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Technology-Asset Management-Pipelines

Pipelines Assessed in Record Time with Latest Technology

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The San Diego County Water Authority’s asset management team recently celebrated the completion of a comprehensive condition assessment of more than 27 miles of the agency’s oldest pipelines. The assessment was performed in record time over just 16 months.

The work was part of a package of rehabilitative efforts on a portion of the First Aqueduct, which includes Pipelines 1 and 2 in North San Diego County. Built in 1947 and 1952, the two pipelines deliver treated water to the region and were constructed using various materials, including reinforced concrete and steel.

Proactive asset management team makes critical repairs

As the pipelines were inspected, areas that required immediate attention were identified and repaired, thereby minimizing future disruptions to water service and impacts to the surrounding environment. Sections of the pipelines requiring future repairs were added to a list of upcoming projects prioritized by the risks and associated costs.

“The asset management team took advantage of scheduled pipeline shutdowns, and with careful coordination, assessment work was performed concurrently with other major rehabilitation efforts in the region,” said Martin Coghill, operations and maintenance manager at the Water Authority. “This innovative approach saved time and avoided unnecessary disruptions in service to our member agencies.”

Throughout the condition assessment process, Water Authority staff worked closely with staff from member agencies to coordinate work being performed in their service areas and any potential impacts. Proactive repairs are crucial to ensuring the reliability of the regional water supply.

Collaboration with multiple contractors to perform complex work

In 2016, a search was conducted to find the best technologies to perform critical assessments to maintain the reliability of the pipelines. It resulted in a multi-technology, multi-contract approach.

The Water Authority partnered with multiple contractors to perform the complex work:

  • Diakont, based in Carlsbad, Calif., used its robotically-mounted technologies to inspect steel pipe sections. High-resolution LASER Profilometry and Electromagnetic Acoustic Transfer technology located internal and external corrosion defects that were then repaired by welding steel patches on the inside of the pipe. This method avoided costly excavations and environmental impacts.
  • Pipeline Inspection and Condition Analysis Corp., based in Edmonton, Alberta, brought its sophisticated Remote Field Technology to San Diego County to scan most of the reinforced concrete pipe using an innovative tool that moved through the pipe at a controlled speed. The technology had been previously used by the Water Authority and consistently demonstrated a high level of accuracy.
PICA, remote field technology, pipeline inspection

PICA uses cutting-edge Remote Field Technology to scan pipelines at a controlled speed with high accuracy. Photo: San Diego County Water Authority

  • Pure Technologies, a Xylem company with an office in San Diego, deployed its Near Field and Remote Field electromagnetic inspection tools to assess portions of the reinforced concrete pipe. With a focus on lightweight components, both tools were successfully conveyed through the pipelines using personnel with rope and pulley support.
technology, pipeline inspection, Pure Technologies

Pure Technologies’ innovative tool uses electromagnetic technology to assess reinforced concrete pipelines using personnel with rope and pulley support. Photo: San Diego County Water Authority

The focus on the Water Authority’s First Aqueduct is the latest chapter in the agency’s long-running strategy to assess critical pipelines and ensure the maximum lifespan is achieved with the most cost-effective methods. Proactive asset management efforts first began in the 1990s and were consolidated into the Asset Management Program in 2009. To date, more than 150 miles of the Water Authority’s total 310 miles of large-diameter pipelines have been assessed using cutting-edge technologies.

The asset management team collaborates with local, national and international organizations in the asset management and water infrastructure fields, focusing on knowledge sharing and asset life optimization.

Bond Sales-Credit Ratings-Desalination Plant

Strong Water Authority Credit Saves $67.4 Million for Ratepayers

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Strong credit ratings for the San Diego County Water Authority will save water ratepayers across the region $67.4 million on bond sales executed Wednesday in New York — $27 million more than staff forecasted in May. All three major rating agencies – S&P, Moody’s and Fitch – recently affirmed the Water Authority’s positive ratings and stable outlook, creating the opportunity for ratepayers to benefit from lower financing costs for critical water infrastructure.

The savings resulted from the Water Authority’s refinancing of $283.5 million in Series 2020A Bonds (Green Bonds) and $117.7 million in Series 2021A (Green Bonds) senior-lien water revenue refunding bonds. Technical factors in the market provided favorable conditions – including more demand for bonds than supply – that the Water Authority team moved quickly to capture.

Most significant savings in bond refundings in the past decade

The Water Authority bonds were priced July 8 – a week ahead of schedule – and the strong credit ratings, strong bond policies, and swift action by the Board of Directors in June, helped lower the interest rates compared to what the Water Authority would have had to pay with downgraded credit. Since 2010, the Water Authority has saved a total of $235 million through 10 bond refundings, including the latest transactions.

“Thanks to strategic, courageous action by the Water Authority Board of Directors in June to set rates for 2021, the agency has secured the most significant savings from bond refundings in the past decade,” said Water Authority Board Chair Jim Madaffer. “The Water Authority maintains a strong financial position even in these difficult times, and that ultimately benefits everyone who calls San Diego County home.”

Credit ratings: Strong financial leadership, prudent strategies

In affirming their credit ratings over the past few weeks, the three rating services cited the Water Authority’s strong financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

‘Investments in water supply diversification, conservative financial practices’

  • S&P affirmed its highest rating – AAA– June 25. “The authority has been successful in their efforts to increase control over their supply and diversify the source of their supply. Management has also demonstrated an ability to navigate volatile hydrological cycles through adopting rate increases as needed and building prudent financial reserves and storage to mitigate variability.”
  • Fitch Ratings affirmed its AA+ rating July 2. The Water Authority’s “significant investments in supply diversification, have allowed the Authority to continue to meet water demands in its service area.” Fitch also said “the SDCWA benefits from very strong purchaser credit quality.”
  • Moody’s Investor Service affirmed its Aa2 rating June 29. Moody’s praised the Water Authority “for increasingly diverse sources for water supply purchases; and conservative financial practices with adopted reserve and debt policies.” Moody’s also said that “liquidity, including a rate stabilization fund, remains satisfactory and serves to insulate the San Diego County Water Authority from risks associated with variable water supplies, including California’s current drought conditions, as well as unanticipated events such as the coronavirus crisis. The stable outlook reflects our expectation that the Authority’s favorable operating performance will continue.”

“In the midst of a global pandemic and a challenging economy, the Water Authority continues proactively managing its finances and lowering the cost of debt,” said Lisa Marie Harris, finance director for the Water Authority. “We have strong debt coverage, healthy reserves and an experienced management team to sustain our fiscal health.”

For more information about the Water Authority’s finances go to: www.sdcwa.org/finance-investor-relations.

Series 2020A – Taxable Refunding

Issue Size: $283,470,000

Bond maturities: 2024-2034

Bond yields: .59% – 1.95%

Refunding savings: $38.7 million

Savings as % of refunded bond par: 15.3% (board min savings 2-5%)

Top Investors: Progressive, Morgan Stanley, Goldman Sachs, and State Farm

Series 2021A –Tax-Exempt Refunding (Forward Delivery)

Issue Size: $117,690,000

Bond maturities: 2022 – 2031

Bond yields: .45% – 1.13%

Refunding savings: $28.7 million

Savings as % of refunded bond par: 19.7% (Board Min savings 2-5%)

Top Investors: Vanguard, Alliance Bernstein, Seix Investors, and MIZUHO Bank

IRWM-SanDiego Wild Animal Park-Water Conservation

State Awards $15 Million for San Diego Regional Water Projects

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The California Department of Water Resources has awarded more than $15 million in grant funds to advance several regional water projects in San Diego County, ranging from water recycling and reuse to water conservation.

The San Diego County Water Authority submitted the funding request on behalf of the San Diego Integrated Regional Water Management Program, or IRWM. The San Diego IRWM Program began in 2005 as an effort by water agencies, wastewater agencies, stormwater and flood managers, watershed groups, business leaders, disadvantaged communities, tribes, agriculture, and nonprofit stakeholders to improve water resources planning in the region.

The statewide IRWM Program is supported by bond funding from the California Department of Water Resources to fund competitive grants for projects that improve water resources management.

Collaboration with county agencies, nonprofits improves water supply and conservation

“These grants will provide much-needed funding for important local water supply projects and water-use efficiency measures, along with a disadvantaged community project in National City,” said Water Authority Board Chair Jim Madaffer. “Regional collaboration by the Water Authority and a host of partners makes these projects possible. Once again, this shows how San Diego County is stronger together.”

Madaffer praised the San Diego IRWM Regional Water Management Group and the Regional Advisory Committee for their work over the past year to secure the $15,336,336 grant. Since 2008, the San Diego region has secured more than $111 million in funds for 74 high-priority water management projects through the IRWM process. The projects help to achieve goals established in the San Diego IRWM Program and the Water Authority’s Urban Water Management Plan.

The following regional water projects will receive funding in the current round:

  • Paradise Valley Creek Water Quality and Community Enhancement, City of National City, Flood Damage Reduction, $3,681,056
  • Pure Water Oceanside, City of Oceanside, Water Supply–Groundwater, $3,115,000
  • North County Recycled Water Project, San Elijo Joint Powers Authority, Water Supply–Recycled Water, $2,820,000
  • North City Pure Water Facility Influent Pump Station and Conveyance Pipeline, City of San Diego, Water Supply–Recycled Water, $1,477,600
  • 2020 Regional Water-Use Efficiency Programs, San Diego County Water Authority, Water Conservation, $1,440,000
  • San Elijo Stormwater Capture & Reuse, San Elijo Joint Powers Authority, Water Supply–Recycled Water, $1,195,000
  • Lower Santa Margarita River Indirect Potable Reuse Pilot Project, Fallbrook Public Utility District, Water Supply–Recycled Water, $687,500

In addition, the grant allocates $920,180 to the Water Authority to administer the grant.

National City-IRWM Grants-Water Resilience

The Paradise Valley Creek Water Quality and Community Enhancement project in the City of National City is among water projects receiving state grant funds. Graphic: City of National City

Regional approach to create resilient and diverse water supply portfolio

“By working together for more than 12 years, the regional IRWM Program has created a legacy of collaboration by public agencies and nonprofit organizations in the region to increase the long-term reliability and resiliency of the San Diego region’s water supply and diversify our local supply,” said Mark Stadler, San Diego regional IRWM program administrator. “Investing in water reuse, water efficiency, and conservation projects are key parts of our success to ensure a regional approach to integrated watershed management.”

On November 4, 2014, California voters approved Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014. Proposition 1 authorized $510 million in IRWM funding. Funds are allocated to 12 hydrologic region-based funding areas.

The Proposition 1 IRWM Grant Program, administered by DWR, provides funding for projects that help meet the long-term water needs of the state, including:

  • Assisting water infrastructure systems adapt to climate change;
  • Providing incentives throughout each watershed to collaborate in managing the region’s water resources and setting regional priorities for water infrastructure; and
  • Improving regional water self-reliance, while reducing reliance on Sacramento-San Joaquin Delta.

“Water is such a vital resource, that it is critical we continue to take action to ensure communities have access to clean water supplies, reliable flood protection and healthy ecosystems.” said DWR Director Karla Nemeth when announcing the San Diego regional grant on July 3. “These grants will support agencies and projects to continue local momentum in creating a more diverse water supply portfolio, strengthening partnerships and addressing climate change.”

State Awards $15 Million for San Diego Regional Water Projects

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July 8, 2020 – The California Department of Water Resources has awarded more than $15 million in grant funds to advance several regional water projects in San Diego County, ranging from water recycling and reuse to water conservation.

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Olivenhain Municipal Water District Logo landscape design workshops

North County Agencies Secure $2.8 Million for Recycled Water Projects

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Encinitas, Calif. — The California Department of Water Resources approved a grant package that will provide $2.8 million in state grant funding to three North County water and wastewater agencies to expand and upgrade recycled water infrastructure.

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Construction near San Marcos homes required creative thinking and community cooperation from the Vallecitos Water District to successfully complete the project. infrastructure

Community Outreach Makes Challenging Infrastructure Update a ‘Walk in the Park’

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In its efforts to maintain its critical infrastructure, the Vallecitos Water District undertook a challenging update to a wastewater system pipeline constrained by its precarious location.

The existing eight-inch gravity sewer pipeline conveys wastewater from the intersection of Rock Springs Road and Bennett Avenue west through a greenbelt area to an existing 12-inch pipeline in Rock Springs Road at Lancer Park Avenue. To expand capacity for current and future growth, it was replaced with a new 15-inch PVC pipe west of Matthew Lane and a 12-inch PVC pipe north and east of Matthew Lane.

See video following the progress of this vital infrastructure project

 

Complications due to environmental and neighborhood protection

The location of the affected manhole put equipment and crews close to a SDG&E gas line inside a greenbelt park area. Photo: Vallecitos WD infrastructure

The location of the affected manhole put equipment and crews close to a SDG&E gas line inside a greenbelt park area. Photo: Vallecitos Water District

The District always prefers to perform work in a street or public right-of-way. Neither were possible for this project due to its greenbelt and park location within feet of residential homes.

“We took every environmental precaution prior to construction,” said Lito Santos, Vallecitos Water District Project Engineer. “We performed a nesting survey, a raptor survey, and we also worked to tunnel under the bridge,” within the Environmental Protection Agency’s “Clear Water Rule.”

San Marcos Woods Homeowners Association board member Ross Fisher acted as a liaison between homeowners and the HOA with the District. Fisher expressed concern about access to the work area by the District’s large combination truck. The original proposal to create a concrete strip to drive over wasn’t feasible.

Due to its incredible strength, the grass-crete and existing lawns can handle the weight of a large service vehicle driving on it without significant damage. Photo: Vallecitos WD

Due to its incredible strength, the grass-crete and existing lawns can handle the weight of a large service vehicle driving on it without significant damage. Photo: Vallecitos Water District

Working together with Vallecitos Water District engineers, the group chose an alternative material called “grass-crete.” Grass-crete is a green porous paving solution that comes in easy-to-install rolls. It’s flexible, lightweight, durable and provides design versatility to the project. Due to its incredible strength, the grass-crete and existing lawns can handle the weight of a large service vehicle driving on it without significant damage.

Proximity to additional threats

Manholes were waterproofed, coated, and sealed as an additional precaution and to extend their longevity.

Manholes were waterproofed, coated, and sealed as an additional precaution and to extend their longevity. Photo: Vallecitos Water District

Vallecitos Water District engineers also worked with San Diego Gas & Electric to perform its work with enough safety clearance from a 16-inch transmission main artery gas line pressurized at 800 pounds per square inch. The District secured permission to dig within two to three feet from the line instead of the standard five feet.

The work area is also prone to flooding after large rain events, raising the water levels in the nearby creek high enough to infiltrate and inflow into the manholes. The District moved the manholes clear of the creek embankment, and lifted the manholes two feet above ground and clear of the flood plain to prevent runoff intrusion. Manholes were waterproofed, coated, and sealed as an additional precaution and to extend their longevity.

Homeowners praise Vallecitos cooperation with community

The District moved the manholes clear of the creek embankment, and lifted the manholes two feet above ground and clear of the flood plain to prevent runoff intrusion.

The District moved the manholes clear of the creek embankment, and lifted the manholes two feet above ground and clear of the flood plain to prevent runoff intrusion. Photo: Vallecitos Water District

“Overall Vallecitos left the greenbelt area as good or better when they started,” said Fisher of the HOA. “On a scale of one to ten, I have to give them a 9.5 or a ten. Working with the inspectors and Lito Santos the engineer, everything we asked for was done in a timely manner.”

“The project was a huge success,” said Santos. “Working with the Vallecitos Engineering Team, the Inspection Team and Mr. Fischer, it was not just a Vallecitos highlight but a career highlight.”

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Water Districts Work Together to Save Ratepayers Money

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Encinitas, Calif. — Olivenhain Municipal Water District and Vallecitos Water District have entered into an agreement that will allow for cooperative use of Vallecitos’ Double Peak Reservoir site in San Marcos. The arrangement is expected to save OMWD ratepayers over $100,000.

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SDCWA Twilight building-primary 845x450

Strategic Steps Minimize Water Rates for 2021

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Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.

As adopted June 25, the all-in rates charged to the Water Authority’s 24 member agencies will increase by 4.8% for untreated water and 4.9% for treated water in calendar year 2021. The new rates take effect January 1, 2021.

Rate increases are driven by reduced water sales, higher rates and charges from MWD and continued regional investments in supply reliability.

Secure water supply is foundation of economic recovery

Since the staff’s rate proposal was released in May, the Water Authority re-evaluated several assumptions driven by COVID-19 recessionary pressures based on new economic data and forecasts. The Water Authority also funded some costs related to the Carlsbad Desalination Plant this year instead of in 2021. The 2021 rates and charges may be further reduced if MWD makes material changes when revisiting its budget and rates this fall.

“We’ve taken a series of strategic steps to minimize rate impacts during this pandemic-induced recession, despite numerous factors putting upward pressure on rates,” said Water Authority Board Chair Jim Madaffer. “At the same time, the Water Authority is maintaining its long-term fiscal stability while ensuring a safe and reliable regional water supply for residents and businesses that will be the foundation of our economic recovery.”

In 2021, the Water Authority will charge its 24 member agencies an all-in municipal and industrial rate of $1,474 per acre-foot for untreated water, or $68 more per acre-foot than they currently pay. Charges would be $1,769 per acre-foot for treated water, or $83 more per acre-foot than in 2020.

Actual figures will vary by member agency, and each member agency will incorporate costs from the Water Authority into the retail rates it charges to residents, businesses and institutions. (Note: An acre-foot is about 325,900 gallons, enough to serve the annual needs of 2.5 typical four-person households in San Diego County.)

In addition, the rates package includes new Permanent Special Agriculture Water Rates, following the Board’s decision late last year to make the temporary program permanent. The program provides farmers with lower rates that correspond to a lower level of water supply reliability. In 2021, the untreated PSAWR will increase from its current level of $755 per acre-foot to $777 per acre-foot and the treated PSAWR will increase from $1,035 per acre-foot to $1,072 per acre-foot.

Rising costs from MWD affect rates

The fiscal pressures faced by the Water Authority include:

  • Reduced water sales, which are 14% below the current budget and expected to remain low in 2021 due to coronavirus-related business closures and other factors. Decreased water sales put upward pressure on rates because costs must be spread across fewer units sold.
  • Rising costs from MWD that reflect continued increases to its base supply rates and charges and the amount MWD charges to transport the Water Authority’s independent Colorado River supplies. For the Water Authority, MWD’s adopted 2021 rates increase supply costs by more than 9%, or $15.4 million.

The Water Authority’s 2021 rates were developed in conjunction with an independent cost-of-service study to ensure rates and charges comply with state law, legal requirements, cost-of-service standards and Board policies, and strategic tools such as the Long-Range Financing Plan.

In addition, the 2021 rates are designed to ensure Board-adopted debt coverage ratios that support the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. The Water Authority has credit ratings of AAA with a stable outlook from S&P, AA+ from Fitch, and Aa2 with a stable outlook from Moody’s.

The rates adopted by the Board are the result of strategic measures that include:

  • Providing more than $80 million in rate relief from the Rate Stabilization Fund over the next 24 months.
  • Capitalizing on historically low interest rates and strong credit ratings by lowering annual debt expenditures by optimizing cash to restructure outstanding debt to provide significant savings.
  • Planning to withdraw stored water to reduce water purchases while maintaining water reserves for future years – the result of careful planning and investments over more than two decades.
  • Reducing budget expenditures with a hiring freeze reduced professional services contracts and reprioritizing more than $30 million in capital projects.
Sweetwater Authority Logo 2019Sweetwater Authority Logo 2019

Sweetwater Authority Board Approves $64M Budget for Fiscal Year 2020-21, No Rate Increase

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The Sweetwater Authority Governing Board approved the budget for fiscal year 2020-21 at its June 24, 2020 meeting. The budget does not increase water rates for customers and reflects more than $13M in reductions over last fiscal year. To achieve these savings, the Board worked closely with Authority staff to produce a balanced budget that minimizes the financial impact to customers.

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The Fallbrook PUD Board tour group initially drove from the FPUD administration building to the Alturas Road plant and then traveled along the pipeline alignment before arriving at the Gheen Pump Station. Photo: Fallbrook Public Utilities District

Fallbrook PUD Board Members Tour Construction Project

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As a result of the coronavirus pandemic, public agencies have found creative solutions to holding meetings in compliance with the State of California’s meeting laws. Recently, Fallbrook Public Utility District board members stepped away from their video screens, using the opportunity to take a field trip to view a new project while conducting a traveling board meeting.

The Santa Margarita River Conjunctive Use Project is a joint project with Marine Corps Base Camp Pendleton, and will eventually supply about 30% of the District’s water, and virtually all of Camp Pendleton’s water.

Fallbrook PUD board members view construction project

Construction of the first section of pipeline on Merida Drive is part of the Santa Margarita River Conjunctive Use Project. This segment of pipeline between Alturas and Mission roads is about 4,500 linear feet and is 35% installed. Photo: Fallbrook Public Utilities District Fallbrook PUD Board

Construction of the first section of pipeline on Merida Drive is part of the Santa Margarita River Conjunctive Use Project. This segment of pipeline between Alturas and Mission roads is about 4,500 linear feet and is 35% installed. Photo: Fallbrook Public Utility District

At the time of the tour, the project had been under construction for 250 days. Due to COVID-19 and social distancing restrictions, board members and others who attended the traveling meeting stayed in their cars. While behind the wheel, board members wove through parts of Fallbrook to follow the path of the new pipeline. With their smartphones turned on and hands-free, representatives followed each other in a single file parade while listening to a live conference call with the project contractor.  Board members learned about construction progress, and saw where and how the pipe will be installed.

The tour and the project began at the treatment plant on Alturas Road, where bulldozers and heavy machinery are moving earth to build the pipeline and a water treatment plant. The pipeline will transport water from the plant through parts of central Fallbrook, ending at McDonald Road. The project also includes a new four million-gallon storage tank, where the tour ended. Participants discussed the possibility of a subsequent tour to view ongoing progress with construction of the facilities.

The entire construction process will take approximately two years to complete, with the pipeline becoming fully operational by 2022.