La Brea Subarea ProjectPublic Works Commission

June 8, 2017

Ultimate Project Goal

Develop 1700 acre-feet per year (AFY) of new potable water supply in the La Brea Subarea of the Central Groundwater Basin (located 1-2 miles south of the City Boundary near I-10/La Cienega Blvd)

Project Update – What’s Been Done?

Lower La Cienega Sedimentation Basin Site (Sand Pit)

• Phase I ESA

• Phase II ESA

• Drinking Water Source Assessment Report (DWSAP)

• DDW Coordination

Conclusions

• Potential location for a production well

• Pending DDW approval

Project Update – What’s Been Done?

Coffee Bean Site

• Phase I ESA

• Phase II ESA

• Drilling of exploratory test hole to 800 ft below surface, with testing for production potential and water quality

• Conversion to monitoring well for periodic groundwater monitoring

• DDW Coordination

Project Update – What’s Been Done?

Conclusions

• Production potential is 500 to 700 gpm

• No “deal breakers” in water quality results

• Probable location for production well pending DDW approval

Project Update – What’s Been Done?

La Cienega Transmission Main – What is it? • Inactive 18-inch reinforced

concrete pipe (RCP)• Located in La Cienega Blvd

from I-10 to Olympic Blvd (8000 LF)

• Located in westerly sidewalk of La Cienega Blvd

• Previously conveyed low pressure raw water from Sand Pit site to water treatment plant at La CienegaPark (La Cienega/Olympic)

Project Update – What’s Been Done?

La Cienega Transmission Main

• Located via exploratory potholing

• Internal CCTV camera inspection of 35% of the total length (2761 LF of the total 8000 LF)

Project Update – What’s Been Done?

La Cienega Transmission Main Conclusions

• Pipeline is suitable for rehabilitation based on inspection of 35% of the total length

• Recommendation to inspect the remaining 65% of the pipeline to confirm findings and recommendations

Project Update – What’s Been Done?

Agency Coordination

• Division of Drinking Water (DDW)

• LADWP

Project Update – What’s Been Done?

Division of Drinking Water (DDW)

• Project introduction meeting at project commencement

• Multiple site visits at Sand Pit site and Coffee Bean site

• Project update meeting after Coffee Bean work was completed with presentation of findings

• Liaison to RWQCB – coordination is on-going

• On-going coordination on Coffee Bean and Sand Pit sites

Project Update – What’s Been Done?

LADWP

• LADWP staff attended project kick-off meeting

• On-going correspondence and meetings discussing project partnering, such as:• Locating a production well on LADWP property

• Water exchange feasibility

• At this time, LADWP has not reached a final decision on partnering with the City in any form on this project, therefore project alternatives assumed the City of Beverly Hills will proceed with an independent project.

Project Update – What’s Been Done?

The project field work and supporting analyses and research conducted from April 2016 to early 2017 formed the basis of the ultimate project recommendation to develop 1700 AFY in the La Brea Subarea

Recommended La Brea Project

Construct 3 new groundwater wells

Treat the raw groundwater by expanding the existing Foothill WTP

Convey groundwater to the WTP through rehabilitation of the 18-inch RCP transmission main in La CienegaBlvd, and construct a new raw water transmission main through the City of Beverly Hills in Le Doux Road and Burton Way

Key Decision Points for Recommended Project

1. Water Availability and Water Quality

2. Water Treatment Plant (WTP)

• New WTP at Coffee Bean Site

• Expand Existing Foothill WTP

3. Conveyance

• New pipeline

• Rehab existing pipeline

• Combination of both, various alignments

Key Decision Point – Water Availability and Water Quality

Results from the exploratory test hole at Coffee Bean show sufficient production potential for production wells in the La Brea Subarea, and no “deal breakers” in water quality results

Coffee Bean test hole findings were used to project production potential and water quality for other production wells

Key Decision Point – Water Treatment Plant

New WTP at Coffee Bean Site• Pros:

• Reduces pipeline construction because product water pipeline can connect directly to Zone 3

• La Brea project can proceed independent of the Hollywood Wells issue

• Cons:• Results in 2 separate water treatment plants – with one plant located

outside City limits• Reduces available space for future tenant of Coffee Bean site• Operational considerations – different power provider (LADWP) and sewer

service (City of LA)• Travel time for City O&M staff – difficult to share operations staff between

plants• La Brea product water can only serve Zone 3 (reduces operational

flexibility) – see graphic on next slide

Key Decision Point – Water Treatment Plant

Key Decision Point – Water Treatment Plant

Expand Foothill WTP• Pros:

• Results in 1 water treatment plant, located at City Yard.

• Consolidates WTP improvements needed for Hollywood, Maple Yard, and La Brea wells

• Increased operational flexibility – product water can be delivered to the entire City

• Maximizes available space at Coffee Bean site (increases rental value)

• Cons:• Additional pipeline to be constructed through the City in Le Doux Road

and Burton Way

• La Brea project must also address water quality issues from Hollywood Wells and integrate Maple Yard Wells

Key Decision Point – Conveyance

Multiple alternatives were evaluated

• New pipeline

• Rehabilitation of Existing 18-inch Transmission Main

• Various alignment alternatives • La Cienega Blvd

• Robertson Blvd

Key Decision Point – Conveyance

Multiple alternatives were evaluated

Key Decision Point – Conveyance

Recommended conveyance option:

• Rehabilitation of Inactive 18-inch reinforced concrete pipe (RCP) Transmission Main in La Cienega Blvd• Reduced costs ($1.5 M savings)

• Reduced construction schedule (2 month savings)

• Reduced community impact

• New 16-inch pipeline in Le Doux Rd and Burton Way to Foothill WTP

Total La Brea Costs (Recommended Project)

Total Design and Construction Cost: $50 M (2017 Costs)

• Land acquisition: $14 M

• Production Wells: $13 M

• Water Treatment: $9 M

• Conveyance: $14 M

Operation and Maintenance Costs:

• $300,000 per year starting in year FY 19/20

• $1.125 M per year starting in FY 23/24

Total La Brea Costs (Recommended Project)

Maximum Unit Cost of Water: $2,737/AF

• Assumptions:• 30-year loan at 4% per year

• Cost escalation rate at 3% per year

Cost Offsets and Potential “Credits”

Maximum Unit cost of water ($2,737/AF) does not consider potential cost offsets and potential credits from project

Cost Offsets and Potential “Credits”

Rental Income from Coffee Bean Site

Rental Income from Billboard at Coffee Bean Site

Sale of Sand Pit Site

Allocating 20% of Coffee Bean property cost to project (current cost estimate allocates 100% of property cost to project)

Cost Offsets and Potential “Credits”

Potential offsets = $500 to $700 per AF

Results in unit cost of water = $2,000 to $2,250 per AF

Metropolitan Local Resource Program funding (MWD LRP) is also a possibility

Schedule

Accelerated EIR Phasing:

• Full Operation by FY 23/24 (7-year schedule)

Typical EIR Phasing:

• Full Operation by FY 24/25 (8-year schedule)

Next Steps

Conduct CCTV Investigation on remaining 65% of La Cienega Transmission Main

Identify and purchase production well site(s)

DDW coordination and approvals

Start CEQA document (EIR)