City

of Claremont
Environmental Reviewand
Financing Options
Related tothePotential
Acquisition
of the
Claremont Water
System
Introduction
Mayor Lyons Welcome
the Public
City
Manager
Ramos Introducethe Item
City Attorney
Carvalho Overviewof the Process
Background
November
6
2013
City
Council Town Hall
Meeting
Staffand the
City Attorney
were
directed to
continue
thedue
diligenceprocess
including
environmental
review
required by
the California Environmental
Quality
Act
CEQA
and
financing
alternatives and
methods
of
potential acquisition
r
J
Background
Tonight s
Itemwill includediscussionof the
CEQA process
and
financing
alternatives for
consideration
Claremont Water
System
Potential
Acquisition Project
EIR
r
r
y
4
Proposed Project
The
City
of Claremont has decided to
explore
potential acquisition
of the
system
from
GoldenState Water
Company including
Facilities
Infrastructure
Real
property
and
Including rights
used and useful for
operation
of
theClaremont
System
Proposed Project
Potential
acquisition
and
subsequent operation
of theClaremont Water
System
City plans
tocontract withanoutside
qualified
third
party
to
manage
the
system
Potentially City
of La Verne
Other feasiblescenarios arealso
being
considered
City
would be
responsible
for
determining
rates and
charges
Project Objectives
Provide
greater
local control of theClaremont
water
supply
and distribution
system
Enhance customer serviceand
responsiveness
toClaremont customers
Improve public transparency
and
accountability
with
respect
tothe
operation
of
theClaremont
System
Provide
greater
local control over therate
setting process and rate increases
Project
Area
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CITYOF 5 YONTGLAR u
Nrn io
ONTANID e
City
of Claremont
Small
portions
of
Pomona
Montclair
Upland
Unincorporated
LA
County
City
of La Verne
Maintenance
Facility
N
LaVerneOMYard
A
Claremont
System
Service Area
City Boundary
t
y
Project level
EIR
Examines theenvironmental
impacts
of a
specific project
Focuses
primarily
on
changes
inthe
environment that would result fromthe
project
Examines all
phases
of the
project
M
J
Uses of the EIR
City
of Claremont Lead
Agency
for the
Project
California PUC Potential
ResponsibleAgency
IfClaremont
System
is
acquired through
a
negotiated purchase
J
EIRReview
Process
City
circulates
Noticeof
Preparation
onEIR
City prepares
Draft EIR
City
files
Notice
of
Completion
Public and
responsible
comment on
Public
Review
Period
Draft
EIR
45 day minimum
City
prepares
Final
EIR
including
responses
tocomments
City
makes decision
on
EIR
certificationand
proposed Project
comment
r
Y
J
EIR
Chronology
Publication of
Notice
of
Preparation
November
21
2013
Public reviewof Initial
Study
and
Scoping
Period
30
days
November 21 December
23
2013
4Letters Received
Public
Scoping Meeting
December
18
2013
Public Comment Period
on
Draft EIR
45
days J anuary
24
March
10
2014
6
public
and
agency
comment letters received
Potential
Impacts Analyzed
in
the
EIR
Air
Quality
Greenhouse Gas Emissions
Hazards Hazardous
Materials
Hydrology WaterQuality
Noise
Transportation Traffic
Utilities Service
Systems
Mandatory Findings
of
Significance
Project Impacts
Significant
and Unavoidable
Impacts Class I
None
Significant
but
Mitigable Impacts
Class II
None
r
wYY
Project Impacts
Less than
Significant Impacts Class III
Air
Quality
Emissions frommobilesources
during operation
project specific
and
cumulative
Consistency
with
adopted
Air
Quality Management
Plan
AQMP
Greenhouse
Gas Emissions
Emissions frommobilesources
during operation
Consistency
with
plans policies
and
regulations adopted
to
reduce
GHGemissions
Project
Impacts
Less than
Significant Impacts
Class
III
Hazards and Hazardous Materials
Alterationinthelocationor amount of
hazardous
materials stored
in
the
City
Presence
of soil
or
groundwater
contamination
Hydrology
and Water
Quality
Depletion
of
groundwater supplies
Project
Impacts
Less than
Significant Impacts
Class III
Noise
Traffic relatednoise onarea
roadways
Traffic relatedvibrationonarea
roadways
Transportation
and Traffic
Increasein
trips
on
Project
Area
roadways
Increase
in
trips
on
Congestion Management
Plan
Facilities
3
Project
Impacts
Less than
Significant Impacts Class III
Utilities and Service
Systems
Change
indemand for water
supplies
Change
involumeof wastewater
generated
Change
insurfacewater runoff volumes
cYY
Alternatives Considered
Alternatives should
feasibly
attainmost
of
thebasic
objectives of
the
project CEQAJ
Alternative
1No
Project
Avoids
impacts
associated withthe
proposed Project
Would not achievethe
objectives
of
the
proposed Project
Alternative
2
Alternative
Operator City
of
Upland
Alternative3
Alternative
Operator City
of Pomona
Alternative4Alternative
Operator
MonteVistaWater
District
Alternative5 Alternative
Operator
Private
Third
Party
ServiceArea
Alt 2 and 5 are
environmentally superiorincrementally
reduceAQ and
GHG
impacts
due tocloser
proximity
to
Comments Received
Draft
EIR
Comment Period Ended March
10
2014
6Comment Letters Received
1 State
Agency
2 Local
Agencies
3 Members ofthePublic and Other Interested
Parties
Next
Steps
Decisionon certificationof the
proposed
Final
EIR
Take
formal action on
proposed Project
If
approved
fileNoticeof
Determination
Financing Options
Existing
Rates
Support
theIssuance of Installment
Purchase Water Revenue Bonds to
Pay Acquisition
Price
of
Up
to
80MillionTogether
with
Necessary
Reserves
Financing Options
for Price
Exceeding
80
Million
Community
Facilities
District
Special
Tax Bonds
Voter
Approved
Water Revenue
Bonds
Installment Purchase
Water
Revenue Bonds
All 3
Financing Options
Produce
Approximately
the
Same
Average
Impact
on
Single
Family
Residential
Water
Customer
Financing Options
for Additional
Acquisition
Price
Up
to
40
Million
Community
Facilities District
special
Tax
Bonds
Additional Bonds Sold
Separately
Secured
by Special
Tax
within
City
Limits
Outside
City
Limits Fixed
Capital
Charge
on
Water
Bill
Voter
Approval
Needed
Before Bonds
are
Sold
21
per
month
estimated
23per
month
maximum
252
annually
in Years 130
Financing Options
for Additional
Acquisition
Price
Up
to
40
Million
Voter
Approved
Water
Revenue
Bonds
Additional Bonds Sold
Separately
Secured
by System
Revenues
Including
Fixed
Capital
Charge
Voter
Approval
of Fixed
Capital Charge
Needed
Before
Bonds areSold
21per
monthfixed
Capital
Charge
252
annual fixed
in
Years
130
Financing
Options
for Additional
Acquisition
Price
Up
to
40
Million
Installment
Purchase WaterRevenue
Bonds
Additional Bonds
Incorporated
into
Financing
of
80
MillionPurchase PriceFrom
Existing
Rates
Additional Rate
Increase Needed Before
Bonds
Sold
14 31
Per Month
Average22
276
inYear 1
annual
372
inYear 5
annual
204
in
Year 20
annual
168
inYear 30
annual
Revenue
Requirements
80
Million
Acquisition
Price
c
0
c
60 0
55 0
50 0
45 0
40 0
35 0
30 0
25 0
20 0
15 0
10 0
S0
00
Break Even
Year 1 Year 1 GSW Year 3 Year 3GSW Year S Year 5 GSW Year10
OM Debt Service Capital
Year 10 Year 20 Year 20 Year 30 Year 30
GSW GSW GSW
Reserves GSW
Y
s
n
Y
Revenue
Requirements
120
Million
Acquisition
Price
eo D
SS D
50 0
45 0
o
40 0
35 0
c
30 0
25 0
20 0
15 0
10 0
S0
00
Year
1 Year 1 Year 5 Year S Year 30 Year 10 Y
GSW GSW GSW
OM Debt Service
C Capital
Break Even
r17 Year 17 Year 20 Year20 Year 30 Year 30
GSW
GSW GSW
OReserves
GSW
r
fir
Average Monthly
Bill
Comparisons
Installment
Purchase Water Revenue Bonds
sa7s
aso
azs
aoo
37s
350
327
325
318
301
300
275
250
246
236
225
219 219
194
199
200
188
175
n
150
Year
1 Year
s Vear10 Year20
O
City
80M
City
120M GSW
all
azs
Year
30
asl
r