City of Beaumont WWTP Expansion Salt Mitigation Project

City of Beaumont WWTP Expansion & Salt Mitigation Project Update Presentation Strength through History & Innovation

WWTP Expansion • Major equipment preselection complete • Mechanical, Structural, Architectural, Electrical design moving forward • Submission to Regional Board by end of 2017

WWTP Expansion Aeration Basin Odor Control Dewatering Bldg. MBR/RO Bldg. Solar Dryer Sludge Holding RW Storage Fine Screens Grit Removal EQ Basin Headworks

WWTP Expansion

WWTP Expansion Equipment Preselection Major Equipment Preselection (10 Items) • Bid documents prepared and advertised by the City • Bids received by the City on August 17 th, 2017 • 61 individual proposals received • Evaluation of bids has included: • Installed capital cost • O&M costs • Operability • Experience • Reference checks • Owner preference

WWTP Expansion Equipment Preselection Equipment Coarse Screen Washer/Compactor Grit Removal Fine Screens Eductor Tubes Fine Bubble Diffusers Process and Scour Air Blowers Solids Holding Tank Blowers Dewatering Solar Drying Total Vendor Huber Technologies JWC Smith and Loveless Huber Technologies JDV EDI Neuros Aerzen GEA Mechanical Huber Technologies Submittal Cost $6, 035 $5, 000 $52, 531 $13, 363 $2, 500 $17, 540 $5, 000 $30, 000 $67, 620 $204, 589

Brineline Design • Submitted 75% design to City – August 28, 2017 • Workshop with City Staff • Continuing on to 90% design • Agency & Municipality coordination is on-going

IEBL Capacity & OCSD Treatment Continue to coordinate with SAWPA regarding connection to IEBL Conveyance & Treatment purchase agreement framework • City to purchase 550, 000 gallons per day capacity in IEBL and OCSD treatment plant • Total cost is $12. 00/gallon = $6, 600, 000 • City will make $100, 000 refundable deposit (fully refundable if a permit to discharge from SAWPA is not received by City) • Balance of purchase price is paid in three annual payments • This discharge permit includes high strength loading (higher BOD & TSS) • Standard SAWPA/OCSD rate = $12. 41/gallon

Recycled Water • Title 22 Report has been submitted to Department of Drinking Water for review and comments • Recycled Water permit pending completion of WWTP improvements • • • New filter coagulation system UVT monitor and SCADA connection UV system update to controls SCADA upgrades for monitoring and controls Recycled water storage and pumping facilities • Need a permitted end user for recycled water (BCVWD, Tukwet GC, & Oak Valley GC)

Funding Update Preparing SRF Application • General Application submitted May 19, 2017 • Technical Package – Submission date October 2017 • Environmental Package – Submission date October 2017 • Financial Package – Submission date November 2017

Funding Update Bonds • Financial Consultant for Bond Finances • Urban Futures • Bond Counsel • Brian with Stradling Yocca Carlson & Rauth, P. C. Other • Pursuing private funding, and i. Bank funding ($25 M per project maximum) • Public Private Partnership (PPP)

Pretreatment Ordinance & Enforcement Policy • Pretreatment ordinance required for WWTPs above 5. 0 mgd • Pretreatment required by SAWPA and OCSD in order to connect to IEBL • Enforcement policy also required by SAWPA and OCSD • Technically based Local Limits is being developed currently and will be adopted by resolution in coming months. • Local Limits are part of Pretreatment Ordinance

Cost Summary Feasibility Study Preliminary Design 50% Design Construction Cost $63. 2 M $66. 8 M $77. 3 M IEBL & Treatment Purchase $12. 4 M $8. 1 M $6. 6 M $15. 8 M (25%) $16. 7 M (25%) $11. 6 M (15%) $9. 5 M $10. 0 M $11. 6 M $100. 9 M $101. 6 M $107. 1 M* Contingency Soft Cost (15%) Total Project Cost * Includes $4 million for odor control improvements and $6 million for Solar Dryer.

Regional Board Update – Next Steps • All previous milestones have been met • Preliminary Design submission to Regional Board by May 31, 2017 - COMPLETE • Final Design submission to Regional Board by December 31, 2017 – On schedule • Funding plan developed by December 31, 2017 – On schedule • Project bidding by July 2018 – On schedule • Project to be completed by the first quarter of 2020

City of Beaumont Sewer Rate Study City Council Presentation October 17, 2017 Presented by Kim Boehler, Associate Director, NBS

Overview of Presentation § § § Key Study Assumptions Capital Improvement Program Financial Plan üRevenue Requirements üCash Reserves üRegional Bill Comparison § § Current and Proposed Rates Next Steps City of Beaumont Sewer Rate Study

Key Study Assumptions Recommended Reserve Fund Targets: ü Operating Reserve: 3 -months of O&M Expenses ü Capital Improvement Reserve: 3% of Net Assets (for Capital Rehabilitation, Replacement and Equipment) Customer Growth and Connection Fees: ü 500 New Connections Per Year, Starting FY 2017/18 ü $8. 16 million 2018 ü $6. 3 million 2019 ü $500, 000 annually thereafter City of Beaumont Sewer Rate Study

Key Study Assumptions, cont. Bond Issue Timing and Amount Available for Projects: ü 2018: $50 million ü 2019: $40 million Bond Financing Terms: ü Average Interest Rate = 4. 95% ü Payoff Period = 30 years ü Issuance Costs = $2. 1 million ü Debt Insurance is Funded at Time of Issuance City of Beaumont Sewer Rate Study

Capital Improvement Program Planned Capital Improvement Program Costs for the Next Five Years: City of Beaumont Sewer Rate Study

Financial Plan City of Beaumont Sewer Rate Study

Financial Plan, cont. City of Beaumont Sewer Rate Study

Regional Bill Comparison City of Beaumont Sewer Rate Study

Current and Proposed Sewer Rates City of Beaumont Sewer Rate Study

Current and Proposed Sewer Rates, cont. City of Beaumont Sewer Rate Study

Next Steps 1. Answer Questions and Gather Input from City Council Tonight 2. Initiate Proposition 218 Process to Adopt New Sewer Rates – November 2017 3. Adopt New Sewer Rates – January 2018 City of Beaumont Sewer Rate Study

City Council Action Items Item 15. Cooperative Agreement with DFA for Brine Line Capacity Item 16. Equipment Selection Item 17. CWSRF Resolutions (3) Item 18. Pretreatment Ordinance & ERP Resolution Item 19. RFP for Construction Management Services

Questions & Discussion