1 Cayucos Sustainable Water ProjectTown Meeting

2 CAYUCOS TOWN MEETING INTRODUCTIONS REVIEW OF APRIL 2015 MEETINGPROJECT PROGRESS IN 2016 DRAFT EIR HIGHLIGHTS PROJECT DELIVERY METHOD INTRODUCTION of CMAR CONTRACTOR PROJECT COSTS PROJECT FINANCING - USDA RATE INCREASE PROCESS – (PROP 218)

3 APRIL 2015 TOWN MEETING PRELIMINARY COSTSTHEN NOW PLANNING/DESIGN/PERMIT $ 3 MILLION CONSTRUCTION $18 MILLION COMPLETION – 2018 PROPERTY ACQUISITION MONTHLY RATE $104 PLANNING/DESIGN/PERMIT $ 3 MILLION CONSTRUCTION $20 MILLION COMPLETION ON SCHEDULE PROPERTY BOUGHT $3.6 MILLION MONTHLY RATE = ???

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5 PROJECT PROGRESS IN 2016 APR - OPENED ESCROW ON TORO PROPERTYJUNE - MBR TREATMENT TYPE WAS SELECTED JULY - CLOSED ESCROW ON TORO PROPERTY AUG - CMAR METHOD FOR PROJECT DELIVERY SEPT - FILANC SELECTED AS CMAR DESIGN/CONSTRUCTION CONTRACTOR

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7 DRAFT EIR HIGHLIGHTS

8 The CEQA Process April 2016 Initial Environmental Study and Notice of Preparation of the EIR was sent to Agencies. Notification of Project EIR to Native American groups pursuant to AB 52. Scoping meeting for public input Ongoing communication with resource agencies, the County, Coastal Commission staff, Regional Water Board staff and Native American groups. February 2017 Draft EIR (DEIR) published for review and comment.

9 Significance of Environmental ImpactsThe EIR makes a determination of impact significance based on established thresholds: Class IV - Beneficial Effects Class III - Impacts are Less than Significant and do not require Mitigation Measures. Class II - Impacts are Significant and require Mitigation Measures to reduce the impact to a less than significant level. Class I - Impacts are Significant, require Mitigation Measures, but are still at a significant level after all feasible mitigation is applied.

10 Types of Environmental ImpactsClass IV- Beneficial Effects The CSWP will have a beneficial effect on agriculture by creating tertiary treated water for irrigation. The CSWP would reduce energy compared to the existing condition and have a beneficial effect on greenhouse gas emissions.

11 Types of Environmental ImpactsClass III – Less than Significant, No Mitigation Biological resources Drainage and Stormwater Traffic Noise Air Quality Visual resources and Hazards

12 Types of Environmental ImpactsClass II – Impacts are Significant, Requires Mitigation Construction Activities Traffic Biological Cultural Resources Growth Inducing effects Reuse of water to limited to Ag or areas within the URL

13 Types of Environmental ImpactsClass I – Impacts are still at a Significant level even after feasible Mitigation Construction noise Temporary Agriculture resources 2 acres dedicated to Ag use for every 1 acre disturbed

14 Next Steps February 2017 End of March 2017DEIR available for 45 day, agency and public comment End of March 2017 DEIR Comments due District will prepare a Final EIR (FEIR) with response to all comments April 2017 District Board of Directors will hold a public hearing to certify FEIR. The County will use the District’s FEIR for the permitting process. DEIR available on District website

15 The Proposed CSWP facility

16 The Proposed CSWP facility

17 The Proposed CSWP facility

18 PROJECT DELIVERY METHODLOW BID - Traditional Change Orders High Contingencies DESIGN-BID-BUILD Owner has no Oversite CONSTRUCTION MANAGER AT RISK (CMAR) Owner, Designer, CMAR Work Cooperatively Owner approves a Guaranteed Maximum Price - GMP Minimal Changes During Construction

19 Benefits of CMAR All on the same team:Value added collaboration of design and construction Early problem identification Early budget information Advance schedule planning Advance procurement planning Minimize construction change orders Guaranteed Maximum Price

20 Two Phases of CMAR Preconstruction ConstructionValue Engineering of design, conceptual estimating Constructability review of design Technology selection and procurement planning Scheduling Guaranteed Maximum Price (GMP) for construction Mobilization Procurement Subcontracting Construction Management Schedule and Budget Completion Startup and Commissioning Operations Training Warranty Period

21 INTRODUCTION OF CMAR CONTRACTOR

22 FILANC: Building it Better TogetherFamily owned California General Contractor since 1952 Specializing in water & wastewater construction Self-performing & use of local contracting CMAR contractor since 2002 Design-builder since 1980s

23 Building and Commissioning Complex Treatment FacilitiesSilicon Valley Advanced Water Purification Facility Irvine Ranch Water District Michelson MBR and Biosolids Upgrades City of Modesto Phase II MBR facility

24 Filanc as CMAR 15 years of experience as CMAR on over $150 million of projects in Arizona, California and Colorado City of Yuma, Agua Viva Water Treatment Plant, $92M City of San Diego, Upas Street Potable Water Pipeline, $28.5 M City of Phoenix, Water Treatment Plant Upgrades, $30 M Town of Ault Colorado Wastewater Treatment Plant Improvements, $3.5 M

25 Value Engineering & Constructability: Combined 125 years of experienceMark Filanc, PE, DBIA Chief Executive Officer Harry Cosmos President Vince Diaz Vice President, Construction

26 Preconstruction Services TeamManager: Omar Rodea, PE, DBIA 20+ years of experience Leads performance of value engineering and constructability reviews Develops conceptual, planning level and baseline schedules Coordinates with Filanc estimating staff Maintains continuity throughout the life cycle of this project

27 Process equipment procurement: Bob ZaiserExperience as OEM Representative Unmatched understanding of vendor specifications and unique requirements Best value process equipment recommendations Design support

28 Estimating to Deliver Cost CertaintyLead Estimator, Tony Ruiz More than 10 years of estimating and CMAR GMP experience Performs conceptual estimating during design Prepares vendor bid specification packages Prepares subcontractor bid packages Develops draft and final GMP proposals

29 CMAR Maximizes Value of InvestmentTeam collaboration will ensure that quality is affordably built into the design Design and Construction collaboration from start to finish will ensure a smooth process Price certainty will be achieved early Change orders will be minimized An aggressive schedule will be met

30 Building it Better Together

31 TREATMENT FACILITY COSTSENGINEERS ESTIMATE = $ 21 M PRELIM CMAR ESTIMATE = $ 20 M PLANNING/DESIGN/PERMIT = $ 3 M TOTAL LOAN = $ 23 M to $25 M

32 PROJECT FINANCING RECEIVED SWRCB PLANNING GRANT $75,000 APPLIEDSRF NOT AVAILABLE UNTIL 2018/2019 PURSUING USDA RURAL COMMUNITIES PROGRAM USDA GRANTS

33 Water & Waste Disposal Loan & Grant ProgramWhat does this program do? Provides funding for clean and reliable drinking water systems . sanitary sewage disposal. sanitary solid waste disposal. and storm water drainage to households and businesses in eligible rural areas. Who may apply? This program assists qualified applicants that are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include: Most State and Local governmental entities Private non-profits Federally-recognized Tribes What is an eligible area? Are that may be served include: Rural areas and towns with fewer than people Tribal Lands in rural areas Colonias What kinds of funding are available? Long-term. Low-interest Loans If funds are available. grants may be combined with a Loan if necessary to keep user costs reasonable

34 How may the funds be used?Funds may be used to finance the acquisition, construction or improvement of: Drinking water sourcing, treatment. storage and distribution Sewer collection, transmission, treatment and disposal Solid waste collection. disposal and closure Storm water collection. transmission and disposal In some cases. funding may also be available for related activities such as: Legal and engineering fees Land acquisition. water and Land rights. permits and equipment Start-up operations and maintenance Interest incurred during construction Purchase of existing facilities to improve service or prevent Loss of service Other costs determined to be necessary for completion of the project For a complete List. see 7 CFR Part and What is the loan term and rate? Up to 40-year payback period, based on the useful Life of the facilities financed Fixed interest rate The interest rate is based on the need for the project and the median household income of the area to be served. 2.75%) Contact us for details and current interest rates applicable for your project Are there additional requirements? Borrowers must have the Legal authority to construct. operate and maintain the proposed services or facilities ALL facilities receiving federal financing must be used for a public purpose Partnerships with other federal. state. Local. private and non-profit entities that offer financial assistance are encouraged Projects must be financially sustainable

35 RATE INCREASE PROCESS PROPOSITION 218

36 RATE STRUCTURE Current Rate (1 EDU/MO) Future Rate (1 EDU/MO)O&M EXPENSES $12.88 EXISTING DEP $13.18 WWTP OPS $18.71 RESERVES $ 7.23 TOTAL $ 52 Future Rate (1 EDU/MO) O&M EXPENSES $12.88 EXISTING DEP $13.18 WWTP OPS $18.71 RESERVES $ 7.23 LOAN PAYBACK $29.55 PLANT DEP 40yr $16.45 TOTAL $ 98

37 PROPOSED RATE SCHEDULE (phased over 5 years)Proposed Increase Monthly Bill (per EDU) July $15 $ 67 July $15 * $ 82 July $ 6 $ 88 July $ 6 $ 94 July $ 4 $ 98 * 1ST Loan Payment Due at end of Construction

38 218 PROCESS February 16TH - District Board Authorizes 218February 23RD - Notification Mailers sent 45 Day Response Period April 20TH - District Board 218 Hearing Majority of Owners must protest for rate increase to fail

39 QUESTIONS COMMENTS