los angeles 3rd regional investors conferencecao.lacity.org/debt/invconf2016/6.pdf• 29 contractors...

Metropolitan Water District of Southern California 1

Los Angeles 3rd Regional Investors Conference

Los Angeles, California

March 31, 2016

Metropolitan Water District of Southern California 2 Metropolitan Water District of Southern California 2


– 26 Members Agencies – 5,200 square miles – 19 million people – $1 trillion regional economy – 4 million acre-foot average water

demand

Local Supplies

Imported Supplies


MWD Service Area

Lake Powell

Lake Mead

Upper Colorado

River Basin

Colorado River

Colorado River Aqueduct

• Aqueduct Capacity: 1.25 MAF

• 242 miles of aqueduct

• 5 Pumping Plants

• 4 Reservoirs

Historic Range of Deliveries:

0.45 – 1.28 MAF


MWD Service Area

San Luis Reservoir

Bay- Delta

Sacramento & Feather Rivers

California Aqueduct

Lake Oroville

Northern Sierra

• Total Contract: 4.2 MAF

• MWD is largest contractor (~2.0 MAF)

• 29 Contractors • 28 Dams • 26 Pumping &

Generating Plants • 660 Miles of

Aqueduct

Historic Range to MWD:

0.4 – 1.8 MAF


Local Storage Diamond Valley Lake Mathews Lake Skinner Conjunctive Use Groundwater DWR State Project Reservoirs

Central Valley/SWP Storage San Luis Carryover Semitropic Arvin-Edison Kern Delta Mojave CRA Storage

DWCV Advance Delivery Lake Mead

ICS


0.0

1.0

2.0

3.0

4.0

5.0

6.0

Mill

ion

Acre

-Fee

t

14x Increase in Capacity


Water Year to Date

0

5

10

15

20

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Wat

er C

onte

nt (i

n.)

Normal

Current Water Year

97-98 El Nino

Previous Water Year

14.2 in. Current:


Normal

Current Water Year

97-98 El Nino

Previous Water Year

Water Year to Date

0

5

10

15

20

25

30

35

40

45

50

55


Wat

er C

onte

nt (i

n.)

` 28.2 in. Current:


8 - Station

0

10

20

30

40

50

60

70

80

90


Prec

ipita

tion

(in.)

Water Year to Date

Last Year: 37.2 in.

Driest

Wettest 88.5 in.

Average

97-98 El Nino: 82.4 in.

17.1 in.

50.0 in.

51.8 in. Current:

Metropolitan Water District of Southern California 13 0.0

0.5

1.0

1.5

2.0

Mill

ion

Acre

-Fee

t

0.96 CRA

0.96 Table A

0.10 T/E

1.7 MAF

50% SWP Allocation


2.2 1.8 1.1 1.0

1.7 2.4 2.7 2.3

1.2

0

1

2

3

4

5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mill

ion

Acre

-Fee

t

Emergency Storage Dry-Year Storage

End of Year Balances

0.9

1.2


Protects State’s water supplies through Delta system upgrades Mitigation

Includes ~ 15,600 acres of habitat

Water contractor funded Dual tunnel facilities and mitigation

Supports long-term health of native fish & wildlife Habitat restoration

~ 30,000 acres in 5 years Includes broader public funding

16

Metropolitan Water District of Southern California 17 17

Tunnels

SWP Pumps CVP Pumps

Design modifications

Construction impacts

Water quality

Regulatory process


IMPROVEMENTS Capital O&M (Total 50 Years)

TOTAL

Conveyance $14.99 B $1.46 B $16.45 B

Mitigation, Monitoring $0.56 to $0.82 B $0.22 B $0.78 to $1.04 B

TOTAL $15.55 to $15.81 billion

$1.68 billion

$17.23 to $17.49 billion

Estimated costs from DWR; in undiscounted 2014 dollars with a 36% contingency Metropolitan’s share is approximately 25%

Revised Cost Analysis

Within $5 per household per month


DWR tracking amount of water that could have been diverted from the Delta and stored this winter if California WaterFix were in place

January 5-31 290,000 AF February 1-5 89,000 AF February 6-11 64,000 AF February 12-18 14,000 AF February 19-25 23,000 AF

Total 480,000 AF

• Equivalent to 156 billion gallons of water • Enough water to serve 3.5 million

people for one year


Nearly a decade of discussions on water recycling

November 2015 Metropolitan’s Board appropriated $15M for “Demonstration Project”

Advanced Water Treatment Demonstration Plant (1 MGD) On site-District’s Joint Water Pollution Control Plant

December 2016 Report findings to MWD Board

Feasibility Studies and Financing Plan Indirect potable reuse program through phased approach to up to 150 MGD


● Diversify regional supplies

● Improve storage and delivery capabilities

● Provide new source of high quality, drought-resistant water

● Increase overall reuse within its system

● Begin beneficial reuse at the Joint Water Pollution Control Plant

● Reduce ocean discharges

Metropolitan Water District of Southern California


Fixed $3.2 billion

Variable $530 million

Synthetic Fixed

$494 million

$4.2 Billion

76%

12% 13%


$1.0 Billion

Four series: Three Year

Reset March 2018

Self-Liquidity Weekly VRDO’s

$340M $89M

Bank Liquidity Weekly VRDO’s $62M

$338M

Bank Liquidity Daily VRDO’s

SIFMA Index Bonds

$198M Four series:

270 Day Reset Aug.-Sept. 2016

Three series

Available $180M bank

liquidity


Adopted by Metropolitan’s Board on March 8, 2016 Increase flexibility to issue new debt structures Expect to initially use for short-term debt Allow for a “hard put” structure

Failure to pay on the put date is an event of default Plan to keep current senior lien open


SIFMA Note Remarketing’s may utilize new Master Subordinate Resolution

$129M - 2011 Ser. A1/A3 (270 Days): August 2016 $104M – 2009 Ser. A (270 Days): August 2016 $105M – 2013 Ser. E (270 Days): September 2015

Current Refunding Opportunities-July 1, 2016

$175M 2005 Auth. Ser. C $ 24M - 2006 Ser. B $30M 2012 Ser. E3 and $15M 2015 Ser. G1


AAA/AA+/Aa1 ratings Financials impacted by lower water sales Revenue Bond Debt Service coverage = 2.0X goal

Projected FY 2016: 1.40x Fixed Charge coverage = 1.2X goal

Projected FY 2016: 1.25X FY 2015/16: Unrestricted reserves anticipated to be approximately $400 million by end of fiscal year


Essential service provider to large & diversified regional area

Vast service territory covering six counties and 19 million people

Diversified water supply and large water storage reserves to address drought conditions

Began 2016 with total water storage of approximately 1.5 MAF

CRA Supplies expected to be approximately 960 KAF for 2016

SWP current allocation at 30%

Strong financial profile Trend of sound debt service coverage Conservative water sales projections Reasonable and predictable water rate increases Over $1 billion in cash and investments


[email protected]

mailto:[email protected]

los angeles 3rd regional investors conferencecao.lacity.org/debt/invconf2016/6.pdf• 29 contractors...

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