WATER

Rising to the challenge EAST BAY MUNICIPAL UTILITY DISTRICT 2014-2015 Biennial Report EBMUD continues to invest in infrastructure to reliably Much of EBMUD’s work falls under the umbrella of It’s one of the greatest Sacramento Valley shored up our supplies. We collaborated deliver safe water and treat wastewater. As we embark on protecting natural resources, and we are integrating Drought. tests for a water and with the Bureau of Reclamation to manage the flows on our Pipeline Rebuild initiative, we are rethinking how best, sustainability into our decision-making and planning. wastewater agency. Throughout the state, years of dry the Sacramento River and diversions at Freeport to balance and at what pace, to renew pipes to ensure reliability. This weather have left their mark. As our water supplies our water supply needs and fishery obligations. To protect project will require our teams to work together and learn On the financial front, our customers will benefit from the decreased to near-record lows, we rose to the challenge fish and their habitats, EBMUD changed water flows and from each other. Like a road map, EBMUD’s core values of extensive work we’ve done to refinance and restructure bonds and met the East Bay’s water needs thanks to lessons gave fish a truck ride to help them on their journey to and stewardship, integrity, respect and teamwork will guide our for debt savings and plan for long-term financial stability. learned from the 1970s drought and years of subsequent from the Mokelumne River. We will continue this work, plus daily work and shape the District’s future. These values are We know it’s not easy, but we must continue to save water, planning that readied us for the next drought. For the enhance natural spawning grounds below Camanche Dam solidified as a result of an organizational assessment that rain or shine. It’s the sensible and sustainable thing to do. past three decades, we have focused on developing new to support the environment that we rely on for clear crisp helps address the challenges we face due to anticipated Looking forward, our plans for future droughts will continue approaches to protect and stretch the East Bay’s water drinking water. turnover in our aging workforce. supplies. Because of our investments in conservation, to rely on flexible solutions to meet regional needs with recycling and supplemental supplies, we are managing this Importantly, our customers stepped up over the last two Locally, partnerships with cities and agencies are keeping regional partnerships. drought without drastic consequences. years, reducing water use 17 percent overall since February the San Francisco Bay clean as we work together, under an 11, 2014, which saved about 70,000 acre feet of water. agreement with the United States Environmental Protection Water supplies from the Sacramento River were delivered Drought, like any emergency, is expensive. To pay for the Agency to repair and replace cracked sewer lines. EBMUD to East Bay taps through the Freeport Regional Water cost of additional supplies and drought operations will continue to implement the regional private sewer lateral Facility in summer 2014, in time to bridge the EBMUD established a drought rate structure and Alexander R. Coate ordinance, work with communities to eliminate storm water General Manager water supply gap when our Mokelumne implemented a drought response fund to sources entering the sewer system, and upgrade our large River supply was stressed. Water supplement contingency funds. wastewater pipelines. transfers from entities in the

SHORTAGE Contents

FACING DROUGHT 4–7

THANK YOU FOR USING LESS 8–9

PREVENT LEAKY SURPRISES 10–11

SUSTAINABILITY IN EVERYTHING 12-15

400 READY FOR TODAY, PREPARED FOR TOMORROW 16-19

300

200 OUR MISSION 20 100 RESILIENT

0 '11 '12 '13 '14 '15 3 Facing drought The past four years marked the driest period in EBMUD as Placer County Water Agency and the agricultural districts Above: a courtesy dock at Camanche history. Disappointing snow levels and precipitation Sycamore Mutual Water Company and Reclamation District South Shore sits high and dry as water meant reservoirs did not refill. EBMUD worked tirelessly to 1004. These transfers have a double benefit: they provide has receded from the launching facilities. implement our comprehensive drought plans. water in dry years for EBMUD customers while protecting Below: EBMUD Ranger Supervisor Mark natural resources by keeping water in the lower American Bolton examines Camanche Reservoir’s EBMUD learned much from the 1977 drought, especially and Sacramento rivers when salmon need it. Purchasing dry lake bed. Camanche is EBMUD’s that our customers are great at conserving. That experience emergency water supplies came at a cost of $16 million for largest Sierra reservoir. also revealed the pain felt by residents and our local 2015 and will be paid through a temporary drought surcharge economy when 30 percent mandatory water rationing of 25 percent on all customer bills. was imposed. To limit future hardship, EBMUD and its ratepayers invested nearly $1 billion to diversify and In the East Bay, regional water agencies are working increase water supplies during the last three decades. together to improve water supply reliability by using existing facilities in ways that benefit multiple stakeholders. The Bay The result? In addition to its main water source – the Area Regional Reliability partners are also moving forward Mokelumne River watershed – EBMUD was able to, for the with a plan to evaluate projects that would hasten drought first time, purchase and deliver emergency water supplies recovery, strengthen emergency response and improve from the Sacramento River to supplement dwindling supplies, water supply in the short and long term. Numerous projects secure connections between neighboring water systems and will be evaluated, such as expanded water treatment, partner with customers to increase conservation. new connections between water systems and expanded Water from groundwater and surface storage. diverse sources Since its inception, EBMUD has protected the health of the Today’s water supply Mokelumne River watershed. However, many stakeholders portfolio includes along the river including EBMUD are grappling with aggressive conservation, competing needs for drinking water, the environment and emergency supplies from recreation in the Upper and Lower Mokelumne watersheds. the Sacramento River and Recently, a group of more than 20 stakeholders completed water recycling. the MokeWISE program – the Mokelumne Watershed Interregional Sustainability Evaluation. The group focused Because conservation, DROUGHT on developing alternatives to manage water resources to though significant, was not meet the needs of regional stakeholders and the river. They Before the drought, enough to meet the East Bay’s needs during this drought, crafted a plan for future projects that cut across boundaries, campers typically EBMUD purchased 18,600 acre feet of emergency water and will seek funding for plans that aim to protect and enjoyed a waterfront supplies through a federal contract with the U.S. Bureau of campsite at Monument improve water quality, water supply and the river ecosystem. Reclamation in 2014, and another 33,250 acre feet in 2015. RV Park at Camanche The drought brought challenges: reduced water supplies, South Shore. Now, this Statewide conditions due to extreme drought resulted in area is arid. restrictions on diverting water, changes in the taste and drastic cuts to EBMUD’s federal water supply contract. To smell of EBMUD water due to warmer temperatures, lower bridge the gap, EBMUD partnered with Sacramento Valley reservoir levels and the introduction of Sacramento River entities to purchase 4,750 acre feet in 2014 and 25,000 water. Despite these challenges, we have weathered acre feet in 2015. These water transfers underscore the nature’s hardships and we are prepared for whatever 2016 importance of partnerships, especially during drought. This brings, whether it be dry, wet from El Niño, or somewhere is the framework we established with water agencies such in between.

Sep 30, 2013 Jan 17, 2014 Feb 11, 2014 Feb 25, 2014 Apr 22, 2014 Aug 12, 2014 Sep 30, 2014 Nov 4, 2014 Oct – Dec 2014 Dec 5, 2014 EBMUD ended water year Governor issued drought EBMUD asked customers EBMUD approved purchase EBMUD approved purchase EBMUD adopted Water EBMUD ended water year EBMUD and Dublin San EBMUD held community EBMUD asked customers 2013 with 540,000 acre feet declaration. to voluntarily cut water of 4,750 acre-feet of transfer and delivery of 18,600 Shortage Emergency 2014 with 404,000 acre Ramon Services District meetings on water supply to voluntarily increase 4 in storage. use 10% from 2013. water from Placer County acre feet of Central Valley Regulations and mandatory feet in storage– the 7th tested emergency water and drought rates. conservation to 15%. 5 Customers responded with Water Agency. Project water from the state-wide outdoor lowest end-of-September connections. 13% conservation. EBMUD Sacramento River. watering restrictions. storage in EBMUD history. committed to saving up to Our situation was improved Nov 7, 2014 20% at its facilities. due to customer savings of 15,000 acre feet and the EBMUD received $2 million emergency supply purchase grant to expand San Ramon of 23,350 acre feet. Valley Recycled Water Drought timeline 2014 » Program. 1 acre-foot

35’ 25’ 15’ 5’

Conservation expert Scott Sommerfeld shows gardeners how to install in-line drip irrigation, a more efficient option to water landscapes.

Reaching out during drought To connect with customers, we used many methods to deliver the drought message.

»» The Board of Directors held »» Fix a leak week partnerships »» Over 200 community workshops community meetings to discuss were established with 41 and events were held to limited water supplies, proposed local hardware stores. support conservation. drought stages and drought »» Postcards and mailers to renters »» Drought updates and water charges. Spanish and Chinese and non-bill payers advertised our conservation resources interpreters were provided. online WaterSmart calculator and available on ebmud.com. »» Calls were made to 145,065 explained mandatory restrictions. »» Customers likely to incur residential customers announcing »» Bill paying customers received the excessive use penalty conservation goals and outdoor our Customer Pipeline newsletter were sent letters. watering restrictions. with drought updates. »» Drought theatre shows »» Multilingual billboards and bus were presented at shelter ads in 260 locations community events. promoted conservation.

Apr 14, 2015 Apr 15, 2015 Apr 17, 2015 Apr 28, 2015 May 26, 2015 Jul 1, 2015 Sep 30, 2015 Near-record low water mandatory state-wide Emergency Central Valley EBMUD received the Notice runoff resulting in the Purchase of up to 21,000 Purchase of up to 12,000 Staged system of drought EBMUD ended the 2015 supply. Stage 4 drought outdoor restrictions and Project water from the of Unavailability of Water District releasing 24,000 acre feet of emergency acre feet of emergency rates began, excessive use water year with about 6 was declared. EBMUD authorized purchase and Sacramento River began from the state. EBMUD acre feet of runoff down the water supplies authorized water supplies authorized penalties and water theft 355,000 acre feet in 7 adopted 20% mandatory delivery of 33,250 acre feet flowing into East Bay complied with the State Mokelumne River. through water transfers through a water transfer ordinance in effect; drought storage – the 4th lowest conservation District-wide of Sacramento River water reservoirs. Water Resources Control with agricultural districts in with the Placer County surcharge of 25% in effect. end-of-September storage to align with Governor’s from the U.S. Bureau of Board order to curtail the Sacramento Valley. Water Agency. in EBMUD history. request. EBMUD revised Reclamation via Freeport. Drought timeline 2015 » How recycling works billing period during a Stage 4 declared drought emergency. Though not directly tied to the drought, Spotlight on East Bayshore Water Thank you for using less EBMUD enacted an aggressive water theft ordinance Treatment Plant that penalizes those who steal water from other Treated wastewater is pumped through a East Bay customers surpassed EBMUD’s and the Governor’s provide a benchmark, tailored conservation tips and customers or take water without paying for it. microfiltration system at the East Bayshore request to reduce water use. We saw record-breaking rebate information so that single-family residents can Plant before being further disinfected and tested to meet rigorous California standards interest in all rebate programs, especially for customers target efforts to save. We asked our largest landscape irrigation customers for recycled water. Each microfiltration tube converting their lawns to WaterSmart landscapes. to target a 40 percent reduction in their water use. contains 6,000 hollow membranes that remove Videos on ebmud.com provided tips from our conservation Many golf courses answered the call and achieved particles as small as 0.1 micron – as From February 2014 to date, East Bay homeowners experts on how to set an irrigation controller, how to install small as bacteria or dust. the requested savings. Since 1999, large irrigators said goodbye to more than 2 million square feet of turf. a drip system and the benefits of mulch. The new online have received customized water budgets that provide Particles are trapped on the EBMUD’s partnership with nurseries helped customers WaterSmart calculator helped homeowners and renters outside of the straw-shaped a watering goal for each property based on landscape membranes, while clean find beautiful, climate-appropriate plant choices with alike analyze how and where they use water indoors and area, type of plants and location. This information water passes through to WaterSmart tags. “Lawn goodbye” signs marked homes out. Free Home WaterSmart survey kits made it easy to the center of the straws helps landscape managers find the best opportunities that let their front-lawns go brown to save water. measure water use in the home. If water-guzzling fixtures and then out of the filter. to cut back. Good management, combined with or leaks are found, EBMUD has free devices like faucet “smart controllers,” drip irrigation and efficient spray During that same time aerators and showerheads to reduce the flow. frame, EBMUD provided systems, can lead to tremendous water and dollar Conservation by the numbers savings. For new developments, EBMUD requires Bishop Ranch and 8,000 rebates for high- The drought increased awareness of water waste with surrounding areas efficiency toilets and over residents taking notice of their neighbors’ leaks, over- water-efficiency standards and reviews landscape plans, so square-feet is finished. A $2 million 2 million 11,000 rebates for high- irrigation and runoff. EBMUD received nearly 6,000 water that developments can be efficient for years to come. of lawn removed state grant will help pay for construction costs. Crews efficiency clothes washers waste complaints. These notifications helped us work EBMUD also reached out to commercial and hospitality began work on both projects in summer 2015. Neighbors resulting in savings of directly with customers to fix leaks and identify those not businesses with its WaterSmart Business Certification will see crews installing purple colored pipes, indicating 60,000 customers enrolled in approximately 70 million following outdoor watering rules. Program, working with entities to reach larger conservation recycled water, through 2016. Home Water Reports gallons of water annually. EBMUD’s helpful, less punitive approach in working with targets. Cities received water use data so they could judge their conservation efforts and make adjustments. Cities and Drought solutions require creativity 11,000 rebates provided for Customers took customers during the drought was successful in almost other local stakeholders also pledged to work with us on Providing recycled water for industries is an important piece high-efficiency clothes washers advantage of new tools. every case, yet some regulation was necessary. Excessive drought outreach activities, and many did just that. of EBMUD’s recycled water plan. We continue to partner with Home water reports, use penalties were in effect as of September 2015, which local refineries to use and study recycled water for operational sent every other month carried financial and other consequences for customers 8,000 rebates provided for Though customers are doing a great job conserving, there needs, including service to Chevron’s Richmond Refinery, a to 60,000 customers, using a daily average of more than 1,000 gallons for a high-efficiency toilets is always room to improve. We will continue to offer large recycled water customer. assistance, inspiration, tools and technologies to help Diablo Country Club is exploring a satellite recycled water 6,000 water waste complaints customers manage water use. project with EBMUD which, if implemented, will demonstrate received by phone and online how a local water user can cost-effectively build and operate an on-site, small scale water recycling facility. 73 East Bay businesses and Using water, again entities certified as “WaterSmart” EBMUD’s Mokelumne River serves customers in wet and In May 2015, we tapped into our San Leandro-Alameda since 2010 normal years, but supplies are limited during droughts. To recycled water transmission line to allow the Port of extend our primary water supplies, across California more Oakland to use recycled water for dust control, compaction work is going into cleaning wastewater and reusing that and other construction uses on a major runway expansion water. Recycled water is used to irrigate outdoor landscapes project. The project conserves enough drinking water to like golf courses, parks, medians, schools and common meet the needs of more than 1,600 people a day. residential landscapes and indoors for cooling systems, toilet In the developed East Bay, installing new recycled water flushing in commercial buildings and for industrial processes. pipelines is costly. EBMUD provides an alternative: free fill- In addition to the 8 million gallons a day of recycled ups of recycled water at the Oakland wastewater treatment water already being used, EBMUD is undertaking pipeline plant for commercial water trucks that can load recycled construction to deliver another estimated 400,000 gallons a water for construction, street cleaning, power washing, day to customers in Emeryville and San Ramon. sewer flushing and irrigation.

EBMUD’s East Bayshore Recycled Water Project now What’s next? EBMUD will expand recycled water projects in includes a recycled water pipeline along Buchanan Street, San Ramon and along the East Bayshore. We also will work 8 thanks to coordination with the city of Albany. In Emeryville, with more local refineries to look at expanding recycled 9 recycled water pipelines will extend along Shellmound Street water service. As the drought continues, EBMUD will expand and Christie Avenue. Design is complete and construction the commercial truck recycled water program and will will proceed thanks to a $1 million state grant. In the evaluate recycled water fill stations for residential customers. CONSERVE San Ramon Valley, design for recycled pipelines to serve Prevent leaky

surprises A resilient water system EBMUD’s system of reservoirs, treatment plants, pipelines and pumps require planned maintenance and replacement to ensure customers have water whenever they need it. From 2016 to 2020, EBMUD will embark on a 5-year Capital Improvement Program, to push forward with $1.54 billion in critical replacement and rehab projects on key segments of the $14.4 billion in infrastructure assets the district manages and operates across seven counties. The increased investments will keep our water system running efficiently.

»» Water service to Alameda is supplied by four EBMUD crews repaired underwater pipeline crossings at three separate a leak on the largest locations. Failure at any of these locations could of three aqueducts REBUIL D that deliver water to reduce water supply to Alameda and North Bay 1.4 million East Bay Farm Island. EBMUD plans to replace three 24-inch residents. The crews diameter transmission pipelines to improve reliability dug up a buried 87- and update aging infrastructure. EBMUD is preparing inch diameter pipeline the environmental documentation for this project. in Walnut Creek to make the repair.

»» In Oakland, EBMUD replaced a 12,000-foot In the East Bay, 4,200 miles of pipelines weave through EBMUD replaced an aging 12,000-foot segment of pipe that delivers water to segment of aging pipeline, which delivers water neighborhoods and under streets. That is enough pipe to customers in the central Oakland Hills. to 45,000 residents in the central Oakland stretch from Oakland to Chicago and back. Some of these EBMUD welder Artur Amaral at work Hills, and 3,000 feet of 54-inch diameter pipes are now more than a century old. EBMUD maintains planned basis, reducing potential damage to streets, property repairing an aqueduct in Walnut Creek. pipeline near the Caldecott Tunnel. This work these pipes, needed to deliver water to 1.4 million customers. and the environment. was performed to reduce service disruptions But pipes break. Crews repair about 870 pipeline breaks and minimize the costs of repairing leaks and every year. Because emergency Old infrastructure. New pipes. maintaining old pipelines from the 1930s. repairs inconvenience neighbors and EBMUD crews have typically replaced about 10 miles of are expensive, EBMUD uses acoustic pipe each year. An effort to renew more pipes is underway, »» The water storage tank at the San Pablo Water technology to detect small leaks before as EBMUD launches Pipeline Rebuild to increase the pipe Treatment Plant in Kensington is an important they become large breaks. renewal rate from 10 miles to 40 or more miles annually. This reservoir for the area but nearing the end of its service increase in pipeline renewal will put EBMUD on a 100-year life. EBMUD will demolish the 5.4 million-gallon tank EBMUD installed more than 800 acoustic replacement schedule. When we complete one cycle of and replace it with two smaller concrete tanks. EBMUD loggers to find leaks before they surface. replacement it will be time to begin again. is rehabilitating portions of the San Pablo Water The loggers listen for the sounds of Treatment Plant as well. As part of this project, EBMUD 10 water escaping from pipes. Finding A new team has formed, with increased staff and two new will improve the nearby San Pablo water tunnel 11 leaks early allows us to repair pipes on a pipeline crews to tackle this effort. We are researching new to isolate it from San Pablo reservoir in the event technologies, materials and installation methods to determine of an earthquake. Construction on these projects what is best and most cost effective. Using acoustic technology, EBMUD plumber began in 2015 and will last through summer 2019. Michael Brown tracks down hard-to-find leaks in EBMUD’s distribution system. the next 25 years. By 2040, EBMUD plans to slash direct City of Oakland and Waste Management was finalized in emissions from activities such as fuel combustion by 50 2015. Waste Management will now deliver all of the city’s Sustainability in everything percent compared to 2000 levels and be carbon free for restaurant food waste to EBMUD for processing. The District indirect emissions – mainly from electricity. is now embarking on the construction of a pre-processing EBMUD has adopted short-and long-term strategies to plan existing engineering methods. Project leaders encountered facility to remove non-biodegradable materials from food and prepare for an uncertain future including the effects challenges throughout the planning, design and EBMUD is producing renewable energy from several sources scraps. This facility will enable EBMUD of climate change. EBMUD explored many scenarios due to construction that elevated the significance of this project. including hydropower from Pardee and Camanche to process 190 tons of food waste rising temperatures and variable precipitation to understand Reservoirs, photovoltaic at eight District facilities and per day straight from collection the potential impacts of climate change to our water supply, Greening the marketplace biogas generation at the District’s main wastewater routes, expanding our food water demand and water quality. Adopting a triple-bottom In May 2015, EBMUD issued $74 million in green bonds to treatment plant. EBMUD is continuing to explore waste digestion program line approach means considering the people, the planet shape an emerging market and attract investors interested Record reached opportunities to increase renewable power beyond the 10 tons per day and performance in everything we do including water in funding sustainable infrastructure. generation and plans to construct more we currently process. supply planning, sustainable infrastructure and reducing EBMUD committed to a high standard for sustainability installations in the future. 54,854 megawatt-hours of greenhouse gas emissions that contribute to climate change. renewable electricity generated Today, we turn the energy by developing stringent criteria for projects to be funded Conquering the green with green bonds. In the first-ever inventory of sustainable at EBMUD’s wastewater created from food waste Blueprint for future construction energy frontier treatment plant in 2014. This into electricity, but in the In the Oakland Hills, a 110-year-old, 17.6 million gallon, district projects, 20 were determined to achieve at least one EBMUD’s wastewater treatment plant helped is highest level generated since future, the possibilities are reservoir needed replacing. The $22 million construction of of the following objectives for green bond financing: pioneer the harvesting of materials that would the program’s inception. endless. In the near future, To replace the two water storage tanks built within have otherwise ended up in a landfill. By using 110-year-old Estates »» Maintain water quality EBMUD plans to build a facility the footprint of the old Estates a process called anaerobic digestion Reservoir, we recycled »» Improve water use efficiency to turn some of the surplus Reservoir would mean improved to convert discarded items such as materials and cut energy into renewable vehicle fuel. construction-related water quality by removing excess »» Improve biodiversity and ecosystem quality food scraps, grease and other carbon water storage. The strategies to »» Protect against flooding biodegradable wastes into emissions. cut the project’s carbon footprint »» Reduce pollution energy, EBMUD became the became more like a first wastewater treatment Conservation makeover »» Improve resilience to climate change blueprint for how to build plant in North America to »» Reduce the combustion of fossil fuels sustainability into produce more renewable 500,000 gallons of water our infrastructure. »» Reduce greenhouse gas emissions energy onsite than is needed saved annually by removing a »» Implement reduce, reuse and recycle to run the facility. decorative fountain at »» Recycling concrete onsite practices in preference to raw materials Estates Reservoir. from the demolition In 2014, EBMUD’s wastewater »» Adhere to sustainable purchasing guidelines eliminated traffic treatment plant generated 135 that would have The response to the green bonds issued was positive. percent of its energy demand, otherwise hauled away The green bonds sold within minutes at prices on par with enabling us to sell the surplus energy about 285 dump trucks’ worth traditional bonds. to neighbors such as the Port of material, thus reducing carbon of Oakland. Onsite renewable dioxide emissions by 47 metric tons. Accelerating energy electricity generation and »» Removing a decorative fountain generation surplus energy revenues on the premises resulted in water EBMUD set a goal in reached record highs in 2014: savings of nearly 500,000 gallons 2008 to reduce its 54,854 megawatt-hours A sustainable per year. It also lowered energy greenhouse gas and $1 million, respectively. approach to Shrinking decision making demand, reducing carbon dioxide emissions by 10 Selling energy back to the considers people, emissions by 2 metric tons each year. percent by 2015 carbon emissions electrical grid not only compared to planet and »» Replacing the original three-acre reduces fossil fuels and performance. 2000 levels. In greenhouse gas emissions, roof structure with a green roof allowed 18 percent reduction in 2014, EBMUD’s for a landscape design with native plants. EBMUD’s greenhouse gas the revenues provide greenhouse gas savings for ratepayers. »» Reusing over 700 wooden beams from the old emissions compared to emissions were reservoir meant materials were given a second life. 2000 levels in 2014. 18 percent below With sights set on expanding EBMUD’s green In spring 2015, the new tanks were completed. To 2000 levels. Due to energy capability, we are recognize this innovative work, the American Society of the drought, more energy banking on partnerships SUSTAIN Civil Engineers awarded the Estates Reservoir Replacement intensive operations were 12 with Bay Area cities and 13 Project with the Outstanding Water/ Wastewater Project of necessary including pumping from our emergency water agencies. A trash pickup the Year. The award recognizes projects that improve upon supplies. This will increase our emissions in 2015. Now, EBMUD is accelerating its plan to cut carbon emissions over contract between the Partnerships promote a clean Bay Fortunately, EBMUD and other utilities were unaffected by agreement between EBMUD and federal and state agencies rainbow trout from the American River Trout Hatchery, Cracked, leaky sewer pipes are a problem for the Bay. When the earthquake, which freed up resources for Napa almost to promote healthier conditions and beneficial flow releases where water temperatures would have proven lethal. too much rainwater seeps into the ground and enters the immediately. Facing more main breaks in its water distribution to the Mokelumne River. A renewed Watershed Plan sanitary sewer system through leaky pipes, it can overwhelm system than they typically get in an entire year, the City of By modifying releases in early spring from Pardee and Originally adopted in 1996, the East Bay Watershed Master the wastewater system, allowing partially treated sewage to Napa requested mutual assistance through the California Camanche Reservoirs to the Lower Mokelumne River, Plan provides guidance to EBMUD staff who manage the enter San Francisco Bay during heavy storms. Water/Wastewater Agency Response Network (CalWARN). This statewide partnership of water utilities, which includes enough savings are achieved to pulse higher flows to 28,000 acres of the East Bay watershed to protect water Partnerships between EBMUD and agencies are driving EBMUD, joined forces to provide crews and equipment. attract adult salmon in the fall. These variable flows quality and biodiversity. With the last efforts to keep San Francisco Bay clean. EBMUD and the mimic the effects of storms. Woodbridge Irrigation revision in 1999, EBMUD is now EBMUD crews worked with agencies including Napa, District, in Lodi, also on the Mokelumne River, updating the plan to reflect Alameda County Water District, Contra Costa Water District has changed its dam operations to enhance the current issues affecting Many salmon enter and the City of Fairfield. Days after the earthquake, the Bay the pulses from Camanche and conduct our watershed including the Mokelumne Area water agencies repaired 144 main breaks with EBMUD additional pulses. drought and climate River Fish Hatchery crews having repaired 56 of them. change impacts, at the base of management of EBMUD’s Camanche Dam where eggs invasive species, and are collected and local land use changes. incubated.

To keep the San Francisco Bay clean, communities in its wastewater service area (the EBMUD inspector cities of Alameda, Albany, Berkeley, Emeryville, Michael Walton conducts private sewer Oakland and Piedmont and Stege Sanitary District) lateral tests to ensure are collaborating as part of a consent decree with leak-free pipes. the United States Environmental Protection Agency, state and EBMUD crews repaired main breaks in the City of To maximize cold water regional water boards, and two community organizations, Napa following the magnitude-6.0 earthquake; Welcome home the Bay Area’s strongest in 25 years. availability, EBMUD manages which gives the agencies until 2036 to repair and replace Camanche and Pardee cracked sewer lines. Almost half of the sanitary sewer pipes EBMUD participates in CalWARN and has separate reservoirs as one unit, Chinook in the East Bay belong to private property owners, so the 12,700+ agreements with the Los Angeles Department of Water and which keeps the coldest salmon returned to the Other updates include information on water agencies are asking property owners to do their part to fix EBMUD biologist Power and the Las Vegas Valley Water District to provide water in Pardee until the Mokelumne River in the fall quality, species inventory and adaptive Casey Del Real leaky pipes. Many property owners, whose homes were built mutual assistance after a disaster. With these partnerships, fall when it is needed of 2015 to spawn, becoming management. Throughout this process, monitors video decades ago still rely on their original private sewer laterals to EBMUD is better prepared to get the water back on when a for spawning salmon. one of the river’s largest runs EBMUD will seek community input on policies footage to count the connect their buildings to main sewer lines. returning salmon disaster strikes. Beginning in September, in over 70 years. regarding public access to our recreational trail swimming past The Regional Private Sewer Lateral Program is a joint effort cold water is released from system. The plan is Despite drought, fish prove resilient Woodbridge to work with property owners to repair leaking sewer pipes. the bottom of Pardee Reservoir scheduled to Dam. Cold water is vital to attracting salmon back to the Over 16,000 private sewer laterals have been certified as to support the cold water pool be completed Mokelumne River every fall. Amid the dry conditions leak-free since 2011. in Camanche. This ultimately lowers the in 2016. The Regional PSL affecting Northern California rivers, the EBMUD fishery temperatures in the lower Mokelumne River, which is better Program helps As part of the consent decree, EBMUD will: program is making every effort to minimize impacts to for salmon spawning. property owners salmon survival. understand which »» Continue to implement the Regional Strategies to improve juvenile salmon survival are also being pipes require leak-free Private Sewer Lateral Program. Although the 2015 fall salmon run on the Mokelumne implemented. The Delta is home to salmon predators such certification. had a late start, early winter counts were strong. This run »» Work with communities to eliminate the largest as largemouth bass and striped bass, as well as poor water eventually became one of the river’s largest runs in over sources of stormwater entering the sewer system. quality conditions, both bad for salmon survival. To bypass 70 years with more than 12,700 fish swimming upstream »» Upgrade segments of its 29 miles these threats, EBMUD has trucked both hatchery and to spawn. This was the fifth consecutive year the number of large wastewater pipelines. naturally produced juvenile salmon and released them at of Chinook salmon returning to the Mokelumne River Sherman Island, northeast of Antioch, with positive results. exceeded 12,000 fish, nearly triple the river’s long-term Emergency resources annual average. In 2014, 12,117 Chinook salmon returned EBMUD and its partners continue to look for ways to The sustainable use of resources – in this case, the people to the Mokelumne River in the fall to spawn. minimize the impacts of the drought to protect the who can turn water service back on – is a key part of health of California’s fish. The tactics have proven so emergency response. When the West Napa Fault ruptured EBMUD has employed creative strategies and has beneficial in supplying cold water that in 2014 the 14 in 2014, the 6.0 magnitude earthquake jolted the Bay Area doubled down on partnerships with over 20 agencies and Mokelumne River Fish Hatchery served as a refuge for 15 and damaged infrastructure in the City of Napa, leaving organizations to ensure the viability of the Mokelumne many residents and businesses without water. salmon population. The strategies build upon a 1998 Ready for today, prepared for tomorrow Prolonged drought, reduced water sales and increased of sound fiscal management. Our credit ratings also save operating costs: EBMUD turned these challenges into ratepayers money through the low cost of borrowing. Water system FY 2015 FY 2014 opportunities by making smart financial moves that During the year stabilized the organization and better equipped us to Encouraging public understanding withstand future pressures. The call to engage the communities we serve became more Total Water Production, millions of gallons 56,832 67,154 important than ever given the ongoing financial challenges Average Daily Water Production, MGD* 156 184 Most notably, in fiscal years 2014 and 2015, EBMUD took brought on by the drought. We conducted a year-long Maximum Daily Water Production, MGD 227 259 advantage of low-interest rates to refinance series of public workshops on long-term Minimum Daily Water Production, MGD 113 124 and restructure our debt financial stability. The workshops portfolio. The result: examined short- and long-term significant long- impacts of operating and At year end term debt capital needs, financial Number of Accounts 381,076 380,542 savings. policies, fixed versus Number of Employees 1,531 1,506 variable costs and the Miles of Water Distribution Pipe 4,200 4,115 effects of the drought. Operating Distribution Storage Capacity, millions of gallons 668 678 These workshops formed the framework for the fiscal years Wastewater system FY 2015 FY 2014 2016 and 2017 budget. Over the short-term, During the year this framework allows Average Daily Wastewater Flow, MGD 55 56 us to pay for increasing drought costs, including At year end additional water supplies to Number of Accounts 175,851 175,467 fill local reservoirs, and forms Number of Employees 262 254 a contingency fund to reduce the impacts of a continued drought. * MGD = millions of gallons per day Long-term, it sets us on the path to invest in needed water and wastewater Data as of January 2016 infrastructure projects.

Our commitment to promoting public awareness of our programs, plans and financial policies is summed up in EBMUD’s budget document. The biennial budget information for both the Water and Wastewater Systems Another provides detailed explanations of our operating and capital critical move involved budgets, priorities and financial forecasts. Our budget reducing variable-rate debt in favor of more predictable documents have received 13 consecutive national awards fixed-rate debt. These strategies also included managing recognizing effective presentation of materials that meet actions to fill vacant staff positions as well as making more stringent guidelines as a policy document, operations guide, conservative and longer-term financial projections to offset financial plan and communications device. EBMUD also reduced revenues. has received 10 consecutive national awards for meeting EBMUD remains an attractive investment. Our current credit requirements for financial statement presentation and ratings (AAA rating by Standard & Poor’s, Aa1 by Moody’s compliance with government accounting, auditing and READY 16 Investors Service and AA+ by Fitch Ratings) are a result financial reporting guidelines. 17 Water system Wastewater system

Capital Contributions $71.53 Depreciation $94.11 Power and Other, net $5.49 Capital Contributions $3.07 Taxes $8.47 Other, net $13.78 Decrease in Joint Powers Authority $0.36 Investment $0.24 Depreciation $24.20 Taxes $27.92 Resource Recovery $11.31 Wastewater Operations & Investment $3.57 Revenue Maintenance Wet Weather Power $2.21 $65.11 $54.76 Interest, net $99.30 Operations & Facilities Charge $21.81 Interest, net and Other $25.05 Water Revenue Maintenance $362.14 $211.64 What we received What we spent What we received What we spent [in millions] [in millions] [in millions] [in millions] Total: $481.15 M Total: $405.41 M Total: $115.50 M Total: $104.01 M

Total revenues Total expenses Total revenues Total expenses [in $millions] [in $millions] [in $millions] [in $millions] 500 500 500 500

Capital Contributions Decrease in Joint Other 400 400 Powers Authority 400 400 Taxes Investment Depreciation 300 Power 300 300 300 Water Interest, net and Other 200 200 200 Capital Contributions 200 Operations & Other Maintenance Taxes Depreciation 100 100 100 Investment 100 Interest, net Resource Recovery and Other Wet Weather Facilities Charge 0 0 0 Wastewater 0 Operations & '11 '12 '13 '14 '15 '11 '12 '13 '14 '15 '11 '12 '13 '14 '15 '11 '12 '13 '14 '15 Maintenance

Water operating revenues and expenses decreased in 2015 compared to 2014 Operating revenues and expenses have grown steadily over the past four years, due to customer conservation efforts in response to the drought and the with the difference between the two being used to fund debt service and Water revenue District's implementation of Government Accounting Standards Board No. 68 in capital improvements. [in $millions] 2015. While the District continued on-going cost saving measures, it also took 400 advantage of low interest rates to refinance debt and lower debt service costs in Total revenues for the Wastewater System increased 6 percent from $109 million in 2014 to $115 million in 2015, based on increases in sewage rate revenue, Public the current year. Authorities/Other resource recovery and capital contributions. 300 Total revenues for the Water System increased 4 percent from $462 million in Commercial 2014 to $481 million in 2015 primarily due to a $22 million increase in capital Total expenses increased 10 percent from $95 million in 2014 to $104 million in contributions offset by a $5 million decrease in water revenue due to drought- 2015 primarily due to a one-time increase associated with a bond refunding Industrial which will substantially lower annual costs in subsequent years. 200 related conservation.

Residential Total expenses decreased to $405 million in 2015 from $440 million in 2014, Wastewater System cash and investments totaled $92 million at the end of fiscal year 2015. This included operating reserves of $42 million and capital reserves of 100 primarily due to the refinancing of outstanding variable debt to fixed rate debt 18 and termination of associated swap agreements, benefitting from current low $50 million which will be used to fund capital improvements. 19 borrowing rates and GASB 68 implementation. 0 '11 '12 '13 '14 '15 Water System cash and investments totaled $478 million at the end of fiscal year 2015. This included operating reserves of $165 million and capital reserves of $270 million which will be used to fund capital improvements. Mission To manage the natural resources with which the District is entrusted; to provide reliable, high quality water and wastewater services at fair and reasonable rates for the people of the East Bay; and to preserve and protect the environment for future generations.

MISSION

20 Wards Board of Directors Board member Ward SUISUN BAY SAN PABLO BAY Lesa R. McIntosh 1 John A. Coleman 2

4 Marguerite Young 3

242 Andy Katz 4 Doug Linney 5 80 1 William B. Patterson 6 580 RICHMOND Frank Mellon 7

WALNUT CREEK Alexander R. Coate, General Manager 3 LAFAYETTE 4 24 BERKELEY 2 EBMUD provides high-quality drinking water

680 for 1.4 million customers in Alameda and 13 Contra Costa counties. S A 80 N F R SAN A EBMUD’s award-winning wastewater treatment FRANCISCO N OAKLAND SAN C ALAMEDA RAMON I plant generates renewable energy from waste S C 580 O 6 and protects the San Francisco Bay on behalf of B A Y 5 7 its 650,000 customers. 880 CASTRO VALLEY 580 Editor: Tracie Morales-Noisy Design: Todd Salerno Photography: John A. Benson, Michael Bergstrom, Andrea Pook, Nelsy Rodriguez, Service area Todd Salerno, David Sanger, Kingmond Young Maps & Illustrations: EBMUD Graphic Design Printing: EBMUD Reprographics SUISUN BAY SAN PABLO BAY Pub. 142 Dec 2015 2.25M

Legend

Water Service Area

Wastewater Service Area

RICHMOND San Pablo Reservoir Briones Reservoir WALNUT CREEK LAFAYETTE Lafayette Reservoir BERKELEY

Upper SAN S A San Leandro FRANCISCO OAKLAND Reservoir SAN N ALAMEDA RAMON East Bay Municipal Utility District F R A 375 11th Street, Oakland, CA 94607 N C I 1-866-40-EBMUD S C Chabot Reservoir O www.ebmud.com B CASTRO A VALLEY Y