9/29/2022
1 RiversideCA.gov
1 RiversideCA.gov
THE UPPER SANTA ANA RIVER
WATERSHED INFRASTRUCTURE
FINANCING AUTHORITY JPA
Financial Performance and Budget Committee
October 14, 2022
Public Utilities Department
Upper Santa Ana River
Habitat Conservation Plan (HCP)
From Conflict to Collaboration
1 2
9/29/2022
2 Santa Ana River Watershed ChallengeSanta Ana River Watershed Challenge How do we meet water supply needs while protecting the needs of a functional riverine ecosystem
How do we work together to maximize the value of local water resources for all agencies
4 Old Strategy: LitigationOld Strategy: Litigation
3 4
9/29/2022
3 New Strategy: Partnership
Inter-Agency Collaboration
• Water Districts, NGOs, and Wildlife Agencies
work together to find win-win solutions.
Accept Reality and Plan Accordingly
• People need water and so do fish.
• What’s good for the River is good for people.
• The watershed is interconnected with many
stakeholders.
Failure is not an option
• Nobody benefits if we do nothing.
• The cost is too great for doing nothing.
• Working together is the only way forward.
HCP: Purpose
Partnership and Collaboration
Regional, comprehensive program:
Framework to protect, enhance,
restore habitat for species
Streamline permitting for
projects
5 6
9/29/2022
4 7
HCP Permittees
HCP Team:
11 water agencies
San Bernardino Valley Municipal Water District
San Bernardino Valley Water Conservation District
San Bernardino Municipal Water Department
Western Municipal Water District
East Valley Water District
West Valley Water District
Riverside Public Utilities
Inland Empire Utility Agency
City of Rialto
Orange County Water District
Metropolitan Water District of Southern California
Southern California Edison
8 ESA Permitting for Covered Species
Plants
Slender-horned spineflower
Santa Ana River woolly-star
Fishes
Santa Ana sucker
Arroyo chub
Santa Ana speckled dace
Amphibians and Reptiles
Western spadefoot
Mountain yellow-legged frog
Western pond turtle
South coast garter snake
California glossy snake
Mammals
San Bernardino kangaroo rat
Los Angeles pocket mouse
Birds
Least Bell's vireo
Southwestern willow flycatcher
Yellow-breasted chat
Western yellow-billed cuckoo
Tricolored blackbird
Burrowing owl
Coastal California gnatcatcher
Cactus wren
Photo: RCRCD
Photo: Cornell Lab of Ornithology
Photo: SB County Public Works
Photo: San Diego Zoo
Fully avoided species
Delhi Sands flower-loving fly
Arroyo toad
7 8
9/29/2022
5 Covered Activities
• >100 Projects over 50 years
• Phase 1: 0 - 5 years
• Phase 2: 6 - 10 years
• Phase 3: 11 - 15 years
• Phase 4: 16+ years
• Types of Covered Activities:
o Water Reuse
o Groundwater Recharge
o Wells and Water Conveyance
Infrastructure
o Solar Energy Development
o Existing Facility Routine Operations
and Maintenance
o Habitat Improvement, Management,
and Monitoring
10 Conservation StrategyConservation Strategy
PROTECT &
ENHANCE
EXISTING
HABITAT
CREATE MORE
HABITAT
ESTABLISH
ADDITIONAL
POPULATIONS
REDUCE
THREATS
9 10
9/29/2022
6 Conservation StrategyConservation Strategy
Five Preserve Units:
Santa Ana River Preserve Unit (508
acres)
Alluvial Fan Units A & B: (1,335 acres)
Santa Ana Sucker Preserve Units A &
B: (264 acres)
Total: ~2,100 acres
Tributary Restoration Sites: Increase Habitat Tributary Restoration Sites: Increase Habitat Restoration Sites along Santa Ana River
• Restore riparian habitat
• Create stream habitat
• Conserve and manage
• Provide water supply
11 12
9/29/2022
7 Innovative Solutions for Water and HabitatInnovative Solutions for Water and Habitat
TRANSLOCATION TO UPPER WATERSHED
IMPACTS & RISK
REFUGIA
SAS Translocation Units A & B
Captive Rearing
13 14
9/29/2022
8 Santa Ana Sucker Preserve Units A & BSanta Ana Sucker Preserve Units A & B Santa Ana
River
mainstem:
translocate
from
Mountain
tributary:
translocate to
Challenges & Opportunities Challenges & Opportunities
Multiple Benefits for Habitat, People, Property
• Creating/Improve habitat
• Provide permanent water supply to restoration sites
• Long-term management and monitoring
• Funded Ranger patrol of restoration sites
• Conservation easements and endowments
15 16
9/29/2022
9 Challenges
https://www.pe.com/2017/12/21/riverside-fire-responds-to-reports-of-brush-fire-in-santa-ana- river-bottom/
https://www.pe.com/2021/09/05/spike-in-atv-crashes-in-riverside-prompts-beefed-up-barriers-and- security-at-santa-ana-riverbed/
Opportunities - Partnerships
https://www.pe.com/2020/02/06/firefighters-battle-4-acre-brush-fire-in-santa-ana-river- bottom-on-west-side-of-riverside/
• Partnerships
• Incorporate fire fighting into planning process
• Site protection
• Strategic access control
• Ranger patrols
• Trash collection
17 18
9/29/2022
10 Ranger Patrols
Hidden Valley
• Encampments
are few where
patrols currently
occur
https://fpdcc.com/places/locations/river-trail-nature-center/ https://idahonews.com/news/local/gallery/30-years-in-the-treasure-valley-idaho-fish-and-games-mk-nature-center?photo=11 Opportunities – Responsible Public Use
19 20
9/29/2022
11 Restoration at Hidden ValleyRestoration at Hidden Valley 21 22
9/29/2022
12 23
HCP BenefitsHCP Benefits
Capture &
Recharge of
~80,000 AFY
Local cost
savings: $945M
Permanently
conserve ≥ 2,000
acres
Regional water
supply reliability
& capacity
Riverside =
11,000 AF
Creation of ~85
jobs annually
Protect 22
native animals
and plants
Protect 12
endangered
/threatened
species
Manage
conservation
lands, &
translocations in
perpetuity.
Provide dedicated
stream flow.
24 Photo: Cornell Lab of Ornithology
23 24
9/29/2022
13 RiversideCA.gov
25 1. The Water Infrastructure Fina nce and Innovation Act of 2014 established the WIFIA Program.
2. Administered by the EPA for e ligible water and wastewater infrastructure projects, offering low interest, favorable financing.
3. San Bernardino Valley Municipal Water District is leading an effort to make WIFIA financing available for the region.
4. RPU has an opportunity to partner with the region to be eligible for WIFIA financing for future water supply projects.
BACKGROUND
Achieving Water Resilience
through Regional
Collaboration and
Integrated Infrastructure
Heather Dyer, MS, MBA
CEO/General Manager
San Bernardino Valley Municipal Water District
25 26
9/29/2022
14 What we do…
Ensure a reliable water supply
to the region we serve,
forever.
Resilience
Stewardship
Vision
Foresight
Strategy
Proactive Water Resources Planning
● Stormwater capture – maximize local resources
● Recycled Water - drought proof supply
● Conjunctive Use Projects - shared
infrastructure/shared resources
● Groundwater management - Proactive/adaptive
27 28
9/29/2022
15 UPPER SANTA ANA RIVER WATERSHED INFRASTRUCTURE FINANCING AUTHORITY 30 Program Need
For many years, the San Bernardino
Valley has been challenged by
prolonged drought, increased wildfires,
and climate uncertainty. In response, the
region, which relies heavily on imported
water, is investing in collaborative
strategies to diversify its water supply
portfolio, recharge its groundwater
basins, restore critical habitat and secure
a sustainable water future.
The Upper SAR Watershed, spanning
over 850 square miles in San Bernardino
and Riverside Counties in southern
California, is a highly connected system
of surface water, groundwater, and rich
habitat that the region depends on for its
local water supply.
30 29
30 9/29/2022
16 Program Description
31 WA TERSHED CONNECTis a regional infrastructure program, a network of forward-looking projects designed to achieve water supply reliability, climate resilience, and long-term ecological health of the Upper Santa Ana River (Upper SAR) Watershed.
WA TERSHED CONNECTis a multiphase program comprised of interconnected water capture, recharge, storage, treatment, and conveyance projects. This comprehensive package of infrastructure projects are expected to collectively maximize the use and reuse of local water resources, while attaining a healthy, functional river ecosystem that supports 22 federally and state-protected species WA TERSHED CONNECTinnovative approach is expected to maximize program value and offers synergistic benefits to the watershed and its people.
WA TERSHED CONNECT’s purpose is to achieve regional water supply security, resilience to extended drought and the effects of climate change and holistically enhance the health of the Upper SAR Watershed.
SYNERGY:the interaction or cooperation of two or more organizations, elements, or other agents to produce a combined effect greater than the sum of their separate effects
31 32
9/29/2022
17 Opportu
nity
Water Infrastructure Finance and Innovation Act (WIFIA) is an innovative, federal low-cost, and flexible infrastructure financing mechanism Valley District and other local water agencies created the Financing JPA and the Watershed Connect Program (~$0.5 billion of interconnected projects) in 2021 to take advantage of WIFIA
Letter of Interest Submitted on June 23, 2021; Watershed Connect invited to submit a loan application in December 2021
Application submitted in late May for Phase I; regionally approved for WIFIA loan up to $231 million for capital program
Opportunity
Phase 1 Projects
34 Project Name Lead Agency
Acquisition of Greenspot Pump Station San Bernardi no Valley Municipal Water District $ 14,000,000 Central Feeder - EBX Intertie San Bernardino Valle y Municipal Water District $ 2,327,000 Lytle Creek-Cajon Creek Mitigation Lands San Bernardi no Valley Municipal Water District $ 11,590,000 Cactus Basin Connector Pipeline San Bernardino Va lley Municipal Water District $ 2,211,000 Regional Recycled Water System Phase 1 San Bernardi no Valley Municipal Water District $ 53,073,000 Enhance Recharge Phase 1B San Bernardino Valley Municipal Water District $ 65,583,000 Enhance Recharge Phase 1A Liner San Bernardino Valle y Municipal Water District $ 970,000 Headwaters Resiliency Multipurpose Area San Bernardino Valley M unicipal Water District $ 32,500,000 SAR Sustainable Parks and Tributaries Water Reuse San Bern ardino Valley Municipal Water District $ 27,745,675 Active Recharge - Highland Hills Land Acquisition San Bernardino Valley Municipal Water District $ 7,247,000 HCP Tributaries Restoration San Bernardino Va lley Municipal Water District $ 14,294,000 Calimesa Aquifer Storage and Recovery Project Phase 1 Yucaipa Valley Water District $ 12,114,925 Calimesa Aquifer Storage and Recovery Project Phase 2 Y ucaipa Valley Water District $ 4,337,448 Calimesa Regional Recycled Water Pipeline Project Y ucaipa Valley Water District $ 5,665,383 R-12.5 Recycled Water Reservoirs Yucaipa Va lley Water District $ 4,752,500 Wochholz Regional Water Recycling Facility Energy Resliency Project Yucaipa Valley Water District $ 29,967,497 Yucaipa Valley Regional Water Filtration Facility Energy Resiliency Project Yucaipa Valley Water District $ 16,298,861 Salinity and Groundwater Enhancement Project Yucaipa Valley Water District $ 34,149,320 Salinity Concentration Reduction and Minimization System Yucaipa Valley Water District $ 9,501,283
3.0 MG R-11.4 Recycled Water Reservoir Yucai pa Valley Water District $ 10,864,424 R-10.3 Recycled Water Booster to R-11.4 Recycled Water Reservoir Yucaipa Valley Water District $ 1,748,520 24-inch Recycled Water Pressure Zone 11 Regional Pipeline Yucaipa Valley Water District $ 9,370,560 Recycled Water Reservoir R-7.2 at the Resource Ranch Yucaipa Valley Water District $ 7,664,800 North Bench Recycled Water Project Yucaipa Valley Water District $ 21,982,020 Calimesa Lake Project Yucaipa Valley Water District $ 10,001,380 Wochholz Regional Water Recycling Facility - SCADA Upgrades Yucaipa Valley Water District $ 1,892,576 Yucaipa Valley Regional Water Filtration Facility - SCADA Upgrades Yucaipa Valley Water District $ 2,830,000 Oak Valley Sewer Lift Station, Force Mainlines and Gravity System Improvements Yucaipa Valley Water District $ 27,710,060 Valley District Phase 1 Total $ 231,540,675
YVWD Phase 1 Total $ 210,851,557
Phase 1 Total $ 442,157,232
Bolded projects are expected to be funded with WIFIA Loan Proceeds. 33 34
9/29/2022
18 Valley District Phase 1 Projects
35 Project Name Project Costs*
Acquisition of Greenspot Pump Station SWP Reserves $ 14,000,000 Central Feeder - EBX Intertie SWP Reserves $ 2,327,000 Lytle Creek-Cajon Creek Mitigation Lands GF Reserves, Grants $ 11,590,000 Cactus Basin Connector Pipeline GF Reserves, Grants $ 2,211,000 Regional Recycled Water System Phase 1 GF Reserves $ 53,073,000 Enhance Recharge Phase 1B Project Partners, WIFIA Loan, Grants $ 65,583,000 Enhance Recharge Phase 1A Liner Project Partners, WIFIA Loan $ 970,000 Headwaters Resiliency Multipurpose Area GF Reserves $ 32,500,000 SAR Sustainable Parks and Tributaries Water Reuse Project Partner, HCP Partners, WIFIA Loan $ 27,745,675 Active Recharge - Highland Hills Land Acquisition SBVWCD Active Recharge Transfer Fund $ 7,247,000 HCP Tributaries Restoration HCP Partners $ 14,294,000 Valley District Phase 1 Total $ 231,540,675
Bolded projects are expected to be funded with WIFIA Proceeds.
WIFIA Program Benefits
WIFIA loans offer a low, fixed interest rate
WIFIA loans provide flexible financial terms
Customized repayment schedules.
Repayment period must be the earlier of 35 years after the date of substantial completion of the project, or the useful life of the project.
Payments may be deferred up to 5 years after the project’s substantial completion.
Prepayable at any time ($1 million minimum).
Federal combined funding can be up to 80% of total project costs. 36 35
36 9/29/2022
19 Upper Santa Ana River Watershed Infrastructure
Financing Authority
The Upper Santa Ana River Watershed Infrastructure
Financing Authority (USAR WIFA), a Joint Powers
Authority comprised of water agencies, all of whom rely upon the highly connected tributaries, groundwater
basins, and natural ecosystems of the Santa Ana River.
Joint Powers Agreement
• Agreement was entered into for purposes of assisting in the financing and potential refinancing of projects of the Members • Members pay into JPA based on proportion of benefits received from program (loan) • Installment Purchase Agreements (“IPA”) authorized by the Authority and Members will set forth rights and obligations of the Members and the Authority with respect to debt and will ensure compliance with provisions of any legal document related to such IPA • Members own and operate their facilities/projects
• Any amendment to the JPA requires concurrence by all Members at that time • The JPA is governed by one Director for each Member
38 Current USARWIFA Directors
Paul Kielhold Chair Valley District
Lonni Granlund Member YVWD
Daniel Cozad Member SBVW Conservation
District
Miguel Guerrero Member SB Municipal Utilities
Department
37 38
9/29/2022
20 Benefits
39 Resiliency in the face of climate
change: The collection of
forward-looking recycled water,
stormwater capture,
groundwater storage,
alternative energy, and
ecosystem restoration projects
are expected to improve water
supply security. Investments in
alternative water supplies,
emergency storage, and system
redundancies enhance the
regions’ resilience to climate
threats.
Infrastructure Enhancements:
Modernization of existing
infrastructure combined with
new conveyance systems are
planned to create enhanced
water resources. Upgrades,
including pipeline protection
initiatives and solar energy
projects, are expected to
reduce climate-related
vulnerabilities and ensure
reliable services during natural
disasters.
Improved Water Quality:
Advanced treatment upgrades are
expected to improve regional
water quality by reducing the
amount of salt, nutrients, and
emerging contaminants introduced
to surface waters and groundwater
basins. Proposed stormwater
capture and treatments projects
are expected to produce high-
quality water for blending with
groundwater supplies high in total
dissolved solids.
Drought Resiliency: The program’s
ambitious stormwater capture,
groundwater recharge, and water
reuse projects are expected to
position the region to sustain short
and long-term droughts.
Ecological Health: The proposed
habitat mitigation and restoration
initiatives are expected to enhance
the health of the Upper SAR
Watershed, supporting the region’s
urban, environmental, recreational,
and economic needs.
Project Type Number Projects Benefits
Water Supply and Groundwater Recharge 10 35,760 acre-feet per year Habitat Restoration 4 641 acres and 1 mile of stream
Recycled Water Distribution 7 6,600 connections
Energy Resilience 2 7 Megawatts
Infrastructure Resilience 5 Multiple
TOTAL 28
• Valley District is leading 11 projects
• Yucaipa Valley Water District is leading 17 projects
39 40
9/29/2022
21 RiversideCA.gov
41 CURRENT SAN BERNARDINO BASIN CONDITIONS
150’ water level decline 1969 Judgment initiated as
a result of decreasing water
supply
Period Average inches per
year of Rainfall Comment
1933-1960 32.94
Period established the "safe yield" of the
basin, the annual pumping volumes that
can safely be produced from the basin
1930-2019 31.03 Long-term average
2000-2019 24.04 Drought period
Rainfall in the Upper Watershed
RiversideCA.gov
42 1. Region is experiencing a long-term dry period resulting in decreased water levels.
2. As a result of lower water levels:
a. Pumps are being lowered.
b. Well production volumes are lower because they cannot pump at the same rate as they did when water levels were higher.
c. Older wells are pumping much more air and in some cases need to be replaced with deeper wells.
3. Western-San Bernardino Watermast er is leading efforts to explore basin management options that would invest in efforts to stabilize and/or improve groundwater conditions to ensure the region’s water supply remains resilient and sustainable into the future.
CURRENT SAN BERNARDINO BASIN CONDITIONS
41 42
9/29/2022
22 RiversideCA.gov
43 Strategic Priority No. 4 – Environmental Stewardship Goal 4.2 –Sustainably manage local water resources to maximize reliability and advance water reuse to ensure sage, reliable and affordable water to our community the item aligns with.
Strategic Priority No. 5 – High Performing Government
Goal 5.4 – Achieve and maintain financial health by addressing gaps between revenues and expenditure and aligning resources with strategic priorities to yield the greatest impact.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
44 That the Financial Performance and Budget Committee recommends that the City Council:
1. Approve joining the Upper Santa Ana River Watershed Infrastructure Financing Authority through the execution of a Joint Exercise of Powers Agreement and authorize the City Manager, or designee, to execute any required documents;
2. Designate the Mayor or designee from the City Council to represent the City of Riverside on the governing board of the Upper Santa Ana River Watershed Infrastructure Financing Authority; and
3. Approve an expenditure not to exceed $270,000 to fund Riverside's portion of submitting a funding application and Water Infrastructure Finance and Innovation Act loan package to the U.S. Environmental Protection Agency for a regional suite of infrastructure projects.
RECOMMENDATIONS
43 44