Owens Valley and Mono Basin Via the Los Angeles Aqueduct 2

FINANCIAL INFORMATION

The Water Revenue Fund Preliminary Budget incorporates expenditures for the Water System, including the share of expenditures associated with the Joint System and Power Revenue Fund that support Water System functions. Estimated appropriations for FY 2017-2018 total $2.17 billion. Net of receipts from the Power System, contributions in aid of construction, individuals, and companies and other miscellaneous sources, appropriations are $1.73 billion.

BACKGROUND

Development of the FY 2017-2018 Preliminary Budget commenced in September 2016, with continued analysis and refinement. The final budget will be submitted for your review and approval in May 2017. The preliminary budget is consistent with the approved five-year rate action. Pass through rates would continue to adjust for, in part, variable and uncontrollable costs including infrastructure investments, continuing water quality improvements and decreased purchased water from the Metropolitan Water District.

The LADWP continues to emphasize cost control and fiscal discipline across all programs and enhanced performance metrics reporting contributing to greater cost efficiency and accountability. The FY 2017-2018 funding priorities are consistent with the Mayor’s priorities and reflect continued investment to comply with mandates, upgrade aging infrastructure, and create a more sustainable and local water supply.

Some of the proposed budget highlights are as follows:

Water Quality Program: Total $401 million, Capital ($315 million) and Operating & Maintenance ($86 million)

Planned water quality capital projects will continue to fund investments in FY 2017-2018 that develop the highest quality of water through the reservoir covers, bypasses, trunk line replacement, and regulatory compliance for construction, operation and maintenance, equipment, and supplies for facilities and systems to provide high quality water and meet State and Federal water quality standards. Construction is scheduled to be completed at Elysian Reservoir in the coming fiscal year and to start at Upper Stone Canyon Reservoir in the coming months,

The budget includes continued financing with State Revolving Funds for qualifying projects and reduced rate bonds issued through the Southern California Water Authority Joint Powers Agreement.

Replace Aging Infrastructure: Total $391 million, Capital ($275 million) and Operating & Maintenance ($116 million)

Ensuring reliable water for domestic use and fire protection, replacement and repair of water pipelines and other water system facilities are critical priorities for the Water

Transmittal of Preliminary FY 2017-2018 LADWP Budget to the City Council - Water Revenue Page 2 Fund Receipts and Appropriations Budget and Associated Schedules/March 1, 2017 System. To address these priorities, the Water System has developed the Water Infrastructure Program (WIP). To support the WIP, the Water System is developing an Asset Management process to assess the reliability of aging distribution mainlines, trunk lines, pump stations, pressure regulating stations, tanks, reservoirs, aqueducts, and meters and services and plan for appropriate ongoing maintenance and operations.

The Water System is on schedule to meet current year mainline replacement goals as well as meter replacement, pumping station and regulator station improvements and completed significant refurbishment of sections of the Los Angeles Aqueduct this fall.

Local Water Supply and Conservation: Total $289 million, Capital ($178 million) and Operating & Maintenance ($111 million)

Currently, the LADWP receives its water supply from four sources:

1. Owens Valley and Mono Basin via the Los Angeles Aqueduct 2. Pumping groundwater in the San Fernando Groundwater Basin, the Sylmar Basin, and the Central Basin 3. Recycled water 4. Purchases from the Metropolitan Water District of imported water delivered through the Colorado River Aqueduct and the California Aqueduct

To ensure long term reliability, resilience and low-costs, the Water System is investing in increased local supply and conservation. Investments include increased storm water capture capability, additions to the recycled water purple pipe infrastructure, and long term recycled water strategies.

The City met the Mayor’s January 1, 2017 conservation goal of 104 gallons per capita usage. Investments and continued outreach provided in this budget will support customers in longer-term goals. The Water System is aggressively pursuing funding for supply projects through the State Proposition 1 program.

Owens Valley Regulatory: Total $114 million, Capital ($82 million) and Operating & Maintenance ($32 million)

The LADWP plans to complete the remaining sections of dust mitigation, work to reduce the water-intensive measures on the lake, which will increase the long-term availability of water.

CITY ATTORNEY

The Office of the City Attorney reviewed and approved the Resolution as to form and legality.

Transmittal of Preliminary FY 2017-2018 LADWP Budget to the City Council - Water Revenue Page 3 Fund Receipts and Appropriations Budget and Associated Schedules/March 1, 2017

ATTACHMENTS

 Resolution  Cover Letter to the City Administrative Officer  Preliminary Budget Presentation  LADWP Strategic Plan  Preliminary Water Revenue Fund Receipts and Appropriations  Water Revenue Fund Capital Improvement Program  Preliminary Retirement, Disability, and Death Benefit Insurance Plan  Federal and State Grant Funding Estimates  Water Revenue Fund Salaries and Authorized Number of Positions (based on Annual Personnel Resolution)

Transmittal of Preliminary FY 2017-2018 LADWP Budget to the City Council - Water Revenue Page 4 Fund Receipts and Appropriations Budget and Associated Schedules/March 1, 2017

Mr. Richard H. Llewellyn March 1, 2017 Page 2

Estimated General Fund Revenues

In addition to reliable, low-cost utility services, the LADWP provides the City of Los Angeles with ongoing financial support through the collection and remittance of Utility Users Tax - Electricity (UUT) revenues and the Power Revenue Transfer. Based on the sales forecast for FY 2017-2018, the UUT for next fiscal year is estimated to be $410 million. For the Power Revenue Transfer, the estimate for FY 2017-2018 is $242 million and is based on the outlook for the FY 2016-2017 fiscal year.

Power System

The total Power Revenue Fund Receipts and Appropriations budget for FY 2017-2018 is $4.70 billion, net of receipts from the Water System, contributions in aid of construction, individuals, and companies and other miscellaneous sources, and reflects critical investments for compliance with regulatory mandates related to the power supply and increased funding to address aging infrastructure.

 Power System Reliability Program: $908 million  Repowering and Renewable Portfolio Standard: $376 million  Energy Efficiency Program: $178 million

Water System

The total Water Revenue Fund Receipts and Appropriations budget for FY 2017-2018 is $1.73 billion, net of receipts from the Power System, contributions in aid of construction, individuals, and companies and other miscellaneous sources, and reflects investment in local water supply projects to reduce our reliance on costly imported water and meet regulatory mandates, while continuing funding to improve drinking water quality and replace aging system infrastructure.

 Water Quality Program: $401 million  Water Infrastructure: $391 million  Local Water Supply and Conservation: $289 million  Owens Valley Regulatory: $114 million

Multi-year Financial Planning

The FY 2017-2018 budget continues a multi-year effort to prepare the utility for the future and will address the challenges involved in evolving the power and water systems. The LADWP continues to update and refine multi-year financial plans for both the Water and Power Revenue Funds, with funding prioritized towards investment in critical infrastructure, increased system reliability and more sustainable water and energy supplies. Funding is also required to ensure that resource needs are met within Mr. Richard H. Llewellyn March 1, 2017 Page 3

our customer contact centers and meter routes, with focus on rebuilding customer confidence and expanding efforts to improve the customer experience with all LADWP operations and services. Lastly, through the efforts of the highly skilled and dedicated LADWP workforce, we will increase agency transparency and accountability through use of operational and financial performance measurements, while improving productivity through increased use of technology and innovation.

In conclusion, the LADWP is looking forward to working closely with Mayor Garcetti, the Los Angeles City Council, Ratepayer Advocate, and your Office to finalize a FY 2017- 2018 budget that is fiscally responsible and provides the resources required to provide the citizens of the City of Los Angeles with quality and reliable water and power, now and into the future.

Sincerely,

David H. Wright General Manager

NMG:mma/jm Enclosures c/enc: Board of Water and Power Commissioners Joseph Brajevich David H. Wright Martin L. Adams Donna I. Stevener Richard F. Harasick Reiko A. Kerr Andrew C. Kendall Louis C. Ting Jeffery L. Peltola Neil M. Guglielmo Marianne M. Anz

FY 17-18 PRELIMINARY BUDGET

Board of Water and Power Commissioners March 21, 2017 Presentation

• Budget Status • Recent Accomplishments • Development of FY 2017-18 Budget • Key Expenditure Plans & Recommended Budgets • Staffing • Timeline & Next Steps • Appendix – Budget Detail

2 Budget Status

The goal of the Preliminary FY 2017-18 Budget is to: • Create a budget that is consistent with the LADWP Strategic Plan, approved rates, and financial plans • Address customer-driven priorities • Continue to emphasize cost control and fiscal discipline

The Department’s goals align with the Mayor’s FY 2017-18 Budget Policy directive to maximize resources, prioritize the needs of our residents, and strive for greater effectiveness.

3 Power Recent Accomplishments: Repowering & RPS We’ve made major strides in Energy-related initiatives

Scattergood GS in El Segundo: Began demolition of Unit 3 in preparation for Phase II Local Solar: Customer solar rebates & Charge Up L.A.: Installed 2,000 Repowering feed-in tariff, approx. 220 MW to date new customer chargers through (Units 1-2) 2016

Springbok I/II Solar Plants and Beacon Solar, two phases: Springbok I/II and Beacon 3&4 totaling 375 MW came on line in late 2016. These are part of 650 MW of new solar projects in the Barren Ridge/Beacon area— clean energy for 250,000 customers/year 4 Power Recent Accomplishments: Power Sustainability & Infrastructure

We doubled investment in Energy We replaced residential and commercial Efficiency programs infrastructure to improve system reliability

Lighting retrofits and other Replaced over 2,700 Replaced over 4,000 poles efficiency solutions helped transformers since FY 12-13 since FY 12-13 reduce energy use by 412 GWh for FY 15/16 citywide 5 Water Recent Accomplishments: Water Quality & Infrastructure

Exceeded 2016 mainline replacement goal of Installing new Earthquake Resistant 150,000 feet, installing nearly 170,000 ft. On Pipe. target to reach 16/17 goal of 185,000 ft.

Water Distribution Trunkline Construction working in coordination with the LA Filtration Plant to improve disinfection of the water supply 6 Water Recent Accomplishments: Water Supply & Sustainability We’ve continued expanding the sustainable local water supply

LADWP broke-ground on the Tujunga Spreading Grounds Groundwater: Continued to plan and Stormwater Capture Project. secure funding for San Fernando Groundwater Basin remediation.

Conservation: Reduced residential Added new water use in Gallons Per customers and Capita per Day (GPCD) projects to increase from 106 (Jan 16) to 104 Recycled Water (Jan 17.) deliveries

7 Development of FY 2017-18 Budget: Customers - Mandates - Reliability

This preliminary budget, which will continue to be updated and refined over the coming weeks, includes funding to:

• Support investment in planned water and power capital infrastructure • Accelerate reliability and increase replacement cycles • Comply with regulatory mandates • Support the LADWP Customer Bill of Rights commitment to prompt, consistent and easily accessible customer service • Maintain LADWP’s financial metrics and preserve our low cost of borrowing

8 Power Revenue Fund: Key Expenditure Plan Summary FY 2015-16 FY 2016-17 FY 2017-18 $ in Millions Actual Approved Estimated Proposed OPERATING EXPENSE Non-Renewables $ 1,020 $ 898 $ 985 $ 967 Renewables 302 532 485 588 CO2, Emission and Other Expenses 34 6 (39) (14) Total Fuel and Purchased Power $ 1,356 $ 1,436 $ 1,431 $ 1,542 Operation and Maintenance 1,081 1,028 1,033 1,057 Property Tax 15 18 15 15 Depreciation 540 642 585 664 TOTAL OPERATING EXPENSE $ 2,992 $ 3,124 $ 3,064 $ 3,278 CITY TRANSFER 267 291 264 242 DEBT SERVICE 472 480 485 555 INCREASE IN FUND NET ASSETS 175 107 168 147 REVENUE REQUIREMENT $ 3,517 $ 3,685 $ 3,665 $ 3,882

TOTAL CAPITAL INVESTMENT $ 1,173 $ 1,486 $ 1,345 $ 1,591

Notes: 1) All data based on Power Case #1 2) The annual cost associated with the Capital Investment is reflected in Debt Service and Depreciation.

9 Power Revenue Fund Financial Categories Summary Power System Reliability Program Replace the rapidly aging backbone and infrastructure of the Generation, Transmission, Substation, and Distribution Systems; as well as the supporting technology to maintain system reliability and improve replacement cycles Infrastructure & Repowering Evaluates and prioritizes maintenance and replacement of major power infrastructure, including repowering the thermal units for once-through Cooling (OTC) regulatory compliance Operating Support Provide shared and joint services including customer service, fleet, purchasing, finance, IT and human resources Energy Efficiency Provide customers the opportunities to reduce energy reliance to achieve long term savings targets and have greater control over their bills Renewable Portfolio Standard Develop greener power resources via renewable energy and transition from coal to cleaner sustainable energy supplies 10 Power Revenue Fund: FY 17-18: Capital Expenditures Trend

11 Power Revenue Fund: FY 17-18: O&M Expenditures Trend

12 Power Revenue Fund: FY 17-18: Fuel & Purchased Power Trend

13 Water Revenue Fund: Key Expenditure Plan Summary FY 2015-16 FY 2016-17 FY 2017-18 $ in Millions Actual Approved Estimated Proposed OPERATING EXPENSE Purchase Water $ 262 $ 198 $ 205 $ 97 Operating and Maintenance 460 472 450 480 Property Taxes 14 17 15 16 Depreciation 144 169 169 184 TOTAL OPERATING EXPENSE $ 880 $ 856 $ 839 $ 777 DEBT SERVICE 235 280 275 302 INCREASE IN FUND NET ASSETS 154 119 142 205 REVENUE REQUIREMENT $ 1,132 $ 1,132 $ 1,110 $ 1,121

TOTAL CAPITAL INVESTMENT $ 668 $ 1,050 $ 943 $ 940

Notes: 1) All data based on Water Case # 2 2) The annual cost associated with the Capital Investment is reflected in Debt Service and Depreciation.

14 Water Revenue Fund Financial Categories Summary

Water Quality Develop the highest quality water through reservoir covers, bypasses, and trunkline replacement, and regulatory compliance

Water Infrastructure Replace aging pipeline and infrastructure, including regulator and pumping stations; and maintain operations through in-place refurbishment of the entire Los Angeles Aqueduct system

Water Supply Invest in recycled water, storm water, and groundwater to increase local supply and meet State conservation goals and Mayor’s long-term ED5 goal

Owens Valley Regulatory Compliance Construction continues on the Owens Lake Dust Mitigation Program- Phases 9& 10

Operating Support Provide shared and joint services including customer service, fleet, purchasing, finance, IT and human resources

15 Water Revenue Fund: FY 17-18: Capital Expenditures Trend

16 Water Revenue Fund: FY 17-18: O&M Expenditures Trend

17 Water Revenue Fund: FY 17-18: Purchased Water Trend

As of February 21st, Eastern Sierra snowpack was at 268% normal water content to date

18 Staffing Plan by System FY 17-18: Proposed Funding & APR

• Labor funding, 771 positions, above current occupancy is allocated primarily for implementing: – Water and Power Systems Programs – Enhancing Customer Service – Human Resources, Financial Services and Fleet Services – Corporate Safety and Project Management Offices – Office of Sustainability – Succession Planning • Based on retirement eligibility criteria of Age 55 with 30 or more years of service and Age 60 with 5 or more years of service, approximately 2,223 employees or roughly 23% of the existing LADWP Total Budget ($ in Millions) Labor Overtime Benefits workforce will be eligible to retire within FY 2017-18; Joint System $ 376.8 $ 36.0 $ 283.3 actual Retirement for FY 2016-17 as of January 31, Water System $ 219.0 $ 25.0 $ 166.2 2017 is 117 employees Power System $ 533.2 $ 97.0 $ 362.2 • Proposed change in Annual Personnel Resolution Total LADWP $ 1,129.1 $ 157.9 $ 811.7 from 10,015 to 10,650 positions

19 Labor Funding FY 17-18: Proposed Changes

Compared to the rate action, the proposed labor funding for FY 17/18 is $99 million higher than the FY16/17 incremental labor funding resulting in a cumulative $268 million increase primarily for: • Power: PSRP, Infrastructure and Repowering • Water: Water Quality, Recycled Water and Infrastructure • Customer Care Billing (CCB) Class Action Lawsuit This change has no impact on the recently approved rates, as various offsets in contracting services were made to maintain the target revenue requirement. 20 Timeline and Next Steps

Currently, requesting Board approval for FY 17-18 Preliminary Budget transmittal

Management Review and Update of Preliminary Budget: March and April 2017

Present and request Board approval for Final FY 17-18 Budget: May 2017

21 Budget Detail

APPENDIX

22 Power Revenue Fund FY 17-18: Budget Overview

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Power System Reliability Program $ 337.1 $ 484.0 $ 414.4 $ 538.0 Infrastructure & Repowering 414.0 355.7 380.9 498.2 Operating Support 85.4 223.3 179.2 228.5 Energy Efficiency 73.3 168.1 149.3 178.2 Renewable Portfolio Standard 262.9 255.3 221.4 148.5 Total - Capital 1,172.6 1,486.3 1,345.2 1,591.4 O&M (in Millions) Power System Reliability Program $ 334.0 $ 347.6 $ 347.8 $ 370.0 Operating Support 289.0 340.7 349.8 357.6 Infrastructure, Public Benefit & Repowering 274.1 295.3 297.5 288.2 Renewable Portfolio Standard 26.3 37.5 37.9 41.4 Total - O&M $ 923.4 $ 1,021.0 $ 1,033.0 $ 1,057.2 Fuel and Purchased Power (in Millions) Renewables $ 302.4 $ 531.9 $ 484.8 $ 588.2 Coal and Nuclear 514.9 470.0 420.7 461.4 Natural Gas 328.1 280.5 359.1 349.9 Other Non-Renewables & CO2Emissions 210.8 160.4 166.3 142.0 Total - FPPB $ 1,356.2 $ 1,442.7 $ 1,430.9 $ 1,541.5

23 Power Revenue Fund Power System Reliability Program FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Distribution $ 186.4 $ 271.3 $ 247.7 $ 321.9 Transmission 55.4 73.7 59.2 93.8 Substation 66.5 109.0 85.0 92.1 Generation 19.8 19.4 7.2 22.1 Power System Application Technology 8.9 10.6 15.3 8.1 Total - Capital $ 337.1 $ 484.0 $ 414.4 $ 538.0 O&M (in Millions) Distribution $ 128.7 $ 140.3 $ 141.5 $ 154.1 Apprentice and Journeyman Training 84.0 76.2 79.4 80.2 Substation 67.2 75.2 69.6 73.0 Apprentice and Journeyman Training 24.7 26.9 27.8 33.5 Substation 29.3 29.0 29.4 29.2 Total - O&M $ 334.0 $ 347.6 $ 347.8 $ 370.0

The Power System Reliability Program (PSRP) is critical for the replacement of the rapidly aging backbone and infrastructure of the Generation, Transmission, Substation, and Distribution Systems. PSRP initiated in FY 14-15, is the evolution of the existing reliability program to improve how funds are prioritized and the overall effectiveness of the program. This includes the replacement of Poles, Crossarms, Transformers and Cables, Substation Automation, and Circuit Breakers. Specifically the construction of 12-mile Scattergood – Olympic 230kV Cable A. 24 Power Revenue Fund Power Infrastructure & Repowering

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed New Business- Revenue $ 123.3 $ 121.2 $ 141.9 $ 134.0 Scattergood Repowering 125.3 16.8 18.4 180.0 Infrastructure- Other 93.4 110.4 94.3 73.8 Distributed Sys Reliability 30.0 35.1 43.4 31.7 Castaic Power Plants A&B's 7.7 20.7 21.1 21.3 Haynes Gen Station A&B's (0.4) 10.0 11.0 17.6 General Facilities Improvements 6.7 13.2 13.8 16.5 AMR Automatic Meter Reading 14.7 15.5 15.9 15.2 Haynes Unit 1&2 Repowering 0.0 5.0 8.5 4.9 Repowering- Other 13.2 7.8 12.6 3.3 Total - Capital $ 414.0 $ 355.7 $ 380.9 $ 498.2 O&M (in Millions) In-Basin Plant O&M $ 114.5 $ 120.6 $ 120.4 $ 118.9 All Other Infrastructure 105.1 114.2 117.6 106.8 Nuclear Gen Exp 36.4 39.6 38.7 40.6 Castaic Power Plnt O&M 18.1 20.8 20.9 22.0 Total - O&M $ 274.1 $ 295.3 $ 297.5 $ 288.2 The Power Infrastructure and Repowering evaluates and prioritizes maintenance and replacement of major power infrastructure, including repowering the thermal units for once-through Cooling (OTC) regulatory compliance. Also included is New Business for system growth and expansion; additions/betterments for various generation facilities. 25 Power Revenue Fund Energy Efficiency & Other Functions

FY 15-16 FY 16-17 FY 17-18

Capital (in Millions) Actuals Approved Estimated Proposed

Energy Efficiency $ 73.3 $ 168.1 $ 149.3 $ 178.2

Financial Info System 0.2 25.5 2.4 17.3

Total $ 73.5 $ 193.5 $ 151.7 $ 195.5

LADWP is aggressively ramping up its Energy Efficiency spending in order to achieve long term savings targets as well as mitigate the short term loss of the Aliso Canyon gas storage facility. EE spending in FY 16-17 is estimated to be approximately doubled versus FY 15-16

LADWP is prudently planning the replacement of its Financial, Human Resources and Procurement Systems. The Replacement Program will address problems associated with the Department’s legacy mainframe systems which are over 20 years old; lack integration; and lack appropriate reporting, and analytical capabilities. The Replacement is also aimed to modernize business operating procedures, and adopt industry best practices.

26 Water Revenue Fund FY 17-18: Budget Overview

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Water Quality $ 202.0 $ 348.7 $ 312.9 $ 314.8 Infrastructure 202.3 295.3 278.2 275.2 Water Supply 132.1 179.6 117.5 178.5 Operating Support 40.7 100.8 70.9 89.4 Owens Valley Regulatory 123.2 125.1 163.3 81.7 Total - Capital $ 700.2 $ 1,049.5 $ 942.7 $ 939.6 O&M (in Millions) Operating Support $ 133.5 $ 119.2 $ 123.0 $ 134.9 Infrastructure 115.6 109.4 110.4 116.5 Water Supply 99.0 112.2 98.6 110.7 Water Quality 72.1 88.5 84.4 85.9 Owens Valley Regulatory 24.8 42.7 33.6 32.1 Total - O&M $ 445.0 $ 471.9 $ 449.9 $ 480.1

Purchased Water (in Millions) $ 262.0 $ 198.4 $ 205.3 $ 96.8

27 Water Revenue Fund Water Quality

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed WQIP Reservoir Improvements $ 56.5 $ 138.1 $ 122.9 $ 150.5 Groundwater Remediation & Clean-up 11.2 44.0 16.4 64.0 WQIP Trunkline Improvements 88.9 109.7 124.2 50.3 Water Treatment Improvements 22.3 33.3 21.4 22.1 Chloramination Station Installations 5.5 10.8 15.1 14.7 Meter Replacement Program 17.6 12.7 12.8 13.2 Total - Capital $ 202.0 $ 348.7 $ 312.9 $ 314.8 O&M (in Millions) Distr Reservoir O&M $ 23.9 $ 24.8 $ 23.0 $ 25.4 Distribution Treatment Opns 12.1 20.2 19.3 19.6 Filter Plant Opns 13.1 16.3 16.6 17.0 WQ Control 17.4 18.1 17.5 16.8 Water Quality Regulatory 4.9 6.0 5.3 5.4 Water Quality Ground Water 0.1 2.3 2.0 1.2 System Flushing 0.5 0.4 0.4 0.4 Communit Outreach-Water 0.1 0.2 0.2 0.2 Total - O&M $ 72.1 $ 88.5 $ 84.4 $ 85.9 Water Quality Highlights: significant accomplishment in FY16-17 includes • Completion of the floating cover replacement for Franklin Reservoir • Initiation of construction for Upper Stone Canyon floating cover • Completion of Silver Lake Bypass line and removal of Ivanhoe Reservoir from the Distribution System • Initiation of construction on LA Reservoir UV treatment Facility • 50% construction completion of RSC 5 & 6 trunk line and tunnel 28 Water Revenue Fund Water Infrastructure

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Distribution Mains $ 81.0 $ 103.9 $ 102.5 $ 111.4 Services, Meters and Hydrants 43.0 43.2 38.3 42.8 Trunkline & Major Sys Connection 12.5 22.7 23.1 36.4 Infrastructure Reservoir Improvements 24.2 61.5 61.2 22.1 Pump Stations 8.4 10.3 13.4 18.1 Water System Support/General 3.1 30.4 10.3 16.3 WSO Info Technology 6.1 7.9 8.5 14.9 WSO Facilities 10.1 10.2 13.0 8.4 WSO Capital Projects 1.3 4.0 4.0 3.3 Tools and Equipment 1.4 1.2 1.2 1.6 Resource Development 11.2 0.0 2.8 - Total - Capital $ 202.3 $ 295.3 $ 278.2 $ 275.2 O&M (in Millions) Distribution Mains O&M $ 40.2 $ 37.3 $ 37.5 $ 40.8 Water System Support/General 24.5 23.4 24.3 24.4 Service Connection O&M 17.4 16.6 16.9 17.4 Water Information Technology 10.0 11.2 11.1 11.6 Oper Bldg & Yard O&M 7.2 5.9 6.0 7.1 Regulator Station O&M 7.1 6.8 6.4 6.5 Meters O&M 4.5 4.3 4.3 4.6 Fire Hydrant Maintenance 4.7 3.7 3.7 4.1 Total - O&M $ 115.6 $ 109.4 $ 110.4 $ 116.5

Water Infrastructure Program : • Water Operations Division has met its goal of rehabilitating 4 pressure regulating stations and expects to exceed the goal by 2 by the end of the fiscal year. In addition, Water Operations Division has surpassed its goal of 9 pump and motor replacement by 2. • Water Distribution exceeded its mainline replacement goal of 150,000 feet, installing nearly 170,000 feet. 29 Water Revenue Fund Water Supply

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Recycling & Storm Water $ 48.9 $ 100.5 $ 57.0 $ 99.4 Water Conservation 46.4 40.2 26.9 38.0 LAA Aqueduct 20.5 25.5 23.3 26.8 Groundwater 16.3 13.4 10.3 14.3

Total - Capital $ 132.1 $ 179.6 $ 117.5 $ 178.5 O&M (in Millions) Groundwater $ 45.5 $ 43.4 $ 41.1 $ 45.6 LAA Aqueduct 41.5 39.1 40.1 40.3 Water Conservation 7.7 21.0 10.9 16.5 Recycling & Storm Water 4.3 8.8 6.5 8.4 Total - O&M $ 99.0 $ 112.2 $ 98.6 $ 110.7 Storm Water • In mid-2016, Water Resources broke ground on the Tujunga Spreading Grounds Enhancement Project (TSG). • The TSG project will enhance the existing spreading grounds by combining and deepening basins, installing two intakes and incorporating a new remote telemetry system to optimize its operation. • Once completed in late 2018, TSG will have the capacity to double its stormwater recharge amount from 8,000 to 16,000AFY. Water Supply • Recycled water to new customers including Bond Park, Delano Park, Bette Davis Park, Chevy Chase Park, Woodley Park East, Branford Park, LACMTA, California State Historic Parks and the LosAngeles Department of Cultural Affairs. • Water System staff is finalizing the grant application to secure up to $9 million of Proposition 1 funding for the Griffith Park South Water Recycling Project. • Water System staff is working on a 5-year update of the 2012 Recycled Water Master Plan. 30 Water Revenue Fund Regulatory Compliance: Owens Valley

FY 15-16 FY 16-17 FY 17-18 Capital (in Millions) Actuals Approved Estimated Proposed Supplemental Dust Control $ 114.7 $ 70.3 $ 144.2 $ 48.9 Owens Valley Dust Mitigation $ 7.5 $ 34.8 $ 18.9 $ 32.1 Owens Lake Master Project $ 1.0 $ 20.0 $ 0.3 $ 0.7

Total - Capital $ 123.2 $ 125.1 $ 163.3 $ 81.7 O&M (in Millions) Owens Lake O&M $ 21.0 $ 39.3 $ 31.1 $ 29.1 Lower Owens River O&M 3.8 3.4 2.5 3.0

Total - O&M $ 24.8 $ 42.7 $ 33.6 $ 32.1

31 KEY TARGETS/ FIVE-YEAR GOALS

• Provide exemplary customer service SUCCESS • Maintain competitive rates while remaining financially stable • Increase organizational effectiveness, efficiency MEASUREMENTS and innovation CUSTOMERS • Implement 100% advanced/smart meters for water and power To meet our vision, we have identified specific targets • Increase the reliability of our water and power that we aim to meet in the next 5 years. These targets infrastructure will measure our organizational performance and keep us on track to meet our mission and vision. • Achieve zero injuries for our employees and the public FIRST By 2021, LADWP will: • Be a leader in environmental stewardship • Meet 100% of performance metrics defined in class action lawsuit • Meet 100% of rate case performance targets • Attain the top quartile in performance benchmarks or at least 90% in customer satisfaction surveys NEXT STEPS • Meet or exceed all local, state and federal energy efficiency, water conservation and sustainability goals • Identify the strategic objectives with benchmarks • Be recognized locally, nationally and globally for and key performance indicators (KPI’s) to meet innovation and environmental stewardship with the goals set forth in the strategic plan. awards, grants, presentation opportunities and in • Communicate the Strategic Plan to all employees publications and department stakeholders and promote their understanding and participation in the various elements to achieve our goals and objectives. • Create more focused strategic plans for divisions CORE VALUES to implement the overall strategic plan.

• Transparency • Safety • Reliability • Accountability • Exemplary Customer Service • Integrity • Innovation • Equity • Fiscal responsibility • Professional excellence Strategic Plan

Rev. 1/2017 Strategic Plan 2 PUTTING OUR MISSION CUSTOMERS FIRST STATEMENT

This Strategic Plan sets forth our mission, vision, The Los Angeles Department of Water and Serving as the General Manager of the largest city-owned water and electric core values and goals, as well as objectives we will Power (LADWP) provides our customers and the utility in the nation is an honor and a privilege. The Los Angeles Department of use to guide and measure our success in delivering communities we serve safe, reliable and cost- Water and Power is a great place to work, and every day, I see our employees safe, reliable, low-cost water and power to our effective water and power in a customer-focused and working hard to provide outstanding customer service. I am proud to lead an customers in an environmentally responsible environmentally responsible manner. organization that has provided reliable water and power to Los Angeles for more manner. As a municipally owned utility, LADWP than a century. exists by and for our customer-owners. Through it, and through constant measurement and review LADWP exists to serve to all customers safe, reliable and cost-effective water we commit to making continuous progress toward and power. All 9,000 of our employees demonstrate this day in and day out. The meeting its goals. lineman who climbs a pole in the middle of a storm, the first responder to a FIVE-YEAR VISION The Los Angeles Department of Water and Power water main break, the customer service representative who resolves a billing is the largest municipal water and power utility in inquiry over the phone, the engineer who designs the recycled water pipeline— the nation. It was established more than 100 years all of them are dedicated to keeping the lights on and the water flowing for the ago to deliver reliable, safe water and electricity to people of this great city. Angelenos. Largely credited with supplying the water STATEMENT Even though LADWP is more than 100 years old, we continue to grow as an to allow Los Angeles to expand from a small town organization. We are resilient and continuously work to adapt to many changes to the second largest city in the nation, today the LADWP serves 3.8 million residents and businesses By 2021, the Los Angeles Department of Water and in our city and state, the county and our industry. As we undergo a major Power (LADWP) will be trusted and valued by our transition of our water and power supplies, we are also working to maintain and in Los Angeles. LADWP provides its 666,000 water customers and 1.4 million electric customers with customers and recognized nationally and globally as a improve the reliability of our services throughout this transformation. Serving leader in innovation and environmental stewardship. our customers remains our priority, and the mission, vision and goals in this quality service at competitive prices. plan reflect this. The elements of this plan will guide LADWP through an unprecedented, rapid transformation that is We all know our day-to-day operations well and consistently rise to the changing the way we and other utilities have operated challenges that come our way. Our Strategic Plan provides a road map to keep for the past 100 years. With renewable energy us on track to meeting our long-term goals, and keep us focused on our specific integration, energy storage, distributed generation, priorities as a thriving, sustainable and world-class organization. It makes clear regulatory uncertainty, customer expectations, cyber our priorities and sets our direction. security, expansion of local water supplies to combat drought and climate change, and massive investment I am pleased to share this plan with you. It is a living document that we will in replacing aging infrastructure, flexibility, agility consult and update regularly. It serves as our playbook in responding to various and accountability are key to ensuring we continue to growth opportunities and organizational challenges. It confirms LADWP’s deliver on our mission for the next 100 years. continued commitment to the customer service, reliability and sustainability deserved by the nation’s second largest city

With respect and appreciation,

DAVID H. WRIGHT General Manager PUTTING OUR MISSION CUSTOMERS FIRST STATEMENT

With respect and appreciation,

DAVID H. WRIGHT General Manager KEY TARGETS/ FIVE-YEAR GOALS

Rev. 1/2017 Strategic Plan 2 DEPARTMENT OF WATER AND POWER

This Department, under the City Charter, is responsible for supplying the City and its inhabitants with water and electric energy by constructing, operating, and maintaining for that purpose works extending throughout the City and to Inyo and Mono Counties to import water and electric energy and to other western states to import electric energy; fixes rates for water and electric service subject to approval of the Council by ordinance; controls its own funds; and maintains a retirement, disability, and death benefit insurance0 plan.

WATER REVENUE FUND

RECEIPTS

Estimated Estimated Receipts Receipts Receipts 2015-16 2016-17 2017-18

$ 452,300,000 $ 736,100,000 Balance available, July 1...... $ 580,400,000 Less: -- -- Payments to City of Los Angeles (Held in Reserve)...... -- $ 452,300,000 $ 736,100,000 Adjusted Balance...... $ 580,400,000 944,800,000 1,150,000,000 Sale of Water (1)...... 1,241,000,000 271,636,700 325,918,000 From Power Revenue Fund for services and materials...... 340,123,900 831,600,000 167,000,000 Proceeds from sale of bonds for construction expenditures made by Water Revenue Fund...... ------Proceeds from Securitization (2)...... 793,000,000 350,000,000 Proceeds from Revolving Line of Credit...... (500,000,000) 73,400,000 96,000,000 Proceeds from State of California Loan...... 48,000,000 46,800,000 26,000,000 Contributions in aid of construction...... 27,000,000 36,274,887 40,169,000 Customers' deposits...... 41,092,000 6,956,600 3,596,000 From individuals, companies and governmental agencies for services and materials...... 3,595,900 28,300,000 23,000,000 Miscellaneous...... 22,000,000

$ 2,692,068,187 $ 2,917,783,000 Total Water Revenue Fund...... $ 2,596,211,800

APPROPRIATIONS

Estimated Estimated Expenditures Expenditures Appropriation 2015-16 2016-17 2017-18

$ 356,789,800 $ 383,831,000 Salaries and wages...... $ 390,316,900 105,600,800 202,316,000 Materials, supplies and equipment...... 204,761,900 262,000,000 205,000,000 Water purchased for resale...... 97,000,000 201,545,800 325,019,000 Contracts - Construction work...... 262,427,000 9,161,700 11,736,000 Contracts - Operation and maintenance work...... 9,514,700 30,960,400 29,006,000 Rentals and leases...... 30,538,400 84,790,900 91,932,000 Outside services and regulatory fees...... 124,609,000 10,838,700 1,985,000 Purchase of land and buildings...... 2,995,100 13,906,200 14,800,000 Property taxes...... 15,900,000 26,710,100 21,275,000 Utility services for electricity and heat...... 21,320,800 27,578,900 12,466,000 Injuries and damages...... 18,961,800 43,800 47,000 Postal services...... 43,700 43,503,700 57,977,000 Professional services...... 84,716,100 WATER REVENUE FUND

APPROPRIATIONS (Continued)

Estimated Estimated Expenditures Expenditures Appropriation 2015-16 2016-17 2017-18

$ 2,075,900 $ 1,961,000 Transportation, lodging and employee mileage reimbursements in connection with construction, operation and maintenance work...... $ 1,786,200 4,573,400 9,672,000 Insurance...... 9,671,900 7,117,424 7,046,000 Refunds of customers' deposits...... 7,208,440 301,822,700 306,938,000 Reimbursements to Power System for proportional share of intradepartmental facilities and activities...... 322,403,400 246,500,000 275,000,000 Bond redemption and interest Water Works Revenue Bonds...... 302,000,000 86,272,100 94,755,000 Health Care Plans...... 102,016,500 113,290,800 154,032,000 Retirement and Death Benefit Insurance Plan...... 157,718,500

$ 1,935,083,124 $ 2,206,794,000 Total Appropriations (3)...... $ 2,165,910,340

$ (20,885,063) $ (130,589,000) Adjustments (Accrual, etc.)...... $ (65,401,460)

736,100,000 580,400,000 Unexpended Balance...... ------Unappropriated Balance...... 364,900,000

$ 2,692,068,187 $ 2,917,783,000 Total Water Revenue Fund...... $ 2,596,211,800

1. Included "pass-throughs" for water supply costs, water quality improvements, water reclamation and conservation projects, water infrastructure, water expense stabilization, Owens Valley regulatory adjustment, low income subsidy adjustment and water right revenue. 2. Proceeds from securitization of capital expenditures for mandated and local water supply projects. 3. Net of receipts from Power System, individuals and companies, contributions in aid of construction, customer deposits, and other miscellaneous sources, the Water Revenue Fund Operating Budget is $1,732,098,540. WATER REVENUE FUND

CAPITAL IMPROVEMENT PROGRAM Projected Expenditures 2017-18

INFRASTRUCTURE - BASE Water Services Organization Information Technology...... $ 14,870,000 Water Services Organization Facilities...... 8,353,000 Other Water Services Organization Capital Projects...... 3,324,000 Tools & Equipment...... 1,600,000 Total...... $ 28,147,000

INFRASTRUCTURE - OPERATING SUPPORT Joint Capital-Water Share...... $ 29,995,000 Water System Share Settlement Costs...... 21,849,000 Fleet Equipment Replacements & Additions...... 16,581,000 Fleet Construction Projects...... 10,393,000 PC Equipment - Water Serv...... 2,413,000 Water Security Systems...... 2,361,000 John Ferraro Building Capital...... 1,128,000 Additions & Betterments - Water FN CAO...... 897,000 Fueling Station Infrastructure...... 887,000 Ergonomics & New Furniture - Water System...... 705,000 Tools & Equipment - Integrated Support Services Shops...... 367,000 Tools & Equipment - Corporate Services Organization...... 160,000 Miscellaneous Capital Projects...... 122,000 PC Equipment Water - Joint ...... 105,000 Cyber Security - Water Funded ...... 27,000 Industrial Graphics Equipment...... 23,000 Cafeteria Equipment...... 1,000 Total...... $ 88,014,000

INFRASTRUCTURE - PASS THRU Distribution Mains...... $ 111,399,000 Services, Meters & Hydrants...... 42,763,000 Trunk Line & Major System Connections...... 36,397,000 Infrastructure Reservoir Improvements...... 22,147,000 Pump Stations...... 18,090,000 Water Systems Infrastructure Support...... 8,152,000 Regulator Stations...... 5,480,000 Seismic Improvements...... 2,088,000 Griffith Park Water Distribution System...... 560,000 Total...... $ 247,076,000

OWENS VALLEY REGULATORY Supplemental Dust Control Development...... $ 48,887,000 Owens Valley Dust Mitigation...... 32,081,000 Owens Lake Master Project...... 704,000 Total...... $ 81,672,000

WATER QUALITY Water Quality Improvement Project - Reservoir Improvements...... $ 150,456,000 Ground Water Remedtn and Cleanup...... 64,025,000 Water Quality Improvement Project - Trunkline Improvements...... 50,327,000 Water Treatment Improvements...... 22,126,000 Chlorination Station Installations...... 14,737,000 Meter Replacement Program...... 13,172,000 Total...... $ 314,843,000 WATER REVENUE FUND

CAPITAL IMPROVEMENT PROGRAM (continued)

Projected Expenditures 2017-18

WSCA - GROUNDWATER Groundwater Management...... $ 14,251,000 Total...... $ 14,251,000

WSCA - LAA LA Aqueduct System - Additions & Betterments South...... $ 11,127,000 LA Aqueduct System - Additions & Betterments North...... 8,729,000 E. Sierra Environmental Capital...... 6,993,000 Total...... $ 26,849,000

WSCA - RECYCLED WATER Water Recycling - Capital...... $ 75,368,000 Watershed - Stormwater Capture...... 24,029,000 Total...... $ 99,397,000

WSCA - WATER CONSERVATION Water Conservation - Water Funded...... $ 37,964,000 Total...... $ 37,964,000

Gross Capital...... $ 938,213,000

Accounting Accruals and Adjustments...... 1,379,000

Net Capital Improvement Program...... $ 939,592,000 DEPARTMENT OF WATER AND POWER WATER AND POWER EMPLOYEES' RETIREMENT, DISABILITY AND DEATH BENEFIT INSURANCE PLAN FY 2017-2018

RETIREMENT FUND

RECEIPTS Actual Budget Estimated Budget 2015-16 2016-17 2016-17 2017-18

$ 368,259,056 $ 397,241,578 $ 397,242,000 Department Contributions …………………$ 435,333,497 70,175,263 73,000,000 73,000,000 Member Contributions ……………………..76,650,000 124,507,134 816,170,000 728,600,000 Investment Return …………………………781,450,000

562,941,453 1,286,411,578 1,198,842,000 TOTAL RECEIPTS 1,293,433,497

APPROPRIATIONS

505,591,726 529,200,000 529,200,000 Benefit Payments …………………………..550,368,000 33,807,268 46,288,365 46,288,000 Administrative Expense* …………………46,269,233 23,542,459 710,923,213 623,353,000 Available for Investment ……………………696,796,264

$ 562,941,453 $ 1,286,411,578 $ 1,198,841,000 TOTAL APPROPRIATIONS $ 1,293,433,497

*Total active investment management fee of $27.9 M for 2015-16 Actual, $39.7 M for 2016-17 Estimate, and $39.7 M for 2017-18 Budget.

DISABILITY FUND

RECEIPTS Actual Budget Estimated Budget 2015-16 2016-17 2016-17 2017-18

$ 17,066,832 $ 18,531,555 $ 16,812,000 Department Contributions …………………$ 16,721,314 458,316 468,650 469,000 Member Contributions …………………….. 475,680 2,117,398 1,481,000 1,290,000 Investment Return …………………………1,570,000

19,642,546 20,481,205 18,571,000 TOTAL RECEIPTS 18,766,994

APPROPRIATIONS

15,944,802 17,698,500 16,264,000 Benefit Payments …………………………..16,750,000 957,498 1,094,005 1,094,000 Administrative Expense …………………… 971,046 2,740,246 1,688,700 1,213,000 Available for Investment ……………………1,045,948

$ 19,642,546 $ 20,481,205 $ 18,571,000 TOTAL APPROPRIATIONS $ 18,766,994 DEPARTMENT OF WATER AND POWER WATER AND POWER EMPLOYEES' RETIREMENT, DISABILITY AND DEATH BENEFIT INSURANCE PLAN FY 2017-2018

DEATH BENEFIT FUND

RECEIPTS Actual Budget Estimated Budget 2015-16 2016-17 2016-17 2017-18

$ 8,229,494 $ 8,569,819 $ 8,455,000 Department Contributions …………………$ 8,530,202 326,185 337,840 338,000 Member Contributions …………………….. 345,000 1,631,456 1,161,000 1,020,000 Investment Return …………………………1,240,000

10,187,135 10,068,659 9,813,000 TOTAL RECEIPTS 10,115,202

APPROPRIATIONS

7,518,804 7,905,000 7,600,000 Benefit Payments …………………………..7,714,000 1,058,074 1,130,100 1,130,000 Administrative Expense ……………………1,033,522 1,610,257 1,033,559 1,083,000 Available for Investment ……………………1,367,680

$ 10,187,135 $ 10,068,659 $ 9,813,000 TOTAL APPROPRIATIONS $ 10,115,202

RETIREE HEALTH BENEFITS FUND

RECEIPTS Actual Budget Estimated Budget 2015-16 2016-17 2016-17 2017-18

$ 80,606,726 $ 85,960,367 $ 83,852,000 Department Contributions …………………$ 87,197,318 - - - Member Contributions …………………….. - 19,216,801 136,900,000 122,890,000 Investment Return …………………………131,800,000

99,823,527 222,860,367 206,742,000 TOTAL RECEIPTS 218,997,318

APPROPRIATIONS

79,895,671 85,200,000 83,091,000 Benefit Payments …………………………..86,415,158 5,332,099 7,428,030 7,428,000 Administrative Expense** …………… 7,479,899 14,595,757 130,232,337 116,222,000 Available for Investment ……………………125,102,261 . 99,823,527 222,860,367 206,741,000 TOTAL APPROPRIATIONS 218,997,318

**Total active investment management fee of $4.6 M for 2015-16 Actual, $6.7 M for 2016-17 Estimate, and $6.7 M for 2017-18 Budget. FEDERAL AND STATE GRANT FUNDING ESTIMATES

Sub- function 2015-16 Actuals 2016-17 Estimated 2017-18 Estimated Grantor Grant Type Grant Period Code Grant Receipts Grant Receipts City Match Grant Receipts City Match (F, F/S, S, O) (FR, C, E)

CA State Water Resources Control Board, Base SRF - LA Aqueduct Filtration Plant Ultraviolet Light Disinfection...... BL 945,903 2,054,597 - - - F/S C 06/26/2014 - 06/26/2017 CA State Water Resources Control Board, Base SRF - Manhattan Wells Ammoniation Station...... BL 730,187 2,269,813 - - - F/S C 06/26/2014 - 06/26/2017 CA State Water Resources Control Board, Base SRF - North Hollywood Ammoniation Station...... BL 509,222 2,490,778 - - - F/S C 06/26/2014 - 06/26/2017 CA State Water Resources Control Board, Base SRF - Silver Lake Reservoir Bypass & Flow Regulating Station...... BL 1,922,366 1,077,634 - - - F/S C 06/26/2014 - 06/26/2017 CA State Water Resources Control Board, Base SRF - Headworks Flow Regulating Station and Power Plant...... BL 400,000 - - - - F/S C 3/10/2015 - 9/10/2016 CA State Water Resources Control Board, Watershed Grant Program -- Woodman Avenue Multi-Beneficial Stormwater Capture Project*...... BL - - - - - S C Closed CA State Water Resources Control Board, Prop. 50 Security Program - LADWP Water System Security Upgrades & Intertie Project...... BL 3,654,457 2,534,315 - - - S C 11/29/2012 - 03/31/2017 California Energy Commission Grant for Western District Yard CNG Fueling Station*...... BL - - - S C Closed California Energy Commission Grant for Installation of EV Charging Station...... BL 500,000 - - S C 6/30/14 - 12/31/16 CA Energy Commission - installation of EV Fleet Charging Stations...... BL 75,000 - - S C 06/28/13 - 08/30/16 CA Energy Commission - installation of EV Workplace Charging Stations...... BL 75,000 - - S C 06/30/13 - 03/31/16 CA Energy Commission - installation of DC Fast Charger through SCPPA...... BL 49,000 - - S C 07/01/14 - 12/31/16 FEMA - October 2003 Wildfires-Power*...... AL - - - F/S FR Closed CDAA - November 2003 Storm-Power...... AL - 40,284 - S FR 11/12/03-05/02/05 FEMA - January 2005 Winter Storms-Power...... AL 1,994,052 856,961 - F/S FR 12/27/04-10/03/08 FEMA - January 2005 Winter Storms-Water...... AL - 181,432 - F/S FR 12/27/04-10/03/08 FEMA - February 2005 Winter Storms-Power...... AL - 447,282 - F/S FR 02/16/05-06/31/07 FEMA - February 2005 Winter Storms-Water...... AL 94,139 - - F/S FR 02/16/05-06/31/07 CDAA - 2007 Inyo Freeze Grant (Extreme Cold Temperatures)-Water*...... AL - - - S FR Closed CDAA - 2007 Inyo Complex Fire-Power**...... AL 391,558 - - S FR 07/07/07-06/30/08 FEMA - 2007 California Wildfires-Power**...... AL 133,181 - - F/S FR 10/21/07-04/21/09 FMA - 2007-010 Flood Mitigation Assistance PJ09*...... AL - - - F/S FR Closed FEMA - November 2008 Sayre Wildfires-Power**...... AL 737,757 3,813,147 - F/S FR 11/13/08 -08/31/11 FEMA - November 2008 Sayre Wildfires-Water**...... AL 440,485 - - F/S C 11/13/08 -08/31/11 CDAA - 2009 Station Wildfires-Power***...... AL - - - S FR 08/26/09 - 11/30/18 (est.) FEMA - 2010 January Winter Storms-Power***...... AL - - - F/S FR 01/17/10 - 10/31/18 (est.) CDAA - 2010 December Winter Storms-Power...... AL - - - 232,272 S FR 12/17/2010 - 12/31/12 CDAA - 2013 July Inyo Storms-Water...... AL - 123,394 - 3,213,228 S FR 09/30/13-08/31/17 CA Dept. of Water Resources - Proposition 50 Water Conservation Projects*...... BL - - - S C Closed CA Dept. of Water Resources - Proposition 84 Drought Round Implementation Grant - Mission Wells Project...... BL 3,466,509 - - S C 01/1/10 - 06/30/18 CA Dept. of Water Resources - Proposition 84 Drought Round Implementation Grant Manhattan Wells Project...... BL 2,926,701 15,305 - S C 01/1/10 - 06/30/18 CA Dept. of Water Resources - Proposition 84 Drought Round Implementation Grant Terminal Islands Project...... BL - 120,207 2,638,399 2,334,298 18,581,884 S C 01/1/10 - 06/30/18 CA Dept. of Water Resources - Proposition 84 IRWMP, Tujunga Spreading Grounds Enhancement Project...... BL - 1,860,000 5,500,000 1,553,781 5,500,000 S C 04/03/13-06/30/18 CA Dept. of Water Resources - Proposition 84 IRWMP, Central Los Angeles County Regional Water Recycling Project, Phase 1A BL 16,850 1,000,000 5,000,000 1,000,000 500,000 S C 04/3/13-12/30/17 CA State Water Resources Control Board, Proposition 84 Stormwater Grant Program -- Laurel Canyon Stormwater Capture Project...... BL 314,865 1,685,135 - - - S C 07/1/13-08/30/17 US Bureau of Reclamation-CII Landscape Incentive Program*...... BL - - - F C Closed U.S. Economic Development Administration Grant...... EA - 2,124,000 - F C 9/27/12 - 9/2/17 U.S. EPA -- Elysian Park Water Recycling Project...... BL 193,096 27,779 - 75,936 - F E 12/1/11-10/15/16 U.S. EPA - O&M Aeration Facility Assistance...... BL 895,000 698,000 77,556 422,616 46,957 F FR 09/28/11-09/30/15 Smart Grid Demo Project (ARRA)****...... BL 727,027 F C 2010 - 9/30/16 Total Water & Power...... $ 20,465,328 $ 23,420,063 $ 13,942,982 $ 8,832,131 $ 24,628,841

* Disaster completed & payment received in full - (Highlighted per CAO's Instructions) **Project completed and grant agreement closed - Do Not Delete Program - Retained on the schedule in order to capture historical receipts (future funding not expected) ***Expecting receipts ****ARRA Component Included As of February 9, 2017

DEPARTMENT OF WATER AND POWER WATER REVENUE FUND Salaries and Authorized Number of Positions

Authorized Class Minimum Monthly Maximum Monthly Number of Class Title Code Salary Salary Positions 2 360 EXEC ASST TO THE GM 13,288.38 19,423.62 1 655 PHYSICIAN II 13,497.18 15,045.78 2 1171 PRINCIPAL CLERK PERSONNEL 7,464.60 7,880.46 22 1202 PRINCIPAL CLERK UTILITY 6,467.58 7,741.26 8 1336 UTILITY EXECUTIVE SECRETARY 6,531.96 9,001.02 33 1358 ADMINISTRATIVE CLERK 3,953.28 4,912.02 142 1368 SENIOR ADMINISTRATIVE CLERK 4,555.32 5,982.12 1 1483 PRINTING SERVICES SUPERVISOR 6,916.50 7,302.78 1 1490 INDUSTRIAL GRAPHICS SUPERVISOR 12,213.06 12,893.40 5 1493 DUPLICATING MACHINE OPERATOR 4,513.56 5,608.02 2 1497 PRODUCTION EQUIPMENT OPERATOR 4,130.76 5,133.00 2 1500 SR DUPL MCHN OPR 4,814.58 6,531.96 12 1539 MANAGEMENT ASSISTANT 4,814.58 6,552.84 7 1631 UTILITIES SERVICE INVESTIGATOR 7,657.74 11,184.72 13 1693 WATER SERVICE REPRESENTATIVE 6,048.24 7,515.06 3 1697 SUPVG WTR SRVC REPTV 6,765.12 10,413.90 4 1702 EMERG PREPRDNSS COORD 7,788.24 11,972.94 3 1726 SAFETY ENGINEERING ASSOCIATE 7,410.66 9,206.34 2 1727 SAFETY ENGINEER 11,002.02 11,616.24 1 1779 OPRNS & STATL RES ANLST 8,473.80 12,390.54 9 1832 WAREHOUSE & TOOLROOM WORKER 4,591.86 6,072.60 2 1835 STOREKEEPER 5,258.28 6,681.60 2 1943 TITLE EXAMINER 6,431.04 7,991.82 1 1949 CHIEF REAL ESTATE OFFICER 14,574.24 18,108.18 13 1960 REAL ESTATE OFFICER 7,575.96 9,413.40 4 1961 SENIOR REAL ESTATE OFFICER 8,381.58 10,413.90 3 1964 PROPERTY MANAGER 12,573.24 15,619.98 5 2314 OCCUPATIONAL HEALTH NURSE 5,875.98 6,914.76 1 2315 SUPVG OCPTNL HLTH NURSE 6,163.08 7,654.26 8 2330 INDUSTRIAL HYGIENIST 8,515.56 10,579.20 2 2331 SENIOR INDUSTRIAL HYGIENIST 9,543.90 11,858.10 1 2334 Chief Physician 17,504.40 21,746.52 1 2358 X-RAY & LABORATORY TECHNICIAN 4,811.10 5,976.90 10 3112 MAINTENANCE LABORER 4,130.76 5,133.00 222 3115 MTNC CONSTR HLPR 4,579.68 6,364.92 14 3126 LABOR SUPERVISOR 7,880.46 8,320.68

Page 1 of 5 As of February 9, 2017

Authorized Class Minimum Monthly Maximum Monthly Number of Class Title Code Salary Salary Positions 14 3127 CONSTR & MTNC SUPV 9,430.80 12,715.92 2 3129 CONSTR & MTNC SUPT 11,325.66 16,803.18 45 3141 GARDENER CARETAKER 4,167.30 5,178.24 14 3143 SENIOR GARDENER 6,239.64 6,587.64 5 3145 PARK MAINTENANCE SUPERVISOR 6,766.86 7,144.44 2 3146 SR PK MTNC SUPV 7,652.52 8,078.82 130 3156 CUSTODIAN 3,728.82 4,631.88 4 3157 SENIOR CUSTODIAN 5,094.72 5,378.34 5 3162 REPROGRAPHICS OPERATOR 4,264.74 6,531.96 7 3176 CUSTODIAN SUPERVISOR 5,752.44 6,364.92 243 3181 SECURITY OFFICER 4,195.14 5,496.66 23 3184 SENIOR SECURITY OFFICER 5,752.44 6,072.60 1 3187 CHIEF SECURITY OFFICER 6,511.08 8,091.00 5 3200 PRINCIPAL SECURITY OFFICER 5,404.44 6,714.66 2 3208 DIRECTOR OF SECURITY SERVICES 8,470.32 10,523.52 32 3333 BUILDING REPAIRER 7,017.42 7,212.30 3 3338 BUILDING REPAIR SUPERVISOR 8,847.90 9,342.06 2 3343 CABINET MAKER 7,596.84 7,596.84 2 3344 CARPENTER 7,455.90 7,455.90 1 3346 CARPENTER SUPERVISOR 8,200.62 8,658.24 7 3353 CEMENT FINISHER 6,646.80 7,017.42 1 3354 CEMENT FINISHER SUPERVISOR 7,652.52 8,078.82 3 3393 LOCKSMITH 7,549.86 7,970.94 1 3415 DUPL & MAILG EQPT RPRR 7,302.78 7,302.78 15 3423 PAINTER 7,332.36 7,937.88 1 3424 SENIOR PAINTER 7,802.16 8,506.86 1 3428 SIGN PAINTER 7,144.44 7,144.44 3 3443 PLUMBER 8,099.70 8,099.70 10 3463 PROTECTIVE COATING WORKER 7,332.36 7,332.36 1 3465 PROTECTIVE COATING SUPERVISOR 7,412.40 7,826.52 2 3483 REINFORCING STEEL WORKER 7,017.42 7,017.42 1 3523 LIGHT EQUIPMENT OPERATOR 6,531.96 6,531.96 82 3525 EQUIPMENT OPERATOR 7,367.16 7,826.52 6 3531 GARAGE ATTENDANT 4,222.98 5,246.10 19 3541 CONSTR EQPT SRVC WKR 4,555.32 5,982.12 1 3543 CONSTR EQPT SRVC SUPV 7,490.70 7,908.30 30 3558 POWER SHOVEL OPERATOR 8,099.70 8,254.56 6 3560 HELICOPTER PILOT 8,252.82 10,252.08 2 3562 CHIEF HELICOPTER PILOT 9,731.82 12,091.26 13 3583 TRUCK OPERATOR 5,882.94 6,211.80 106 3584 HEAVY DUTY TRUCK OPERATOR 6,438.00 6,681.60 9 3586 TRUCK AND EQUIPMENT DISPATCHER 8,136.24 9,133.26 2 3595 AUTOMOTIVE DISPATCHER 7,569.00 9,133.26 7 3704 AUTO BODY BUILDER AND REPAIRER 7,654.26 7,654.26

Page 2 of 5 As of February 9, 2017

Authorized Class Minimum Monthly Maximum Monthly Number of Class Title Code Salary Salary Positions 1 3706 AUTO BODY REPAIR SUPERVISOR 8,136.24 8,590.38 4 3707 AUTO ELECTRICIAN 7,278.42 7,278.42 55 3711 EQUIPMENT MECHANIC 7,278.42 7,753.44 3 3712 SENIOR EQUIPMENT MECHANIC 7,816.08 7,908.30 3 3714 AUTOMOTIVE SUPERVISOR 8,136.24 9,397.74 2 3721 AUTO PAINTER 7,180.98 7,180.98 1 3723 UPHOLSTERER 6,681.60 6,681.60 1 3725 BATTERY TECHNICIAN 7,278.42 7,278.42 6 3727 TIRE REPAIRER 6,643.32 6,643.32 1 3731 MCHL RPR GNL SUPV 9,973.68 10,530.48 1 3732 TIRE REPAIR SUPERVISOR 7,755.18 8,188.44 4 3734 EQUIPMENT SPECIALIST 6,204.84 8,543.40 94 3743 HEAVY DUTY EQUIPMENT MECHANIC 7,515.06 7,673.40 22 3745 SR HVY DTY EQPT MCHC 8,078.82 8,419.86 16 3746 EQUIPMENT REPAIR SUPERVISOR 8,374.62 9,397.74 1 3753 SR UTILITY SERVICES SPECIALIST 9,077.58 11,276.94 7 3755 UTILITY SERVICES SPECIALIST 7,257.54 10,413.90 3 3760 MILLWRIGHT 8,254.56 8,254.56 44 3763 MACHINIST 8,458.14 9,295.08 8 3766 MACHINIST SUPERVISOR 9,630.90 10,168.56 1 3768 SENIOR MACHINIST SUPERVISOR 11,223.00 11,849.40 18 3771 MECHANICAL HELPER 4,591.86 6,364.92 7 3773 MECHANICAL REPAIRER 6,552.84 6,552.84 23 3774 AIR CONDITIONING MECHANIC 8,254.56 8,835.72 6 3775 SHEET METAL WORKER 8,099.70 8,099.70 1 3777 SHEET METAL SUPERVISOR 8,651.28 9,133.26 2 3780 SHOPS SUPERINTENDENT 12,406.20 16,542.18 3 3781 AIR CONDTG MCHC SUPV 9,864.06 10,413.90 4 3789 APPRENTICE-METAL TRADES 5,552.34 7,139.22 13 3793 STRUCTURAL STEEL FABRICATOR 7,932.66 8,221.50 1 3794 STRL STL FABRICATR SUPV 8,579.94 9,058.44 36 3796 WELDER 7,932.66 8,221.50 3 3798 WELDER SUPERVISOR 8,804.40 9,295.08 16 3799 ELECTRICAL CRAFT HELPER 4,689.30 6,364.92 5 3834 SENIOR ELECTRICAL MECHANIC 9,295.08 9,295.08 3 3835 ELECTRICAL MECHANIC SUPERVISOR 9,630.90 10,168.56 1 3836 SR ELTL MCHC SUPV 10,963.74 11,574.48 38 3841 ELECTRICAL MECHANIC 8,458.14 8,458.14 13 3843 INSTRUMENT MECHANIC 8,433.78 8,433.78 1 3844 INSTRUMENT MECHANIC SUPERVISOR 9,630.90 10,168.56 61 3853 ELECTRICAL REPAIRER 8,458.14 9,295.08 9 3855 ELECTRICAL REPAIR SUPERVISOR 9,630.90 10,168.56 3 3856 SR ELTL RPR SUPV 11,223.00 11,849.40 3 3863 ELECTRICIAN 8,078.82 8,078.82

Page 3 of 5 As of February 9, 2017

Authorized Class Minimum Monthly Maximum Monthly Number of Class Title Code Salary Salary Positions 5 3866 ELEVATOR MECHANIC 8,078.82 8,628.66 302 3912 WATER UTILITY WORKER 5,362.68 7,575.96 8 3930 WATER SERVICE SUPERVISOR 8,026.62 9,573.48 56 3931 WATER SERVICE WORKER 5,362.68 6,996.54 63 3976 WATER UTILITY SUPERVISOR 8,301.54 9,573.48 18 3980 WATER UTILITY SUPERINTENDENT 10,152.90 15,101.46 45 3984 WATERWORKS MECHANIC 8,254.56 8,854.86 6 3987 WATERWORKS MECHANIC SUPERVISOR 9,402.96 10,734.06 2 5265 ELECTRICAL SERVICE MANAGER 12,762.90 23,072.40 31 5813 AQUEDUCT AND RESERVOIR KEEPER 5,124.30 6,662.46 2 5816 AQ & RESV SUPV 8,026.62 8,473.80 34 5854 WATER UTILITY OPERATOR 5,362.68 7,419.36 13 5857 WTR UTLTY OPR SUPV 8,301.54 10,079.82 42 5885 WATER TREATMENT OPERATOR 7,250.58 8,421.60 9 5887 WATER TREATMENT SUPERVISOR 8,720.88 9,206.34 7 7207 SR CVL ENGG DRFTG TCHN 6,281.40 8,793.96 2 7208 SR ARCHL DRFTG TCHN 6,281.40 8,793.96 2 7209 SR ELTL ENGG DRFTG TCHN 6,281.40 8,793.96 1 7210 SR MCHL ENGG DRFTG TCHN 6,281.40 8,793.96 2 7212 OFFICE ENGINEERING TECHNICIAN 6,131.76 8,291.10 22 7217 ENGINEERING DESIGNER 6,431.04 7,991.82 3 7219 PL CVL ENGG DRFTG TCHN 7,518.54 10,413.90 19 7228 FIELD ENGINEERING AIDE 6,281.40 7,802.16 3 7229 DRAFTING AIDE 4,353.48 5,409.66 50 7232 CVL ENGG DRFTG TCHN 5,550.60 7,490.70 305 7246 CIVIL ENGINEERING ASSOCIATE 7,814.34 11,318.70 42 7248 WATERWORKS ENGINEER 9,923.22 12,327.90 4 7253 ENGRG GEOLOGIST ASSOCIATE 6,575.46 10,530.48 2 7255 ENGINEERING GEOLOGIST 8,670.42 12,390.54 17 7263 HYDROGRAPHER 5,651.52 7,753.44 6 7264 SENIOR HYDROGRAPHER 6,819.06 9,342.06 15 7283 LAND SURVEYING ASSISTANT 6,944.34 8,628.66 22 7286 SURVEY PARTY CHIEF 7,589.88 10,304.28 2 7287 SURVEY SUPERVISOR 9,251.58 11,492.70 1 7288 SENIOR SURVEY SUPERVISOR 10,563.54 13,121.34 6 7304 ENVIRONMENTAL SUPERVISOR 8,158.86 11,045.52 7 7310 ENVIRONMENTAL SPECIALIST 6,095.22 9,871.02 2 7320 ENVIRONMENTAL AFFAIRS OFFICER 9,940.62 12,350.52 46 7525 ELECTRICAL ENGRG ASSOCIATE 6,575.46 11,318.70 5 7532 ELTL ENGG DRFTG TCHN 5,550.60 7,332.36 1 7539 ELECTRICAL ENGINEER 9,923.22 13,135.26 5 7551 MCHL ENGG DRFTG TCHN 5,550.60 7,332.36 61 7554 MECHANICAL ENGRG ASSOCIATE 7,814.34 11,318.70 1 7558 MECHANICAL ENGINEER 9,923.22 13,135.26

Page 4 of 5 As of February 9, 2017

Authorized Class Minimum Monthly Maximum Monthly Number of Class Title Code Salary Salary Positions 1 7560 AUTOMOTIVE ENGINEER 9,923.22 12,327.90 40 7833 CHEMIST 6,511.08 10,530.48 1 7834 INDUSTRIAL CHEMIST 9,923.22 12,327.90 2 7835 WTR QLTY LABY MGR 9,923.22 12,327.90 27 7854 LABORATORY TECHNICIAN 5,214.78 7,880.46 3 7856 WATER BIOLOGIST 6,321.42 9,707.46 10 7857 WATER MICROBIOLOGIST 6,366.66 9,599.58 22 7862 WATERSHED RESOURCES SPECIALIST 6,511.08 10,474.80 6 7871 ENVIRONMENTAL ENGNRG ASSOC 7,814.34 10,530.48 1 7872 ENVIRONMENTAL ENGINEER 9,923.22 12,327.90 1 7922 ARCHL DRFTG TCHN 5,900.34 7,332.36 1 7925 ARCHITECT 9,923.22 12,327.90 3 7926 ARCHITECTURAL ASSOCIATE 7,814.34 10,530.48 1 7927 SENIOR ARCHITECT 10,480.02 13,020.42 5 7967 MATERIALS TESTING ENGRG ASSOC 7,814.34 10,530.48 25 7968 MATERIALS TESTING TECHNICIAN 5,066.88 7,802.16 8 9103 FLEET SERVICES MANAGER 8,350.26 14,810.88 40 9105 UTILITY ADMINISTRATOR 8,113.62 14,301.06 3 9106 UTILITY SERVICES MANAGER 8,275.44 20,725.14 72 9184 MANAGEMENT ANALYST 6,779.04 8,421.60 24 9406 MNGG WTR UTLTY ENGR 12,380.10 21,972.72 1 9453 POWER ENGINEERING MANAGER 12,380.10 21,972.72 3 9558 DIRECTOR OF HUMAN RESOURCES 12,153.90 17,074.62 1 9601 GENERAL SERVICES MANAGER 16,658.76 22,837.50 2 9602 WATER SERVICES MANAGER 16,658.76 22,837.50 3583 Total Regular Positions - Water Fund

10650 Total Regular Positions - Power and Water Fund

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