717,100
<br />$7,877,700
<br />$7,877,700
<br />Year2
<br />$5,000,000
<br />$1,430,200
<br />$1,223,100
<br />$1,376,900
<br />$9,030,200
<br />$16,907,900
<br />Year3
<br />$5,000,000
<br />$1,470,500
<br />$1,703,000
<br />$1,471,800
<br />$9,645,300
<br />$26,553,200
<br />Year4
<br />$5,000,000.
<br />$1,752,000
<br />$4,439,100
<br />$1,520;100
<br />$12,711,200.
<br />$39,264;400
<br />Year
<br />$5,000,000
<br />$1,809,500
<br />$1,596,800
<br />$2,227,800
<br />$10,634,100
<br />$49,898,500
<br />Total
<br />$25,000,000
<br />$7,469,500
<br />$10,115,300
<br />$7,313,700
<br />$49,898,500
<br />Water Enterprise Financial Plan
<br />In developing the financial plan for the Water Enterprise, Black & Veatch analyzed the level of revenue
<br />adjustments needed to support the operational and capital needs of the utility. As a point of
<br />comparison, Black & Veatch also analyzed the impact on the utility should the City elect to forego rate
<br />increases and maintain the same level of infrastructure investment. As seen in Figure ES 4, the Water
<br />Enterprise does have sufficient cash reserves on hand to meet ongoing 0 &M obligations and address
<br />baseline infrastructure needs. By FY 15/16, the Water Enterprise's revenue requirements will exceed
<br />revenues and will require the Enterprise to dip into its working capital reserve. The annual deficit cash
<br />position continues through the study period, ending with a ($9.1 million) balance.
<br />3
<br />M \I •
<br />A001yP414WOM
<br />
|