AgdaPkt 2011-10-24 - Laserfiche WebLink

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7.B. - Page 16 Executive Summary 1! 011V qW `wflj(RG 9 6 e WJft LCr&d Benefits/Risk: • Can be implemented using current rates. However, funding levels do not keep up with inflation, so that the City's investment in the water system is diminishing over time. • This level of funding can only address 28 percent of identified improvement needs which likely: a) does not sufficiently address risk, and b) degrades system performance over time by deferring maintenance, risking higher costs in the future. Does not allow City to identify /keep pace with aging infrastructure needs, increasing the risk of a higher rate of pipeline leaks and /or failures, increasing facilities maintenance cost and lowering pipeline and facility reliability. Scenario 2: Increases funding to $4M /year by FY 2015/16, to $5M by FY 2017/8 and then by $1M every three years through FY 2029/30. This scenario funds a total of $75.6M ($26.5M for capacity, $2.1M for seismic and $47.OM for renewal /replacement). When annual funding for this scenario is adjusted to reflect current dollars, this scenario maintains $4M levels through much of the CIP timeframe, increasing to $5M by the end of the CIP timeframe. This scenario also funds pipeline replacement at the same level as historical levels, funding 1.6 miles /year. Benefits/Risks: • Provides a more balanced program that provides continued investment in aging infrastructure, as well as addressing capacity and seismic needs. • Program funds 77 percent of all identified programs within the CIP timeframe. Funding keeps pace with inflation, so level of investment is not eroding over time. • Can be implemented using modest rate increases. • Funds pipeline replacement programs at historical levels. May need to accelerate replacement of pipelines in the future, depending on leak and repair history. Scenario 3: This scenario provides more aggressive funding increases in order to address all known substantive risks within the 20 -year CIP timeframe. This scenario requires an increase of $1M every one to two years through the CIP timeframe. This scenario allows a total funding of $98.8M, which would be distributed as $37.4M for capacity improvements, $2.1M in seismic improvements and $59.8M in pipeline and facility replacement improvements. This scenario funds pipeline replacement at 1.9 miles /year. WEST Y O S T ASSOCIATES ES -1 2 City of Redwood City September 2011 Water System Master Plan o \c \369 \06- 09- 01 \wp \mp \052610_OES