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HomeMy WebLinkAboutStaff Report 2407-32344.Recommendation to Council to Accept the City of Palo Alto One Water Plan (Action 8:15 PM – 9:15 PM) Staff: Karla Dailey Utilities Advisory Commission Staff Report From: Dean Batchelor, Director Utilities Lead Department: Utilities Meeting Date: January 7, 2025 Report #: 2407-3234 TITLE Recommendation to Council to Accept the City of Palo Alto One Water Plan RECOMMENDATION This item is for discussion and action is requested to recommend to the City Council to accept the City of Palo Alto One Water Plan. EXECUTIVE SUMMARY The One Water Plan (OWP) presents a vision and achievable path toward meeting the City’s long-term water supply and water conservation goals by identifying alternatives for the City that, if implemented, may mitigate the impact of future water supply uncertainties such as severe multi-year drought, changes in climate, water demand, and regulations. The OWP compares potential water supply and water conservation portfolios given the City’s weighted evaluation criteria, and provides an initial analysis of alternatives and a framework within which Council can make decisions now and in the future about which types of projects the City may want to explore further. Additionally, this work effort developed an excel-based tool that staff can use to evaluate and prioritize water supply and water conservation portfolios. Palo Alto can use these flexible planning tools now and to adjust its overall water supply strategy as the future unfolds, conditions change and uncertainties are resolved. The OWP water supply and conservation options and the resulting portfolios that scored highest given the rough cost estimates and evaluation criteria include: •Portfolio A – Baseline: Existing potable water supply from the Hetch Hetchy Regional Water System (RWS); •Portfolio B – Baseline with enhanced water conservation; •Portfolio C: Baseline with enhanced conservation plus desalinization; •Portfolio D: Baseline with enhanced conservation plus groundwater; Table 1: Ongoing and Planned Conservation versus Enhanced Conservation Phases 1 and 2 Each portfolio C through G includes Enhanced Conservation Phase 1 and Phase 2 measures, plus one local water supply infrastructure project, with the remainder of the water supplied by the RWS. •Portfolio C adds a Bay Water Desalination plant that would supply 4,480 acre feet per year of water during a normal year. •Portfolio D adds groundwater. Under this portfolio, the City would equip two of the existing emergency supply wells with treatment facilities and convert these from emergency supply to regular potable use. The wells would provide 2,250 acre feet (af) per year of water supply during a normal year. Notably, Valley Water’s 10-year projection anticipates that the groundwater production charge will more than double from the 2023 rate of $1,724/af to $4,147/af by 2032, reflecting approximately 9.5 percent annual escalation. Valley Water expects this increase to primarily pay for critical capital program needs including water treatment plant upgrades and dam seismic retrofit work. For reference, SFPUC’s expected rate in 2032, assumed in the OWP, is $2,630/af. •Portfolio E adds a Palo Alto Direct Potable Reuse (DPR) facility that would supply 4,723 acre feet per year of water during a normal year. •Portfolio F adds a Palo Alto Indirect Potable Reuse (IPR) water purification facility with groundwater injection wells. This Indirect Potable Reuse facility would supply 5,150 acre feet per year of water supply during a normal year. •Portfolio G adds a Regional DPR water purification facility constructed by Valley Water and located in Palo Alto instead of a dedicated Palo Alto DPR facility. The estimated water supply from this facility for Palo Alto is 1,769 acre feet per year during a normal year. Figure 1 illustrates the water supply and demand for each portfolio during a normal year in 2045. Figure 1: Normal Year Supply and Demand Analysis by Portfolio in 2045 The OWP calculates a weighted average unit cost for each portfolio considering the volume of supply from each water supply source during a normal year. Table 1 shows the weighted average unit cost for each portfolio in 2023 dollars and 2045 dollars. The cost estimates generated for the OWP are planning- level or order-of-magnitude cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. The weighted average unit costs are calculated based upon these cost estimates and are not rounded for consistency across the OWP and appendices. Table 2 – Estimated Weighted Average Unit Cost of Water for Portfolio A through Portfolio G Estimated Weighted Average Unit Cost ($/Acre Foot) Portfolio Name 2023 Dollars 2045 Dollars Portfolio A - Baseline $2,210 $4,088 Portfolio B – Enhanced Conservation Phase 1 and 2 $2,075 $3,093 Portfolio C – Enhanced Conservation Phase 1 and 2 with Bay Water Desalination $3,854 $6,663 Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater $2,556 $5,330 Portfolio E – Enhanced Conservation Phase 1 and 2 with Palo Alto DPR $2,645 $4,938 Portfolio F – Enhanced Conservation Phase 1 and 2 with Palo Alto IPR $3,323 $6,440 Portfolio G – Enhanced Conservation Phase 1 and 2 with Regional DPR $2,355 $4,552 Table 3 - Evaluation Results - Weighted Criteria Scores By Portfolio Criteria Sub-Criteria Criteria Weight A. Baseline B. Enhanced Conservatio n Phase 1 and 2 C. Enhanced Conservation with Bay Water Desalination D. Enhanced Conservatio n with Groundwate r E. Enhanced Conservatio n with Palo Alto DPR F. Enhanced Conservatio n with Palo Alto IPR G. Enhanced Conservation with Regional DPR Estimated Portfolio Weighted Unit Cost in 2045 ($/AF) --$4,088 $3,903 $6,663 $5,330 $4,938 $6,440 $4,552 Estimated Start Year --2025 2025 2035 2025/2030 2035 2030 2040 Unit Cost Unit Cost 20%0.95 1.00 0.20 0.59 0.70 0.26 0.81 Reliability Reliability 35%0.35 0.60 1.43 0.85 1.39 1.37 0.90 Efficient Use of Water 10%0.20 0.23 0.27 0.23 0.31 0.27 0.26 Ecological Benefit 10%0.20 0.22 0.19 0.24 0.22 0.22 0.22 Reliance on Tuolumne 10%0.10 0.14 0.29 0.21 0.29 0.31 0.20 Environmental Benefits Subtotal 30%0.50 0.59 0.75 0.68 0.82 0.80 0.68 Implementatio n Timeline 5%0.25 0.24 0.17 0.22 0.16 0.18 0.21 Operational Complexity 5%0.25 0.24 0.17 0.22 0.17 0.18 0.24 Public Acceptance 5%0.25 0.24 0.21 0.22 0.19 0.20 0.22 Ease of Implementation Subtotal 15%0.75 0.72 0.55 0.66 0.52 0.56 0.67 Total 100%2.55 2.91 2.91 2.78 3.43 2.99 3.06 Notes: (1) Based on estimated year 2045. (2) Portfolio G (Enhanced Conservation with Regional DPR) assumes that Valley Water does exercise its option to transfer a portion of RWQCP treated effluent (selected “Yes” in the Tool). All other portfolios assume that Valley Water does not exercise its option (selected “No” in the Tool). (3) The weighted criteria scores are normalized to a scale of 1-5. Page 10 of 13 Portfolio Evaluation Summary Figure 2 compares the portfolios dependency on the Valley Water Transfer option decision. Figure 2. Portfolio Results and Dependence on Valley Water Option to Transfer Decision Sensitivity Analysis The OWP includes a sensitivity analysis to identify how or if the findings change when the evaluation criteria are weighted differently. The sensitivity analysis showed that if Valley Water does not exercise the option to transfer a portion of Treated Effluent from the RWQCP, Portfolio E (Enhanced Conservation Phase 1 and 2 and Palo Alto DPR) remains the top scoring portfolio regardless of changes in cost or reliability criteria and usually outperforms other portfolios. The only case where Portfolio E (Enhanced Conservation with Palo Alto DPR) is not the portfolio with the highest weighted criteria score is when unit cost has additional weighting. Portfolio B (Enhanced Conservation Phase 1 and 2) becomes the highest scoring portfolio and the baseline portfolio scores lower but very close to Portfolio E. In this case, the Palo Alto DPR facility is still the most favorable infrastructure investment compared with the other local supply options, however, considering affordability and the cost of the facility relative to other benefits, Palo Alto may want to continue with baseline Portfolio A or implement enhanced conservation measures instead. In the event that Valley Water exercises the option to transfer a portion of treated effluent from the RWQCP, Portfolio G (Enhanced Conservation with Regional DPR) scores the highest. However, if unit cost is weighted less heavily and supply reliability is weighted more heavily, Portfolio C (Enhanced Conservation with Bay Water Desalination) scores higher than Portfolio G (Enhanced Conservation with Regional DPR). With a lower Reliability criteria weighting, Portfolio B (Enhanced Conservation Phase 1 and Phase 2) is the top scoring portfolio. Additionally, if unit cost is given additional weight, Portfolio C (Enhanced Conservation with Bay Page 11 of 13 Water Desalination) scores lower than all other options, including Baseline Portfolio A, while Portfolio B (Enhanced Conservation Phase 1 and 2) is the top scoring portfolio and Portfolio G (Enhanced Conservation with Regional DPR) is the top scoring supply infrastructure portfolio. FISCAL/RESOURCE IMPACT There is no staff recommendation to proceed with any specific project at this time so there is no financial resource impact resulting from Council acceptance of the OWP. However, the OWP, cost estimates, and Evaluation Tool provide an adaptable roadmap for the City’s water strategy. To illustrate the potential rate impacts for water utility customers stemming from the various portfolios in the OWP, staff utilized the projected weighted unit costs for each portfolio in FY 2045 as the basis for Palo Alto's water purchase costs. This was coupled with an assumed average annual rate increase of 6% for the distribution system. All other assumptions are the same as outlined in the OWP. This analysis does not take into consideration other unexpected costs that may impact the cost of water and does not consider sensitivities to demand changes. This analysis is for illustration purposes only, and provides an approximation of the relative rate impact of different portfolio average unit costs (from Table 1) under the assumptions stated in the OWP. For reference, under Palo Alto’s current rates in FY 2025, a residential monthly bill at 9 CCF of water usage costs $113.47. Also shown is the capital cost associated with each portfolio. Table 4 – Residential Monthly Bills in FY 2045 for Each OWP Portfolio This analysis indicates that the difference in residential bills across the portfolios relative to the baseline Portfolio A ranges from negative 1% for the least expensive Portfolio B (Enhanced Conservation Phase 1 and 2) to 17% for the most expensive Portfolio C – Enhanced Conservation with Bay Water Desalination. Note that capital costs are planning level and actual costs are -50% to 100% of estimated. Page 12 of 13 STAKEHOLDER ENGAGEMENT The following is a timeline of public meetings and community workshops on the OWP to date: - July 7, 2021 - the Utilities Advisory Commission (UAC) reviewed a draft objectives, scope, and community engagement plan for the OWP (Staff Report #12332)5 - November 2021 - Palo Alto Utilities Department in collaboration with the Public Works Department issued OWP Request For Proposals - June 2022 - Council approved the contract with Carollo Engineers to develop the OWP (Staff Report 13434)6 -September 28, 2022 - First Community Workshop, Community Needs and Priorities7 -December 6, 2022 - Second Community Workshop Exploring Water Supply and Water Conservation Options8 - February 1, 2023 - staff provided an update to the UAC on the development of the OWP (Staff Report 14974)9 - June 3, 2024 - staff provided an update to the UAC on the OWP background, goals, approach, overview and initial results (Staff Report 2404-2968)10 Additionally, at the UAC meeting on November 6, 2024, Palo Alto’s water supplier, SFPUC’s Assistant General Manager of the Water Enterprise, Steve Ritchie provided an overview of the RWS and SFPUC’s planning efforts including drought planning and Alternative Water Supply Program. At the same UAC meeting, the Bay Area Water Supply and Conservation Agency CEO/General Manager, Nicole Sandkulla also presented additional information on water supply, water conservation and reliability. This provides additional regional context for the Palo Alto OWP, which focuses on the local area within the Palo Alto city limits. ENVIRONMENTAL REVIEW The development of the OWP is not a project requiring California Environmental Quality Act review, because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. 5 Staff Report 12332: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/07-07-2021- special/id-12332-item-1.pdf 6 Staff Report 13434: https://www.cityofpaloalto.org/files/assets/public/v/11/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220620/20220620pccsm-amended-final-final.pdf 7 Presentation and results from the live polling: https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/water-drought/stakeholder-mtg-1-community- meeting.pdf 8 Slides: https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/water-drought/stakeholder-workshop- 2_community.pdf Recording: https://youtu.be/YEguKgxzRNY 9 Staff Report 14974: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2023/02-feb-2023/02- 01-2023-uac-agenda-and-packet.pdf 10 Staff Report 2404-2968 https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes- 2024/06-jun-2024/06-03-2024-packet-v2.pdf Page 13 of 13 ALTERNATIVE ACTIONS Upon Council acceptance of the City of Palo Alto OWP, staff will have access to the cost estimate spreadsheet (shown in OWP Appendix C) and the Tool (shown in OWP Appendix E). The OWP, cost estimates and Tool together provide a framework within which Council can make decisions now and in the future about the City’s water supply and conservation portfolio, including which types of projects the City may want to explore further or to adjust the City’s overall water supply strategy to meet potentially changing future conditions. ATTACHMENTS Attachment A: Presentation (will be published 1/7/2025) Attachment B: One Water Plan AUTHOR/TITLE: Alan Kurotori, Utilities Chief Operating Officer Staff: Karla Dailey, Assistant Director of Utilities, Resource Management Division January 7, 2025 www.cityofpaloalto.org One Water Plan Utilities Advisory Commission (UAC) 2 www.cityofpaloalto.org 1.One Water Plan Vision 2.Review One Water Portfolios 3.June 2024 UAC Meeting Follow-up 4.Currently Planned Activities 5.Important Events and Dates 6.Recommendation One Water Plan (OWP) Agenda More information at cityofpaloalto.org/water 3 www.cityofpaloalto.org One Water Plan (OWP) Vision One Water Plan is a framework for Council to make decisions about Palo Alto’s future water supply and water conservation portfolio, if reliability becomes a concern Time horizon is 20 years; 2045 4 www.cityofpaloalto.org One Water Portfolio with Supply and Conservation Alternatives A: Baseline; San Francisco Public Utilities Commission Regional Water System Water Supply B: SFPUC + Enhanced Conservation Phases 1 &2 C: SFPUC + Enhanced Conservation + Bay Water Desalinization D: SFPUC+ Enhanced Conservation + Groundwater (with treatment) E: SFPUC + Enhanced Conservation + Palo Alto-owned Direct Potable Reuse (DPR) F: SFPUC + Enhanced Conservation + Indirect Potable Reuse (IPR) G: SFPUC+ Enhanced Conservation + Regional Direct Potable Reuse (DPR) Review of One Water Portfolios 5 www.cityofpaloalto.org June 2024 One Water Plan Follow-Up Commissioner Question: What problem are we trying to solve? •Comprehensive look at relative ease of implementation, environmental benefits, reliability, and cost of various supply augmentation and conservation alternatives •Common understanding of water supply vision amongst stakeholders •Eliminates fragmented analysis; ie “what about looking at XYZ?” •Dynamic - includes a tool that can be updated in the future •Identifies project types that are most likely to be attractive •Not intended to be a detailed feasibility analysis 6 www.cityofpaloalto.org June 2024 One Water Plan Follow-Up Commissioner Comment: Rate Impact Should be Considered •Illustrative future bill implications of selecting each of the OWP portfolios range from a decrease of 1% to an increase of 17% in FY 2045. •Project costs are planning level (actual capital cost is -50% to +100%) Portfolio Capital Cost ($M) FY 2045 Bill Difference from Portfolio A - Baseline Residential Monthly Bill (9 CCF) $ % A: Baseline (SFPUC) $0 $313 B: Enhanced Conservation $0 $309 -$4 -1% C: Enhanced Conservation + Desal $381 $366 $53 17% D: Enhanced Conservation + Groundwater $53 $339 $26 8% E: Enhanced Conservation + Palo Alto DPR $159 $331 $18 6% F: Enhanced Conservation with IPR $240 $362 $49 16% G: Enhanced Conservation + Regional DPR $29 $323 $10 3% 7 www.cityofpaloalto.org June 2024 One Water Plan Follow-Up Commissioner Comment: Consider the Intermittent Use of Groundwater During Drought City planning to modify two emergency groundwater wells to enable blending with SFPUC water 8 www.cityofpaloalto.org June 2024 One Water Plan Follow-Up Commissioner Question: Is the OWP Trigger-Based? Trigger-Based Implementation Roadmap Water Supply Reliability Concern Valley Water Exercised Effluent Transfer option 9 www.cityofpaloalto.org June 2024 One Water Plan Follow-Up Additional Commissioner Questions/Comments Response Are contaminants a concern for some of the identified water supply alternatives? Possibly and increased risk of contaminants is an important consideration. Before any project is recommended, the risk of contaminants will be evaluated. Linear weighting of the evaluation criteria is not ideal Staff will consider other methodologies in the next OWP iteration. Community is not ready for Direct Potable Reuse Outreach and education are crucial to public acceptance of new water supplies. As SFPUC and Valley Water are considering adding water reuse to their systems, Palo Alto will engage and collaborate with the rest of the region regarding water reuse education outreach. Tiered water rates should be reconsidered Yes, water rates are an important part of managing a water utility. Rate structures will be considered in the next cost of service analysis. Tree canopy and vegetation impacts of drought Agreed, this is a very important topic to consider in any discussion of water supply particularly during water scarcity. Any recommendation of a water supply or conservation alternative will include an assessment of the impact on trees and other vegetation. 10 www.cityofpaloalto.org Currently Planned Activities •Implement ongoing/planned conservation •Explore Enhanced Conservation measures •Monitor funding opportunities 11 www.cityofpaloalto.org Important Events and Dates that May Warrant Revisiting One Water Plan •2027: SFPUC updated Alternative Water Supply Plan •2032: Valley Water decision regarding option to transfer effluent from RWQCP for south Santa Clara County uses •State decision regarding Bay Delta Plan implementation •Other events or conditions affecting water supply reliability or cost •New water supply technologies or regional partnership opportunities 12 www.cityofpaloalto.org Action UAC Recommendation to Council to Accept the City of Palo Alto One Water Plan * Scheduled for Council March 2025 * There is no recommendation to proceed with any specific project in the OWP; there is no resource impact resulting from Council acceptance of the OWP * Future water supply and conservation recommendations will build upon the work in this OWP One Water Plan FINAL / October 2024 Digitally signed by Inge Wiersema Contact Info: Carollo Engineers, Inc.Date: 2024.10.24 17:06:46-07'00' OCTOBER 2024 / FINAL / CAROLLO Contents EXECUTIVE SUMMARY ES.1 Plan Purpose ES-1 ES-1 ES-1 ES-2 ES-2 ES-3 ES.2 Study Area and Planning Horizon ES.3 Stakeholder Engagement ES.4 Water Demand Forecast ES.5 Existing Water Supplies ES.6 Potential Water Conservation and Supply Options ES.6.1 Options Screening ES.6.2 Options Evaluation ES-3 ES-5 ES.7 Portfolio Evaluation ES-8 ES.7.1 Evaluation Tool ES.7.2 Demand and Supply Balance by Portfolio ES.7.3 Portfolio Evaluation Results ES-8 ES-8 ES-10 ES.8 Trigger Based Implementation Roadmap ES.9 Next Steps ES-12 ES-12 CHAPTER 1 INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Plan Purpose 1-1 1-1 1-3 1-5 1-5 1-5 Motivations for Development of a One Water Plan Key Previous Planning Efforts Geographical Study Area Planning Period Stakeholder Engagement 1.6.1 Community Engagement 1.6.2 City Departments 1.6.3 Regional Partners 1-7 1-7 1-8 1.7 1.8 Report Organization Acknowledgements 1-8 1-9 CHAPTER 2 WATER DEMANDS AND SUPPLIES 2.1 Current and Projected Demands 2-1 2.1.1 Historical and Existing Water Demands 2.1.2 Future Demand Projections 2-1 2-2 2.2 2.3 Water Supply History Existing Water Supply Sources 2-4 2-5 2.3.1 San Francisco RWS Supply 2.3.2 Recycled Water 2-5 2-8 2.3.3 Deep Aquifer Groundwater 2-10 2.4 Conservation Programs 2-14 CITY OF PALO ALTOONE WATER PLAN ii pw://Carollo/CA/Palo Alto/201363-000000/03 Reports and Studies/02 Deliverables/Final OWP/One Water Plan OCTOBER 2024 / FINAL / CAROLLO CHAPTER 3 POTENTIAL OPTIONS 3.1 3.2 3.3 Evaluation Process Overview Pre-Screening Screening Criteria 3-1 3-2 3-3 3.3.1 Unit Cost 3.3.2 Estimated Yield 3.3.3 Supply Reliability 3-3 3-3 3-4 3.4 Screening 3-4 3.4.1 RWS Supply 3-5 3-63.4.2 Enhanced Water Conservation – Phase 1 3.4.3 Enhanced Water Conservation - Phase 2 3.4.4 Groundwater 3-10 3-13 3-19 3-22 3-25 3-28 3-30 3-32 3-34 3-36 3-38 3-41 3-44 3.4.5 New Irrigation Wells 3.4.6 DPR with Palo Alto Facility 3.4.7 DPR with Palo Alto Facility and the SSRF 3.4.8 DPR with Regional Facility 3.4.9 IPR with Groundwater Injection 3.4.10 NPR with Phase 3 Extension to Foothills 3.4.11 Graywater Capture and Reuse 3.4.12 Residential Rainwater Capture 3.4.13 Green Stormwater Infrastructure 3.4.14 Multi-Source Storage 3.4.15 San Francisco Bay Desalination 3.5 Options Costs and Screening Conclusions 3-46 CHAPTER 4 OPTION EVALUATION 4.1 4.2 Introduction Evaluation Criteria 4-1 4-2 4.2.1 Reliability 4.2.2 Unit Cost 4.2.3 Environmental Benefits 4.2.4 Ease of Implementation 4-3 4-3 4-4 4-6 4.3 4.4 Criteria Weighting Option Evaluation 4-8 4-9 4.4.1 RWS Supply 4-9 4-10 4-11 4-12 4-14 4-15 4-17 4-18 4-20 4.4.2 Enhanced Water Conservation – Phase 1 4.4.3 Enhanced Water Conservation – Phase 2 4.4.4 Groundwater 4.4.5 DPR with Palo Alto Facility 4.4.6 DPR with Regional Facility 4.4.7 DPR with Palo Alto Facility and SSRF 4.4.8 IPR with Groundwater Injection 4.4.9 Bay Water Desalination CITY OF PALO ALTOONE WATER PLAN iii OCTOBER 2024 / FINAL / CAROLLO 4.5 Option Evaluation Summary 4-21 4.5.1 Results without Valley Water Transfer 4.5.2 Results with Valley Water Transfer 4-23 4-23 CHAPTER 5 PORTFOLIO DEVELOPMENT AND EVALUATION 5.1 5.2 Portfolio Approach Portfolio Development 5-1 5-2 5.2.1 Portfolio A – Baseline 5.2.2 Portfolio B – Enhanced Conservation Phase 1 and 2 5-3 5-3 5.2.3 Portfolio C –Enhanced Conservation Phase 1 and 2 with Bay Water Desalination 5.2.4 Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater 5.2.5 Portfolio E –Enhanced Conservation Phase 1 and 2 with Palo Alto DPR 5.2.6 Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR 5-4 5-5 5-6 5-7 5-85.2.7 Portfolio G –Enhanced Conservation Phase 1 and 2 with Regional DPR 5.3 5.4 Evaluation Tool 5-9 5.3.1 Data Inputs 5.3.2 User Selections 5.3.3 Tool Outputs 5-11 5-11 5-12 Portfolio Evaluation Results 5-13 5.4.1 Portfolio A - Baseline 5.4.2 Portfolio B – Enhanced Conservation Phase 1 and 2 5-16 5-17 5-17 5-17 5-18 5-18 5-18 5.4.3 Portfolio C – Enhanced Conservation Phase 1 and 2 with Bay Water Desalination 5.4.4 Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater 5.4.5 Portfolio E – Enhanced Conservation Phase 1 and 2 with Palo Alto DPR 5.4.6 Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR 5.4.7 Portfolio G – Enhanced Conservation Phase 1 and 2 with Regional DPR 5.5 5.6 Portfolio Evaluation Comparisons 5-19 5.5.1 Portfolio Scores 5.5.2 Portfolio Supply Mix and Unplanned Shortfalls 5.5.3 Portfolio Costs 5-19 5-21 5-23 5-265.5.4 Valley Water Transfer Decision Sensitivity and Scenario Analysis 5-28 5.6.1 Unit Cost Criterion 5.6.2 Reliability Criterion 5.6.3 Environmental Benefit Criterion 5.6.4 Ease of Implementation Criterion 5.6.5 Demand Scenario 5-28 5-29 5-30 5-31 5-32 5-325.6.6 RWS Supply Cutback and Shortage Stage Scenarios 5.7 Conclusions 5-34 5.7.1 Scoring Results 5.7.2 Supply Reliability 5.7.3 Implementation Considerations 5-34 5-34 5-35 CITY OF PALO ALTOONE WATER PLAN iv OCTOBER 2024 / FINAL / CAROLLO CHAPTER 6 ONE WATER IMPLEMENTATION PLAN 6.1 6.2 Prioritized Portfolios Trigger-Based Implementation 6-1 6-4 6.2.1 Trigger 1: Increase Supply Reliability 6.2.2 Trigger 2: Valley Water Transfer Option 6-5 6-6 6.3 Trigger-Based Implementation Roadmap 6-7 6.3.1 Enhanced Conservation Phase 1 and Phase 2 6.3.2 Groundwater 6-9 6-9 6.3.3 Direct Potable Reuse Options 6.3.4 Other Options 6-10 6-10 6.4 Next Steps 6-11 Appendices APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F REFERENCES SUPPLY OPTIONS PRE-SCREENING COST ESTIMATING DETAILS SUPPLY PORTFOLIO TOOL DOCUMENTATION SENSITIVITY ANALYSIS STAKEHOLDER ENGAGEMENT MATERIALS Tables Table ES.1 Table ES.2 Table ES.3 Table ES.4 Table ES.5 Table ES.6 Table ES.7 Table ES.8 Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Total Water Demand Projections through 2045 Historical and Planned Water Supply Sources through 2045 Pre-screening Results of 27 Initial Options Options Comparison Evaluation Criteria Weighting Option Evaluation Results Summary ES-2 ES-3 ES-4 ES-5 ES-6 ES-7 ES-8 ES-11 2-3 2-5 2-6 2-9 2-14 3-2 Overview of Options included in each Portfolio Portfolio Evaluation Summary Total Water Demand Projections through 2045 Historical and Planned Water Supply Sources through 2045 Tier One Plan Drought Shortage Allocations Uses of Recycled Water from the RWQCP Existing Water Conservation Programs Options Pre-screening Results Enhanced Conservation - Phase 1 Measures Summary Enhanced Conservation Phase 2 Measures Summary Emergency Supply Well Capacities 3-8 3-11 3-15 3-21 3-24 City Park Irrigation Demands 2022 RWQCP Flows by Partner and Flow Available for Reuse RWQCP Flows Available for Regional Purification Facility and Local Reuse 3-25 CITY OF PALO ALTOONE WATER PLAN v OCTOBER 2024 / FINAL / CAROLLO Table 3.8 Table 3.9 Table 3.10 Table 3.11 Table 3.12 Table 4.1 Table 4.2 Table 4.3 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Table 4.10 Table 4.11 Table 4.12 Table 4.13 Table 4.14 Table 4.15 Table 4.16 Table 4.17 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Table 5.8 Table 5.9 Multi-Source Storage Option Sizing and Cost Estimates Unit Cost Estimate of all Screened Options - 1 Unit Cost Estimate of all Screened Options - 2 Options Comparison 3-42 3-47 3-48 3-49 3-50 4-5 4-5 4-6 4-8 4-9 4-10 4-11 4-12 4-13 4-15 4-16 4-17 4-19 4-20 4-21 4-22 5-2 Summary of Screening Scores Efficient Use of Water Sub Criterion Scoring Ecological Benefits Criterion Score Definitions Implementation Timeline Sub Criterion Score Definitions Public Acceptance Sub Criterion Score Definitions Evaluation Criteria Weighting RWS Supply Evaluation Results Enhanced Conservation – Phase 1 Evaluation Results Enhanced Conservation – Phase 2 Evaluation Results Groundwater Evaluation Results DPR with Palo Alto Facility Evaluation Results DPR with Regional Facility Evaluation Results DPR with Palo Alto Facility and SSRF Evaluation Results IPR with Groundwater Injection Evaluation Results Bay Water Desalination Evaluation Results Example of Weighted Score Calculation Option Evaluation Results Summary Options Evaluation Results Summary Overview of Options included in each Portfolio 5-3 Projected Yield of Enhanced Water Conservation Phase 1 and 2 Portfolio Evaluation Results – Raw Scores Portfolio Evaluation Results – Weighted Scores Unplanned Supply Gap Volumes by Portfolio During Dry Year Total Estimated Unit Cost by Portfolio Range of Criteria Weighting in Sensitivity Analysis Unplanned Supply Gaps under RWS Supply Cutback and Emergency Shortages Overview of Options included in each Portfolio Portfolio Evaluation Summary Projected Unplanned Supply Gap under various RWS Cutback and Shortage Scenarios 5-4 5-14 5-15 5-23 5-23 5-28 5-33 6-2 6-2 Table 6.1 Table 6.2 Table 6.3 6-6 Figures Figure ES.1 Figure ES.2 Figure ES.3 Option Evaluation Process ES-3 ES-9Normal Year Supply and Demand Analysis by Portfolio for 2045 Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 50% RWS Supply Cutback Trigger-Based Implementation Roadmap Palo Alto City Limits ES-10 ES-12 1-6 Figure ES.4 Figure 1.1 CITY OF PALO ALTOONE WATER PLAN vi OCTOBER 2024 / FINAL / CAROLLO Figure 2.1 Figure 2.2 Figure 2.3 Figure 2.4 Figure 3.1 Figure 3.2 Figure 3.3 Figure 3.4 Figure 3.5 Figure 3.6 Figure 3.7 Figure 3.8 Figure 3.9 Figure 3.10 Figure 3.11 Figure 3.12 Figure 3.13 Figure 3.14 Figure 3.15 Figure 3.16 Figure 4.1 Figure 4.2 Figure 4.3 Figure 5.1 Figure 5.2 Figure 5.3 Figure 5.4 Figure 5.5 Figure 5.6 Figure 5.7 Figure 5.8 Figure 5.9 Figure 5.10 Figure 5.11 Figure 5.12 Palo Alto Historical Water Use (1990-2020) Distribution of Water Use by Customer Type (2020 Data) Water Demand Projections Through 2045 Emergency Supply Well Locations Option Evaluation Process San Francisco Hetch Hetchy RWS Projected Water Savings from Enhanced Water Conservation – Phase 1 Projected Water Savings from Enhanced Water Conservation – Phase 2 Existing Emergency Supply Wells Groundwater Treatment Option Schematics Potential New Irrigation Well Sites DPR with Palo Alto Treatment Facility and SSRF Option Schematic DPR with Regional Treatment Facility Option Schematic IPR with Groundwater Injection Schematic NPR with Phase 3 Extension to Foothills Schematic Graywater System “Laundry-to-Landscape” Schematic Green Stormwater Infrastructure Schematic Planned Green Stormwater Infrastructure Projects City Parks Selected for Multi-Source Storage Tank Small scale Bay Water Desalination for Palo Alto Schematic Options Evaluation Process Options Evaluation Results with the Valley Water Transfer Options Evaluation Results without the Valley Water Transfer Option Evaluation Process Normal Year Supply and Demand Projection for Portfolio B Normal Year Supply and Demand Projection for Portfolio C Normal Year Supply and Demand Projection for Portfolio D Normal Year Supply and Demand Projection for Portfolio E Normal Year Supply and Demand Projection for Portfolio F Normal Year Supply and Demand Projection for Portfolio G Evaluation Tool Flow Chart Weighted Portfolio Scores without the Valley Water Transfer option Weighted Portfolio Scores with the Valley Water Transfer option Normal Year Supply and Demand Analysis by Portfolio for 2045 Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 50 percent RWS Supply Cutback 2-1 2-2 2-4 2-11 3-1 3-5 3-9 3-12 3-14 3-17 3-20 3-26 3-29 3-31 3-33 3-35 3-39 3-40 3-43 3-45 4-1 4-23 4-24 5-1 5-4 5-5 5-6 5-7 5-8 5-9 5-10 5-16 5-16 5-21 5-22 5-24 5-24 5-26 5-29 5-30 5-31 5-32 Figure 5.13 Figure 5.14 Figure 5.15 Figure 5.16 Figure 5.17 Figure 5.18 Figure 5.19 Figure 5.20 Weighted Unit Cost by Portfolio (2023 dollars) Weighted Unit Cost by Portfolio (2045 dollars) Portfolio Evaluation Results Schematic with Valley Water Transfer trigger Results of Sensitivity Analysis for Unit Cost Criterion Results of Sensitivity Analysis for the Reliability Criterion Results of Sensitivity Analysis for the Environmental Benefit Criterion Results of Sensitivity Analysis for the Ease of Implementation Criterion Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 30 percent RWS Supply Cutback 5-33 viiCITY OF PALO ALTOONE WATER PLAN OCTOBER 2024 / FINAL / CAROLLO Figure 6.1 Figure 6.2 Figure 6.3 Comparison of Weighted Portfolio Evaluation Scores. Trigger-Based Implementation Roadmap Projected Yield Trajectory of Enhanced Conservation Phase 1 and 2. 6-3 6-8 6-9 CITY OF PALO ALTOONE WATER PLAN viii OCTOBER 2024 / FINAL / CAROLLO Abbreviations AB Assembly Bill ADU af accessory dwelling units acre-feet af/ac afy acre feet per acre acre-feet per year AWPF AWS AWPF BAF advanced water purification facility Alternative Water Supply Advanced Water Purification Facility Biologically Active Filtration Bay Area Water Supply and Conservation Agency Carollo Engineers BAWSCA Carollo ccf Hundred Cubic Feet CDPH CII California Department of Public Health Commercial, Industrial, or Institutional California Environmental Quality Act Capital Improvement Projects City of Palo Alto CEQA CIP City CoRe Plan DDW DPR DSS Countywide Water Reuse Master Plan Division of Drinking Water direct potable reuse Decision Support System California Department of Water Resources Environmental Impact Report Engineering News-Record Construction Cost Index East Palo Alto Sanitary District Enhanced Watershed Management Plans full-time equivalent DWR EIR ENR CCI EPASD EWMPs FTE GA Groundwater Assessment Granular Activated Carbon gallon(s) GAC gal GPC gpm groundwater production change gallons per minute GSI Green Stormwater Infrastructure Groundwater Use Assessment Groundwater Management Plan High Efficiency Toilet GUA GWMP HET IPR indirect potable reuse CITY OF PALO ALTOONE WATER PLAN ix OCTOBER 2024 / FINAL / CAROLLO ISG Individual Supply Guarantee lineal footLF LRP Landscape Rebate Program Micro FiltrationMF MFR MG Multi-Family Residential million gallons mgd million gallons per day MOU NEPA NOAA NPR Memorandum of Understanding National Environmental Policy Act National Oceanic and Atmospheric Administration Non-Potable Reuse O&M OWP PA Operations and Maintenance One Water Plan Palo Alto PAWS RCP Protection and Augmentation of Water Supplies Representative Concentration Pathways Regional Housing Needs Assessment Reverse Osmosis RHNA RO ROC RWQCP RWS RWSP S/CAP sf Reverse Osmosis Concentrate Regional Water Quality Control Plant Regional Water System Recycled Water Strategic Plan Sustainability and Climate Action Plan square foot (feet) SFPUC SFR San Francisco Public Utility Commission Single Family Residential SFWD SGMA SSRF SWRCB TDS San Francisco Water Department Sustainable Groundwater Management Act Small Salt Removal Facility State Water Resources Control Board Total Dissolved Solids TM Technical Memorandum USBR UV United States Bureau of Reclamation ultraviolet UWMP WCIP WET WIRP Urban Water Management Plan Water Conservation Implementation Plan Water Efficient Technology Water integrated Resources Plan CITY OF PALO ALTOONE WATER PLAN x OCTOBER 2024 / FINAL / CAROLLO WSA WSAP WSCP $/af Water Supply Agreement Water Shortage Allocation Plan Water Shortage Contingency Plan dollar per acre-foot $M million dollars CITY OF PALO ALTOONE WATER PLAN xi EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO EXECUTIVE SUMMARY “One Water" is an integrated approach to water management that views all forms of water – imported water, groundwater, wastewater, stormwater, water conservation and efficiency and more - as interconnected resources. A One Water Plan enhances resilience against climate change and supports a communities’ economic, social, and environmental goals. Specifically, the City of Palo Alto (City) One Water Plan (OWP) provides an initial analysis of water supply and conservation alternatives. It provides a framework within which the City Council can make decisions now and in the future about which direction the City wants to proceed with respect to its water supply and conservation portfolio, including which types of projects the City may want to explore further. ES.1 Plan Purpose The specific purpose of the OWP for the City is to present a 20-year, adaptable roadmap of prioritized alternatives, aggregated into water supply portfolios, that establish a vision and achievable path toward meeting the City’s water supply and water conservation goals. The OWP presents water supply and water conservation alternatives for the City that, if implemented, may mitigate the impact of future water supply uncertainties such as severe multi-year drought, changes in climate, water demand, and regulations. The key work products of the OWP effort are: .This One Water Plan which compares potential water supply and water conservation portfolios given the City’s weighted evaluation criteria; and .An Excel-based tool that can be used to evaluate and prioritize water supply and water conservation portfolios now and as future uncertainties are resolved. These work products together serve as an adaptable roadmap for the City's water strategy to provide long-term water supply resilience, reliability, and security. By accepting an adaptable OWP with flexible planning tools, Palo Alto can utilize the tools now and, in the future, to adjust its overall water supply strategy to meet the City’s needs under changing future conditions. ES.2 Study Area and Planning Horizon Palo Alto is located in Santa Clara County on the San Francisco Peninsula, about 15 miles north of San Jose and 35 miles south of San Francisco. The City provides water, wastewater, recycled water and stormwater service to nearly 70,000 residents and businesses located within the 26 square miles service area. The study area for this project is limited to the Palo Alto city limits. ES.3 Stakeholder Engagement The OWP was developed to meet the near- and long-term needs of the Palo Alto community. The City made extensive efforts to engage multiple City departments, regional partners, and the community in developing this OWP. The regional partners included Bay Area Water Supply & Conservation Agency (BAWSCA), City of East Palo Alto, City of Los Altos, City of Mountain View, San Francisco Public Utilities Commission (SFPUC), Stanford University, and Valley Water. The stakeholder engagement materials used at the various meetings are included in Appendix F. CITY OF PALO ALTOONE WATER PLAN ES-1 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO ES.4 Water Demand Forecast This OWP uses three demand scenarios from the BAWSCA Regional Water Demand and Conservation Projections Update (Maddaus, 2022). These demand projections are characterized as the low, medium, and high forecasts in the OWP. Table ES.1 summarizes the demand from year 2020 and the three forecasts through 2045, while a more detailed description can be found in Chapter 2. Notably, even the high forecast remains more than 4,000 acre-feet per year (afy) below the historic high of 16,900 afy in 1996. This is important because the City has been able to meet all its water demands in the past with San Francisco Regional Water System (RWS) supplies, while demand was higher in the period 1990-2015 than all three forecasts. Table ES.1 Total Water Demand Projections through 2045 Demand Projection by Planning Year(1)OWP Demand Scenario 2020(2) (afy)) 2025 (afy) 2030 (afy) 2035 (afy) 2040 (afy) 2045 (afy) Low(3) Medium(4) High(5) 11,237 11,237 11,237 11,438 11,650 11,663 11,044 11,762 11,778 10,818 11,874 12,039 10,664 12,210 12,390 10,582 12,546 12,808 Notes: 1) Demand projections include Potable, Non-Potable, and Non-Revenue Water 2) 2020 demand reflects total water use projected in the 2020 UWMP (Palo Alto, 2021). 3) Based on the BAWSCA Regional Water Update – Scenario E (Maddaus, 2022). 4) Based on the BAWSCA Regional Water Update – Baseline with Active and Passive Conservation (Maddaus, 2022). 5) Based on the BAWSCA Regional Water Update – Scenario A (Maddaus, 2022). ES.5 Existing Water Supplies Since 1962, except for some very short periods, Palo Alto has solely relied on imported water from the San Francisco Public Utilities Commission (SFPUC) for its potable water supply needs. The City receives water from the RWS via five turnouts and primarily collaborates with BAWSCA to oversee its water supply contract with San Francisco and to engage with the SFPUC. In addition to the City’s potable water supplied by the RWS, the City has used non-potable recycled water from the City’s Regional Water Quality Control Plant’s (RWQCP) regional recycled water system since it began operation in 1980. The first phase of this system serves the Palo Alto Golf Course, Greer Park, the Duck Pond, and the RWQCP. Palo Alto currently uses recycled water to serve irrigation demand to a variety of golf courses and City parks. Palo Alto also owns five deep aquifer groundwater wells that are currently only used during emergencies. Two of these wells were in operation for approximately six weeks in 1991 when the City faced a severe 45% imported water reduction requirement from SFPUC. Since then, apart from routine annual testing, these wells have remained inactive. Table 1.2 lists the historical (year 2020) and projected utilization of the City’s existing water supply sources during typical years. As shown, the City currently plans to continue to primarily rely on water from the San Francisco RWS, with non-potable recycled water making up less than 3 percent of the City’s total supply. CITY OF PALO ALTOONE WATER PLAN ES-2 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Table ES.2 Historical and Planned Water Supply Sources through 2045 2020 (afy) 2025 (afy) 2030 (afy) 2035 (afy) 2040 (afy) 2045 (afy)Water Supply Sources RWS Supply Recycled Water Total 10,921 316 11,287 316 11,394 316 11,546 316 11,801 316 12,113 316 11,237 11,603 11,710 11,862 12,117 12,429 Notes: (1) Supply Source Capacities reflect normal year conditions. (2) Source: 2020 Urban Water Management Plan (UWMP) (Palo Alto, 2021) ES.6 Potential Water Conservation and Supply Options This OWP uses a multi-step process to evaluate water supply and conservation options (“options”) and portfolios. The options evaluation process is graphically depicted in Error! Reference source not found.. As shown, these four steps are 1. Pre-screening of 27 options narrowed down to 15 options 2. Screening of 15 options narrowed down to 9 options 3. Option Evaluation of 9 options to inform composition of 7 portfolios 4. Portfolio Evaluation of 7 portfolios to develop a trigger-based implementation strategy As shown in in Figure ES.1, the prescreening and screening steps are described in Chapter 3, while the option and portfolios evaluations are described in Chapter 4 and 5, respectively. This OWP is concluded with a trigger-based implementation roadmap, which is presented in Chapter 6. Figure ES.1 Option Evaluation Process ES.6.1 Options Screening During the first step, a total of 27 options were compiled using previous studies, new ideas from City staff and the consultant team, as well as input from stakeholders during public engagement meetings. Table ES.3 lists the results of the high-level prescreening process that removed 12 of the 27 options because the options were either 1) already ongoing or planned or 2) not considered feasible at this time. CITY OF PALO ALTOONE WATER PLAN ES-3 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Table ES.3 Pre-screening Results of 27 Initial Options Options that are Options considered not Options selected to be Ongoing/Already Planned(1)Feasible at this Time(1) IPR, Lake Lagunita Recharge Blackwater Capture and Reuse Valley Water Treated Water Interagency Transfer Agreement Tuolumne River Purchases Atmospheric Water Generators Local Storage included in the Screening Process .Ongoing/Planned Water Conservation Efforts . . . . . . . . . . . . . . . . . . RWS Supply Enhanced Conservation, Phase 1 Enhanced Conservation, Phase 2 Groundwater . . Advanced Metering Program Distribution System Water Loss Reduction New Irrigation Wells DPR with Palo Alto Facility DPR with Palo Alto Facility and SSRF DPR with Regional FacilityTemporary Dewatering Sites Permanent Dewatering Sites Palo Alto IPR with Groundwater Injection . . . . . . NPR Phase 3 Extension to Foothills Graywater Capture and Reuse Residential Rainwater Capture Green Stormwater Infrastructure Multi-Source Storage Bay Water Desalination Notes: DPR = Direct Potable Reuse; IPR = Indirect Potable Reuse; NPR = Non-Potable Reuse; RWS = Regional Water System; SSRF = Small Salt Removal Facility. 1)The options removed from the pre-screening process are described in Appendix B. The 15 remaining options after the pre-screening were subjected to the screening process using the following three criteria: . . . Unit Cost, Estimated Yield Supply Reliability Chapter 3 includes the descriptions, yield estimates, and high-level cost estimates that were prepared for each of the 15 remaining options. The information used to apply the screening criteria, and the scoring results are summarized in Table ES.4. As shown in Table ES.4Error! Reference source not found., the top 8 ranked new local options, excluding the existing RWS Supply, are: . . . . . . . Enhanced Conservation - Phase 1 (score 8) Enhanced Conservation - Phase 2 (score 8) Direct Potable Reuse (DPR) with Palo Alto Facility (score 8) DPR with Regional Facility (score 7) Indirect Potable Reuse (IPR) with Groundwater Injection (score 7) Bay Water Desalination (score 7) Groundwater (score 6) CITY OF PALO ALTOONE WATER PLAN ES-4 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO .DPR with Regional Facility and Small Saltwater Removal Facility (SSRF) (score 6) Table ES.4 Options Comparison Unit Cost in 2023 dollars(1) ($/af) Estimated Yield in 2045(2) (afy) Increases Supply Reliability in Drought Years? Move to Portfolio Evaluation Category Option Imported Water Conservation RWS Supply $2,210 $312 12,546 724 Neutral Yes Yes Yes Yes Yes No Enhanced Conservation - Phase 1 Enhanced Conservation - Phase 2 Groundwater $1,939 $4,663 $3,107 $3,594 $8,897 $4,024 $4,992 $9,685 $8,215 $58,321 $16,847 $39,679 $6,768 618 Yes Groundwater Water Reuse 2,250 54 Neutral Neutral Yes New Irrigation Wells DPR with Palo Alto Facility DPR with Palo Alto Facility and SSRF DPR with Regional Facility IPR with Groundwater Injection NPR with Phase 3 Expansion Graywater Capture and Reuse Residential Rainwater Capture Green Stormwater Infrastructure Multi-Source Storage 4,723 630 Yes Yes Yes Yes No Yes 1,769 5,150 1,100 10 Yes Yes Neutral Neutral No Onsite Water Capture/Reuse No 1 No Stormwater Storage 30 No No 39 Yes No Desalination Bay Water Desalination 4,480 Yes Yes Notes: 1) Cost numbers are not rounded from the calculations presented in Appendix C to avoid inconsistencies in rounded values. However, these are Class 5 planning level (aka “order of magnitude”) cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. 2) Yields listed reflect normal year conditions only. Some options are subject to a dry year yield reduction as listed in Table 5.1. It should be noted that 4 of these 8 options are dependent on whether Valley Water decides to exercise the option that obligates the cities of Palo Alto and Mountain View to transfer a minimum effluent flow delivery of an annual average of 9 mgd from the RWQCP to Valley Water. Valley Water has until the end of 2032 to decide whether to exercise the Effluent Transfer Option. Valley Water may elect to develop a Regional Purification facility to purify the water and use it for beneficial use in Santa Clara County south of Mountain View. Hence, the two DPR options with the Regional Facility (with and without the SSFR) can only be implemented with the Valley Water transfer in place. Similarly, the Palo Alto DPR and IPR options are only possible if Valley Water does not exercise the transfer option as that would maintain sufficient wastewater effluent flows for Palo Alto to build its own Advanced Treatment Plant for either IPR or DPR purposes. ES.6.2 Options Evaluation The criteria used to evaluate the options in this OWP were developed to reflect a wide range of perspectives. This includes input from City staff and the community via polling and discussion during the first two rounds of stakeholder engagement meetings, as described in Chapter 1. The four (4) main evaluation criteria build upon the screening criteria described in Chapter 3 and include: 1. Reliability CITY OF PALO ALTOONE WATER PLAN ES-5 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO 2. Unit Cost 3. Environmental Benefits 4. Ease of Implementation The Environmental Benefits and Ease of Implementation criteria each have multiple sub-criteria described in more detail below. The three Environmental Benefits sub-criteria are 1) Reduced Reliance on the Tuolumne River, 2) Efficient Use of Water and 3) Ecological Benefits. The Ease of Implementation sub-criteria are 1) Implementation Timeline, 2) Operational Complexity, and 3) Public Acceptance. The four evaluation criteria, along with their respective sub-criteria, and the methods used for scoring the options are described in detail in Chapter 4. To account for the relative importance or priority to different criteria when making decisions, each of the (sub)criteria was given a weight based on feedback received from City staff and community members via a polling at in-person workshop as well as the results of an online survey. The weighting factors used in this OWP are summarized in Table ES.5. Table ES.5 Evaluation Criteria Weighting Evaluation Criteria Reliability Unit Cost Sub-Criteria (Sub)Criteria Weight(1)Combined Weight1) n/a n/a 35% 20% 10% 35% 20% 30%Environmental Benefits Reduced Reliance on the Tuolumne River Efficient Use of Water Ecological Benefits 10% 10% 5%Ease of Implementation Implementation Timeline Operational Complexity 15% 5% Public Acceptance (1) Notes: 5% (2) A sensitivity analysis was conducted to determine if, and how much the portfolio evaluation results would change if the criteria were weighted differently (higher or lower). The findings are discussed in Section 5.6. Table ES.6 summarizes the results on the option evaluation. As shown, the following new options score the highest in order of decreasing score: . . . DPR with Palo Alto Facility (total score: 3.7) IPR with Groundwater Injection (total score: 3.6) Enhanced Water Conservation – Phase 1 and Bay Water Desalination (both total score: 3.2) It can be concluded that both Enhanced Water Conservation – Phase 1 and IPR with Groundwater Injection score in the top 3 options, with and without the use of the relative weighting factors. This means that these options are robust solutions as these are not very sensitive to changes in the weighting factor percentages as these options score each well in multiple criteria. Both Enhanced Conservation Options (Phase 1 and Phase 2) were therefore included in all portfolios except for the Baseline Portfolio, which represents the “Do Nothing” aka “Business as-usual” scenario. Moreover, it can be concluded that the DPR with Palo Alto Facility and SSRF option scores the lowest with and without weighting factors. This option was therefore not moved forward to the Portfolio Evaluation. CITY OF PALO ALTOONE WATER PLAN ES-6 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Table ES.6 Option Evaluation Results Summary Environmental Benefits Reduced Tuolumne Efficient River Use of Ecological Implementation Operational Reliability Cost Reliance Water Ease of Implementation Total Unweighted Score4 Total Weighted Score4,5 Unit Public Option Criteria Weight Benefit Timeline Complexity Acceptance 35% 1.0 1.6 1.5 2.6 4.9 2.5 1.5 5.0 4.9 20% 4.1 5.0 4.0 2.0 3.4 2.9 1.0 2.4 2.0 10% 1.0 1.6 1.5 2.7 4.7 2.4 1.5 5.0 4.5 10% 2 10% 2 5% 5 5% 5 5% 5 n/a n/a 2.4 3.2 2.8 2.5 3.7 2.7 1.7 3.6 3.2 RWS Supply 25.1 28.2 24.0 21.3 22.9 21.7 14.0 24.4 20.4 Enhanced Conservation - Phase 1 Enhanced Conservation - Phase 2 Groundwater 5 4 3 4 4 5 4 2 3 3 2 3 3 3 3 DPR with Palo Alto Facility1 DPR with Regional Facility2 DPR with Palo Alto Facility and SSRF IPR with Groundwater Injection1 Bay Water Desalination 4 2 1 1 2 4 2 1 5 2 4 2 1 1 2 3 2 2 2 3 3 1 1 1 3 Notes: (1) DPR with Palo Alto Facility and IPR with Groundwater Injection options assume that Valley Water does not exercise its option to transfer a portion of RWQCP effluent (selected “No” in the Evaluation Tool) (2) The DPR with Regional Facility option assumes that Valley Water exercises its option to transfer a portion of RWQCP effluent (selected “Yes” in the Evaluation Tool) (3) Quantitative criteria scores (Reliability, Unit Costs, Reliance on Tuolumne River) are shown with two significant figures as these are calculated values, while qualitative criteria scores are scored using whole integers. (4) The three highest scores of new options (excluding the benchmark RWS Supply) are shown in bold font. CITY OF PALO ALTOONE WATER PLAN ES-7 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO ES.7 Portfolio Evaluation As part of this OWP, a total of seven portfolios (A through G) were of developed and evaluated based on the four following evaluation criteria: . . . Environmental Benefit is scored for three sub-criteria including Reduced Reliance on the Tuolumne River, Efficient Use of Water and Ecological Benefits. Unit Cost is scored based on the projected unit cost expressed in dollar per acre-foot ($/af) of each portfolio using the capacity weighted unit cost of all options in the respective portfolio. Reliability is scored based on results of the dry year supply analysis for each portfolio using the supply gap expressed in afy during a 50 percent reduction in water deliveries to Palo Alto from the RWS. .Ease of Implementation is scored based on three sub-criteria: Implementation Timeline, Operational Complexity, and Public Acceptance. Table ES.7 summarizes the options included in each portfolio. Table ES.7 Overview of Options included in each Portfolio Enhanced Conservation Phase 1 and Phase 2 DPR with Alto Regional Palo Alto DPR Palo RWS Supply X Bay Water Desalination Ground- waterPortfolio IPR Facility A. Baseline B. Enhanced Conservation Phase 1 and 2 X X X XC. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination X D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR G. Enhanced Conservation Phase 1 and 2 with Regional DPR X X X X X X X X X X X X As shown in Table ES.7, Portfolios A – D can be implemented independent of the decision of Valley Water to exercise its option to transfer a portion of the treated effluent from the RWQCP. However, Portfolios E and F may only be implemented if Valley Water does not exercise the effluent transfer option, while Portfolio G may only be implemented with the transfer option and if Valley Water constructs a DPR facility. ES.7.1 Evaluation Tool The Evaluation Tool was developed to test the performance of different combinations of potential water supply and conservation options across a range of supply, conservation, and demand scenarios. The Supply Evaluation Tool was used to evaluate the seven portfolios (A through G). Unless noted differently, the results presented in this OWP are based on the medium demand scenario (see Table ES.1) and a RWS Supply reduction of 50%, combined with the implementation of Shortage Stage II, which mandates up to 20% water use reductions per the City’s Water Shortage Contingency Plan (Palo Alto, 2021). CITY OF PALO ALTOONE WATER PLAN ES-8 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO For ease of comparison, these assumptions are kept constant in the portfolio evaluations described in the following subsections. However, each of these key assumptions can be modified in the Evaluation Tool based changing conditions. In addition, the sensitivity of many of these key assumptions are analyzed and discussed separately in Section 5.6. The Tool is a key deliverable of this OWP and is intended to also be used to evaluate new portfolios that may be developed and considered in the future. Appendix D provides a more detailed description of the Tool and its functionalities. ES.7.2 Demand and Supply Balance by Portfolio Figure ES.2 provides a graphical summary from the Tool output that compares Palo Alto’s year 2045 water supply yields and demands of the seven portfolios side-by-side for normal year conditions. Figure ES.2 Normal Year Supply and Demand Analysis by Portfolio for 2045 As shown in Figure ES.2, the amount of RWS Supply varies considerably between the portfolios, ranging from 100 percent of the forecasted demand in 2045 of 12,546 afy (medium growth scenario) in Portfolio A to as low as 6,053 afy or 48 percent of the total demand in Portfolio F. There is no unplanned supply shortfall for any of the portfolios under normal year supply and demand conditions. Figure ES.3 shows the supply and demand balance under extreme water shortage conditions with an assumed 50 percent cutback of RWS Supply and 20 percent water use reduction (drought reduction) via water use restrictions and short-term conservation. This is a scenario the SFPUC has said is possible if the State-adopted Bay Delta Plan unimpaired flow requirements are implemented. Under these conditions, the City would activate the appropriate stage of its Water Shortage Contingency Plan, presumably achieving higher than a 20% water use reduction. The unplanned supply gap shown in Figure ES.3 is illustrative only. CITY OF PALO ALTOONE WATER PLAN ES-9 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Figure ES.3 Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 50% RWS Supply Cutback ES.7.3 Portfolio Evaluation Results Table ES.8 summarizes the weighted portfolio scores, yield, and unit cost by portfolio in both 2023 and 2045 dollars. As shown, four (4) of the seven (7) portfolios are not sensitive to the decision of Valley Water to exercise the option to transfer effluent. If Valley Water would exercise the transfer option, there would be sufficient flows to the RWQCP to implement DPR with Regional Facility option included in Portfolio G. However, if this option is not exercised, Palo Alto would retain sufficient wastewater effluent to implement either the Palo Alto DPR or Palo Alto IPR options included in Portfolios E and F, respectively. It can be concluded that Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the highest score if Valley Water does not exercise the effluent transfer option, while Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the highest score if Valley Water does exercise the effluent transfer option. Hence, the combination of enhanced conservation and DPR is the most attractive path forward to further strengthen Palo Alto’s supply reliability. The type of DPR (Palo Alto or Regional Facility) is dependent on Valley Water’s decision of exercising the transfer option. Additionally, the implementation of Enhanced Conservation Phase 1 and 2 without any other large new water supply project, as defined in Portfolio B, is considered a no-regret option because it is independent of Valley Water Transfer option decision and consistent with the high individual option scoring results. CITY OF PALO ALTOONE WATER PLAN ES-10 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Table ES.8 Portfolio Evaluation Summary Portfolio Names Valley Water Transfer Option Exercised Weighted Portfolio Score(1) Yield (afy)Unit Supply Cost ($/af) Normal year Dry year 2023 2045 dollars dollars A. Baseline not sensitive not sensitive 2.55 2.92 0(2)0(2)$2,210 $2,075 $4,088 $3,903B. Enhanced Conservation Phase 1 and 2 1,342 1,342 C. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR not sensitive not sensitive only without only without only with 2.91 2.79 3.43 2.99 3.06 5,823 3,592 6,065 6,492 3,111 5,823 3,143 5,829 5,978 3,023 $3,854 $2,556 $2,645 $3,323 $2,355 $6,663 $5,330 $4,938 $6,440 $4,552G. Enhanced Conservation Phase 1 and 2 with Regional DPR 1) The weighted portfolio score in the Evaluation Tool is based on the portfolio weighted unit costs in 2045 dollars. The highest scoring portfolios with and without the Valley Water transfer are listed in bold.2) The Baseline Portfolio solely relies on imported water from the SFPUC via its RWS system, combined with already-planned water conservation programs that are not included in the Enhanced Conservation measures as described in Chapter 3. ES.8 Trigger Based Implementation Roadmap The major triggers that were identified for this OWP that could impact the decision on moving forward with one of more of the options are: 1. Need to Increase Supply Reliability 2. Valley Water Transfer Option It should be noted that funding is not included as a trigger because sufficient funding is a common requirement for all projects. Although insufficient funding can certainly postpone, downsize, or eliminate projects, it was decided that funding should be considered as an implementation challenge rather than a trigger. Also important is public acceptance of IPR, DPR and Bay Water Desalination. Palo Alto plans to work collaboratively and actively with both SFPUC and BAWSCA to incorporate messages and information about DPR and/or Desalination into outreach materials. The trigger-based implementation roadmap shown in Figure ES.4 was developed to guide the City of Palo Alto with prioritization and the decision-making processes for future option implementation. No action or decision is being recommended at this time regarding the implementation of any of these options. The purpose of identifying these options is to increase local supply reliability in the event of a prolonged outage or reduction in imported water deliveries from the RWS. Should one of these conditions arise, the options can be further evaluated as needed. As shown in Figure ES.4, the trigger-based implementation roadmap follows a pathway, indicated by the blue arrows pointing to the trigger decisions that are shown as orange diamonds. Each trigger is a key decision point that leads to different pathways depending on the answer to the trigger question with either a YES or NO. Note that in reality, the answers are not binary, and some grey areas will exist. CITY OF PALO ALTOONE WATER PLAN ES-11 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO Figure ES.4 Trigger-Based Implementation Roadmap ES.9 Next Steps The OWP recommends the following actions to enhance the City’s water supply reliability that reflect the priorities of the City, as well as the input received from regional partners and the community during the stakeholder engagement process utilities for the development of this Plan: 1. Start with the planning and exploration of the Enhanced Water Conservation measures included in Phase 1 including but not limited to the following: . . . . . Outdoor Irrigation Efficiency for Commercial, Industrial, or Institutional (CII) Properties 3-Day Watering Week Non-Functional Turf Ban for CII Properties Lawn Limitation for New Development and Major Retrofits Low Income Residential High Efficiency Toilet (HET) Replacement Program 2. Once the Enhanced Conservation Phase 1 program activities are set in motion, start with the planning and exploration of the Enhanced Conservation Phase 2 measures, namely: . . . Lawn Limitation for Residential Properties upon Resale HET Replacement Program for CII Properties City Landscaping Support for Turf Replacement 3. Incorporate education and monitoring of the level of support for IPR, DPR, and/or Bay Water Desalination in City’s community engagement activities in close collaboration with regional agencies. 4. Update the option cost estimates, and Excel-based Evaluation Tool assumptions as new information becomes available and periodically update the trigger-based roadmap implementation plan. CITY OF PALO ALTOONE WATER PLAN ES-12 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO 5. Prepare a conceptual feasibility study for the DPR, IPR, Bay Water Desalination and/or Groundwater Treatment option(s) once there is more clarity on which of these larger supply options may be implemented in the future (if any). CITY OF PALO ALTOONE WATER PLAN ES-13 EXECUTIVE SUMMARY OCTOBER 2024 / FINAL / CAROLLO -This Page Intentionally Left Blank- CITY OF PALO ALTOONE WATER PLAN ES-14 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 1 INTRODUCTION This chapter introduces the Palo Alto One Water Plan (OWP or Plan), including the purpose of One Water planning, the project background, and key drivers for the preparation of the OWP. Furthermore, this chapter outlines previous planning initiatives, followed by a description of the OWP study area and planning timeline. Lastly, the chapter explains stakeholder engagement process and how input was used to guide the plan development and concludes with a list of acknowledgements and an overview of the Plan organization. 1.1 Plan Purpose “One Water" is an integrated approach to water management that views all forms of water – imported water, groundwater, wastewater, stormwater, water conservation and efficiency and more - as interconnected resources. A One Water Plan enhances resilience against climate change and supports a communities’ economic, social, and environmental goals. Specifically, the City of Palo Alto (City or Palo Alto) OWP provides an initial analysis of water supply and conservation alternatives. It provides a framework within which the City Council can make decisions now and in the future about which direction the City wants to proceed with respect to its water supply and conservation portfolio, including which types of projects the City may want to explore further. The specific purpose of the OWP for the City is to present a 20-year, adaptable roadmap of prioritized alternatives, aggregated into water supply portfolios, which establish a vision and achievable path toward meeting the City’s water supply and water conservation goals. The OWP presents water supply and water conservation alternatives for the City that, if implemented, may mitigate the impact of future water supply uncertainties such as severe multi-year drought, changes in climate, water demand, and regulations. The key work products of the OWP effort are: .This One Water Plan which compares potential water supply and water conservation portfolios given the City’s weighted evaluation criteria. .An Excel-based tool that can be used to evaluate and prioritize water supply and water conservation portfolios now and as future uncertainties are resolved. These work products together serve as an adaptable roadmap for the City's water strategy to provide long-term water supply resilience, reliability, and security. By accepting an adaptable OWP with flexible planning tools, Palo Alto can utilize the tools now and, in the future, to adjust its overall water supply strategy to meet the City’s needs under changing future conditions. 1.2 Motivations for Development of a One Water Plan The City has several motivating factors for developing this OWP including: .Providing water reliability for community needs (such as drinking water, tree canopy health, recreation and habitat needs) during droughts and considering the impacts of climate change. Providing adequate water supply to meet the City’s projected increases in water demand. Including community input and support in the City's water planning efforts. . . CITY OF PALO ALTOONE WATER PLAN 1-1 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO Future water supply reliability may be affected by recent regulations. In 2018, the State Water Resources Control Board (SWRCB) adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary also known as the “Bay-Delta Plan Amendments,” to establish water quality objectives to maintain the health of the Bay-Delta ecosystem (SWRCB, 2018). The Bay-Delta Plan Amendments require the release of 30-50 percent of the unimpaired flow on the three San Joaquin River tributaries (the Stanislaus, Merced, and Tuolumne Rivers) from February through June. Unimpaired flow represents the natural water production of a river basin, unaltered by upstream diversions, storage, or by export or import of water to or from other watersheds. (SWRCB 2018, p. 17, footnote 14). If the Bay-Delta Plan is implemented, the San Francisco Public Utilities Commission (SFPUC) expects to be able to meet Wholesale Customers projected water demands in normal years but would experience supply shortages and require rationing in single dry years or multiple dry years (SFPUC, 2021). The SFPUC has initiated an Alternative Water Supply Planning program to meet its Retail and Wholesale Customer water needs, address projected dry year shortages, and limit rationing to a maximum 20 percent system-wide in accordance with adopted SFPUC policies. In August 2018, the Palo Alto City Council voted to support the Bay-Delta Plan Amendments and sent a letter expressing the policy position to the Bay Area Water Supply and Conservation Agency (BAWSCA), California State Water Resources Control Board, and SFPUC (Palo Alto, 2018d). Consistent with the Council’s policy position in support for the Bay-Delta Plan, the OWP explores alternatives that reduce reliance on the San Francisco Hetch Hetchy Regional Water System (“San Francisco RWS” or “RWS”). A key driver of the OWP is to study the feasibility of implementing alternative water supply sources to reduce reliance on the RWS and to increase water supply reliability for Palo Alto. The SFPUC operates the RWS, which Palo Alto is 100 percent dependent on for drinking water. Given the City’s forecasted water demand as well as projections of water supply availability provided by the SFPUC, the City anticipates the need to implement water use reductions in the range of 35 - 55 percent during droughts after the implementation of the Bay-Delta Plan Amendment. The State is taking steps toward implementation of the Bay Delta Plan Amendments including preparing a draft Environmental Impact Report (EIR) and regulations to implement the updates the State adopted in 2018. Moreover, the RWS crosses seismically active faults, and the water supply is subject to potential supply interruption in the event of earthquake damage. SFPUC’s Water System Improvement Program (a multi- year capital program to upgrade the RWS) greatly reduced the system’s seismic vulnerability. Palo Alto is addressing the intermittent use of groundwater during an emergency such as an earthquake as part of the City’s capital budgeting process. In contrast, the OWP focuses on new permanent water sources such as the use of groundwater in all years to reduce Palo Alto’s reliance on the RWS and increase reliability by developing alternative water supply sources. .There are also several factors not included in the OWP that Palo Alto is addressing as part of other planning efforts, including: . . . Catastrophic loss of supply due to earthquakes or other events. Use of groundwater blending during droughts. Green building requirements. The OWP is not focused on development of city policies regarding expanded green building requirements although findings may lead to refinement of green building policies, requirements or mandates. CITY OF PALO ALTOONE WATER PLAN 1-2 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO 1.3 Key Previous Planning Efforts The OWP builds on previous water supply studies, plans, and efforts by the City including the following key documents: .Long Term Water Supply Study (2000): This study was prepared for the City by Carollo Engineers, Inc. in 2000 (Carollo, 2000). This is the earliest-referenced study used in this OWP that is geared towards understanding how Palo Alto could meet water supply deficits should there be a cutback in water supply from SFPUC. Supply alternatives investigated include emergency groundwater well conversion, utilizing groundwater for irrigation, connecting to the Valley Water system, and participating in a new water supply project with the California Water Service Company. This study was specifically used for the groundwater supply options considered in this OWP. .BAWSCA Long-Term Reliable Water Supply Strategy (2015): BAWSCA is a special district created by the California legislature in 2003 to represent the interests of Palo Alto as well as 23 other cities and water districts and two private utilities that purchase water on a wholesale basis from San Francisco. BAWSCA developed the 2015 Long-Term Reliable Water Supply Strategy (“2015 Strategy”) (CDM Smith, 2015) which assessed the water supply reliability requirements of BAWSCA member agencies until 2040. It identified potential water supply management projects or programs to address these needs and devised an implementation plan for executing the Strategy's recommendations. BAWSCA is initiating an update to the 2015 Strategy called Strategy 2050. .2017 Water Integrated Resources Plan: The City completed the third iteration of the Water Integrated Resources Plan (WIRP) in 2017 to update prior versions prepared in 1993 and 2003. The 2017 WIRP (Palo Alto, 2017) includes an evaluation of potable water supplies available to Palo Alto including SFPUC water, groundwater, treated water from Valley Water, as well as demand management strategies. Evaluation criteria included normal and dry year availability, water quality, cost, emergency robustness, sustainability, and regulation sensitivity. This OWP includes and updates some of the water supply and water conservation options from the 2017 WIRP. .Northwest County Recycled Water Strategic Plan (2019): The City prepared the Northwest County Recycled Water Strategic Plan (RWSP) in 2019 (W&C, 2019). This plan included a recycled water demand assessment and prepared several concept options for non-potable reuse (NPR), indirect potable reuse (IPR), and direct potable reuse (DPR). Selected recycled water concepts from the RWSP were used as the basis for developing the reuse options in this OWP. The RWSP also included the following key technical memoranda (TMs) used to inform this OWP: » » » Groundwater Assessment and Indirect Potable Reuse Feasibility Evaluation and Implementation Strategy: Characterization of the underlying groundwater basin and evaluation of IPR project feasibility. This study was used to inform the groundwater and IPR options in the OWP. TM for Task 6.3 – Using Groundwater from Temporary Dewatering Systems for Irrigation: Evaluation of using groundwater from permanent and temporary dewatering sites within the City as an irrigation source. Assumptions made in this TM were used to inform groundwater dewatering water supply options within Palo Alto. TM for Task 6.4 – Using Groundwater to Irrigate City Parks: Evaluation of conversion of the City’s emergency supply wells for irrigation compared with installing new irrigation wells at City parks. This TM was used to inform assumptions for groundwater supply options in the OWP. CITY OF PALO ALTOONE WATER PLAN 1-3 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO . . . TM for Task 6.5 – Increasing Flow to RWQCP by Redirecting Existing Permanent Dewatering System to Sewers: Evaluation of using permanent dewatering water as an additional water source for a future recycled water project. This TM was used to inform assumptions for adding permanent dewatering flows to the water reuse projects evaluated in this OWP. Green Stormwater Infrastructure Plan (2019): The City’s Green Stormwater Infrastructure (GSI) Plan was prepared in 2018 (Palo Alto, 2019a). This Plan includes discussions of the long-term plan for integrating GSI within the City landscape and stormwater systems. The GSI Plan guided the development of the GSI option in the OWP. Partnership Agreement to Advance Resilience Water Reuse Programs in Santa Clara County (2019): In 2019, the City of Palo Alto, City of Mountain View, and Valley Water reached an agreement to advance collective water reuse in Santa Clara County (Valley Water, 2019). This agreement commits an annual average of 9 mgd (i.e., approximately half) of the treated wastewater from the Regional Water Quality Control Plant (RWQCP) to Valley Water for use. In return, Valley Water will financially contribute to the construction of a small salt removal facility to produce higher quality recycled water for use by Mountain View and Palo Alto. This agreement was used to inform the flow assumptions for the different forms of potable reuse projects evaluated as a part of the OWP. . . Palo Alto 2020 Urban Water Management Plan: The City prepared and adopted its 2020 Urban Water Management Plan (UWMP) in June 2021 (Palo Alto, 2021). This is a state-mandated assessment of City’s water supply and demand, including current water conservation efforts and water shortage contingency plan. It should be noted that the demand projections presented in the 2020 UWMP differ from the demands used in this OWP, as explained in more detail in Chapter 2. Sustainability and Climate Action Plan (2023): The City’s Sustainability and Climate Action Plan (S/CAP) was completed in 2023 (Palo Alto, 2023b). The S/CAP includes two water-specific goals: 1. Reduce Palo Alto’s potable water consumption by 30 percent compared to a 1990 baseline (subject to refinement based on forthcoming California water efficiency standards expected in 2024). 2. Develop a water supply portfolio which is resilient to droughts, changes in climate, and water demand and regulations, which supports the City’s urban canopy. These goals are supported by the following four key actions: 1. Maximize cost-effective water conservation and efficiency through incentives, outreach/education, and other programs. 2. Design and build a salt removal facility for the Regional Water Quality Control Plant to improve the quality of recycled water. 3. Develop and implement projects that result from a "One Water" Portfolio of alternative water supply and water conservation options (“Options”) for Palo Alto, including but not limited to: stormwater, recycled water, on-site reuse, conservation, groundwater. 4. Develop a tool for dynamic water planning in the future. The last two key actions, the development of a One Water Portfolio and a dynamic water planning tool, are satisfied in this OWP. The conservation options considered in this OWP also contribute to planning for the first key action of maximizing cost-effective water conservation and efficiency. CITY OF PALO ALTOONE WATER PLAN 1-4 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO 1.4 Geographical Study Area Palo Alto is located in Santa Clara County on the San Francisco Peninsula, about 15 miles north of San Jose and 35 miles south of San Francisco. Palo Alto is located along the San Francisco Bay at an average elevation of approximately 30 feet above sea level. As of 2020, Palo Alto is home to approximately 69,000 residents (Palo Alto, 2022a). The City service area is approximately 26 square miles and is depicted in Figure 1.1. The study area for this project is limited to the Palo Alto city limits. 1.5 Planning Period This OWP serves as a guiding document for the planning and implementation of water supply improvements and water conservation options to accommodate future water supply needs through the next 20 years. For planning purposes and to provide consistency with the planning horizon of the upcoming 2025 UWMP, the 20-year planning period was extended through the year 2045. Planning uncertainties increase further into the future projections are made due to an increasing margin of error in forecasting future conditions. Despite these uncertainties, the City finds it important to prepare the projections in the OWP given the importance of ensuring adequate water supplies and the potentially long timeframe for implementation of different water supply alternatives. The Excel tool prepared as a part of this OWP will allow the City to update the findings regularly to adjust for changes in "existing" conditions, incorporate new data and science, address evolving regulations, and/or extend the planning horizon. 1.6 Stakeholder Engagement The OWP was developed to meet the near- and long-term needs of the Palo Alto community. The City made extensive efforts to engage stakeholders and the public in developing a plan that reflects a breadth of local technical expertise and the community's values and priorities through a multi-phase stakeholder engagement process. Primary elements of stakeholder engagement in support of OWP analyses included: . . Community, City, and regional partner engagement meetings. Live polling throughout the engagement meetings to collect live feedback (this included the use of an online live polling website called Mentimeter). . . . Email-based survey distributed to community members. Maintaining an OWP email distribution list to provide updates. Maintaining a dedicated OWP website posting updates and past engagement meeting materials. CITY OF PALO ALTOONE WATER PLAN 1-5 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO Figure 1.1 Palo Alto City Limits CITY OF PALO ALTOONE WATER PLAN 1-6 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO The following subsections describe the key elements of the community, City, and regional partner engagement activities to support the development of this OWP. The key stakeholder engagement materials used during the OWP planning process are included in Appendix F. 1.6.1 Community Engagement The City advertised community engagement meetings through email lists, City websites, social media, business associations, and on bulletin boards at City facilities. All community meetings were conducted in a hybrid format where attendees could either attend in person or via Zoom. After each meeting, the City posted the meeting slides, recording, and live polling results, as applicable, on the dedicated OWP website. The following three meetings were held for community members: . . . Community Meeting #1, Community Needs and Priorities: The first meeting was conducted at City Hall on September 28, 2022. The purpose of this meeting was to provide community members with an introduction to what an OWP is and what the City’s goals and priorities are in developing this plan as well as an overview of the City’s existing water supplies. This meeting included a live Mentimeter polling activity assessing the public’s feedback to Palo Alto’s current and future water supply. Community Meeting #2, Exploring Water Supply and Water Conservation Options: This meeting was conducted on December 7, 2022, and provided an overview of possible water supply and water conservation options to be considered in the OWP and the evaluation criteria for these options. The meeting included a live Mentimeter polling activity allowing participants to rank the proposed evaluation criteria. Community Meeting #3, Sharing the Initial Results: This meeting was conducted on June 3, 2024, at the Utilities Advisory Commission regular meeting. 1.6.2 City Departments The following City departments were engaged in three virtual (via Zoom) stakeholder meetings throughout OWP process: . . . . . . Administrative Services Division. City Manager’s Office. Community Services. Planning & Community Environment – Code Enforcement. Planning & Development Services. Public Works, including the divisions of Development Center, Environmental Control, RWQCP, Urban Forestry, Watershed Protection. .Utilities, including the divisions of Customer Service, Engineering & Operations, and Resource Management. Similar to the community engagement meetings, three engagement meetings were held throughout the OWP development covering the same series of topics: .City Department Meeting #1, Community Needs and Priorities: This meeting was conducted on September 26, 2022 and included the same content and polling activity as the equivalent community meeting. Additionally, the City department meeting featured an open discussion section on multi-benefit capital improvement projects (CIP) that could be integrated into the OWP. CITY OF PALO ALTOONE WATER PLAN 1-7 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO . . City Department Meeting #2, Exploring Water Supply and Water Conservation Options: This meeting was conducted on December 5, 2022, and included the same content and polling activity as the equivalent community meeting. City Department Meeting #3, Sharing the Initial Results: This meeting will occur once the One Water Plan is available for participants to review. 1.6.3 Regional Partners Many regional partners were engaged in two virtual (via Zoom) stakeholder meetings throughout the OWP process and incidental follow-up conversations. The regional entities, in alphabetical order are: . . . . . . . Bay Area Water Supply & Conservation Agency (BAWSCA). City of East Palo Alto (BAWSCA member and RWQCP partner). City of Los Altos (RWQCP partner). City of Mountain View (BAWSCA member and RWQCP partner). San Francisco Public Utilities Commission (SFPUC). Stanford University (BAWSCA member and RWQCP partner). Valley Water. The City held two regional partner engagement meetings covering the following topics: .Regional Partner Meeting #1, Exploring Water Supply and Water Conservation Options: This meeting was conducted on December 6, 2022. Provided a brief introduction to what an OWP is and what the City’s goals and priorities are in developing this plan. Provided an overview of potential water supply and water conservation options and evaluation criteria being considered in the OWP, with a focus on options that included regional collaboration. Included a collaborative discussion to assess if there were further regional supply/collaboration ideas or if any presented ideas would adversely impact a regional partner. .Regional Partner Meeting #2, Sharing the Initial Results: This meeting will be held once the One Water Plan is available for participants to review. 1.7 Report Organization This report is organized in 6 chapters. A brief description of the information presented in each of the remaining chapters is included below. Chapter 2 – Water Demands and Supplies: This chapter describes the City’s historical, existing, and future water demands drawing on historical data from BAWSCA demand studies, the 2020 UWMP, and future projections. The chapter also provides a historical overview of the City’s existing water supplies. Furthermore, it details the various existing water supply sources, such as SFPUC water, recycled water, groundwater, and the water conservation programs, essential for meeting the region's water needs. Chapter 3 – Potential Water Supply & Water Conservation Options: This chapter focuses on the City’s potential water supply and water conservation options (“Options”). It begins with a discussion on methodology, detailing the pre-screening and screening processes. The chapter then outlines various supply and conservation options, including groundwater utilization, water reuse (both recycled and purified), stormwater management, on-site customer reuse (such as graywater and rain barrels), storage solutions, desalination, and conservation measures. CITY OF PALO ALTOONE WATER PLAN 1-8 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO Chapter 4 – Options Evaluation: This chapter describes the evaluation criteria used to compare and narrow down the options described in Chapter 3. The chapter then discusses criteria weighing before evaluating various options, such as SFPUC, enhanced conservation phases, groundwater, potable reuse (both IPR and DPR), and Bay water desalination, among others. The chapter concludes with the selected options that move forward to the long-term water supply portfolio analysis described in Chapter 5. Chapter 5 – Portfolio Evaluation: This chapter describes the portfolio evaluation. It outlines the approach and assumptions used for the evaluation process and describes the portfolios analyzed grouped into options whether or not Valley Water exercises its option to transfer a portion of treated effluent from the RWQCP. The chapter describes the customized Evaluation Tool developed for this OWP and portfolio analysis task, summarizes the portfolio evaluation results, and the results of a sensitivity analysis of the evaluation criteria weighting and other key planning assumptions. The chapter concludes with a summary of the portfolio evaluation outcomes and implementation considerations. Chapter 6 –Recommended Implementation Plan: This chapter provides a trigger-based implementation roadmap which is presented to guide the City with decision-making as conditions continue to evolve in the future. This chapter concludes with the next steps. 1.8 Acknowledgements We would like to thank the following City staff for their assistance and oversight of this project: . . . . . . . . . . . Karla Dailey– Assistant Director of Utilities Resource Management. Karin North – Assistant Director of Public Works. Matt Zucca – Assistant Director of Utilities Water-Gas-Wastewater Engineering and Operations. Lisa Bilir – Senior Resource Planner. Pam Boyle Rodriguez - Stormwater Compliance Program Manager. Samantha Engelage – Senior Engineer. Linda Grand – Water Conservation Program Manager. Rebecca Oliver – Associate Resource Planner (former employee). Silvia Santos – Engineering Manager Water-Gas-Wastewater. Elise Sbarbori – Manager of Environmental Control Programs. Natalie Semersky – Water Resource Planning Intern. The following Carollo team members were principally involved in this project: . . . . . . . . . . . . Anne Prudhel, PE – Principal-in-Charge. Inge Wiersema, PE – Project Manager. Rachel Duncan, PE – Ass. Project Manager and Project Engineer. Warren Greco, PE – Evaluation Tool. Madison Rasmus, PE – Lead Planner (former employee). Riya Jadhav, EIT – Staff Engineer. Matthew Huang, PE – Cost Estimating. Kevin Christensen – GIS Specialist and Mapping. Jacquelin Reed, MBA – Stakeholder Engagement (former employee). John Rehring, PE – Technical Advisor & Quality Review Lead. Jeff Stoval, PE –Technical Advisor Groundwater Options. Jacques deBra (Luhdorff and Scalmanini Consulting Engineers) – Water Conservation. CITY OF PALO ALTOONE WATER PLAN 1-9 CHAPTER 1 OCTOBER 2024 / FINAL / CAROLLO -This Page Intentionally Left Blank- CITY OF PALO ALTOONE WATER PLAN 1-10 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 2 WATER DEMANDS AND SUPPLIES This chapter starts with a description of the City of Palo Alto’s (City) historical, existing, and projected future water demands. Next, this chapter provides an overview of the history of the City’s existing water supplies. Finally, it details the various existing water supply sources, such as San Francisco Regional Water System (RWS), recycled water, groundwater, and conservation programs, essential for meeting the region's water needs. 2.1 Current and Projected Demands The following subsections describe the City’s historical and projected water demands. This analysis is based on historical and existing water demands, utilizing data from the Bay Area Water Supply and Conservation Agency (BAWSCA) 2022 demand study and/or the City’s 2020 Urban Water Management Plan (UWMP). Moreover, this chapter describes future demand projections to gain a comprehensive insight into water demand dynamics. 2.1.1 Historical and Existing Water Demands Over the past 30 years, the City’s total water demand has ranged from under 10,000 acre-feet per year (afy) to 16,900 afy with an average of 13,900 afy. However, in recent years, water use has decreased to an average of approximately 11,100 afy, which equates to just under 10 million gallons per day (mgd). This reduction in water use is generally attributed to the profound effect the drought of 2014 to 2016 had on customer behaviors regarding water use. The City’s total water use from 1990 through 2020 includes potable water purchased from the San Francisco Public Utility Commission (SFPUC) and recycled water use. As shown in Figure 2.1, recycled water comprises only a small percentage of the City’s total water supply, accounting for approximately 5 percent on average between 1990 and 2020. 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Fiscal Year Potable Water Recycled Water Figure 2.1 Palo Alto Historical Water Use (1990-2020) CITY OF PALO ALTOONE WATER PLAN 2-1 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO The City serves a broad range of customers, with the two largest customer types being single-family residential (SFR) and multifamily residential (MFR). Figure 2.2 shows the distribution of water demand by customer type. Together, these two residential sectors make up approximately 63 percent of the City’s total demand on average. Commercial and landscape customers are the next largest sectors, with 15 percent and 12 percent of total demand, respectively. Institutional, industrial, and government customers make up the remaining 10 percent of demand. Government, 3% Landscape, 12% Institutional, 4% Industrial, 3%Single Family Res percentdential, 46% Commercial, 15% Multifamily Resid percentntial, 17% Figure 2.2 Distribution of Water Use by Customer Type (2020 Data) 2.1.2 Future Demand Projections The BAWSCA Regional Water Demand and Conservation Projections Update (Maddaus, 2022) developed projected water demands for Palo Alto. The demand projections developed by BAWSCA utilize monthly water production and water consumption from 1995 through 2021, unemployment projections, water rates, service area demographics, and other inputs. The BAWSCA demand study used the Demand Side Management Least Cost Planning Decision Support System Model (DSS Model) and an econometric model to determine short- and long-term demand projections for each BAWSCA member agency, including Palo Alto, and region-wide. BAWSCA’s demand projections include an updated baseline scenario and a sensitivity analysis to assess how a range of influences, including population and job growth, housing density changes, water rate escalations, water conservation, and long-term climate change impacts the demand projection. This OWP uses three scenarios for Palo Alto from the updated BAWSCA demand projections and characterizes the scenarios as low, medium, and high forecasts. A brief description of the three demand CITY OF PALO ALTOONE WATER PLAN 2-2 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO forecasts is provided below, while more detail can be found in BAWSCA’s Regional Water Demand and Conservation Projections Update (Maddaus, 2022): .Low Demand Forecast: This forecast is based on Scenario E from BAWSCA’s updated demand projections. This scenario assumes slower population and employment growth when compared to the City’s 2020 UWMP, caused by job automation, job relocation out of the Bay Area, remote work flexibility, and generational retirement waves, along with high housing prices. This scenario assumes reduced water use from higher water rates and additional conservation activities that occur in response to worsening climate conditions. The projected low demand forecast for the year 2045 is 10,582 afy (16 percent lower than the medium forecast). . . Medium Demand Forecast: This forecast is based on BAWSCA’s updated baseline demand projections. This projection is an updated version of the water projections used in the City’s 2020 UWMP. Population and job projections were based on the City’s 2030 Comprehensive Plan. The projection also includes assumptions for active and passive conservation savings and continued recycled water use. The projected medium demand forecast for the year 2045 is 12,546 afy. High Demand Forecast: This forecast is based on Scenario A from BAWSCA’s updated demand projections. The water conservation, population, and employment projections are published in the City’s 2020 UWMP, which includes additional refinements for projected housing units and more multifamily development. This scenario assumes that there are no severe technological, geopolitical, or climate disruptions in the Bay Area’s economy and that new residential development remains consistent with recent trends. The projected high demand forecast for the year 2045 is 12,808 afy (2 percent higher than the medium forecast). Table 2.1 lists the demand projections used in the OWP and Figure 2.3 graphically depicts the demand projections. Table 2.1 Total Water Demand Projections through 2045 Demand Projection by Planning Year(3)OWP Demand Scenario BAWSCA’s Regional Demand Update(1) Scenario Name 2020(2) (afy)) 2025 (afy) 2030 (afy) 2035 (afy) 2040 (afy) 2045 (afy) Low Scenario E 11,237 11,438 11,650 11,663 11,044 11,762 11,778 10,818 11,874 12,039 10,664 12,210 12,390 10,582 12,546 12,808 Medium Baseline with Active & Passive Conservation 11,237 Scenario A 11,237High Notes: 1) BAWSCA Regional Water Demand and Conservation Projections Update (Maddaus, 2022). 2) 2020 demand reflects total water use projected in the 2020 UWMP (Palo Alto, 2021). 3) Demand projections include Potable, Non-Potable, and Non-Revenue Water. CITY OF PALO ALTOONE WATER PLAN 2-3 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO Figure 2.3 Water Demand Projections Through 2045 As shown in Figure 2.3, the medium and high demand scenarios follow a similar trajectory, increasing from the 2020 demand of 11,237 afy to over 12,500 afy by 2045. The low demand scenario projects a decrease over the same period, with approximately 10,600 afy by 2045. Hence, the range in the demand forecast for the year 2045 is about 2,200 afy, which equates to an 18 percent deviation compared to the medium forecast. These demands reflect total water use, including retail sales of potable water, non-revenue water, and recycled water. Notably, even the high forecast remains more than 4,000 afy below the historic high of 16,900 afy in 1996. This is important because the City has been able to meet all its water demands in the past with RWS supplies, while demands were higher in the period 1990-2015 than all three forecasts. 2.2 Water Supply History The City established the water utility in 1896, shortly after the City's incorporation, and originally used shallow groundwater wells to provide water to residents of the then 750-person community. As the City grew, the groundwater well system expanded, eventually reaching nine (9) wells in operation by 1932. The San Francisco Public Utility Commission (SFPUC) was established in 1932 and the Hetch Hetchy water system was completed in 1932. From 938 until 1962, Palo Alto purchased increasing amounts of water from the SFPUC to supplement water available from local wells. In the 1950s, groundwater production also increased, leading to lower groundwater tables and water quality concerns. In 1962, Palo Alto changed its supply source to 100 percent SPFUC water to provide softer water for consumers. In 1984, Palo Alto signed a 20-year contract with the SFPUC and kept the City's groundwater wells for standby and emergency water sources. Since 1962, except for some short periods, Palo Alto has solely relied on imported water from the SFPUC for its potable water supply needs. The City receives water from the RWS via five turnouts and primarily collaborates with BAWSCA to oversee its water supply contract with San Francisco and to engage with the SFPUC. In addition to the City’s potable water supplied by the RWS, the City has used non-potable recycled water from the City’s Regional Water Quality Control Plant’s (RWQCP) regional recycled water system since it CITY OF PALO ALTOONE WATER PLAN 2-4 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO began operation in 1980. The first phase of this system serves the Palo Alto Golf Course, Greer Park, the Duck Pond, and the RWQCP. The City completed Phase Two of the regional recycled water system in 2009, which replaced a deteriorating pipeline to the Shoreline Golf Course in the City of Mountain View and extended the pipeline to the Mountain View-Moffett area. 2.3 Existing Water Supply Sources Table 2.2 lists the existing and proposed water supply sources for the City during typical years, as stated in the City’s 2020 UWMP (Palo Alto, 2021). As shown, the City currently plans to continue to primarily rely on water from the San Francisco RWS, with non-potable recycled water making up less than 3 percent of the City’s total supply capacity. Table 2.2 Historical and Planned Water Supply Sources through 2045 2020 (afy) 2025 (afy) 2030 (afy) 2035 (afy) 2040 (afy) 2045 (afy)Water Supply Sources RWS Supply Recycled Water Total 10,921 316 11,287 316 11,394 316 11,546 316 11,801 316 12,113 316 11,237 11,603 11,710 11,862 12,117 12,429 Notes: Supply Source Capacities reflect normal year conditions. Source: 2020 UWMP (Palo Alto, 2021). 2.3.1 San Francisco RWS Supply San Francisco Regional Water System Around 85 percent of the San Francisco RWS water supply originates from the Tuolumne River in the Sierra Nevada, transported via the Hetch Hetchy aqueducts, while the remaining 15 percent is treated water sourced from local watersheds and facilities in Alameda and San Mateo Counties. The availability of RWS imported water is limited by various factors, including hydrology, physical infrastructure, and institutional regulations governing the allocation of water from the Tuolumne River. Consequently, the RWS relies heavily on reservoir storage to provide a consistent water supply, particularly during dry years. Water Supply Agreement In July 2009, the SFPUC and its Wholesale Customers entered into the Water Supply Agreement (WSA), incorporating a Water Shortage Allocation Plan (WSAP) to allocate water from the RWS to both Retail and Wholesale Customers during system-wide shortages of 20 percent or less. The method for allocating water between Retail and Wholesale Customers as a whole is known as the “Tier One Plan.” The WSAP also implements a method for allocating water among the individual Wholesale Customers, which has been adopted by the Wholesale Customers (including Palo Alto); this method is known as the “Tier Two Plan.” Tier One Plan Drought Allocations Under the Tier One Plan, the SFPUC administers drought water shortage allocations when it determines that the projected available water supply is less than the projected system-wide water purchases in the upcoming year. Table 2.3 shows the allocation of the annual water supply available during shortages between the SFPUC (Retail Customers) and Wholesale Customers. CITY OF PALO ALTOONE WATER PLAN 2-5 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO Table 2.3 Tier One Plan Drought Shortage Allocations Share of Available WaterLevel of System-Wide Reduction SFPUC Share Wholesale Customers Sharein Water Use Required Total 5% or less 35.5% 36.0% 37.0% 37.5% 64.5% 64.0% 63.0% 62.5% 100% 100% 100% 100% 6% through 10% 11% through 15% 16% through 20% The Tier One Plan is set to expire at the termination of the WSA term in 2034 unless mutually extended by SFPUC and the Wholesale Customers. The Tier One Plan is applicable only when the SFPUC determines the existence of a system-wide water shortage and issues a declaration of a water shortage emergency under California Water Code Section 350. Separately from such an emergency declaration, the SFPUC may choose to request voluntary reductions in water use from its Retail and Wholesale Customers to achieve necessary water conservation during periods of drought. Tier Two Plan Drought Allocations The Wholesale Customers have collectively negotiated and endorsed the Tier Two Plan, which distributes the collective Wholesale Customer share allocated by the Tier One Plan among the 26 Wholesale Customers. The Tier Two Plan allocations are determined by a formula that considers various factors for each Wholesale Customer, including: . . . Individual Supply Guarantee (ISG). Seasonal utilization of all available water supplies. Residential per capita usage. As the characteristics of water usage by Wholesale Customers change over time (such as variations in RWS purchases, utilization of other water sources, fluctuations in monthly water usage patterns, or alterations in residential per capita water use), the Allocation Factor for each Wholesale Customer will also vary. Initially set to expire in 2018, the Tier Two Plan has been extended annually by the BAWSCA Board of Directors for an additional calendar year. At the time this OWP was prepared, the Tier Two Plan was set to expire on December 31, 2024. BAWSCA and the Wholesale Customers are negotiating an update to the Tier Two Plan that is expected to be completed by the end of 2024. Drought Allocations During System-Wide Shortages Greater than 20 percent If RWS shortages exceed 20 percent, San Francisco will: . . Adhere to the allocations outlined in the Tier 1 Shortage Plan up to the 20 percent reduction. Engage in discussions with Wholesale Customers on how to implement additional reductions beyond 20 percent. .Make final determinations regarding allocations beyond the 20 percent reduction. For this OWP, Palo Alto’s cutback percentage is a user-defined input. For the portfolio analysis presented in Chapter 5, an RWS cutback of 50 percent is used. This assumption is close to the high end of the CITY OF PALO ALTOONE WATER PLAN 2-6 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO potential supply gap identified by SFPUC in the Alternative Water Supply (AWS) Plan (SFPUC, 2024). Additionally, results are presented for a less severe cutback of 30 percent. Individual Supply Guarantee San Francisco has a perpetual obligation (known as Supply Assurance) to provide 184 mgd to the 24 permanent Wholesale Customers collectively. The Supply Assurance is distributed among the 24 permanent Wholesale Customers through the ISG, representing each Wholesale Customer’s share of the 184 mgd Supply Assurance. Palo Alto's ISG is 16.575 mgd, equivalent to 18,579 afy. SFPUC Water Supply Alternative Evaluation Efforts In 2019, the SFPUC established the AWS Program to evaluate new and diverse water supply options to improve the RWS’s ability to reliably meet demands through 2045. SFPUC published the AWS Plan in February 2024, and the AWS Plan includes: . . . . Identification of the anticipated water supply gap through the 2045 planning horizon. Description of ongoing efforts to reduce demands and optimize RWS supply availability. Description of AWS Projects that can augment RWS supply and address the future water supply gap. Recommendations that will further advance the AWS Program. In assessing the potential water supply gap, SFPUC evaluated drivers, including the implementation of the Bay-Delta Plan Amendment, climate change, and demand. The AWS Plan states that “the Bay-Delta Plan Amendment, if implemented as adopted in 2018, would result in new instream flow requirements that would reduce projected water availability from the RWS in dry years, as expressed as total system yield, from 257 mgd to 152 mgd”. For the AWS Plan, SFPUC characterized the future water supply gap “as a range of 92 mgd to meet 2045 customer demands to 122 mgd to meet obligations”. This maximum gap, or shortage, ranges from 38 percent of total 2045 demands on the RWS to 45 percent of total existing and potential obligations. SFPUC’s approach to avoid overbuilding new water supply projects is to “Plan for Obligations and Build for Demands.” The AWS Plan then describes the six AWS Projects that SFPUC is currently planning and evaluating to address the water supply gap, which are estimated to augment supply by 22 to 48 mgd in future dry years. These include one recycled water project that offsets groundwater pumping, three regional purified water projects (Direct Potable Reuse or DPR), and two water storage expansion projects. Implementing these projects would reduce the expected 2045 gap by 24 percent (from 76 percent to 52 percent), leaving a 44 to 70 mgd gap that would need to be met through rationing or implementation of additional supply and/or demand management projects. SFPUC and other parties are working with the State of California on a Voluntary Settlement Agreement and continues to plan based on the current adopted Bay Delta Plan Amendment. The result of the Voluntary Settlement Agreement process will impact water availability and SFPUC’s future water supply gap estimates. Water Supply Reliability Historically, the RWS has consistently met dry-year demands while limiting rationing to a maximum 20 percent system-wide reduction in water service during extended droughts in any given year. During the 2015-2017 drought, Governor Brown mandated water use reductions across the state, superseding the SFPUC Tier 1 and Tier 2 Plans. In November 2021, SFPUC declared a water shortage emergency, CITY OF PALO ALTOONE WATER PLAN 2-7 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO triggering the implementation of the Tier 1 and Tier 2 Plans for the first time. The drought emergency declaration remained in effect through April 2023. Based upon the City’s forecasted water demand presented in the City’s 2020 UWMP and projections of water supply availability provided by SFPUC at the time, the City anticipates the need to implement water use reductions of approximately 50 percent from pre-drought usage levels in dry years post Bay-Delta Plan implementation. Table 30 of the 2020 UWMP shows Palo Alto water use reductions in the first through fifth year of multi-year drought ranging from 45.5 percent to 53.7 percent (Palo Alto, 2021). During the 2015-2017 drought, the City reduced water use by 31 percent by restricting landscape irrigation and implementing other conservation and water shortage measures. While the City’s Water Shortage Contingency Plan (WSCP) does include actions to achieve water use reductions greater than 50 percent, the City does not have experience in implementing such drastic measures and thus lacks direct knowledge regarding whether those measures would achieve the target water use reductions. Palo Alto has six water shortage stages in the Water Shortage Contingency Plan – Stages I through VI are designed to achieve water savings of up to 10 percent, 20 percent, 30 percent, 40 percent, 50 percent, and greater than 50 percent. 2.3.2 Recycled Water Wastewater Collection and Treatment in Palo Alto The City owns and operates the RWQCP, a wastewater treatment plant serving the East Palo Alto Sanitary District, Los Altos, Los Altos Hills, Mountain View, Palo Alto, and Stanford University (Partner Agencies). The RWQCP treats wastewater generated by these communities before being discharged into the Bay. The RWQCP is classified as an advanced secondary treatment facility and encompasses various treatment stages, including preliminary treatment involving bar screens and grit removal, primary treatment involving sedimentation basins, secondary treatment utilizing fixed film reactors, nitrifying-activated sludge, and clarification, and tertiary treatment involving dual media filters made up of anthracite and sand, followed by UV disinfection. The facility produces Title 22-quality recycled water by subjecting the tertiary effluent to further filtration through sand filters at low loading rates and disinfection using sodium hypochlorite. These treatment processes result in removing approximately 99 percent of ammonia, organic pollutants, and solid pollutants. The RWQCP has a permitted average dry weather flow capacity of 39 mgd with a permitted peak wet weather flow capacity of 80 mgd. Average flows as of 2022 stand at approximately 16 mgd, which equates to about 18,000 afy. Palo Alto Recycled Water Production The RWQCP recycled water facility can produce non-potable recycled water meeting the Title 22 unrestricted use standard, with a capacity of approximately 4.5 mgd (5,000 afy). Presently, annual production stands at approximately 14 percent of this capacity. During peak summer months, monthly production reaches around 30 percent of the capacity. Furthermore, during peak hours in summer, the demand nearly reaches 100 percent of the production capacity, with assistance from storage tanks to manage short-term reuse supply/demand imbalances while staying within the 4.5 mgd production capacity. CITY OF PALO ALTOONE WATER PLAN 2-8 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO Current and Potential Recycled Water Use Phase 1 of the RWQCP’s regional recycled water transmission system has been operational since 1980, serving recycled water to various locations, including the Palo Alto Golf Course, Greer Park, Duck Pond, and the process water needs of the RWQCP itself. In 2009, a project was undertaken to replace an aging pipeline leading to the Shoreline Golf Course in Mountain View and to extend it to the Mountain View- Moffett area. This replacement project not only restored the connection to the golf course but also extended recycled water services to the Shoreline community. Table 2.4 shows total RWQCP recycled water use. As shown, the Palo Alto Golf Course is the largest recycled water user within Palo Alto, and more recycled water is used for industrial processes at the RWQCP and in Mountain View than in Palo Alto. Table 2.4 Uses of Recycled Water from the RWQCP Annual Demand(1) (afy)Recycled Water Use Landscape Irrigation 42 179 63 Golf Course Irrigation Other non-potable uses Palo Alto Recycled Water Subtotal Mountain View Customers 284 452 736Total Uses of Recycled Water from the RWQCP Notes: (1) Source: Palo Alto Monthly Wastewater Flows (Palo Alto, 2023) The City evaluated the feasibility of expanding its recycled water system, most recently in the 2019 Northwest County Recycled Water Strategic Plan (RWSP) (W&C, 2019). This plan evaluated non-potable reuse (NPR), indirect potable reuse (IPR), and direct potable reuse (DPR) options. The Partnership Agreement The Partnership Agreement with Valley Water and the City of Mountain View, approved by Palo Alto’s council on November 18, 2019, addresses multiple objectives, including diverting treated wastewater discharge from the Bay, increasing the use of treated wastewater from the RWQCP, and displacing potable imported water where appropriate and feasible (Palo Alto 2019c). The governing bodies of Palo Alto, Mountain View, and Valley Water have established policy goals for long-term sustainability, including expanding the use of recycled water. RWQCP is a local source of drought-proof, sustainable water. This agreement aims to promote regional collaboration to advance resilient water reuse programs in Santa Clara County. The agreement is comprised of three primary components: 1. Valley Water will contribute $16 million towards a small salt removal facility's design and construction at the RWQCP in Palo Alto, with a total cost estimated at the time of the agreement of around $20 million. This facility aims to enhance the quality of non-potable recycled water utilized in Palo Alto and Mountain View. The improved water quality will be particularly beneficial for irrigation customers with salinity-sensitive vegetation and, in the near term, facilitate the connection of approximately 60 new recycled water customers in Mountain View to the distribution system. 2. Roughly half of the treated wastewater generated by the RWQCP (9 mgd) will be transferred to Valley Water for utilization in Santa Clara County south of Mountain View. Valley Water will provide $1 CITY OF PALO ALTOONE WATER PLAN 2-9 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO million annually, allocated among all the RWQCP Partner Agencies contributing treated effluent to the transfer. 3. Palo Alto and Mountain View will retain the option in the future to request a new potable or non- potable water supply from Valley Water if required. Any new water resource provided by Valley Water will be supplied at cost. October 16, 2023, Council directed staff to secure financing and solicit bids for construction of Phase 1 of the small salt removal facility (SSRF). Since the time of the agreement, the total estimated project capital costs increased to $56 million, and this will be funded by the $16 million from Valley Water, $12.9 million from a US Bureau of Reclamation grant, and the City of Mountain View agreed to pay for the remaining approximately $27 million in project costs (Palo Alto, 2023n). 2.3.3 Deep Aquifer Groundwater The City lies within Santa Clara County, where Valley Water serves as the authorized groundwater management agency. In line with the Sustainable Groundwater Management Act (SGMA) signed by Governor Brown in September 2014, Valley Water holds exclusive responsibility for groundwater management in Santa Clara County. Although the Santa Clara sub-basin, managed by Valley Water, is designated as a medium priority by the California Department of Water Resources, groundwater basins in the county are not currently adjudicated or considered to be in overdraft. The Groundwater Management Plan (GWMP) for the Santa Clara and Llagas Subbasins outlines Valley Water's sustainability objectives, strategies, programs, and activities. Despite heavy reliance on groundwater during recent droughts by neighboring communities, overall groundwater levels in Santa Clara County remain satisfactory, thanks to reduced potable water demand and successful efforts by Valley Water to prevent overdraft, subsidence, and to maintain water quality. Although the City's groundwater quality is deemed fair to good, it is less desirable compared to supplies from the RWS, exhibiting six times higher total dissolved solids (TDS) and hardness. While the City hasn't utilized groundwater since 1991, it is considered to be an available alternative and is regularly evaluated for potential use, including in this OWP. Palo Alto built five groundwater wells during the mid-1950s, and the wells remained operational until 1962. In 1988, Palo Alto utilized these wells to supplement water supplies during mandatory rationing imposed by the SFPUC. Two of these wells were in operation for approximately six weeks in 1991 when the City faced a severe 45 percent imported water reduction requirement from SFPUC. Since then, apart from routine annual testing, these wells have remained inactive. In April 2010, the California Department of Public Health (CDPH) granted approval for an amendment to the City's water supply permit, adding the new Library/Community Center Well and the Eleanor Pardee Park Wells. Subsequently, the State permitted the El Camino Park well in 2014. During the permit process, all three wells underwent testing for compliance with primary and secondary drinking water quality standards. While the test results currently indicate adherence to primary and secondary standards, there is a potential for exceeding secondary standards for manganese, iron, and TDS. However, at present, no additional treatment is necessary to meet secondary standards, as the wells are designated as standby sources. In emergency situations, the City can implement emergency chlorination treatment at several well sites, including the Library/Community, Eleanor Pardee, Hale, Peers, and Rinconada wells. Figure 2.4 shows the locations of the City’s emergency supply wells. CITY OF PALO ALTOONE WATER PLAN 2-10 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO Figure 2.4 Emergency Supply Well Locations CITY OF PALO ALTOONE WATER PLAN 2-11 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO The City has identified these wells as potential emergency supply sources for use during prolonged droughts. They are permitted and classified by the State as “Standby,” and, can only be utilized for up to 5 consecutive days up to maximum of 15 days per year. Collectively, during a drought, these wells may supply up to 1,500 afy. This standby emergency use must not include blending with RWS water and is intended for emergency situations where the RWS supply is interrupted. The pumping limitations imposed on the well system serve as mitigation measures outlined in the Environmental Impact Report (EIR) prepared for the Emergency Water Supply and Storage Project (Palo Alto, 2006). Any adjustment to the current restrictions may necessitate a new or supplementary environmental review. The process for altering the existing limitations will require supporting data regarding the sustainable yield of the groundwater basin to demonstrate that increased pumping by the City will not result in significant environmental impacts. Intermittent use of groundwater in Palo Alto during droughts or other short-term emergencies is addressed separately as part of the capital budgeting process. The OWP addresses the use of wells for supplying water during normal and dry years. This would necessitate coordination with the Division of Drinking Water (DDW) to determine that appropriate treatment measures are in place to meet regulatory standards. Furthermore, several other considerations must be addressed before employing the wells as a water supply source for normal and dry years, including the capital expenses associated with any necessary treatment or blending upgrades, assessing water quality in comparison to RWS water supply, and evaluating customer acceptance. While groundwater may offer some advantages for the City in the long term and could prove useful during water scarcity events, incorporating potable groundwater into the water supply portfolio does not offer advantages during potable water reductions mandated by the State Water Resources Control Board (SWRCB) as implemented in 2015 during the severe state-wide drought. According to those regulations, the City was required to reduce potable water consumption by 24 percent regardless of the water source. Similarly, Valley Water also requests reductions in groundwater pumping during dry periods. In 2018, as part of the RWSP, the City completed a Groundwater Assessment (GA) in collaboration with Valley Water, which involved the development of a comprehensive model of both shallow and deep aquifers, with a particular focus on identifying potential recharge zones and understanding the connectivity between these aquifers. The findings of this study indicate that Palo Alto could sustainably depend on groundwater at a rate of approximately 3,000 afy, equivalent to about 25 percent of the projected potable water demands for the year 2040. Additionally, the RWSP utilized the results of this assessment to assess the feasibility of IPR in terms of potential negative impacts related to aquifers. Moreover, the City could use the findings of the GA to demonstrate sustainable yield for conducting supplementary environmental reviews. The GA did identify data gaps and recommended conducting pumping tests with observation wells to better define aquifer parameters (Todd Groundwater, 2018, section 6.2.2). The findings of the GA have been incorporated into the groundwater and IPR options included in this OWP. Shallow Aquifer Groundwater The Ground Use Assessment (GUA) included in-depth research on shallow and deep aquifers, yielding valuable insights into their relationship in the northwest region of Santa Clara County. The study revealed that in areas closer to the bay, a confining layer exists, effectively separating the deep and shallow aquifers. However, in areas westward toward the foothills, the two aquifers demonstrate connectivity. CITY OF PALO ALTOONE WATER PLAN 2-12 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO Basement construction frequently occurs in non-residential, mixed-use, and multifamily residential buildings, particularly those incorporating underground parking. The City's high property and housing values have led to an increased number of residential property owners seeking to expand their single-family homes by constructing basements. Groundwater pumping during basement construction typically occurs in areas with shallow groundwater, often in neighborhoods nearer to the Bay or close to current or former creek beds. Dewatering continues until a sufficient portion of the structure is built to stabilize the basement, usually lasting around 10 weeks. Long-term pumping is sometimes required to address seepage from older underground structures, such as the Caltrain underpass on the Oregon Expressway. Temporary groundwater dewatering conducted from July 2019 to August 2020 resulted in the extraction of over 461 acre-feet. Discharged into the City's storm drain system, groundwater from dewatering activities enters one of four creeks that eventually flow into the Bay. However, most dewatering sites discharge into channelized creeks, offering minimal opportunities for groundwater recharge. San Francisquito Creek stands out as the only creek within the City's boundaries with the potential for recharging the shallow groundwater basin, as it remains unchanneled. The City of Palo Alto issues permits for both temporary and long-term (exceeding one year) dewatering activities. Concerns regarding basement construction groundwater pumping in Palo Alto have escalated due to the drought and resulting water usage restrictions. These concerns encompass various issues, including perceived water waste through discharge into storm drains, potential impacts on groundwater levels and flow rates, potential repercussions on neighboring properties such as subsidence and structural damage, and effects on trees and landscaping. The City has historically regulated multiple aspects of basement groundwater pumping for residential and commercial sites. Public apprehension regarding dewatering practices prompted the City Council to approve several enhancements to the dewatering policy, including: .Mandatory installation of fill stations to facilitate water truck filling or connection of garden hoses for irrigation purposes. .Submission of usage plans demonstrating efforts to maximize utilization of pumped water and minimize storm drain discharges. . . Mandating a geotechnical study to assess potential effects and necessary avoidance measures. Requirement for Street Work/Dewatering permits, issued only after requirements #1, #2, and #3 are completed). In November 2020, a technical memorandum was produced to assess the feasibility of reusing water extracted during dewatering processes (W&C, 2020a). While the groundwater extracted from basement dewatering generally meets the required quality standards for irrigation use after treatment in a settling tank, it only accounts for approximately 12 percent of the irrigation demands in Palo Alto under normal conditions. However, the study revealed various constraints that limit the widespread reuse of dewatering water. Notably, the logistical challenges of transporting large volumes of groundwater to irrigation sites via daily truck trips render it impractical to utilize all extracted groundwater for irrigation purposes. The study estimated that around 2.8 afy, representing less than 1 percent of the total irrigation requirements citywide, could be reused for irrigation. However, such reuse would incur significant costs both monetarily and in terms of greenhouse gas emissions. Utilizing water extracted during the dewatering process was considered part of this OWP, as detailed in Chapter 3. CITY OF PALO ALTOONE WATER PLAN 2-13 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO 2.4 Conservation Programs To meet the water conservation and efficiency goals set by state and local regulations, Palo Alto collaborates with Valley Water and the BAWSCA to provide various conservation programs and resources to all customers in the City. In June 2023, the City Council adopted the (S/CAP. The S/CAP is a comprehensive document laying out the City's strategy to achieve ambitious carbon reduction and sustainability goals. The S/CAP outlines goals for increased energy and water efficiency. For more than fifteen years, Palo Alto has collaborated with Valley Water to implement water efficiency initiatives aimed at meeting the City's goals for reducing water consumption. This partnership involves joint funding from Valley Water and the City to support various conservation programs. These programs focus on promoting water-saving actions for residential and commercial customers. These efforts include providing free outdoor water audits and offering rebates for landscape efficiency and commercial equipment. Examples include turf conversion rebates, irrigation equipment upgrades, residential laundry-to-landscape graywater systems, and commercial fixtures and equipment. Although residential rebates for toilets, urinals, and clothes washers are not currently available, they may be reintroduced in the future. Palo Alto customers can access water conservation resources through the City's website and Valley Water's website. The existing programs that the City has already implemented and/or are still ongoing are listed in Table 2.5. This OWP identifies additional water conservation measures referred to as “enhanced” water conservation. The OWP groups the enhanced conservation programs in two phases and Chapter 3 describes phase 1 and phase 2 in detail. Table 2.5 Existing Water Conservation Programs Targets Indoor Use Outdoor Use Targets Key Program FeatureExisting Water Conservation Programs Water Wise Outdoor Survey Program Water Wise Indoor Survey Kit No Yes No Free outdoor audit. Yes Free guide to help find and fix leaks. Rebates for efficient irrigation devices, turf conversion.Landscape Rebate Program No Yes WaterSmart Home Water Report Program Water Efficient Technology Rebate Program Yes Yes Yes No Water Use Feedback to change behavior. Target CII Customers. Large Landscape Survey and Waterfluence Irrigation Budget Program No No Yes Yes Free audit for customers >0.5 acre lots. Landscape Workshops Free workshops on water-wise landscaping. Water Wise Survey Programs Valley Water administers the Water Wise Indoor and Outdoor Survey Programs, which assist customers in reducing water usage in their landscapes and homes. The indoor survey kit enables customers to conduct independent assessments of their homes for leaks and provides opportunities to improve efficiency. The program distributes water conservation kits, each of which includes a detailed guide for evaluating water usage along with a flow rate bag for testing shower and sink flow rates and dye tablets for detecting toilet leaks. Upon completing the survey, customers can CITY OF PALO ALTOONE WATER PLAN 2-14 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO request complimentary water conservation items for their homes, such as low-flow faucet aerators, showerheads, and toilet flappers. Through the outdoor survey, customers receive a complimentary and thorough consultation from a trained irrigation professional. This consultation involves evaluating the irrigation system on-site to identify issues, determining rebate programs for which the customer may qualify, and generating a personalized report outlining the survey findings. This service is available to single-family and small multi-family properties (with less than 1/2 acre of landscape area) in Palo Alto equipped with a functioning irrigation system. Landscape Rebate Program In collaboration with Valley Water, the City offers the Landscape Rebate Program (LRP) to residents and businesses in Palo Alto for transitioning approved high water-consuming landscapes (such as irrigated turf or functional swimming pools) to low water-consuming landscapes. Additionally, it provides incentives for retrofitting existing irrigation systems with approved high-efficiency equipment, which includes rain sensors, efficient nozzles, dedicated landscape meters, drip irrigation, and weather-based irrigation controllers. As a component of the LRP, the City collaborates with Valley Water to offer Stormwater Rebates. These rebates are available for customers interested in installing qualifying rain barrels or cisterns to collect rainwater from existing downspouts or for those planning to establish rain gardens to capture roof water runoff. WaterSmart Home Water Report Program Starting in November 2022, the City launched the WaterSmart Home Water Report and customer portal. Through this program, the City distributes monthly Home Water Reports via email or mail to single-family residences in Palo Alto. These reports compare a household's water consumption to that of other Palo Alto residents with a similar number of occupants and yard size. The reports aim to promote more water- conscious behaviors and encourage participation in conservation programs. The program is estimated to have resulted in water savings of about 2.4 percent for households receiving the reports. In addition to the Home Water Reports, all residents have access to view their consumption and get personalized recommendations through the WaterSmart portal. Water Efficient Technology Rebate Program In collaboration with Valley Water, the City provides the Water Efficient Technology (WET) Rebate Program. This initiative allows commercial, industrial, and institutional entities, including schools and hospitals, to obtain rebates for replacing or upgrading equipment with water-efficient technology, leading to quantifiable reductions in water usage. Large Landscape Survey and Waterfluence Irrigation Budget Program Through Valley Water, the City facilitates a program called “Waterfluence” that offers landscape irrigation surveys and water budgets tailored for commercial, industrial, institutional, and multi-family complex customers with large landscapes in Palo Alto. Through the Waterfluence portal, customers can access a suggested watering budget and personalized recommendations, monitor water usage trends, and request a free landscape field survey. Through the large landscape survey, irrigation professionals conduct on-site evaluations to suggest improvements for enhancing system efficiency and applicable rebates. This CITY OF PALO ALTOONE WATER PLAN 2-15 CHAPTER 2 OCTOBER 2024 / FINAL / CAROLLO program has been operational since 2012, and presently, it encompasses 226 large landscape sites with dedicated irrigation meters. BAWSCA Conservation Programs The City partners with BAWSCA to offer residential landscape workshops and online resources for customers. In addition, the City participates in the water loss assistance subscription program. BAWSCA also provides guidance on best practices to comply with State laws. CITY OF PALO ALTOONE WATER PLAN 2-16 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 3 POTENTIAL OPTIONS The One Water Plan (OWP) uses a multi-step process to evaluate water supply and conservation options (“options”) and portfolios. This chapter details the screening and selection process for the water supply and conservation options that were considered in this OWP. Specifically, the prescreening process is briefly described, following by a discussion of the supply option screening criteria and descriptions of the options that passed through the pre-screening process and subsequent screening criteria. This chapter is concluded with a listing of the options that are moved forward for a more extensive option evaluation (see Chapter 4) and the supply portfolio evaluation (see Chapter 5). 3.1 Evaluation Process Overview The options evaluation process used in this OWP consisted of four main steps, as graphically depicted in Figure 3.1. As shown, these steps are 1. Pre-screening of 27 options narrowed down to 15 options. 2. Screening of 15 options narrowed down to nine (9) options. 3. Option Evaluation of nine (9) options to inform the composition of seven (7) portfolios. 4. Portfolio Evaluation of seven (7) portfolios to develop a trigger-based implementation strategy. This chapter described the first two steps of this process as indicated with the orange box. During the first step a wide range of supply and conservation options were compiled using previous studies, new ideas from City staff and the consultant team, as well as input from stakeholders during public engagement meetings. A total of 27 options were subjected to a high-level pre-screening process that narrowed the list down to 15 options. Conceptual planning level information was either gathered from existing studies, updated, or developed to have sufficient information to apply the screening criteria. The 9 options that passed this screening step were then further developed and subjected to a more comprehensive evaluation process, which is described in Chapter 4. Figure 3.1 Option Evaluation Process CITY OF PALO ALTOONE WATER PLAN 3-1 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.2 Pre-Screening As shown in Figure 3.1, the option development began with 27 options that were grouped into three pre-screening “buckets” as follows: . . . Ongoing or already planned options (three). Options not feasible at this time (nine). Remaining options that moved forward to the screening process (15). Table 3.1 lists the grouping of the 27 options. The pre-screening process removed options if they were either 1) already ongoing or planned or 2) not feasible at this time. The 15 options remaining after this pre-screening process were subjected to the screening process described in this chapter. The options removed through this pre-screening process are described in more detail in Appendix B. Table 3.1 Options Pre-screening Results Options that are Ongoing/Already Planned Options not Feasible at this Time:Options selected to be included in the Screening Process .Ongoing/Planned Water Conservation Efforts. . . . . . . . . . IPR, Lake Lagunita Recharge. Blackwater Capture and Reuse. Valley Water Treated Water. . . . RWS Supply. Enhanced Conservation, Phase 1. Enhanced Conservation, Phase 2.. . Advanced Metering Program. Distribution System Water Loss Reduction.Interagency Transfer Agreement. . Groundwater. Tuolumne River Purchases. Atmospheric Water Generators. Local Storage. . . . New Irrigation Wells. DPR with Palo Alto Facility. DPR with Palo Alto Facility and SSRF.Temporary Dewatering Sites. Permanent Dewatering Sites.. . DPR with Regional Facility. Palo Alto IPR with Groundwater Injection. . . . . . . NPR Phase 3 Extension to Foothills. Graywater Capture and Reuse. Residential Rainwater Capture. Green Stormwater Infrastructure. Multi-Source Storage. Bay Water Desalination. Notes: DPR = Direct Potable Reuse; IPR = Indirect Potable Reuse; NPR = Non-Potable Reuse; RWS = Regional Water System; SSRF = Small Salt Removal Facility. Most of the options presented in this chapter are based on previous studies prepared by the City or other regional entities. Five new options were developed for this OWP. These five options are Enhanced Conservation, Phases 1 and 2; Graywater Capture and Reuse; Residential Rainwater Capture; Green Stormwater Infrastructure; and Multi-Source Storage. Chapter 1 describes the key documents used to update previously developed options, while Appendix A provides a complete list of project references. CITY OF PALO ALTOONE WATER PLAN 3-2 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.3 Screening Criteria The screening process applied the following three screening criteria to the 15 options that moved forward from the pre-screening process: . . . Unit Cost. Estimated Yield. Supply Reliability. These screening criteria are described in more detail below. Each option was scored numerically for each screening criterion from 1 (worst) to 3 (best), for a maximum possible total score of 9 points. The options with the highest scores were carried forward to the evaluation. 3.3.1 Unit Cost Concept-level capital and operations and maintenance (O&M) costs were developed for each option from previous studies and/or evaluations for the options where cost information was readily available. If cost information was not available for an option, conceptual planning level costs were developed for the option based on other similar projects. As needed, costs were escalated to present day values using the September 2023 Engineering News- Record Construction Cost Index (ENR CCI) for San Francisco, the nearest metropolitan area in the ENR CCI. To normalize costs across options of different sizes, the unit cost was used for a screening criterion. The unit cost is expressed in dollar per acre-foot ($/af) using the amortized capital cost plus the annual O&M cost ($/year) divided by the anticipated average annual supply yield (afy). Appendix C provides detailed cost estimates showing the inputs and assumptions for each option. Unit costs were scored on a scale from 1 (worst) to 3 (best) based on their cost relative to the City’s current cost to purchase water from the Regional Water System (RWS), which is approximately $2,200/af (SFPUC 2023). Scores for the unit cost of the new options are assigned as follows: . . . 3 (best score): < $2,000/af (less than RWS water cost). 2 (medium score): $2,000 to $4,000/af. 1 (worst score): > $4,000/af (approximately double RWS water cost). 3.3.2 Estimated Yield Yield is the anticipated amount of water a given option can provide to the City per year. As described in Chapter 2, the City currently purchases its entire potable water demand of approximately 11,000 afy from the RWS. The Estimated Yield screening criterion evaluates the amount of water supply each option can offset Palo Alto’s current reliance on RWS Supply. Conservation options achieve this by offsetting demand and supply options achieve this by increasing local water supplies. Scores for Estimated Yield are assigned as follows: . . . 3 (best score): > 2,000 afy. 2 (medium score): 100 to 2,000 afy. 1 (worst score): < 100 afy. CITY OF PALO ALTOONE WATER PLAN 3-3 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.3.3 Supply Reliability The Supply Reliability screening criteria examines if the option will improve reliability in drought conditions, which is a key driver and objective of the OWP. Scores for the Supply Reliability screening criteria are assigned as follows: . . . 3 (best score): Yes, the option increases reliability during drought years compared to the baseline RWS supply. 2 (medium score): Neutral, the option may or may not increase reliability during drought years compared to the baseline RWS supply. 1 (worst score): No, the option does not increase reliability during drought years compared to the baseline RWS supply. 3.4 Screening The following subsections describe each of the 15 options that passed the pre-screening criteria. The following sections provide a description of each option evaluated in the screening process as well as the justification for the score in each screening category. Because there is a finite amount of effluent available from the Regional Water Quality Control Plant (RWQCP), the reuse options are mutually exclusive, except for the Direct Potable Reuse (DPR) with the Palo Alto Treatment Facility and Small Salt Removal Facility (SSRF) option that is feasible even if the Valley Water Transfer occurs. The 15 options described on the following pages, in order of occurrence, are: 1. RWS Supply. 2. Enhanced Conservation, Phase 1. 3. Enhanced Conservation, Phase 2. 4. Groundwater. 5. New Irrigation Wells. 6. DPR with Palo Alto Treatment Facility. 7. DPR with Palo Alto Treatment Facility and SSRF. 8. DPR with Regional Treatment Facility. 9. Palo Alto IPR. 10. NPR Phase 3 Extension to Foothills. 11. Graywater Capture and Reuse. 12. Residential Rainwater Capture. 13. Green Stormwater Infrastructure. 14. Multi-Source Storage. 15. Bay Water Desalination. The description of each option concludes with a summary of the total screening score. A comparison of the options that made it through the screening process is included at the end of the chapter in Section 3.5. CITY OF PALO ALTOONE WATER PLAN 3-4 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.1 RWS Supply Description3.4.1.1 This option reflects the City's current potable supply, which is entirely provided by the RWS. Approximately 85 percent of this supply is from the Sierra Nevada, delivered through the Hetch Hetchy aqueducts, and approximately 15 percent is treated water produced by San Francisco from its local watersheds and facilities in Alameda and San Mateo Counties. A diagram of the RWS system is shown in Figure 3.2. Palo Alto has five connections to the RWS, which each supply water directly into the City's water distribution system. More information describing the City’s supply from the RWS can be found in the "Existing Water Supply Sources” section of Chapter 2. Source: SFPUC 2020 UWMP Figure 3.2 San Francisco Hetch Hetchy RWS 3.4.1.2 Costs Palo Alto’s cost to purchase water from the RWS is a combination of SFPUC’s base rate and a debt service payment for a debt the BAWSCA agencies owed to SFPUC. In 2013, BAWSCA used bond financing to pay the debt directly, which lowered the cost of repaying the debt. As Palo Alto currently directly feeds and pressurizes its distribution system with RWS water using existing connections, there is no capital infrastructure cost associated with this option for the City. This OWP categorizes the amount paid by Palo Alto to SFPUC as an O&M cost. A cost estimate summary of the key cost components is shown in Table 3.9, while a detailed cost estimate for this option can be found in Appendix C. As shown, the estimated total unit cost in 2023 is $2,210/afy, resulting in a cost score of two (2). Future unit costs through FY 2032/33 are based on SFPUC’s 10-year financial plan, while costs through 2045 are extrapolated based on the average historical rate increase since 2013 (4.2 percent per year). CITY OF PALO ALTOONE WATER PLAN 3-5 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.1.3 Estimated Yield Palo Alto's Individual Supply Guarantee (ISG) of 16.575 mgd (18,579 afy) is available in normal years. While SFPUC manages the RWS with the goal of keeping system-wide drought cutbacks to less than 20 percent, if the Bay-Delta Plan is implemented, SFPUC estimates there may be system-wide shortages of about 50 percent for Wholesale Customers during multi-year droughts. Hence, the dry year yield is assumed to be 50 percent of the City's projected demand and used as the "worst-case" dry year yield scenario for the OWP. Given the RWS large yield, even in dry years, this option gets an estimated yield score of three (3). 3.4.1.4 Supply Reliability Palo Alto purchases water from the SFPUC under the terms of the 25-year Water Supply Agreement. The RWS has provided a highly reliable water supply in the past. Given that RWS supply is the baseline reliability against which all other supplies are compared, it receives a supply reliability score of two (2). 3.4.1.5 Total Screening Score Receiving a total screening criteria score of seven (7), the RWS supply option will move forward to the portfolio evaluation process as described in Section 3.5. It's also important to include this option in portfolio analysis since the RWS, as the City’s current source of potable water, will continue to be a significant portion of all water supply portfolios considered by the City and is the benchmark for portfolio comparison purposes. 3.4.2 Enhanced Water Conservation – Phase 1 3.4.2.1 Description Water conservation options are any measures that the City can take to facilitate a reduction in water use. Conservation measures fall into three broad categories: indoor water use reduction, outdoor water use reduction, and water loss reduction. The City has ongoing and planned conservation programs with the goal of reducing per capita water use to comply with the statewide regulation for “Making Water Conservation a California Way of Life” (DWR, 2017) and the City’s Sustainability and Climate Action Plan (S/CAP) goals. These ongoing conservation measures will proceed regardless of the outcome of this OWP, so they are referred to herein as “Baseline Conservation.” Enhanced conservation includes conservation measures that go above and beyond the City’s ongoing and planned baseline conservation program. The enhanced conservation program would reduce water use by increasing commercial, institutional, and industrial (CII) irrigation efficiency, instituting a permanent 3-day watering week, banning non-functional turf at CII properties, limiting residential lawns for new construction and major retrofits, and incentivizing the use of high efficiency toilets in low-income residences. Unlike the supply options developed in this Plan, the enhanced conservation options consist of combinations of multiple measures. Enhanced conservation is evaluated as two separate options that represent a phased approach of implementing multiple conservation measures (Phase 1 and Phase 2). The OWP divides the individual conservation measures into two phases generally based on a prioritization of the most cost-effective measures expressed in dollars per acre-foot of demand reduction ($/af). CITY OF PALO ALTOONE WATER PLAN 3-6 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Enhanced Conservation Phase 1 includes measures that are estimated to cost less than $1,000/af and are generally considered to be easier to implement than existing measures or are measures that the City has already decided to prioritize in the near term. Enhanced Conservation Phase 2 includes measures that are more expensive and potentially more difficult to implement. There are eight (8) total enhanced water conservation measures included in Phase 1 and Phase 2. In addition to the conservation measures included in Phase 1 and Phase 2, there may be additional or alternative water conservation measures that the City re-evaluates in the future, such as the measures included in Valley Water’s Model Water Efficient New Development Ordinance. For each measure in Phase 1, Table 3.2 includes a brief description as well as the estimated time to saturation, required city staffing time, yield, and unit cost. These characteristics are defined as follows: .Time to Saturation: The time to saturation is defined as the estimated number of years it will take before the program reaches all its intended targets and no further progress can be made. For example, Measure 2 (Outdoor Irrigation Efficiency for CII Properties) has an estimated time to saturation of 5 years, indicating that all the targeted customers will have decreased their outdoor water use five years after the program starts, and there will be no further CII properties participating. Measures that are not expected to reach saturation levels by 2045 are considered “ongoing.” . . Staffing Time: The estimated city staffing time represents the amount of time that a City staff person would need to dedicate to the program, expressed in full-time equivalent (FTE). Estimated Yield: The estimated annual yield for each measure is presented as the number of acre-feet of water conserved each year once the measure reaches saturation or at the end of the planning horizon (2045) for ongoing measures. Due to the time it takes to “ramp up” these programs and reach saturation, the yield gradually increases over time and is thus lower in earlier planning years. .Unit Cost: The unit cost for each measure was calculated by dividing the total measure cost from 2025 through 2045 by the estimated total cumulative yield over the same period. As shown, the estimated unit cost of the various conservation measures ranges from $115/af for Measure 2 to $4,133/af for Measure 4. Palo Alto partners with Valley Water on many conservation programs and the costs listed here represent the cost to Palo Alto. Partnerships and cost-sharing with Valley Water for future programs would need to be worked out collaboratively with Valley Water. Additional conservation measure partnerships with Valley Water may be able to offset some of these costs. Detailed information on the estimated yield and cost estimates can be found in Appendix C. CITY OF PALO ALTOONE WATER PLAN 3-7 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.2 Enhanced Conservation - Phase 1 Measures Summary Water Conservation Measure Name CityTime to Saturation (years) Unit Cost(2) ($/af) Staffing Yield(1) Time (FTE) Measure #Description (afy) Targets CII buildings that are irrigating above their budget as calculated by WaterFluence and provides technical guidance and landscaping support for customers to decrease water use to recommended levels. The estimated yield assumes that all 60 CII customers identified as exceeding their calculated irrigation need decrease their water Outdoor Irrigation2 5 0.6 229 $115Efficiency for used for irrigation to meet the volume calculated for CII Properties their property by the WaterFluence program. Although the City already implements this program as a baseline conservation program, the goal of this measure is to go above and beyond what City staff are currently doing by providing more technical support to the target buildings. Bans all turf in apartments, churches, commercial properties, HOAs, and streetscapes. Allows turf in schools and parks for recreational use. Assumes that 50% of turf at apartments, churches and Non- Functional HOAs, 90% of turf at commercial properties, and all streetscape turf is replaced with drought tolerant 3 Turf Ban for landscaping. According to WaterFluence data, this CII would result in replacing approximately 28 acres of 10 0.4 132 $372 Properties(3) turf in Palo Alto. It is assumed that there may be additional program costs for a spatial analysis survey to identify non-functional turf in the City, as well as costs associated with legal review and implementation of the turf ban. This measure would pay for low-income households to replace existing toilets with High- Residential Low-Income to include HET replacements in approximately 200 HET households. It is assumed that two toilets are Replacement replaced at each house, and the savings per toilet Efficiency Toilets (HET). This program is assumed 5 10 0.05 11 $2,347 Program replaced are approximately 12.2 ccf/yr (0.028 afy). The cost of each HET and installation is estimated to be approximately $875 per toilet. This measure would ban front lawns in new residential developments or on major renovations of existing homes. This ban is assumed to result in the turf removal and replacement at about 100 residential properties per year with assumed lawns Ongoing sizes of approximately 600 sf and annual turf replacement savings of 36 gal/sf (5 af/ac). There may be additional program costs for legal review and implementation. Lawn Limitation for New Development and Major Retrofits(3)) 6 0.4 139 $981 CITY OF PALO ALTOONE WATER PLAN 3-8 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Water Conservation Measure Name CityTime to Saturation (years) Unit Cost(2) ($/af) Staffing Yield(1) Time (FTE) Measure #Description (afy) This measure would limit landscape irrigation to 3 days per week from March to October and to 1 day per week from November to February. The estimated yield is a reduction of outdoor water use by 5%. 3-Day Watering Week(4) 8 1 0.2 212 $159 Total 724 $312 Notes: (1) Yield reflects the average annual volume of water saved in 2045 after measures reach saturation and/or based on water savings of ongoing measures. (2) Cost assumptions reflect 2023 dollars. (3) In October 2023, the State passed AB1572 banning potable water irrigation of non-functional turf for CII properties. The ban will take effect in phases between 2027 and 2031, with local governments complying by 2027, CII properties complying by 2028, and common areas of HOA complying by 2029. This bill dovetails with this conservation measure and may decrease some of the staff time required to implement the measure. Note that this measure differs from AB1572 in that it assumes that CII properties replace turf with drought-tolerant plants, while AB1572 bans the use of potable water and does not require landscape changes. (4) The water savings of 212 afy for the 3-day watering week measure are based on the existing outdoor demands, which results in a unit cost of 159/af. The benefit of this measure could decline over time if other outdoor water conservation measures are also implemented, which would reduce the yield to 164 afy, equating to a unit cost increase of $177/af by 2024. The estimated cumulative increase of water savings from the various measures is depicted in Figure 3.3. Based on discussions with City staff, it was decided to prioritize the more cost-effective and/or easier-to-implement measures in Phase 1. The Phase 1 measures are generally estimated to cost less than $1,000/af and are considered relatively easy to implement. However, Measure 5 (Residential Low Income HET Replacement Program) has also been included in Phase 1 as the City has decided to prioritize this measure due to considerations other than cost, namely equity and community benefit. The total anticipated yield in 2045 for these five measures is approximately 724 afy. As shown in Figure 3.3, the water savings are expected to gradually increase over time with an average savings of 602 afy in the period 2025-2045. Figure 3.3 Projected Water Savings from Enhanced Water Conservation – Phase 1 CITY OF PALO ALTOONE WATER PLAN 3-9 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.2.2 Costs As shown in Table 3.9, the unit costs for conservation measures included in Enhanced Conservation Phase 1 range from $115/afy for Measure 2 to $2,347/afy for Measure 5. Due to the gradual increase in water savings, the weighted unit cost of $312/af is based on the average yield of 602 afy in the period 2025 to 2045 rather than the projected yield of 724 afy in 2045. A cost estimate summary of the key cost components is shown in Table 3.9, while a detailed cost estimate for this option can be found in Appendix C. As shown, this option does not include any capital or land acquisition cost. Instead, all costs are associated with labor and incentives, which are both categorized as O&M Cost. In total, for Phase 1 and Phase 2 Enhanced Conservation, 3.85 FTE are estimated to be required at an annual cost of $0.6 million in 2023 dollars. The average unit cost across measures, weighted by the yield of each measure, is $312/afy. This results in a cost score of three (3). 3.4.2.3 Estimated Yield The fully saturated yields for individual conservation measures included in the Enhanced Conservation Phase 1 range from 11 afy for Measure 5 to 229 afy for Measure 2. The total yield for implementing all of these measures is 724 afy in 2045, although potential savings overlaps between Measures 2 and 3 may result in a slight reduction of this yield. Since the yield is greater than 100 afy and lower than 2,000 afy, this option receives a yield score of two (2). 3.4.2.4 Supply Reliability Using less water by enhancing conservation measures supports a drought-proof supply by ensuring that more water is available for critical needs during periods of drought. Enhanced conservation receives a reliability score of three (3). Total Screening Score Receiving a total screening criteria score of eight (8), this option will move forward to the portfolio evaluation process as described in Section 3.5. 3.4.3 Enhanced Water Conservation - Phase 2 3.4.3.1 Description This option would implement the enhanced water conservation measures described in Table 3.3, while the estimated cumulative increase of water savings from the various measures is depicted in Figure 3.4. The water conservation measures are listed in Table 3.9, while the estimated cumulative increase of water savings from the various measures is depicted in Figure 3.4. These measures included in Phase 2 would be in addition to the measures already included in Enhanced Conservation Phase 1. The total anticipated yield for these three measures is approximately 618 afy, and the weighted unit cost is $1,939/afy. As shown in Table 3.3, each measure includes a brief description as well as the estimated time to saturation, required city staffing time, yield, and unit cost. CITY OF PALO ALTOONE WATER PLAN 3-10 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.3 Enhanced Conservation Phase 2 Measures Summary Water CityTime to Saturation (years) Unit Cost4 ($/af) Staffing Yield(1) Time (FTE) Measure # Conservation Measure Name Description (afy) HET replacement rebate program for offices, schools, hospitals, and any other CII buildings with documented high indoor uses. This program is assumed to result in the replacement of approximately 765 toilets at CII properties. It is assumed that the savings per toilet replaced are approximately 12.2 ccf/yr (0.028 afy). The cost of each HET and installation is estimated to be approximately $875 per toilet. HET Replacement Program for CII Properties 1 10 0.3 21 $3,314 This measure would build on the City's existing turf replacement incentive program, conducted in partnership with Valley Water, to include increased technical support for single-family customers to replace turf with drought-tolerant landscaping. In addition to the financial turf City Landscaping4 Ongoing 0.4 152 $4,133Support for Turf replacement incentive ($2/sf), costs for this Replacement(2) program include staff time to assist single-family customers in replacing their turf via landscape redesign and construction management support and an additional $2/sf to help cover direct installation costs. Requires removal of turf front lawns upon resale of residential properties. This turf ban is assumed to result in turf removal and replacement at about 400 residential properties Lawn Limitation per year with assumed lawn sizes of for Residential approximately 600 sf and annual turf7 Ongoing 1.5 445 $1,094Propertiesreplacement savings of 36 gal/sf (5 af/ac). Given Upon Resale3 the challenges with enforcing this measure, it's assumed that there is an 80% compliance rate among the City's customers. There may be additional program costs for legal review and ban implementation. Total 618 $1,939 Notes: (1) Yield reflects the volume of water saved in 2045 after measures reach saturation and/or based on water savings of ongoing measures. (2) Measures 2, 3, and 4 target outdoor irrigation and may have some overlap, leading to a reduction in total expected savings from those programs if they are all implemented. For example, if CII customers remove all non-functional turf (Measure 3), savings from increased irrigation efficiency (Measure 4) are likely to decrease. (3) Similar to Note (2), Measures 6 and 7 target residential front lawns and may overlap, leading to a reduction in total expected savings if they are both implemented. For example, if a customer first renovates a house and then sells it, there would not be savings from the sale as the front lawn would have already been removed. (4) Cost assumptions reflect 2023 dollars. CITY OF PALO ALTOONE WATER PLAN 3-11 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.4 Projected Water Savings from Enhanced Water Conservation – Phase 2 3.4.3.2 Costs The unit costs for conservation measures included in Enhanced Conservation Phase 2 range from $1,094/afy for Measure 7 to $4,133/afy for Measure 4. Due to the gradual increase in water savings, the weighted unit cost of $1,939/af is based on the average yield of 330 afy in the period 2025 to 2045 rather than the projected yield of 618 afy in 2045. Table 3.9 shows a cost estimate summary of the key cost components, and Appendix C provides a detailed cost estimate for this option. As shown, this option does not include any capital or land acquisition cost. Instead, all costs are associated with labor and incentives, which the OWP categorizes as O&M costs. This option receives a cost score of three (3). 3.4.3.3 Estimated Yield The fully saturated yields for individual conservation measures included in the Enhanced Conservation Phase 2 range from 21 afy for Measure 1 to 446 afy for Measure 7. The total yield for implementing all these measures is 618 afy in 2045. Since the yield is between 100 afy and 2,000 afy, this option receives a yield score of two (2). 3.4.3.4 Supply Reliability Using less water by enhancing conservation measures supports a drought-proof supply by ensuring that more water is available for critical needs during periods of drought. However, as customers implement more water conservation and efficiency measures demand hardens and it will become more difficult to achieve further water use reductions through conservation and efficiency or through drought water use restrictions. Enhanced conservation receives a reliability score of three (3). CITY OF PALO ALTOONE WATER PLAN 3-12 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.3.5 Total Screening Score Receiving a total screening criteria score of eight (8), this option will move forward to the portfolio evaluation process as described in Section 3.5. 3.4.4 Groundwater 3.4.4.1 Description This option would repurpose two of the City’s existing emergency supply groundwater wells for regular potable use. These wells can provide the City with groundwater drawn from the Santa Clara Valley Groundwater Basin, specifically, the San Francisquito cone. The City constructed five groundwater wells in the 1950s and operated the wells for water supply until 1962. From 2009 to 2013, the City rehabilitated these five existing wells and constructed three more wells. These wells are a part of the City’s emergency water supply and can support a minimum of eight hours of normal water use and four hours of fire suppression (Palo Alto, 2021). Currently, groundwater can only be disinfected with free chlorine and cannot be mixed with chloraminated water from the RWS without compromising taste and odor and disinfection properties. Accordingly, the City’s groundwater wells are only suitable for emergency use to fully replace RWS water sources and cannot be used concurrently with RWS water supply. The Utilities Department is planning to address the inability to use emergency supply wells in conjunction with RWS supply during a drought emergency through proposals in the City’s capital budgeting process within the next five years. The City plans to install ammonia injection capability to chloraminate the extracted groundwater and allow mixing with RWS water. These improvements would allow the City to operate the groundwater wells concurrently with RWS water as future conditions warrant. These improvements will include making any necessary improvements, including valving and controls, and adding backup power to two additional wells (in addition to the El Camino well that is currently equipped with backup power). Additionally, the City plans to seek approval from the State to add two more wells to active standby status. For the purposes of this OWP, the Groundwater option assumes that this issue has been mitigated, and this discussion focuses on the regular use of groundwater during dry and normal years. All of the City’s groundwater wells are screened in the deep aquifer (screened intervals ranging from 108 to 1,020 feet below ground surface) and produce 600 to 3,300 gallons per minute (gpm). The estimated capacities of each well are listed in Table 3.4, while the locations of these wells are shown in Figure 3.5. CITY OF PALO ALTOONE WATER PLAN 3-13 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.5 Existing Emergency Supply Wells CITY OF PALO ALTOONE WATER PLAN 3-14 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.4 Emergency Supply Well Capacities Estimated Capacity Estimated CapacityWell Current Status(afy) 2,340 5,326 1,130 2,744 1,130 2,986 1,614 968 (gpm) Hale Creek 1,450 3,300 700 Emergency Use only. Emergency Use only. Emergency Use only. Emergency Use only. Emergency Use only. Regular Use permitted. Emergency Use only. Emergency Use only. N/A Rinconada Park Fernando Peers Park 1,700 700Matadero El Camino Park Eleanor Pardee Park Main Library and Garden 1,850 1,000 600 Total 18,238 11,300 Data Sources: (1) 2017 Water Integrated Resources Plan (Palo Alto, 2017). (2) Groundwater Assessment and Indirect Potable Reuse Feasibility Evaluation and Implementation Strategy (Todd Groundwater, 2018). As shown in Table 3.4, the combined instantaneous flow rate of these eight (8) wells is estimated to be over 11,000 gpm or 15.8 million gallons per day (mgd), exceeding the entire potable water demand for the City. However, seven (7) of the eight (8) groundwater wells are currently only permitted to be used for emergency supply, up to 5 consecutive days for up to 15 days per year. Only the El Camino Well is permitted for use as an active well, not subject to emergency supply limitations (Palo Alto, 2017). This option assumes that the El Camino Park and Eleanor Pardee Park wells would be converted such that the well(s) could be used on a regular basis. To convert the wells to regular use, the groundwater supply would be treated for iron, manganese, and total dissolved solids (TDS) and appropriately disinfected before being pumped into the City’s water distribution system. Well permits with the state would need to be modified to incorporate the treatment and change from standby use. The 2017 Water Integrated Resources Plan (WIRP) evaluated the feasibility of this well conversion and concluded that two options were feasible: either fully supply Palo Alto’s potable water with groundwater that is treated for iron, manganese, and TDS instead of importing RWS Supply, or supply a portion of Palo Alto’s potable water supply with groundwater and that portion may be treated for iron, manganese and TDS or blended with RWS Supply (Palo Alto 2017). As shown in Table 3.4, total well pumping capacity if all the emergency supply wells were used continuously is over 18,000 afy. However, this level of groundwater use would not be sustainable for the underlying groundwater basin. In 2018, groundwater modeling completed as a component of the Northwest County Recycled Water Strategic Plan (W&C, 2020b) estimated the City could pump 3,000 afy of groundwater from the Santa Clara Valley Groundwater Basin for supply without negative impacts on sustainably managed groundwater levels (Todd Groundwater, 2018). Thus, 3,000 afy was used as the assumed volume of groundwater that may be safely and sustainably extracted for this option. The yield is 2,250 afy due to assumed losses from treatment. It should be noted that this yield could be sustainably increased, should an indirect potable reuse (IPR) project be implemented where more water is supplied to recharge the groundwater basin. The groundwater modeling conducted by Todd Groundwater also concluded that 2,400 afy could be pumped solely from the El Camino well without undesirable impacts to the aquifer. To meet the 3,000 afy CITY OF PALO ALTOONE WATER PLAN 3-15 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO yield, this option assumes that the El Camino well and one additional well (Eleanor Pardee) would be converted from emergency to active operational status. The 2018 modeling efforts found that the Main Library and Eleanor Pardee Park wells were not influenced by any contamination plumes at that time and also produced stable total dissolved solids (TDS) and chloride concentrations. The Matadero and Fernando wells were eliminated due to close proximity to a contamination plume and the Hale and Rinconada wells were eliminated because they have seen increasing TDS and chloride concentrations in recent years (reasons for these TDS and chloride increases were noted as unknown in the 2018 study). Due to the higher capacity compared with the Main Library Well, the best options identified for conversion were the Eleanor Pardee Park well in conjunction with the El Camino well. Hence, it is assumed that these two wells would collectively not exceed an annual production of 3,000 afy to avoid negative impacts to the Santa Clara Valley groundwater basin. The existing wells are currently equipped with chlorine disinfection whereas the San Francisco RWS Supply utilizes chloramines as a secondary disinfectant. Mixing drinking water disinfected with chlorine with drinking water disinfected with chloramine can create taste and odor issues. These issues can be addressed through the use of ammonia injections. Using these wells on a regular basis will require ammonia injections to convert to the use of chloramines as a secondary disinfectant in addition to more robust treatment for elevated levels of iron (Fe), manganese (Mn) and TDS that are naturally present in the groundwater and exceed secondary drinking water standards without additional treatment. Several well water treatment options focused on the El Camino and Eleanor wells were considered as part of the option development process, summarized below and schematically presented in Figure 3.6. These options are: . . . . Option 1: Blending with RWS Water (El Camino and Eleanor Wells). Option 1B: Blending with RWS Water (El Camino Well only). Option 2: Fe and Mn Treatment at Each Well (El Camino and Eleanor Wells). Option 3: Fe and Mn Treatment at Each Well (El Camino and Eleanor Wells) plus blending with RWS water. . . Option 4: Fe, Mn, TDS, and Ammonia Treatment at Each Well (El Camino and Eleanor Wells).1 Option 4B: Fe, Mn, TDS, and Ammonia Treatment at Each Well (El Camino Well only). It should be noted that blending (Options 1 and 1B) could be viable in the near term, whereas constructing treatment facilities (Options 2, 3, 4, and 4B) would take more time. While Options 1 and 1B are expected to meet water quality standards and be the most cost-effective groundwater options, the higher mineral concentration in groundwater will result in a poorer taste of the blended water and will likely be less palatable to the public than the existing RWS supply. Additionally, the poorer-tasting blended water will disproportionately affect customers located near the wells. Due to the poorer taste and equity concerns, the City selected Option 4 for consideration in this OWP to achieve the highest possible water quality that is most similar to the water quality of the existing RWS Supply. Although only groundwater treatment Option 4 is considered as part of the Portfolio Evaluation in this OWP, Appendix C contains cost information for both Options 1 and 4. 1 This option is carried forward in the OWP for portfolio analysis. CITY OF PALO ALTOONE WATER PLAN 3-16 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Treatment Option 4 would require the construction of treatment facilities at both the El Camino and Eleanor wells including pressurized Fe/Mn filtration and reverse osmosis (RO) membranes. It is assumed that pumped groundwater would be used for backwashing in this facility. Additionally, a dedicated Reverse Osmosis (RO) concentrate line would be constructed from each well to the RWQCP effluent discharge location to dispose of both RO and Fe/Mn concentrate. As with all options included in this OWP, if this option is selected and further pursued, it is recommended that the City conduct further studies to refine the details of the option, including treatment and RO concentrate disposal needs. The water produced by the El Camino and Eleanor wells would be regularly tested and evaluated to verify compliance with water quality standards. Implementation of this alternative will also likely require ongoing coordination with Valley Water and a new permit with the California Division of Drinking Water (DDW) to convert selected wells from emergency status to be used on a regular basis. Figure 3.6 Groundwater Treatment Option Schematics Valley Water is the Groundwater Sustainability Agency for the Santa Clara Valley Groundwater Basin and levies a groundwater production charge (GPC) per acre-foot of water (Palo Alto 2017). The GPC was developed from 10-year projections released in the FY 2022-23 Protection and Augmentation of Water CITY OF PALO ALTOONE WATER PLAN 3-17 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Supplies (PAWS) report developed by Valley Water (Valley Water, 2022). The PAWS report anticipates that the GPC will more than double from the 2023 rate of $1,724/af to $4,147/af by 2032, reflecting approximately 9.5 percent annual escalation. Valley Water projects this increase to primarily pay for critical capital program needs including water treatment plant upgrades and dam seismic retrofit work. It is assumed that this escalation rate slows after 2032 to reflect typical annual inflation rates of 3-4 percent more closely since Valley Water’s projection only covers a 10-year period. 3.4.4.2 Costs Costs developed in the 2017 WIRP ranged from $1,400/af to $2,200/af and were initially developed in a 2000 Long Term Water Supply Study completed by Carollo Engineers (Carollo, 2000). The OWP refined and escalated WIRP costs to present day values of $1,900/af for Option 1 to $4,700/af for Option 4. The majority of the unit cost for both groundwater options is associated with GPC, which is part of the O&M cost, and totals approximately $5 million per year as shown in Table 3.2. Moreover, treatment Option 4 would require the treatment facilities shown in Figure 3.6 including the filtration for Iron and Manganese removal and the reverse osmosis for TDS removal; these facilities would add O&M cost to operate (e.g., chemicals, backwash water, and energy costs) as well as nearly $50M in capital investments for treatment facilities which are assumed to be located with the City parks where the wells are located ($0 for land acquisition). This option has $46,000 budgeted for personnel costs based upon an escalation of the estimated labor costs in the 2000 Carollo study. However, it would also require one additional FTE to run the treatment facility, and several staff would need treatment certifications. Additional cost estimate details for each treatment option can be found in Appendix C. With the selection of treatment Option 4 and corresponding unit cost of $4,663/af, this option receives a cost score of one (1). For the remainder of the One Water Plan, “Groundwater” refers to Option 4 with Fe, Mn, TDS, and Ammonia Treatment at the El Camino and Eleanor Wells. 3.4.4.3 Estimated Yield The estimated annual capacity of each well, as obtained from the 2017 WIRP, is summarized above in Table 3.4. However, as noted above, groundwater modeling completed in 2018 as a component of the Northwest County Recycled Water Strategic Plan estimated the City could pump 3,000 afy of groundwater from the Santa Clara Valley Groundwater Basin for supply without negative impacts to the aquifer (Todd Groundwater 2018). The groundwater option assumes 5 percent of the water extracted is lost as Fe/Mn filter backwashing and 20 percent is lost through RO treatment, for total losses of 25 percent. This reduces the yield for this option to 2,250 afy. Hence, the corresponding estimated yield score is three (3). 3.4.4.4 Supply Reliability Because Valley Water manages the basin in Santa Clara County, and because Valley Water relies heavily on the State Water Project and Central Valley Project for imported water supplies, there is a high likelihood that Valley Water will call for voluntary or mandatory water use reductions during droughts. Valley Water has the ability to restrict pumping under the Sustainable Groundwater Management Act. However, Valley Water has not used that authority. Valley Water Board Resolution 18-04 outlines the process that would need to be followed prior to using that authority (Valley Water, 2021). This groundwater option does not substantially increase nor decrease water supply reliability for the City compared to imported RWS water during dry years. Hence, the supply reliability score is two (2). CITY OF PALO ALTOONE WATER PLAN 3-18 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.4.5 Total Screening Score Receiving a total screening criteria score of six (6), this option will move forward to the portfolio evaluation stage as described in Section 3.5. 3.4.5 New Irrigation Wells 3.4.5.1 Description This option was initially investigated as part of the Northwest County Recycled Water Strategic Plan. The findings were documented in a technical memorandum (TM) titled Using Groundwater to Irrigate City Parks, which evaluated the installation of irrigation wells at the following City sites (W&C, 2020a): . . . . . Main Library and Garden. Rinconada Park/W. Hays Elementary. El Camino Park. Eleanor Pardee Park. Peers Park. The 2020 TM selected these sites for evaluation because they are the locations of the existing City emergency water supply wells. However, the 2020 TM concluded it would be more feasible to drill new shallower, smaller irrigation wells rather than convert the existing emergency supply wells. The capacity of the existing emergency supply wells is higher than what would be required for these irrigation wells. Moreover, the capacity and system pressure of the emergency supply wells are not likely compatible with the smaller irrigation infrastructure, posing a risk of system damage or severe leakage. The 2020 TM concluded that it would be more practical to install new, smaller irrigation wells and allow the City to maintain the emergency supply wells. The 2020 TM assumed the new irrigation wells would rely on the shallow unconfined aquifer using wells of up to a maximum of 200 feet deep and could produce roughly 200 gpm. Figure 3.7 shows the locations of the potential new irrigation well sites. The shallow and deep aquifers are separated by extensive clay deposits, preventing groundwater from moving easily between the two aquifers. Therefore, the shallow irrigation wells are not expected to have substantial impact on the deep aquifer (Todd Groundwater, 2018). Water from the shallow wells would be used for landscape irrigation of the co-located park, garden, and/or (sport) fields. Some sites were eliminated from consideration due to proximity to areas of known groundwater contamination. The 2020 TM notes that the groundwater within Palo Alto is generally appropriate for non-potable uses. Since the water would be used for irrigation, it is assumed that treatment would not be needed. Should this option be pursued, shallow groundwater closer to the San Francisco Bay is noted to have higher TDS that may not be suitable for irrigation. Installation of a RO treatment facility for partial TDS removal using blending may be required but is not currently considered in this option. CITY OF PALO ALTOONE WATER PLAN 3-19 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.7 Potential New Irrigation Well Sites CITY OF PALO ALTOONE WATER PLAN 3-20 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.5.2 Costs The OWP escalates the costs developed in the 2020 TM to September 2023 values. The escalated capital costs amount to approximately $200,000 per well installed. This cost includes well construction, well equipping (electrical, pumps, surface improvements), and conversion of site irrigation system to non-potable use. Anticipated escalated annual O&M costs are approximately $10,000 for all five wells. This cost includes power, testing, pump and well servicing. Cost estimates do not include likely requirement to develop a hydrogeologic assessment by a professional geologist and submit it together with the well application to Valley Water (the Groundwater Sustainability Agency). Similar to the groundwater option, this option also includes an annual Valley Water groundwater pumping charge. The pumping charge is volumetric, so actual costs will depend on the volume of water pumped. The groundwater pumping charge was developed from 10-year projections released in the Valley Water PAWS report (Valley Water 2022). A cost estimate summary of the key cost components is shown in Table 3.9, while a detailed cost estimate for this option can be found in Appendix C. As shown, the estimated total 2023 unit cost is $3,107/af, resulting in a cost score of two (2). 3.4.5.3 Estimated Yield It is assumed that the irrigation wells would cover the total annual irrigation demand at the five identified parks with a total estimated irrigation demand of 54 afy as shown in Table 3.5. This table lists the size of the parks and the historical average irrigation demand of each site. It should be noted that the size of each park represents the total area and that the portion of irrigated area varies greatly between parks due to the presence/absence of playgrounds, tennis courts, picnic areas, recreation buildings, etc. Table 3.5 City Park Irrigation Demands Site Size (acres) Irrigation Demand (afy) Main Library and Garden Rinconada Park/W. Hays Elementary El Camino Park 2.3 19.0 12.2 9.6 9.6 12.4 6.8 Eleanor Pardee Park Peers Park 10.9 14.7 54.4 4.7 Total Demand N/A Data Sources: (1) Northwest County Recycled Water Strategic Plan, Using Groundwater to Irrigate City Parks TM (W&C, 2020). (2) City of Palo Alto historical irrigation records from 1/1/2018 through 4/1/2022. The total yield for this project is dependent on the number of wells drilled. For the purposes of this evaluation, it is assumed that wells would only be installed at the previously identified five sites. However, the City could choose to drill additional wells at other sites where irrigation is needed. Based on a total estimated yield of 54 afy for five wells, the estimated yield score is one (1). CITY OF PALO ALTOONE WATER PLAN 3-21 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.5.4 Supply Reliability Valley Water manages the basin in Santa Clara County. Because Valley Water relies heavily on the State Water Project and Central Valley Project for imported water supplies, there is a high likelihood that Valley Water will call for voluntary or mandatory water use reduction during droughts. This groundwater option does not substantially increase nor decrease water supply reliability for the City compared to imported RWS water during dry years. Hence, the supply reliability score is two (2). 3.4.5.5 Total Screening Score Receiving a total screening criteria score of five (5), this option will not move forward to the portfolio evaluation process as described in Section 3.5. While the unit costs associated with the option are competitive with RWS water supply, the low yield and neutral reliability during drought years make this option less attractive than other options. As previously noted, this option was based on the 2020 Using Groundwater to Irrigate City Parks TM, developed as a component of the Northwest County Recycled Water Strategic plan, which studied installation of irrigation wells only at sites with existing emergency supply wells. It is acknowledged there could be refinements made to this option, including considering installing irrigation wells at additional park sites. Conversations with City staff deemed this exercise not worth further exploration in this OWP. 3.4.6 DPR with Palo Alto Facility 3.4.6.1 Description This DPR option would use advanced treated recycled water (purified water) to directly supplement the potable water supply for Palo Alto customers. As the California legislature passed DPR regulations in December 2023, and regulations were approved through the administrative process effective October 1, 2024, DPR is considered a feasible option in this OWP. This option was developed as “Concept Option D1: Palo Alto Dedicated DPR” as part of the 2019 Recycled Water Strategic Plan (RWSP) (W&C, 2019). This option would require the construction of a 4.2 mgd Advanced Water Purification Facility (AWPF) near the RWQCP. Per the RWSP, the AWPF treatment process is assumed to consist of full advanced treatment with the additions of ozone, BAF, and free chlorine process steps. Full advanced treatment is assumed to consist of MF and RO. However, this process could be modified provided it meets the approved DPR regulations including the 10:1 dilution requirement. It is assumed that the RO concentrate produced by the RO process, would be disposed via the RWQCP’s existing outfall to the San Francisco Bay without additional treatment. A storage tank is included in this option to provide an engineered storage buffer between the AWPF and the distribution system. The RWSP assumed that this storage tank could be located beneath the Palo Alto Municipal Golf Course driving range and would be sized at 4.75 million gallons (MG) to provide 8 hours of detention time. Additional analysis for storage sizing and blending throughout the treatment process is needed to confirm that the DPR dilution requirements can be satisfied. This option also includes approximately 2 miles of pipe to connect the AWPF with the storage tank and the storage tank with the distribution system. A pump station would be required to convey purified water CITY OF PALO ALTOONE WATER PLAN 3-22 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO to storage and a second pump station would be needed to pump purified water from the storage tank into the distribution system. To augment declining wastewater flows to the RWQCP, this option could include the diversion of groundwater pumped from two permanent dewatering sites to the RWQCP. These sites are located at the Palo Alto City Hall and Oregon Expressway. These two sites are estimated to yield approximately 1 mgd of untreated groundwater, which is currently discharged to the stormwater system (W&C, 2020b). Diverting this flow from the City’s stormwater system to the wastewater system would beneficially increase RWQCP flows by 1 mgd for the purpose of potable reuse. Dewatering flows that are put to beneficial use may be subject to groundwater production charges. Palo Alto and Valley Water would need to work together on this and the OWP does not include the cost of any such charges. 3.4.6.2 Costs Costs for this option include nearly $117M in capital investments for treatment facilities, including the AWPF, storage tank, two pump stations, pipelines connecting the AWPF, storage tank, and distribution system, as well as over $11 million for land acquisition costs. The cost estimate also includes additional monitoring and reporting needed to demonstrate protection of public health. It does not include the cost of additional RO concentrate treatment as the City’s recent discussions with the Regional Water Quality Control Board (RWQCB) indicate that RO concentrate may be directly discharged through the existing RWQCP outfall without additional treatment. This may change in the future for numerous reasons and should be verified during preliminary design or other early evaluations if this project moves forward. Land acquisition cost, estimated by Palo Alto staff, has also been included in this option. The RWSP unit cost estimate for this option was estimated to be $2,500/af. Escalating this cost from the initial June 2018 estimate to September 2023, removing the cost of RO concentrate treatment, adding land acquisition cost, and adjusting the yield (see section below) results in an updated unit cost of $3,594/af. This unit cost results in a cost score of two (2). 3.4.6.3 Estimated Yield Projected available flows from the RWQCP for all reuse options were prepared by City staff. In recent years, wastewater flows have decreased due to drought and conservation. Using 2022 wastewater effluent data and removing the flow required to maintain service to existing NPR customers, internal plant processes, and environmental flow demands and adding in flows from the City’s permanent dewatering sites, Palo Alto is projected to have approximately 5.6 mgd of effluent flow available for a local DPR facility. The estimated available flows for reuse for all six partner agencies are shown in Table 3.6. The flows presented in Table 3.6 are based on a low-flow scenario using 2022 flows. It should be noted that these numbers were calculated based on the Addendum to Guaranteed Feed memo and assumption that there would not be a local salt removal facility. Since the SSRF is now planned, the numbers presented in Table 3.6 may differ. CITY OF PALO ALTOONE WATER PLAN 3-23 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.6 2022 RWQCP Flows by Partner and Flow Available for Reuse Influent Available Flow for Reuse including Dewatering Flow (mgd) Internal Plant Process Flow Available Flow for Reuse 2022 RWQCP 2022 Environmental Flow(2)Needed for Existing NPR (mgd) Partner Agency Influent Flow (%) Influent (mgd)(1)(mgd))(mgd)(mgd) Mountain View Palo Alto 39% 37% 11% 5% 5.87 5.68 1.73 0.78 0.78 0.36 15.20 3.00 0.31 0.00 0.00 0.00 0.00 3.31 0.58 0.56 0.17 0.08 0.08 0.04 1.50 0.19 0.19 0.06 0.03 0.03 0.01 0.50 2.10 4.62 1.50 0.67 0.68 0.31 9.88 2.1 5.62 1.5Los Altos EPASD 0.67 0.68 0.31 10.88 Stanford 5% Los Altos Hills 2% Total Notes: (1) Flows estimated from RWQCP Reports database, not based on billings. (2) Environmental flows reflect needs for Renzel Marsh and Horizontal Levee Pilot Project. Consistent with the RWSP, the treatment yield is estimated at 75 percent, resulting in a net production capacity of 4.2 mgd (75 percent * 5.62 mgd) or 4,723 afy of purified water produced from Palo Alto’s wastewater effluent. This is a reduction from RWSP yield estimate of 5,300 afy due to the reduction in flows to the RWQCP over the past decade. It is important to note that the yield for this option assumes that Valley Water will not construct a regional purification facility. Should a regional facility be constructed, Palo Alto agreed to send about half of their wastewater effluent to the regional facility and would thus have less flow available for a local DPR facility. Based on 2022 wastewater effluent data and as shown in Table 3.7, approximately 1.9 mgd would be available for a local DPR plant should the Valley Water regional purification facility be constructed. This would result in a potable water yield of approximately 1.4 mgd (75 percent * 1.88 mgd) or 1,600 afy. Based on the maximum possible yield of 4,723 afy, this option receives a yield score of three (3). If Valley Water decides to exercise the option to transfer a portion of the RWQCP’s treated effluent, this option would not be feasible. 3.4.6.4 Supply Reliability Implementing DPR would significantly increase the City’s water supply reliability during drought years, as its source is wastewater that would continue to be generated during dry periods. Indoor water use, which results in wastewater flows to the RWQCP, may slightly decrease during drought years due to indoor conservation because of drought restrictions. However, the total available wastewater flow for DPR is not expected to be substantially impacted. Since implementing this option would increase the City’s water supply reliability during drought years, it receives a supply reliability score of three (3). CITY OF PALO ALTOONE WATER PLAN 3-24 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.7 RWQCP Flows Available for Regional Purification Facility and Local Reuse Available Flow for Local Reuse including Dewatering Flow (mgd) Flow to Regional Purification Facility (mgd)(2) Available Flow for Local ReuseAvailable Flow for Reuse (mgd)(1)Partner Agency (mgd) Mountain View Palo Alto 2.10 4.62 1.50 0.67 0.68 0.31 9.88 2.10 3.74 1.50 0.67 0.68 0.31 9.00 0.88 1.88 Los Altos EPASD Stanford Los Altos Hills Total 0.88 1.88 Notes: (1) See Table 3.6 for calculation of estimated flows available for reuse. (2) Total flow to Valley Water’s Regional Purification Facility would be 9 mgd, per the 2019 Partnership Agreement to Advance Resilience Water Reuse Programs in Santa Clara County, a trilateral agreement between Valley Water, the City of Palo Alto, and the City of Mountain View. Mountain View, Palo Alto, and Los Altos have agreed to send their proportion of effluent from the RWQCP to Valley Water’s Regional Purification Facility. EPASD, Stanford, and Los Altos Hills have not yet entered into such an agreement, but it is assumed for the purposes of this plan that these entities would also send their proportion of effluent to the Regional Purification Facility. 3.4.6.5 Total Screening Score Receiving a total screening criteria score of eight (8), this option will move forward to the portfolio evaluation stage as described in Section 3.5. This score assumes that Valley Water does not exercise the option to transfer treated effluent from the RWQCP to a regional water purification facility. Given DPR’s high reliability during drought years, high potential yield, and moderate cost, it is an attractive option for diversifying the City’s water supply portfolio, especially since the DPR Regulations are now approved, providing clarity on treatment and dilution requirements. 3.4.7 DPR with Palo Alto Facility and the SSRF 3.4.7.1 Description Similar to the DPR with the Palo Alto Facility, this option would use advanced treated recycled water (purified water) to directly supplement the potable water supply for Palo Alto customers. The difference between this option and the other Palo Alto Treatment Facility is that the treatment process would include the Small Salt Removal Facility (SSRF), which is currently in the design phase, to reduce the salinity of the recycled water currently produced at the RWQCP, as a pretreatment for the AWPF treatment processes. The SSRF product water is referred to as permeate. As shown in Figure 3.8, the SSRF pretreatment (green dashed line) would consist of ozone treatment followed by BAC, while the SSRF (blue dashed line) would consist of MF and RO processes. The SSRF is planned to be constructed in two phases with an ultimate capacity of 2.25 mgd to provide permeate to both Palo Alto and the City of Mountain View, who would each be entitled to 25 percent and 75 percent of the permeate, respectively. CITY OF PALO ALTOONE WATER PLAN 3-25 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.8 DPR with Palo Alto Treatment Facility and SSRF Option Schematic CITY OF PALO ALTOONE WATER PLAN 3-26 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO This option assumes construction of the full SSRF to produce 2.25 mgd of permeate, providing Palo Alto with 0.56 mgd (630 afy) of supply capacity. This option would also include additional post treatment processes (orange dashed line) to treat Palo Alto’s portion of the SSRF permeate to potable water quality standards, providing 0.56 mgd of purified water supply to the City. It should be noted that the ozone and BAF processes must be sized to treat the entire flow (assumed to be 2.85 mgd) entering the SSRF, even though not all the SSRF permeate would be used for potable reuse. Treatment processes downstream of the SSRF would be sized to only treat the 0.56 mgd of Palo Alto’s share of the SSRF permeate. To deliver the purified water to Palo Alto’s customers, this option also includes a conveyance pipeline to connect the purified water with the City’s potable water distribution system just east of the 101 freeway as well as a storage tank to meet the diluent requirements of the DPR regulations. Similar to the other DPR and IPR options, it is assumed that RO concentrate may be directly discharged through the existing RWQCP outfall without additional treatment. Valley Water and the City of Mountain View are paying the capital cost for Phase 1 of the SSRF project. In addition, a low-interest State Revolving Fund loan and US Bureau of Reclamation federal grant were secured. This option assumes Phase 2 will be built as well. 3.4.7.2 Costs Costs for this option include a capital cost of nearly $49M for the ozone and BAF treatment based on the AWPF in the RWSP (Option D1) with a capacity of 4.73 mgd but downsized to 2.85 mgd and adjusted from the initial June 2018 estimate to September 2023 dollars. In addition, treatment costs for advanced oxidation, free chlorine, MF/RO, water stabilization, and secondary UV disinfection are included. Moreover, this option includes costs for a storage tank, two pump stations, pipelines between the treatment processes and delivery to the potable water distribution system, as well as additional monitoring and reporting needed to demonstrate protection of public health. It does not include the cost of additional RO concentrate treatment as the City’s recent discussions with the RWQCB indicate that RO concentrate may be directly discharged through the existing outfall. Land acquisition cost is also estimated at $7.4M; however, the total land requirement was downsized to the smaller footprint needed for this SSRF option compared to the original RWSP estimate and a lower unit land cost based on information provided by City staff. The estimated unit cost of this option is $8,897 per acre-foot, resulting in a cost score of one (1). It should be noted that the pretreatment and SSRF would need to be sized to treat up to half of the RWQCP recycled water production for other uses, not just the amount that Palo Alto would purify to drinking water standards. This “oversizing” of the SSRF pretreatment (2.85 mgd) and SSRF treatment (2.25 mgd) for a net delivery of 0.56 mgd for Palo Alto contributes to making this option more expensive than the Palo Alto DPR option. 3.4.7.3 Estimated Yield This option assumes a 2.25 mgd SSRF will be constructed; this flow is split between the Cities of Palo Alto and Mountain View, with Palo Alto receiving 25 percent of the 2.25 mgd (0.56 mgd) and Mountain View receiving the remaining 75 percent (1.69 mgd); Palo Alto's flow share (0.56 mgd) will be treated further to produce 0.56 mgd of purified water for DPR. As the SSRF would be operated year-around, the estimated yield of this option is 630 afy, resulting in a yield score of two (2). CITY OF PALO ALTOONE WATER PLAN 3-27 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.7.4 Supply Reliability Implementing DPR would significantly increase the City’s water supply reliability during drought years, as its source is wastewater that would continue to be generated during dry periods. Indoor water use, which results in wastewater flows to the RWQCP, may slightly decrease during drought years due to indoor conservation as a result of drought restrictions. However, the total available wastewater flow for DPR is not expected to be substantially impacted. Since implementing this option would increase the City’s water supply reliability during drought years, it receives a supply reliability score of three (3). 3.4.7.5 Total Screening Scores Receiving a total screening score of six (6), this option will move forward to the portfolio evaluation stage of the OWP analysis as described in Section 3.5. Despite DPR’s high reliability during drought years, the combination of being highest unit cost option and providing only a limited yield, this option is not very attractive compared to the other DPR options. 3.4.8 DPR with Regional Facility 3.4.8.1 Description This option would consist of contracting with Valley Water to treat tertiary-treated wastewater (effluent) from the RWQCP to drinking water standards and deliver that potable water to Palo Alto’s distribution system. Critically, this option relies on Valley Water constructing a regional purification facility located in Palo Alto that can produce purified water meeting DPR requirements. In 2021, Valley Water published their Countywide Water Reuse Master Plan (CoRe Plan) that evaluates several potential options for large-scale regional reuse (B&C, 2021). Valley Water’s goal is to produce 24,000 afy of purified water for potable reuse by the year 2040, but the details, including the location and the water supply source, of the facility are still in development. One potential option that Valley Water is planning is for Valley Water to build an IPR facility located in Palo Alto. The facility would use RWQCP treated effluent and purify the water for groundwater augmentation in Southern Santa Clara County. In 2017, Palo Alto, along with other RWQCP partner agencies, agreed to provide Valley Water with an option to receive a minimum flow delivery of an annual average of 9 mgd of effluent from the RWQCP for use at a regional purification facility (Palo Alto 2019c). Of this 9 mgd, approximately 4 mgd would come from Palo Alto. Valley Water would pay Palo Alto and other RWQCP partner agencies for this effluent. Palo Alto reserved some of its effluent to be used in Palo Alto, either as a supply for an expanded non-potable distribution system or for DPR. The existing agreement does not contemplate Valley Water providing purified water to Palo Alto. The existing agreement does include a water supply option for Palo Alto that includes an opportunity to provide Valley Water a notification of the need for additional water to meet demands in Palo Alto’s service area up to an annual average of 3 MGD. This option assumes that Palo Alto could negotiate a cost-based fee for Valley Water to produce purified water for Palo Alto’s use by treating additional Palo Alto effluent. Under this option, Palo Alto could also potentially receive purified water in lieu of some portion of the payment for the 4 mgd of effluent sent to Valley Water for their own use. A schematic illustrating the major components of this option is shown in Figure 3.9. CITY OF PALO ALTOONE WATER PLAN 3-28 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.9 DPR with Regional Treatment Facility Option Schematic To augment declining wastewater flows to the RWQCP, this option could include the diversion of groundwater pumped from two permanent dewatering sites to the RWQCP. These sites are located at the Palo Alto City Hall and the Oregon Expressway. These two sites are estimated to yield approximately 1 mgd of untreated groundwater, which is currently discharged to the stormwater system (W&C, 2020b). Diverting this flow from the City’s stormwater system to the wastewater system would beneficially increase RWQCP flows by 1 mgd for the purpose of potable reuse. It should be noted that if Valley Water exercises its option to transfer treated effluent from the RWQCP to a regional purification facility, it would allow the possibility of this option, however it would impact the yield of other reuse options. Since most of Palo Alto’s flow to the RWQCP would be sent to the Valley Water regional purification facility, less flow would be available for other local reuse options. 3.4.8.2 Costs The CoRe Plan includes cost estimates for three (3) DPR options that would produce purified water for treated or raw water augmentation from the San Jose/Santa Clara Regional Wastewater Facility (SJ/SC RWF). The CoRe plan also includes several IPR options using effluent from the RWQCP but does not include a DPR-specific option using RWQCP effluent. The cost estimates developed for the SJ/SC RWF DPR options are assumed to be most closely reflective of what this DPR from a regional facility option would cost. The CoRe Plan does not include the cost of additional RO concentrate treatment. Per the City’s recent discussions with the RWQCB, it was assumed that that RO concentrate may be directly discharged through the existing outfall. The cost estimates developed in the CoRe plan for the DPR options range from $2,500/af to $3,300/af. The estimated capital cost for this option is over $16M, with a unit cost is $4,024/af, resulting in a cost score of two (2). 3.4.8.3 Estimated Yield Projected available flows from the RWQCP for all reuse options were prepared by City staff. Despite a decreasing trend of wastewater flows due to the success of water conservation programs, Palo Alto is projected to have approximately 1.9 mgd of available effluent flow for reuse including dewatering flow (see Table 3.7) that could potentially be wheeled through Valley Water’s regional purification facility, if constructed with DPR capabilities and located in Palo Alto and returned as potable water. Assuming a CITY OF PALO ALTOONE WATER PLAN 3-29 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO production efficiency of 80 percent to align with losses from advanced treatment assumed in the CoRe Plan, the City could receive approximately 1.5 mgd (80 percent * 1.9 mgd) or 1,769 afy of potable water back from the regional purification facility, resulting in a yield score of two (2). 3.4.8.4 Supply Reliability Purchasing water from a DPR program would significantly increase the City’s water supply reliability during drought years as its source is wastewater that would continue to be generated during dry periods. Although indoor water use, and thereby wastewater flows to the RWQCP, may decrease during drought years due to additional voluntary water conservation or mandated drought restrictions, wastewater influent flows are not expected to be substantially impacted. Since implementing this option would increase the City’s water supply reliability during drought years, it receives a supply reliability score of three (3). 3.4.8.5 Total Screening Scores Receiving a total screening score of seven (7), this option will move forward to the portfolio evaluation stage of the OWP analysis as described in Section 3.5. Given DPR’s high reliability during drought years and relatively moderate cost, it is an attractive option for diversifying the City’s water supply portfolio. The yield for this option is moderate and subject to uncertainty with potential fluctuations in future wastewater flows to the RWCQP, but still substantial enough to positively impact the City’s overall water supply availability. The cost for this option could increase if RO concentrate must be treated instead of discharged through the RWQCP’s outfall pipeline as assumed here. 3.4.9 IPR with Groundwater Injection 3.4.9.1 Description The IPR option would utilize purified water for groundwater injection followed by extraction from the groundwater basin. This option was developed as “Concept Option C1: Palo Alto Dedicated IPR” as part of the 2019 RWSP and the accompanying IPR Feasibility Evaluation (Todd Groundwater, 2018). Similar to the Palo Alto Dedicated DPR option, this option would require the construction of a 2.5 mgd AWPF near the RWQCP. The AWPF treatment process is assumed to include full advanced treatment consisting of MF/RO and a disinfection process such as advanced oxidation and/or ultraviolet (UV) disinfection. However, IPR would not need to include ozone and BAF processes required for DPR. Figure 3.10 shows a schematic illustrating the major components of this option. A new pump station would need to be constructed to pump purified water to injection wells that would inject the purified water into the deep aquifer to augment groundwater. The purified water then would mix with the local groundwater and the mixture would be extracted through the City’s existing groundwater wells and treated for use in the City’s water distribution system. In this way, the groundwater acts as an environmental buffer between the advanced treatment and drinking water treatment. Approximately 5.6 miles of pipeline is needed to convey purified water to the five (5) recommended injection well sites. The five proposed injection well sites for this option are located in the northern part of the City in the general vicinity of and upgradient to the City’s existing groundwater wells. The locations of the injection wells assumed buffer zones around the groundwater production wells (Todd Groundwater, 2018). CITY OF PALO ALTOONE WATER PLAN 3-30 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.10 IPR with Groundwater Injection Schematic This option assumes the same wellhead treatment as the conversion of emergency groundwater wells Option 4, which includes iron, manganese, and TDS treatment to make the groundwater quality comparable to the City’s existing RWS water supply. The OWP assumes one additional well is necessary for IPR because of the increased capacity relative to the City’s use of groundwater without IPR groundwater augmentation. 3.4.9.2 Costs Costs for this option include nearly $189M in capital costs, including the AWPF, pump station, pipelines connecting the AWPF to the injection wells, injection wells, and wellhead treatment. The unit cost estimate for this option was estimated to be $3,300/af in the 2019 RWSP. Estimated costs in the RWSP did not include wellhead treatment, land acquisition cost, or the cost of additional RO concentrate treatment. Wellhead treatment costs estimated elsewhere in the RWSP and land acquisition costs of $7.4M have been added by City of Palo Alto staff for this option. The cost of RO concentrate treatment is not included as the City’s recent discussions with the RWQCB indicate that RO concentrate may be directly discharged through the existing RWQCP outfall without additional treatment. This may change in the future and should be verified during preliminary design or other early evaluations if this project moves forward. Escalating this cost from the initial June 2018 estimate to September 2023 and adding costs associated with wellhead treatment and land acquisition results in a unit cost of $4,992/af. This unit cost results in a cost score of one (1). 3.4.9.3 Estimated Yield Based on the IPR Feasibility Evaluation, it is estimated that injecting 2,900 afy of purified water into the groundwater basin results in a total groundwater pumping yield of approximately 5,900 afy (3,000 afy of existing operating yield plus the added IPR yield of 2,900 afy). Accounting for RO concentrate losses associated with treatment and backwash the estimated yield is 5,150 afy. CITY OF PALO ALTOONE WATER PLAN 3-31 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO It is important to note that the yield for this option assumes that Valley Water does not construct a regional purification facility. Should a regional facility be constructed, Palo Alto has agreed to send a portion of their wastewater flow to the RWQCP to the regional facility and would have 1.9 mgd available for IPR via groundwater injection (see Table 3.7). Should the Valley Water regional purification facility be constructed, this would result in purified water production of approximately 1.4 mgd (1,600 afy) that would be available for groundwater injection. This would result in an estimated total yield of approximately 4,600 afy when added to the 3,000 afy safe yield from the groundwater basin. Based on the maximum possible yield of 5,150 afy, this option receives a yield score of three (3). If Valley Water exercises the option to transfer a portion of the RWQCP’s treated effluent, this option would not be feasible based on the available flow. 3.4.9.4 Supply Reliability Implementing IPR would significantly increase the City’s water supply reliability during drought years, as its source is wastewater that would continue to be generated during dry periods. Indoor water use, which results in wastewater flows to the RWQCP, may slightly decrease during drought years due to conservation or drought restrictions, but is not expected to be substantially impacted. However, these impacts would be lessened with the recharge of purified water. Due to the increase in supply reliability offered by water reuse, this option receives a supply reliability score of three (3). 3.4.9.5 Total Screening Score Receiving a total screening criteria score of seven (7), this option will move forward to the portfolio evaluation stage of the OWP analysis as described in Section 3.5. Given IPR’s high reliability during drought years and high potential yield it is an attractive option for diversifying the City’s water supply portfolio. However, this option is more expensive than the Palo Alto DPR option, which may make it less attractive despite having similar yield. 3.4.10 NPR with Phase 3 Extension to Foothills 3.4.10.1 Description This option would extend the City’s existing non-potable reuse (NPR) system by constructing the Phase 3 pipeline to south Palo Alto. This option was previously developed as “Concept Option A2: NPR Palo Alto Phase 3 Extended to Foothills” as part of the 2019 RWSP (W&C, 2019). This option was first recommended in the 2008 Palo Alto Recycled Water Facility Plan (Palo Alto, 2008) and reassessed through the 2018 Phase 3 Business Plan and the 2018 Preliminary Design Report (Palo Alto, 2018c). Based on the assessment completed in the 2019 RWSP, this option also includes extending the Phase 3 pipeline to serve additional customers in Los Altos Hills as well as Foothills Nature Preserve. Demands from 2019 need to be re-evaluated to exclude any non-functional turf at commercial properties consistent with the upcoming legislative requirement of Assembly Bill (AB) 1572. The NPR system expansion would consist of approximately 15 miles of pipeline built off the existing 30-inch diameter recycled water backbone on Embarcadero Road. The existing recycled water pump station at the RWQCP would need to be expanded and three (3) additional booster pump stations would need to be added to the NPR system to accommodate the additional recycled water flows. CITY OF PALO ALTOONE WATER PLAN 3-32 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO To serve non-potable recycled water to additional customers, it is assumed that the proposed 2.25 mgd small salt removal facility (SSRF) must be constructed near the RWQCP to enhance the quality of the recycled water by lowering the effluent TDS. The City of Palo Alto Recycled Water Project Environmental Impact Report (EIR) certified in 2015 includes mitigation measures for the Phase 3 pipeline that require TDS of recycled water to be reduced below 600 mg/L before the recycled water is sent to new customers, notably Stanford Research Park (EIR Palo Alto, 2006). The design of the Phase 1 of the SSRF facility is currently underway, and construction is anticipated to be completed before 2030. The design for Phase 1 has a capacity of 1.125 mgd and includes the footprint and connections for the Phase 2 expansion to 2.25 mgd, which would involve new piping, mechanical and electrical equipment. A schematic illustrating the major components of this option is shown in Figure 3.11, while the NPR pipeline alignment for the corresponding option (Concept Option A2 - NPR Palo Alto Phase 3 Extended to Foothills) is shown in Figure 3.3 of the Northwest County Recycled Water Strategic Plan (W&C, 2020b). Figure 3.11 NPR with Phase 3 Extension to Foothills Schematic 3.4.10.2 Costs The cost estimate for this option includes a capital cost of $148.5M for the construction of Phase 2 of the SSRF, four (4) pump stations, and 15 miles of pipeline extending to new customers. The RWSP unit cost estimate for this option was $3,400/af. Escalating the estimate and using recent Palo Alto pipeline cost estimates, brings the unit cost of this option to $9,685/af. This results in a cost score of one (1). 3.4.10.3 Estimated Yield This option would serve non-potable water to approximately 115 new customers with an estimated demand of 1,100 afy. It should be noted that one anchor user that accounts for approximately 15 percent of the total demand for this NPR expansion currently relies on groundwater for its water supply and does not receive water service from Palo Alto. Groundwater is projected to be less costly than recycled water. Hence, the yield of this option could be lower, which would increase the unit cost. Based on the estimated yield of 1,100 afy, this option results in a yield score of two (2). CITY OF PALO ALTOONE WATER PLAN 3-33 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.10.4 Supply Reliability This option does not substantially increase water supply reliability for the City. While recycled water is a drought-resilient source, NPR water is used primarily for irrigation which is likely to be restricted in drought years. The neutral nature of this option’s effect on the City’s supply reliability results in a reliability score of two (2). 3.4.10.5 Total Screening Score Receiving a total screening score of five (5), this option will not move forward to the portfolio evaluation process as described in Section 3.5. The unit costs associated with the option are high, and there is lower yield associated with this option compared to the IPR or DPR options considered. These considerations, coupled with the neutral reliability during drought years, make this option less attractive than others. 3.4.11 Graywater Capture and Reuse 3.4.11.1 Description Graywater is defined as water from residential indoor water use collected from washing machines, showers, bathtubs, and bathroom sinks. While graywater contains soaps and salts, it is generally considered safe for plant irrigation. Graywater systems are commonly referred to as “laundry to landscape” or “showers to flowers,” as depicted in Figure 3.12. Graywater systems can be implemented with varying levels of complexity. Some systems are as simple as a pipe system conveying water directly from the appliances to irrigation areas or systems, while others employ some level of treatment such as filtration or aeration. The City, in conjunction with Valley Water, administers an existing graywater rebate program known as “Laundry-to-Landscape.” This program provides a rebate of up to $400 to incentivize single-family residential customers to install laundry graywater irrigation systems on their properties. The program currently has an adoption rate of three total laundry graywater systems installed from FY2019 to FY2023. This option seeks to expand the implementation of the City’s existing graywater capture and reuse program both at customer homes as well as a selection of City facilities. If this expanded implementation is successful, the City could consider expanding this program into other customer classes that may have more complexities associated with them, such as multi-family homes or office buildings. For the purposes of this evaluation, it was assumed that 1 percent of single-family homes would adopt a laundry graywater system by 2040. Based on the SFR forecast presented in the City’s 2020 UWMP (Palo Alto, 2021), 1 percent of the projected number of single-family accounts in 2040 (18,161 accounts) would equate to approximately 180 single-family laundry graywater systems. In addition, based on discussions with the City, it was assumed that City’s fire stations (6 total) and community pool (1 total) would install graywater systems, encompassing a total of seven City sites. To encourage higher graywater program uptake, this option would require additional staff time for further community outreach activities and assistance in implementing graywater systems at City facilities. CITY OF PALO ALTOONE WATER PLAN 3-34 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Source: Valley Water News (Valley Water, 2024) Figure 3.12 Graywater System “Laundry-to-Landscape” Schematic 3.4.11.2 Costs Costs were developed for graywater system installation in both single-family homes and at City sites. As this plan only considers costs incurred by the City, Palo Alto’s portion of the “Laundry-to-Landscape” rebate amount offered was the assumed total capital cost for single-family home installations. Although the total rebate to the customer via Valley Water’s incentive program is $400/system, Palo Alto’s cost share of this rebate is only $200/system. Hence, the cost for the City used for the purpose of the OWP is $200 per system installed. As the City would bear the full capital cost of graywater systems installed at City sites, costs were developed from researching several vendor sites for the estimated full cost of a graywater system. The cursory review showed that home-installed graywater system costs vary widely from $400 to $10,000 per system, reflecting the range of system complexity. The upper end of this range ($10,000 per system) was used as the total capital cost per City installed systems as it is assumed these may be larger and more complex than single-family home systems. It is assumed that the primary ongoing O&M costs associated with this option will be from City employee time associated with community outreach and guidance in installing and maintaining these systems at City facilities (0.25 FTE). With an assumed useful life of 15-years, rounded cost is estimated at $8,215/af, which results in a corresponding cost score of one (1). 3.4.11.3 Estimated Yield Yield was calculated using assumptions from the San Francisco Graywater Design Manual for Outdoor Irrigation. The manual estimates 60 gallons per day (gpd) of graywater is produced from washing machines from a four-person home (SFPUC, 2018). According to the City’s 2022 Census estimates for Palo Alto, the average householder size is approximately 2.62 persons. The anticipated graywater yield was therefore reduced proportionally to reflect the smaller SFR household size in Palo Alto, equating to CITY OF PALO ALTOONE WATER PLAN 3-35 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO roughly 40 gpd. Moreover, it was assumed that each non-SFR City site would produce double the yield for an SFR home or approximately 80 gpd. The total estimated yield with these assumptions is 125 af cumulatively from FY 2024 through 2045 (22 years) and thus averages 6 AF annually. This results in a yield score of one (1). 3.4.11.4 Supply Reliability While this water supply would provide irrigation for single-family homes and select City sites, this option does not increase potable water supply for the City. In addition, implementation of these graywater systems would decrease wastewater supply available for potential reuse projects. Overall, this option does not substantially increase nor decrease water supply reliability for the City compared to imported RWS water during dry years, resulting in a supply reliability score of two (2). 3.4.11.5 Total Screening Score Receiving a total score of four (4), this option will not move forward to the portfolio evaluation process as described in Section 3.5. The low yield and correspondingly high unit cost make this option less attractive than others. 3.4.12 Residential Rainwater Capture 3.4.12.1 Description The City, in conjunction with Valley Water, administers a rain barrel rebate program, providing financial incentives ($70/barrel) for customers to install a rain barrel on their property (Palo Alto, 2023c). Rain barrels installed on residential properties typically range in size from 40 to 200 gallons. The barrels collect water draining off building roofs. Collected rainwater is then used for landscape irrigation with no treatment required. For this evaluation, it was assumed that 5 percent of single-family homes would have adopted a rain barrel by 2040. Using the SFR account forecast presented in the 2020 UWMP (Palo Alto, 2021), 5 percent of the estimated number of single-family accounts in 2040 (18,161 accounts) would equate to approximately 900 single family rain barrel installations in the City. This option seeks to expand the implementation of the City’s existing rain barrel program at residential properties. If this expanded implementation is successful, the City could consider expanding this program into other customer classes that may have more complexities Source: City of Palo Alto Rain Barrel Rebate Program website (Palo Alto, 2023c).associated with them, such as City owned facilities, multi- family homes, or office buildings. CITY OF PALO ALTOONE WATER PLAN 3-36 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.12.2 Costs Costs were developed for rain barrel installation in single-family homes. As this plan only considers costs incurred by the City, Palo Alto’s rain barrel rebate amount offered was the assumed total capital cost for single-family home installations. This equates to $35 per rain barrel installed. It is assumed that O&M will be negligible as the only cost being considered is the costs incurred by the City, not the customer. Even such, these systems are simple and would likely only require a replacement at the end of the estimated useful life, rather than ongoing O&M. It is assumed that the primary ongoing O&M costs associated with this option will be from City employee time associated with community outreach and guidance in installing these systems at City facilities (0.25 FTE). With an assumed useful life of 15-years for each rain barrel, the unit cost is estimated at $58,300/af, which results in a corresponding cost score of one (1). Similar to the enhanced water conservation programs, this unit cost is calculated using the average yield in the planning period of 0.7 afy, rather than the anticipated yield of 1.4 afy in 2045. Moreover, although rain barrels provide a non-potable water source that offsets potable water, the main purpose is to promote water awareness, rather than water supply, making residential rainwater capture beneficial in different ways. Additionally, rain barrels reduce stormwater runoff and enhance stormwater quality. 3.4.12.3 Estimated Yield Available, historical rainfall data was collected for Palo Alto from the National Oceanic and Atmospheric Administration (NOAA) Climate Data Online site from 2000 to 2018. To estimate the amount of rainfall available to fill a rain barrel, the data was refined to remove storm events that were too small (less than half an inch of rainfall) or too close together (less than 5-days apart). This was to capture storm events that would adequately fill an average sized rain barrel (approximately 100 gallons) and avoid consecutive storm events when it is unlikely customers would need to irrigate or when rain barrels would already be full. Using the NOAA data, there are approximately 5 inches of qualifying rainfall per year. It was assumed that each inch of rainfall would fill a 100-gallon rain barrel equating to 500 gallons collected per barrel per year. Assuming one rain barrel per house, a total city-wide saturation of approximately 5 percent of single-family accounts in 2040 would equate to 900 rain barrels, resulting in an average of 450,000 gallons of rainwater being collected for irrigation per year. This equates to total yield of 1.4 afy through potable water offset by year 2045 resulting in a yield score of one (1). It should be noted that the average yield in the planning period is 0.7 afy due to the gradual increase of water savings associated with rain barrel distribution. 3.4.12.4 Supply Reliability This option would not increase water supply reliability for the City because there will be inherently fewer and less intense rainfall events in drought years, limiting the ability to fill the rain barrels. Collectively, this option will not increase supply reliability for the City, and therefore, it received a supply reliability score of one (1). CITY OF PALO ALTOONE WATER PLAN 3-37 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.12.5 Total Screening Score Receiving a total screening criteria score of three (3), this option will not move forward to the portfolio evaluation process as described in Section 3.5. The low yield and low reliability during drought years make this option less attractive than others. Given the low capital cost to install a rain barrel, it is recommended the City continue to provide the existing rebate program to residents and businesses. 3.4.13 Green Stormwater Infrastructure 3.4.13.1 Description This option would involve the installation of green stormwater infrastructure (GSI) throughout Palo Alto at City facilities and parking lots and on City streets. Potential project locations previously identified as part of the City’s Green Stormwater Infrastructure Plan (Palo Alto, 2019a) were used to estimate cost, yield and supply reliability for this Plan. City staff continue to identify and prioritize locations throughout Palo Alto to meet stringent regional permit requirements and Sustainable and Climate Action Plan (S/CAP) goals (Palo Alto, 2023b). Thus, this estimate is based on limited data and may underestimate benefits from GSI over the next 30 years. According to the Plan, types of infrastructure that may be installed include: . . . . Bioretention areas installed between the curb and sidewalk or as curb extensions to slow traffic. Pervious pavement in sidewalks, pedestrian walkways, bike lanes, or parking lanes. Underground stormwater storage facilities for storm runoff and rainwater capture. Tree well filters designed to capture street runoff and planted with a special soil to allow infiltration. In general, for the purposes of this Plan, GSI utilizes stormwater runoff to irrigate aesthetic landscape features for immediate or later use and recharges the underlying groundwater basin where soil conditions permit. Figure 3.13 shows a schematic example of how GSI, such as curb cuts and permeable pavement, can provide irrigation water and groundwater recharge. 3.4.13.2 Costs The OWP developed estimated unit costs using green street project concepts developed for the One Water LA 2040 Plan (Carollo, 2018). The planning level costs presented in this plan were escalated to present day dollars using the ENR regional index ratio. Costs were developed based on a comparison of the cost estimating methods presented in the Enhanced Watershed Management Plans (EWMPs) for the Ballona Creek, Dominguez Channel, Marina del Rey, Santa Monica Bay, and Upper Los Angeles River watershed. Parameters considered include the green streets footprint, static capture volume, volume of fill media, and underdrain volume. In addition, the annual O&M cost for green street projects was estimated as 6 percent of the project capital cost. Unit costs, on average, are $1,000/linear feet of green street or $17,000/af stormwater captured (Carollo, 2018). Unit costs for below-ground facilities in parking lots and City facility sites could be less costly due to possibly easier construction with fewer potential utility conflicts and traffic control needs, however the unit cost is still expected to exceed $4,000/af due to the limited yield these GSI projects generate with California hydrology. Hence, the corresponding cost score is one (1). CITY OF PALO ALTOONE WATER PLAN 3-38 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.13 Green Stormwater Infrastructure Schematic 3.4.13.3 Estimated Yield The green stormwater infrastructure projects included in the estimated yield include the high and medium priority projects identified in the City’s Green Stormwater Infrastructure Plan as depicted in Figure 3.14. The average yield per mile was estimated at 6 afy/mile, while there are approximately 5 miles of GSI anticipated, resulting in approximately 30 afy. With a total estimated yield of this option being less than 100 afy, the estimated yield score is one (1). CITY OF PALO ALTOONE WATER PLAN 3-39 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.14 Planned Green Stormwater Infrastructure Projects 3.4.13.4 Supply Reliability This option would not increase water supply reliability for the City, because the availability of stormwater is inherently less in drought years, limiting the amount of stormwater that could be captured. And although the captured stormwater will offset some potable water demand for irrigation, the timing and availability of stormwater does not align with the timing of irrigation demands. Even if stormwater is captured and used post storm-events, the amount of storage that is practical is limited to provide water supply for days or possibly weeks of irrigation demand, rather than months. Specifically in drought periods, stormwater supply – even when temporarily stored – is therefore unlikely to increase supply reliability during summer months when higher temperatures increase evaporation rates and result in higher demands. Moreover, depending on the type of green infrastructure implemented, some GSI solutions require year around watering and therefore actually increase water demands during periods when stormwater is not available. This option will not increase supply reliability for the City, and therefore, received a supply reliability score of one (1). CITY OF PALO ALTOONE WATER PLAN 3-40 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.13.5 Total Screening Scores Receiving a total screening criteria score of three (3), this option will not move forward to the portfolio evaluation process as described in Section 3.5. The high unit cost, low yield and low reliability during drought years make this option less attractive than others. The City will continue to install green stormwater infrastructure to meet regional permit requirements and sustainability goals separate from the OWP. Furthermore, these types of projects typically provide multiple benefits to the community other than water supply, such as stormwater quality enhancement and flood mitigation. Because these projects may have a co-benefit of water supply in some years, some water utility funding may be appropriate. 3.4.14 Multi-Source Storage 3.4.14.1 Description This option would consist of the construction of large, below-grade storage tanks at City parks to store water for irrigation. The storage facilities would be filled with stormwater, recycled water, and/or water from two permanent dewatering sites at City Hall and the Oregon Expressway. The primary irrigation supply would be stormwater during wet months, supplemented with dewatering water. If needed, recycled water could be pumped into the tanks when needed during dry months. If dewatering flows are put to beneficial use, they are subject to groundwater production charges and Palo Alto would need to work with Valley Water on this issue. Groundwater production charges associated with dewatering water are not included in the OWP. The permanent dewatering sites are areas where the groundwater levels are shallow and must frequently be dewatered to prevent damage to property and infrastructure. Each site is equipped with a pump station and water is directed into the storm drain system, which discharges into the San Francisco Bay (W&C, 2020b). At the Oregon Expressway site, water is also discharged to the sanitary sewer. The following parks were selected to site potential storage tanks based on their proximity to either the two permanent dewatering sites or the City’s existing recycled water system: . . . . . Peers Park. Heritage Park. Hoover Park. Johnson Park. Ramos Park. The selected parks, dewatering sites, and existing recycled water pipelines are shown on Figure 3.15. The storage tanks were sized to meet 4 hours of each park’s maximum irrigation demand using yearly irrigation data provided by the City. This option includes a pipeline and small pump station to transport water from the dewatering site or recycled water system to the storage tank. Each multi-source storage site would require that a Title 22 Engineering Report be prepared, which would require approval by both the City as well as the State’s DDW Title 22 Engineering reports require extensive staff time throughout the process, including ongoing inspections and cross-connection testing. CITY OF PALO ALTOONE WATER PLAN 3-41 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.14.2 Costs Capital costs were developed using a typical planning level unit cost for small concrete tank storage of $7 per gallon, escalated by a factor of 2.0 to account for a buried tank, and scaled based on the estimated size tank at each site. Additional capital expenditures are required for treatment, pipelines, and a pump station, as well as the costs to complete a Title 22 Engineering Report. Although recycled water would not require additional treatment to be used for irrigation, stormwater comprised of urban runoff typically includes a wide range of pollutants from heavy metals to bacteria and high levels of sediment. It is assumed that a basic and compact treatment system would be needed to blend the recycled water, dewatering water, and stormwater prior to a filtration and disinfection step such as UV. For the purposes of this high-level evaluation, O&M costs were not estimated. The anticipated tank size, total capital cost, and unit cost for each park are summarized in Table 3.8. As shown, the average unit cost is estimated at $39,700/af, which results in a corresponding cost score of one (1). Table 3.8 Multi-Source Storage Option Sizing and Cost Estimates Unit Cost (capital and O&M cost) ($/af) Estimated Tank Size (Gallons) Conveyance Total Capital Irrigation Demand(2) (afy) Backup | Water Supply Source(3) Park Name Pipeline Cost(1) ($M)Length (LF) Peers 68,000 45,000 63,000 40,000 28,000 245,000 3,000 4,000 4,000 3,000 1,500 15,500 $4.7 $5.5 $5.8 $4.3 $2.3 $22.6 $30,900 $49,100 $36,400 $55,400 $34,100 $39,700 10.3 7.6 Dewatering water Recycled water Dewatering water Dewatering water Dewatering water N/A Ramos Hoover Johnson Heritage 10.7 5.2 4.8 Total 38.6 Notes: (1) All capital costs include a 2.25 multiplier of the estimated construction cost to account for construction cost contingencies, contractor overhead, profit, and insurance; predesign, design, construction management, administrative, environmental, and legal expenses; and engineering services during construction. (2) Data Source: 2018-2022 annual irrigation data, provided by the City of Palo Alto. (3) Backup supply source to be used in the event that stormwater is not available. CITY OF PALO ALTOONE WATER PLAN 3-42 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.15 City Parks Selected for Multi-Source Storage Tank CITY OF PALO ALTOONE WATER PLAN 3-43 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.14.3 Estimated Yield Total yield is dependent on-site selection, and the number of sites implemented. It is assumed that the full irrigation demand would be met at each park by captured stormwater, with either dewatering water or recycled water acting as a backup supply if stormwater is not sufficient to meet demands. As noted in Appendix B, the total annual yield from the City Hall and Oregon Expressway dewatering sites is estimated to be at least 200 MG/year (over 600 afy), which is ample to serve the irrigation demands of the parks in the vicinity of these sites (Johnson, Peers, Heritage, and Hoover Parks have a total demand of 31 afy). Ramos Park, with a demand of 7.6 afy, would likely be served by the existing recycled water system as a backup supply. The annual irrigation demand for the five parks proposed is listed in Table 3.8. As shown, the total estimated yield is 39 afy resulting in an estimated yield score of one (1). 3.4.14.4 Supply Reliability This option would increase water supply reliability for the City. The proposed water sources (dewatering water and recycled water) are both drought-resilient and constructing storage for irrigation use would provide a new use for this water. Since implementing this option would increase the City’s water supply reliability during drought years, it receives a supply reliability score of three (3). 3.4.14.5 Total Screening Score Receiving a total screening criteria score of five (5), this option will not move forward to the portfolio evaluation process as described in Section 3.5While this option would be reliable in drought conditions, the high unit cost and low yield make it less attractive than others. The City may still consider implementing storage tanks to store stormwater to meet regional permit requirements and provide multiple benefits to the community, environment, and water quality. 3.4.15 San Francisco Bay Desalination 3.4.15.1 Description Several studies have been completed to evaluate desalination as a new water supply using either the San Francisco Bay or brackish groundwater as a source. In the evaluation process in the Bay Area Water Supply and Conservation Agency’s (BAWSCA) 2015 Long-Term Reliability Water Supply Strategy Phase II Report (CDM Smith, 2015), Bay water desalination scored higher than groundwater desalination. Additionally, because Palo Alto has access to relatively clean groundwater with low salinity, utilizing groundwater as described in previous options would be more cost effective and less operationally complex than undertaking groundwater desalination. Moreover, groundwater pumping is subject to a GPC imposed by Valley Water, which adds a significant O&M cost component to all groundwater options as shown in Table 3.9. For this reason, this OWP only considers San Francisco Bay desalination and not brackish groundwater desalination. This option would consist of the construction of a local small-scale desalination plant owned and operated by Palo Alto, with an open bay water intake in the San Francisco Bay. The desalination plant is assumed to be located near the existing RWQCP, and the open bay water intake would extend approximately one mile offshore. A schematic of this option is shown in Figure 3.16. CITY OF PALO ALTOONE WATER PLAN 3-44 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Figure 3.16 Small scale Bay Water Desalination for Palo Alto Schematic Per the 2015 BAWSCA Strategy, it is assumed that the desalination facility would have a 50 percent recovery rate and RO concentrate could be discharged through the existing Palo Alto RWQCP outfall. However, as technology has advanced since the completion of the 2015 BAWSCA Strategy, it is likely that recovery rates will be higher, potentially reducing facility sizing and costs from the original estimate. It is assumed that the potential increase in recovery rate would reduce intake capacity, and that the desalination plant would be sized for the same product water capacity. The cost assumption for the regional or local small-scale desalination facility is based on continuous operation as reverse osmosis membranes used in desalination plants perform better when not operated intermittently and to minimize unit cost. Brine disposal will be a key issue for Palo Alto staff to address including considering public input and environmental considerations. 3.4.15.2 Costs Cost estimates from the BAWSCA Strategy for construction of a 15-mgd regional desalination facility form the basis of the cost estimate for this option. The BAWSCA Strategy estimated the unit cost for open bay desalination to be between $2,100/af and $2,400/af. This cost range reflects variations in conveyance and disposal pipe length estimates for various plant configuration options. These cost estimates do not include land acquisition and RO concentrate disposal costs due to uncertainty around these items in the BAWSCA Report. It is assumed that RO concentrate would be discharged from the existing RWQCP outfall and thus would not incur significant cost. It does not include the cost of additional RO concentrate treatment as the City’s recent discussions with the RWQCB indicate that RO concentrate may be directly discharged through the existing RWCQP outfall without additional treatment. This may change in the future for numerous reasons and should be verified during preliminary design or other early evaluations if this project moves forward. Palo Alto City staff have estimated land acquisition cost for a desalination facility at a cost of $43.6M for this option. Due to economies of scale of a 15 mgd facility (BAWSCA study) compared to the 5-mgd facility proposed for the OWP option, unit costs were adjusted with a factor of 1.6 based on the Seawater Desalination Costs publication from the WateReuse Association (WaterReuse, 2012). Escalating this cost from the initial February 2015 estimate to September 2022 results in a capital cost of nearly $252M. Adding in costs related to land acquisition results in a unit cost range of $6,768/af. Hence, the estimated unit cost of this option is $6,768/af, resulting in a cost score of one (1). CITY OF PALO ALTOONE WATER PLAN 3-45 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO 3.4.15.3 Estimated Yield The estimated yield for a Palo Alto-owned desalination facility is assumed to have a treatment capacity of 5 mgd (5,600 afy). Consistent with BAWSCA’s Long Term Reliable Water Supply Strategy Final Report (CDM Smith, 2015), an annual operational yield of 80 percent was assumed, resulting in a net yield of 4,480 afy. Hence, the yield of this option results in a yield score of three (3). 3.4.15.4 Supply Reliability Desalination would increase water supply reliability for the City as the proposed water source (San Francisco Bay water) would not be impacted by drought conditions. Thus, this option receives a supply reliability score of three (3). 3.4.15.5 Total Screening Score Receiving a total screening score of seven (7), this option will move forward to the portfolio process as described in Section 3.5. Given desalination’s high reliability during drought years, high potential yield, and moderate cost, it is an attractive option for diversifying the City’s water supply portfolio. 3.5 Options Costs and Screening Conclusions Table 3.9 and Table 3.10 summarize the unit cost estimates for each of the options that made it to the screening process. The costs are shown in 2023 dollars and include capital costs, O&M costs, and total unit costs expressed in $/af. These unit costs are a combination of the annualized capital and O&M costs divided by the yield of the option. In addition, the GPC and energy costs are broken out separately from the unit O&M cost as these components are a significant portion of the total unit cost for the options involving groundwater pumping and advanced treatment, respectively. CITY OF PALO ALTOONE WATER PLAN 3-46 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.9 Unit Cost Estimate of all Screened Options - 1 RWS Emergency Emergency Supply Well Supply Well New Irrigation Conversion Conversion (Option 4)(1) (Option 1)(1) DPR with Palo Alto Treatment Facility(1) DPR with Regional Treatment Facility(1) Enhanced Conservation Conservation Phase 1(1) 3.4.2 Enhanced Supply Option Supply Wells(1)Phase 2(1) 3.4.3Section3.4.1 3.4.4 3.4.4 3.4.5 3.4.6 3.4.7 Total Capital Cost Capital Cost ($)$0 $0 $0 $0 $0 $0 $0 $0 $0 $49,760,760 $1,532,363 $993,011 $0 $105,257,000 $16,410,000 Land Acquisition Cost ($) Amortized Capital and Land Cost ($/yr) Total O&M Cost $0 $0 $11,463,000 $7,592,804 $0 $3,408,068 $92,395 $64,597 $1,067,494 GPC ($/yr)N/A $27,726,660 $0 N/A $188,176 N/A N/A $639,142 N/A $5,172,000 $5,172,000 $93,096 $6,822 $3,276 $0 $0 O&M Cost ($/yr)$1,811,749 $99,964 $212,010 $99,964 $9,305,267 $74,733 $6,049,640 $270,999Energy Cost ($/yr) Total Unit Cost(1) Total Annual Cost ($/yr) Project Yield (afy) $27,726,660 12,546(2) $0 $188,176 602(3) $0 $639,142 $10,491,781 $5,576,369 $167,791 54 $16,972,804 $7,117,134 330(4) $0 2,250 $1,515 $2,299 $805 3,000 $31 4,723 $1,608 $0 1,769 $603 $0 Capital Cost Unit Cost ($/af) GPC Unit Cost ($/af) O&M Unit Cost ($/af) Energy Unit Cost ($/af) $1,196 $1,724 $126 $0 $0 $0 $1,724 $71$2,210 $0 $312 $0 $1,939 $0 $1,970 $16 $3,420 $153 $4,024 $44 $33 $61 Total Unit Cost ($/af)$2,210 $312(2)$1,939(3)$4,663 $1,859 $3,107 $3,594 Notes: (1) Supply Options Cost Estimating Details (see Appendix C). Cost Estimates generally reflect 2023 dollars and construction cost estimates are adjusted to ENR Index for the greater San Francisco Areas of 15,490 (September 2023). Cost numbers are not rounded from the calculations presented in Appendix C to avoid inconsistencies in rounded values. However, these are planning level (aka “order of magnitude”) cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. (2) Yield for RWS Supply based on forecasted Palo Alto demand of 12,546 af in 2045 under medium growth scenario. (3) The unit cost of $312/af is based on the average yield of 602 afy in the period 2025 to 2045, rather than projected yield of 724 afy in 2045. (4) The unit cost of $1,939/af is based on the average yield of 330 afy in the period 2025 to 2045, rather than projected yield of 618 afy in 2045. CITY OF PALO ALTOONE WATER PLAN 3-47 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.10 Unit Cost Estimate of all Screened Options - 2 DPR with Palo Alto Facility and the SSRF NPR with Phase 3 Extension to Foothills(1) San Francisco Bay IPR with Groundwater Injection(1) Graywater Capture and Rainwater Reuse(1) 3.4.11 Residential Green Stormwater Multi-Source Storage(1)Supply Option Capture(1) Infrastructure(1)Desalination(1) Section 3.4.8 3.4.9 3.4.10 3.4.12 3.4.13 3.4.14 3.4.15 Total Capital Cost Capital Cost ($) Land Acquisition Cost ($) $48,900,000 $188,900,000 $148,510,000 $7,400,000 $7,400,000 $0 $0 $0 $0 $0 $0 $0 $4,080,000 $0 $22,630,000 $251,832,599 $0 $43,560,000 $1,472,114 $19,215,712Amortized Capital and Land Cost ($/yr) $3,662,396 $12,769,597 $9,660,789 $265,410 Total O&M Cost Groundwater Production Charge ($/yr) O&M Cost ($/yr) $0 $5,671,960 $6,213,260 $1,054,780 $0 $0 $46,650 $0 $0 $43,251 $0 $0 $240,000 $0 $0 $60,000 $0 $0 $1,897,644 $45,045 $992,271 $82,592 $9,827,073 $1,281,486Energy Cost ($/yr) Total Unit Cost Total Annual Cost ($/yr) Project Yield (afy) $5,605,085 $25,709,597 $10,653,060 $46,650 6 $43,251 0.7 $505,410 30 $1,532,114 $30,324,272 630 $5,813 $0 5,150 $2,480 $1,101 $1,206 $205 1,100 $8,783 $0 39 $38,125 $0 4,480 $4,289 $0 Capital Cost Unit Cost ($/af) GPC Unit Cost ($/af) O&M Unit Cost ($/af) Energy Unit Cost ($/af) $0 $0 $8,847 $0$0 $0 $3,012 $71 $902 $75 $8,215 $0 $58,321 $0 $8,000 $0 $1,554 $0 $2,193 $286 Total Unit Cost ($/af)$8,897 $4,992 $9,685 $8,215 $58,321 $16,847 $39,679 $6,768 Notes: (1) Supply Options Cost Estimating Details (see Appendix C).Cost Estimates generally reflect 2023 dollars and construction cost estimates are adjusted to ENR Index for the greater San Francisco Areas of 15,490 (September 2023) Cost numbers are not rounded from the calculations presented in Appendix C to avoid inconsistencies in rounded values. However, these are planning level (aka “order of magnitude”) cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. CITY OF PALO ALTOONE WATER PLAN 3-48 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO The information presented for each of the potential options discussed in this chapter to support the allocated screening criteria scores are summarized in Table 3.11, while the results of the options screening scoring are listed in Table 3.12. Table 3.11 Options Comparison Unit Cost in 2023 dollars(1) ($/af) Estimated Yield in 2045 Increases Supply Reliability in Drought Years? Category Option (afy) Imported Water RWS Supply $2,210 $312 12,546 724 Neutral YesConservation Groundwater Water Reuse Enhanced Conservation - Phase 1 Enhanced Conservation - Phase 2 Groundwater $1,939 $4,663 $3,107 $3,594 $8,897 $4,024 $4,992 $9,685 $8,215 $58,321 $16,847 $39,679 $6,768 618 Yes 2,250 54 Neutral Neutral Yes New Irrigation Wells DPR with Palo Alto Facility DPR with Palo Alto Facility and SSRF DPR with Regional Facility IPR with Groundwater Injection NPR with Phase 3 Expansion Graywater Capture and Reuse Residential Rainwater Capture Green Stormwater Infrastructure Multi-Source Storage 4,723 630 Yes 1,769 5,150 1,100 10 Yes Yes Neutral Neutral No Onsite Water Capture/Reuse 1.4 Stormwater Storage 30 No 39 Yes Desalination Notes: Bay Water Desalination 4,480 Yes (1) Cost numbers are not rounded from the calculations presented in Appendix C to avoid inconsistencies in rounded values. However, these are Class 5 planning level (aka “order of magnitude”) cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. CITY OF PALO ALTOONE WATER PLAN 3-49 CHAPTER 3 OCTOBER 2024 / FINAL / CAROLLO Table 3.12 Summary of Screening Scores Supply Reliability in Drought Estimated Yield Total Move toCosts ($/AF)Category Option Screening Portfolio Score Evaluation?(afy)Years Imported Water RWS Supply 2 3 3 1 2 2 1 2 1 1 1 1 1 1 1 3 2 2 3 1 3 2 2 3 2 1 1 1 1 3 2 3 3 2 2 3 3 3 3 2 2 1 1 3 3 7 8 8 6 5 8 6 7 7 5 4 3 3 5 7 Yes Yes Yes Yes No Conservation Groundwater Water Reuse Enhanced Conservation - Phase 1 Enhanced Conservation - Phase 2 Groundwater New Irrigation Wells DPR with Palo Alto Facility DPR with Palo Alto Facility and SSRF DPR with Regional Facility IPR with Groundwater Injection NPR with Phase 3 Expansion Graywater Capture and Reuse Residential Rainwater Capture Green Stormwater Infrastructure Multi-Source Storage Yes Yes Yes Yes No Onsite Water Capture/Reuse No No Stormwater Storage No No Desalination Notes: Bay Water Desalination Yes (1) Cost numbers are not rounded from the calculations presented in Appendix C to avoid inconsistencies in rounded values. However, these are Class 5 planning level (aka “order of magnitude”) cost estimates with a typical estimating accuracy of -50% to +100% due to limited level of project information often coupled with significant uncertainties at this planning stage. Table 3.12, the top 8 ranked new local options, excluding the existing RWS Supply, are: . . . . . . . . Enhanced Conservation - Phase 1 (score 8). Enhanced Conservation - Phase 2 (score 8). DPR with Palo Alto Facility (score 8). DPR with Regional Facility (score 7). IPR with Groundwater Injection (score 7). Bay Water Desalination (score 7). Groundwater (score 6). DPR with Regional Facility and SSRF (score 6). The options that passed both the pre-screening and screening process were developed in more detail as described in Chapter 4. These options were also used to compile portfolios that were evaluated against each other as described in Chapter 5. The options that did not pass the screening process are not considered in the remainder of this OWP but could be of interest for re-evaluation by the City if conditions change. CITY OF PALO ALTOONE WATER PLAN 3-50 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 4 OPTION EVALUATION This chapter starts with a brief introduction, followed by a description of the evaluation criteria, sub-criteria and criteria weighting factors used to compare and evaluate the nine (9) options that passed through the pre-screening and screening steps described in Chapter 3. Subsequently, the option evaluation using these (sub)criteria is described. This chapter concludes with a summary of the option evaluation results with and without the Valley Water Transfer. 4.1 Introduction As described in Chapter 3 and depicted on Figure 4.1, the development of the recommended strategy used in this One Water Plan (OWP) consists of four main steps. This chapter describes the third step of this process, the option evaluation, as indicated with the orange box. The nine (9) options that passed through the pre-screening and screening steps described in Chapter 3 are as follows: 1. Regional Water Supply (RWS) Supply. 2. Enhanced Conservation – Phase 1. 3. Enhanced Conservation, Phase 2. 4. Groundwater. 5. Palo Alto Indirect Potable Reuse (IPR). 6. Direct Potable Reuse (DPR) with Palo Alto Facility. 7. DPR with Regional Facility. 8. DPR with Regional Facility and the Small Salt Removal Facility (SSRF). 9. Bay Water Desalination. Figure 4.1 Options Evaluation Process CITY OF PALO ALTOONE WATER PLAN 4-1 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Detailed cost estimates were prepared for each of the nine (9) options using a variety of source documents and planning-level sizing of the key components. The cost estimating method used for each option was tailored to the amount of readily available information for both project sizing and costs, as well as the type of option. In general, the following three types of cost estimating methods were used: .Cost Escalation Method: Costs are based on previous studies and are updated to account for escalation or anticipated changes in time for labor, material, and equipment using Engineering News-Record (ENR) index ratio of the original cost basis and the September 2023 ENR index of 15,490 for the San Francisco Area. . . Programmatic Cost Estimate: Cost estimate for options that are gradually implemented over time, resulting in an incremental increase in water savings and costs. These programs (e.g., water conservation) typically do not have a significant capital/ infrastructure component. Bottom-Up Calculation: Full conceptual level cost estimate for projects that have not been evaluated prior to this OWP and/ or options that do not have a previous cost estimate. The detailed cost estimates for each option are presented in Appendix C, along with the general cost estimating assumptions and the methodology used for each option. It should be noted that some options use a combination of methods. For example, for the Palo Alto DPR option, the cost escalation method was used for the majority of cost estimate using information presented in the 2019 Northwest County Recycled Water Strategic Plan. However, the reverse osmosis concentrate (ROC) treatment was removed, reflecting a revised assumption that RO concentrate can be discharged via the existing Regional Water Quality Control Plant (RWQCP) outfall under the current discharge permit. Lastly, land acquisition and conveyance pipeline costs were removed and then added in with the more recent unit costs assumptions of the Bottom-Up Calculation method. 4.2 Evaluation Criteria The criteria used to evaluate the options in this OWP were developed to reflect a wide range of perspectives. This includes input from City staff and the community via polling and discussion during the first two (2) rounds of stakeholder engagement meetings, as described in Chapter 1. The four (4) main evaluation criteria build upon the screening criteria described in Chapter 3 and include: 1. Reliability. 2. Unit Cost. 3. Environmental Benefits. 4. Ease of Implementation. The Environmental Benefits and Ease of Implementation criteria each have multiple sub-criteria described in more detail below. The three Environmental Benefits sub-criteria are 1) Reduced Reliance on the Tuolumne River, 2) Efficient Use of Water and 3) Ecological Benefits. The Ease of Implementation sub-criteria are 1) Implementation Timeline, 2) Operational Complexity, and 3) Public Acceptance. The four evaluation criteria, along with their respective sub-criteria, and the methods used for scoring the options are described in the following Subsections 4.2.1through 4.2.4. CITY OF PALO ALTOONE WATER PLAN 4-2 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO An excel-based portfolio evaluation tool (Evaluation Tool or Tool) was developed to compare options that passed through the screening process as described in Chapter 3. Each option is scored for each of the evaluation criteria using either qualitative or quantitative metrics. The qualitative criteria scores are directly input by the user in the Evaluation Tool, while the quantitative criteria scores are calculated within the Evaluation Tool based on the objective option attributes (e.g., yield, unit cost) and user other inputs (e.g., demand scenario and cost year). The Tool has a default set of criteria weighing factors (percentages) to reflect the relative importance of each criterion. These weighting factors can be modified by the user to vary the level of relative importance between the criteria as desired. Details regarding Evaluation Tool functionality are provided in Appendix D. 4.2.1 Reliability This criterion assesses an option’s dry year yield and, thus, its ability to alleviate a supply shortage due to a cutback from the RWS. It is a quantitative criterion calculated on a linear scale, considering the dry year yield for each option as the primary metric. Scores range from 1 (zero dry year yield) to 5 (largest dry year yield). Scores for options with yields between these endpoints were calculated proportionally to the option’s dry year yield. For example, if Option A has the largest dry year yield of 5,000 acre-feet per year (afy) and Option B has a dry year yield of 2,500 afy, Option A will receive a score of 5 and Option B will receive a score of 2.5. The RWS option is assigned a score of 1 in this assessment because it cannot increase supplies during a cutback from the RWS. Options were evaluated solely based on dry year yield, which is calculated by multiplying the option’s estimated yield during a dry year by the dry year reduction selected by the user of the Tool. The rationale for the dry year reductions used in this analysis is documented in Section 5.1 of Chapter 5. Subsequently, portfolios are assessed according to the extent that they mitigate a shortage caused by a cutback from the RWS, which can vary depending on the Evaluation Tool scenario and portfolio inputs selected by the user. More information on portfolio scoring is provided in Chapter 5. 4.2.2 Unit Cost This criterion measures the capital and operating cost of each option, expressed as a Unit Cost in dollar per acre-foot ($/af), which is comprised of the annualized capital and O&M cost divided by the average annual yield. Quantitative scoring for this criterion uses a linear scale. The option with the lowest cost receives a score of 5, indicating the most cost-effective option, while the option with the highest cost receives a score of 1, representing the least cost-effective option in terms of unit cost. Similar to the Reliability criterion, other options are scored proportionally based on unit cost. For example, if Option A has a Unit Cost of $10,000/af, Option B has a Unit Cost of $1,000/af, and Option C has a Unit Cost of $5,000/af, Option A will receive a score of 1, Option B will receive a score of 5, and Option C will receive a score of 3.2. These scores reflect the comparative costs based on the specified cost year in the Evaluation Tool; they will change dynamically if the user changes the cost year or if the user changes which options are included in the Evaluation Tool. CITY OF PALO ALTOONE WATER PLAN 4-3 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.2.3 Environmental Benefits The Environmental Benefits criterion is separated into the following three (3) sub-criteria to reflect a range of environmental considerations relating to options that reflect community values around protecting the environment and promoting sustainability: 1. Reduced Reliance on the Tuolumne River. 2. Efficient Use of Water. 3. Ecological Benefits. These three sub-criteria are further described in more detail in the sections below. 4.2.3.1 Reliance on Tuolumne In 2018, Palo Alto’s City Council adopted a position in support of the Bay-Delta Plan, reflecting the importance of reducing the City’s reliance on Tuolumne River flows to protect ecosystem health. This evaluation sub-criterion reflects this goal by evaluating the capability of the options to provide supplies that are independent of the RWS Supply. Similar to the Reliability and Unit Cost criteria, options are scored against this quantitative sub-criterion proportionally between the highest yield option and zero yield. On this scale, the highest annual average yield receives a score of 5, indicating a maximum reduction of Reliance on Tuolumne River supply from the RWS. Conversely, if a source fails to yield any non-RWS Supply, it receives a score of 1. For example, if Option A has the largest normal year yield of 5,000 afy and Option B has a normal year yield of 2,500 afy, Option A will receive a score of 5 and Option B will receive a score of 2.5. RWS Supply is assigned a score of 1, as it represents full Reliance on Tuolumne River. The Reliance on Tuolumne sub-criterion is differentiated from the Reliability criterion in that Reliance on Tuolumne focuses on the normal year yield, and thus the City’s typical Reliance on Tuolumne River. In contrast, the Reliability criterion focuses on the dry year yield and the City’s ability to meet demand when facing a significant cutback of RWS Supply in dry years. 4.2.3.2 Efficient Use of Water This sub-criterion scores options based on using water efficiently to elevate options that increase water use efficiency or water reuse, in contrast to options that rely on fresh sources of water that could have other uses and environmental benefits. The qualitative scoring system ranges from 5 (very efficient) to 1 (not efficient with known negative environmental impact). Overall, scoring favors the adoption of strategies that prioritize water conservation and sustainable water use. The definition for each score for the Efficient Use of Water sub-criterion is summarized in Table 4.1. CITY OF PALO ALTOONE WATER PLAN 4-4 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.1 Score Efficient Use of Water Sub-Criterion Scoring Definition Overall Rating – Very Efficient Reduces water use5 (best) Overall Rating – Efficient Uses recycled water that would otherwise be discharged as treated effluent4 Overall Rating – Neutral3 2 Uses water from a non-potable (e.g., saline) water source or uses a blend of recycled water and freshwater Overall Rating – Not Efficient Uses freshwater or brackish water from an existing source of water supply Overall Rating – Not Efficient with Known Negative Environmental Impact Uses freshwater from an untapped source of water supply1 (worst) 4.2.3.3 Ecological Benefits This sub-criterion considers the potential benefits and impacts to ecosystem and watershed health, as well as energy use for each option. For this qualitative criterion, a score of 5 denotes the highest level of environmental benefit, with significant benefits to ecosystem restoration, improved watershed health, and reduced energy usage. The scoring definitions for the Ecological Benefits sub-criterion are summarized in Table 4.2. It should be noted that to avoid double counting with the “Reliance on the Tuolumne River” criterion, the ecological benefit of reduced flows are called out in the option evaluation results tables (Table 4.7 through Table 4.15) but are not considered in the scoring. Table 4.2 Score Ecological Benefits Criterion Score Definitions Definition Overall Rating – Significant Benefits 5 (best) . Significantly restores ecosystems and/or improves watershed health . Significantly reduces energy use Overall Rating – Moderate Benefits 4 3 2 . Moderately restores ecosystems and/or improves watershed health . Moderately reduces energy use Overall Rating – Neutral . Limited benefit or negative impact to ecosystems and/or watershed health . No change in energy use Overall Rating – Moderate Negative Impacts . Moderate negative impact to ecosystems and/or watershed health . Moderately increases energy use Overall Rating – Significant Negative Impacts 1 (worst) . Significant negative impact on ecosystems and/or watershed health . Significant increase in energy use CITY OF PALO ALTOONE WATER PLAN 4-5 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.2.4 Ease of Implementation The Ease of Implementation criterion is separated into the following three (3) sub-criteria to capture various aspects of project or program implementation: 1. Implementation Timeline. 2. Operational Complexity. 3. Public Acceptance. These three sub-criteria are further described in the sections below. 4.2.4.1 Implementation Timeline This sub-criterion captures a qualitative assessment of potential implementation timelines and feasibility across various water options, ranging from a score of 5 denoting the quickest and most straightforward implementation to a score of 1 indicating the longest and most complex process. A score of 5 suggests readiness for immediate implementation within a year, while a score of 1 indicates the longest timeline of over 10 years, necessitating extensive feasibility studies, lengthy design and permitting processes, complex construction, and extensive public engagement efforts. This criterion facilitates informed decision-making by providing clarity on the practicality and timelines associated with each option. The definitions for each score for this criterion are summarized in Table 4.3. Table 4.3 Score Implementation Timeline Sub-Criterion Score Definitions Definition Ready for immediate implementation (< 1 year) . Feasibility studies performed (or not needed) 5 (best) . No design efforts or California Environmental Quality Act (CEQA) analysis anticipated . Short implementation duration . No regulatory constraints Fast Implementation possible (< 2 years) . Few new studies and/or preparations are needed 4 3 . Short duration or simple construction anticipated . No CEQA analysis and/or extensive permitting is required . Approval not dependent on non-City entities Typical Implementation Timeline (2-5 years) . Some new studies and/or preparation needed . 2-5 years design and construction duration anticipated . Potential need for CEQA analysis and/or multiple non-City permits required . Potential need for involvement of non-City entities CITY OF PALO ALTOONE WATER PLAN 4-6 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Score 2 Definition Moderate Implementation Timeline (5-10 years) . Moderate studies and/or preparation needed . Multi-year design, CEQA analysis, and permitting process anticipated . Approval dependent on collaboration with non-City entities . Requires change in customers’ water use behavior . Likely requires some level of public engagement Long Implementation Timeline (>10 years) . No or only limited feasibility studies performed 1 (worst) . Long design, CEQA analysis, and permitting process anticipated (5-10 years) . Lengthy or complex construction anticipated . Extensive public engagement efforts required 4.2.4.2 Operational Complexity The qualitative Operational Complexity sub-criterion evaluates the operational ease and staffing requirements associated with different options, ranging from a score of 5 denoting the most straightforward operations requiring little to no additional staffing or training, to a score of 1 indicating the most challenging operations demanding extensive staffing and training. The definitions for each score for this criterion are summarized in Table 4.4. Table 4.4Operational Complexity Sub-Criterion Score Definitions Score Definition Very straightforward . Little to no operation required . No additional staff needed . No additional training needed Straightforward 5 (best) 4 . Some additional staff may be needed . No or only minor additional training/certifications required Typical3 2 . Some additional staff and training needed Difficult . More staff and training needed Very difficult . Extensive, 24/7 operation needed . Significant staff needed1 (worst) . Significant training and/or certifications needed CITY OF PALO ALTOONE WATER PLAN 4-7 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.2.4.3 Public Acceptance The qualitative Public Acceptance sub-criterion evaluates the anticipated public reception and community support for options, ranging from highly favorable perceptions to unfavorable ones. A score of 5 indicates an anticipated highly favorable outlook by the general public, while a score of 1 indicates the high likelihood of unfavorable public perceptions or potential significant public opposition. This framework helps gauge the potential community and stakeholder response to each project. The definitions for each score for this sub-criterion are summarized in Table 4.5. Table 4.5 Score Public Acceptance Sub-Criterion Score Definitions Definition Highly Favorable 5 (best) . Expect the public and other stakeholders to perceive the project very positively . Expect the public and other stakeholders to embrace the project quickly as being good for the City Favorable4. Expect the public and other stakeholders to perceive the project positively Neutral/ Mixed 3 . Expect the public and other stakeholders to have a mixed opinion of the project, with some support and some opposition Less Favorable 2 . Expect the public and other stakeholders to perceive the project negatively . Expect opposition from the public and other stakeholders on the project Not Favorable 1 (worst) . Expect the public and other stakeholders to perceive the project very negatively . Expect significant opposition from the public and other stakeholders on the project 4.3 Criteria Weighting Criteria weighting refers to assigning the relative importance or priority to different criteria or factors when making a decision or evaluation. Each of the evaluation criteria and sub-criteria described in Section 4.1 is given a weight, which represents its relative importance compared to the other criteria and sub-criteria. The weight assigned to each criterion is based on feedback received from City and community stakeholders gathered in meetings with each group, as well as from the results of an online survey open to all community members. In live polling and in the online survey, respondents were asked to rank draft evaluation criteria based on their relative importance or preference, reflecting respondents’ priorities and values. The results of the weighting exercises for each group are shown in Table 4.6, along with an average weight across all three (3) respondent groups and a selected weight for use in the OWP. The selected weight is based on the average weight, rounded to the nearest 5 percent. It should be noted that respondents were asked to provide input on the main four (4) criteria, not the sub-criteria, as those were defined and refined later in the planning process. CITY OF PALO ALTOONE WATER PLAN 4-8 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.6 Evaluation Criteria Weighting Community Meeting Weight Community Online Survey Weight Average WeightCriteriaCity Weight Selected Weight Reliability.41% 25% 24% 10% 32% 25% 23% 20% 29% 28% 22% 21% 34% 26% 23% 17% 35% 30% 20% 15% Environmental Benefits. Unit Cost. Ease of Implementation. All three respondent groups indicated the same order of priorities for decision-making. For example, Reliability was consistently assigned the highest weight, indicating the critical significance of providing reliable water access for the City and community. Environmental Benefits are also given considerable weight, reflecting the importance of sustainability and social responsibility in decision-making processes. Similarly, Unit Cost and Ease of Implementation received lower weights by all respondent groups, with Ease of Implementation getting the lowest relative importance weight in all the polls. This suggests that while they are still important considerations, they are not considered as important as Reliability or Environmental Benefits in determining the overall scoring or priority of an option. The selected weight shown in the far-right column of Table 4.6 is used in the portfolio evaluation presented in Chapter 5. Additionally, Chapter 5 presents a separate sensitivity analysis showing how portfolio recommendations would change with different criteria weighting profiles. 4.4 Option Evaluation This section describes how the option evaluation scores were assigned or calculated for each criterion for each of the nine (9) options that passed the screening process described in Chapter 3 and that are considered for the portfolio evaluation in this OWP. It should be noted that each of the quantitative criteria scores (Reliability, Unit Cost, Reliance on the Tuolumne River) are shown with two significant figures as these are calculated values, while qualitative criteria are scored using whole integers. 4.4.1 RWS Supply The evaluation of the RWS Supply option against the evaluation criteria is summarized in Table 4.7. While RWS Supply excels in some respects, such as its relatively low unit cost and very easy implementation, it falls short in other respects. Given that RWS Supply is limited and is a Tuolumne River supply, RWS Supply cannot mitigate shortages in RWS, nor reduce Palo Alto's reliance on supplies from the Tuolumne River. Additionally, the RWS’s utilization of freshwater from an existing source is not considered efficient as defined in this OWP, and it has a moderately negative impact on ecosystems and watershed health through its reliance on the Tuolumne River. As shown in Table 4.7, the combined, unweighted score of the RWS Supply option is 25.1 out of a maximum score of 40. CITY OF PALO ALTOONE WATER PLAN 4-9 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.7 RWS Supply Evaluation Results ScoreEvaluation Criteria Score Explanation Reliability Unit Cost 1.0 This option inherently does not mitigate shortages in RWS supplies. 4.1 RWS Supply has an estimated unit cost of $2,210/af in 2023 dollars and $4,088/af in 2045. This is relatively low compared to other options. Environmental Benefits 5.0 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 1 RWS Supply does not reduce Palo Alto’s dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 2 RWS Supply is not considered to be an efficient use of water in the context of this OWP because it uses freshwater from an existing source of water supply and does not have any inherent water use efficiency or reuse. 2 Per the City’s stance on the Bay-Delta Plan implementation, it is acknowledged that RWS Supply has a moderately negative impact on ecosystems and watershed health by removing water from the Tuolumne River and Bay Delta system for municipal use. Ease of Implementation Implementation Timeline Operational Complexity 15.0 Combined score of 3 sub-criteria (in italics below) 5 5 RWS Supply is the City’s existing supply, so it is already implemented. RWS Supply is the City’s existing supply, so operation is very straightforward, with no additional staff or training needed. Public Acceptance 5 RWS Supply is perceived as highly favorable by the general public, given its high quality and good aesthetic qualities. Total Unweighted Score 25.1 Out of a maximum score of 40. 4.4.2 Enhanced Water Conservation – Phase 1 Table 4.8 shows the evaluation of the Enhanced Water Conservation – Phase 1 option against the evaluation criteria. This option performs well in terms of Unit Cost, being the most cost-effective option among available choices, and is deemed very efficient in its water usage, reducing overall water consumption. Though it has moderate ecosystem benefits and reduces energy usage through reducing water use, its relatively low yield (water usage offset) does not significantly mitigate shortages associated with the RWS Supply or reduce reliance on Tuolumne River supplies. Enhanced Water Conservation generally scores well for Ease of Implementation, relative to the more infrastructure-intensive options. Note that there is no expected change in dry year yield relative to normal year yield; although dry conditions can mean more water use, water conservation can be effective in any climate conditions. Customers may conserve more during dry years in response to public awareness and/or water conservation mandates during drought conditions. As shown in Table 4.8, the combined, unweighted score of the Enhanced Water Conservation – Phase 1 option is 28.2 out of a maximum score of 40. This is higher than the total score of RWS Supply. CITY OF PALO ALTOONE WATER PLAN 4-10 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.8 Enhanced Conservation – Phase 1 Evaluation Results Evaluation Criteria Score 1.6 Score Explanation Reliability Unit Cost This option has a relatively low dry year usage offset yield of 724 afy in 2045. 5.0 This option has an estimated unit cost of $312/af in 2023 dollars and $690/af in year 2045. It receives a score of 5 as this option has the lowest unit cost of all options considered. This unit cost reflects the cost to Palo Alto not including any additional cost funded by Valley Water. Additionally, the cost includes Palo Alto staff time for enforcement. Environmental Benefits 10.6 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 1.6 This option has a relatively low normal year usage offset yield of 724 afy in 2045 and thus does not significantly decrease Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 5 4 This option is considered very efficient in its use of water as it promotes water use efficiency and reduces overall water use. Through its reduction in overall water use, this option moderately benefits ecosystems and watershed health and reduces energy use. Ease of Implementation 11.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 3 Implementing different measures within this option have different timelines with some options, such as implementing a permanent 3-day watering week, allowing for almost immediate implementation while others, such as banning non- functional turf for CII properties or for new developments, could take longer to implement. Thus, this option received a score of 3 to reflect that 2 to 5 years would be needed to capture significant savings from this option. Operational Complexity Public Acceptance 4 4 This option is somewhat straightforward with minor training and some additional conservation staff (approximately 1.7 FTE) needed. This option is likely to be favorable to the public and other stakeholders as the community generally supports increased water use efficiency. Total Unweighted Score 28.2 Out of a maximum score of 40. 4.4.3 Enhanced Water Conservation – Phase 2 The evaluation of the Enhanced Water Conservation – Phase 2 option against the evaluation criteria is shown in Table 4.9. This option excels in terms of efficient water usage, contributing significantly to water conservation efforts, and offers moderate Ecological Benefits and reduces energy use through reducing overall water use. It is also a relatively cost-effective option compared to other more infrastructure-based options. However, it is relatively low yield (water usage offset) does not significantly mitigate shortages associated with RWS supplies or reduce reliance on Tuolumne River supplies. This option scores moderately well considering Ease of Implementation, with a moderate implementation timeline of 5 to 10 years and typical Operational Complexity requiring some additional staff and training, as well as anticipated mixed opinions in terms of Public Acceptance. CITY OF PALO ALTOONE WATER PLAN 4-11 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Overall, while offering notable benefits in Unit Cost and Environmental Benefits criteria, this option’s relatively low usage offset yield results in lower scores for the Reliability criteria and Reliance on Tuolumne sub-criteria. As shown in Table 4.9, the combined, unweighted score of this option is 24.0 out of a maximum score of 40. Table 4.9 Enhanced Conservation – Phase 2 Evaluation Results ScoreEvaluation Criteria Score Explanation Reliability Unit Cost 1.5 This option has a relatively low dry year usage offset yield of 618 afy in 2045. 4.0 This option has an estimated unit cost of $1,939/af in 2023 dollars and $4,313/af in year 2045, which is relatively low compared to the other options. This unit cost reflects the cost to Palo Alto not including any additional cost funded by Valley Water. Additionally, the cost includes Palo Alto staff time for enforcement. Environmental Benefits 10.5 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 1.5 This option has a relatively low normal year usage offset yield of 618 afy in 2045 and thus does not significantly decrease Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 5 4 This option is considered very efficient in its use of water as it promotes water use efficiency and reduces overall water use. Through its reduction in overall water use, this option moderately benefits ecosystems and watershed health and reduces energy use. Ease of Implementation 8.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 2 The measures included in this option are expected to take up to 10 years to reach saturation, such as the high-efficiency toilet (HET) replacement program for commercial properties. Some of the other Best Management Practices included in this option, such as City landscaping support for turf replacement are not expected to reach saturation within the planning horizon of this Plan. This option received a score of 2 to reflect that 5 to 10 years would be needed to capture significant savings from this option. Operational Complexity Public Acceptance 3 3 This option is moderately straightforward with some training and some additional conservation staff (approximately 2.2 FTE) needed to enforce measures, particularly limiting lawns for residential properties upon resale. Mixed opinions are expected, given the range of measures included in this option. While HET replacement for commercial properties and City landscaping support for turf replacement are both expected to be received neutrally or favorably by the public, there may be some pushback or resistance to implementing lawn limitations for residential properties upon resale. Total Unweighted Score 24.0 Out of a maximum score of 40. 4.4.4 Groundwater Table 4.10 shows the evaluation of the Groundwater option against the evaluation criteria. With a dry year yield of 1,800 afy, assuming a cutback of 20 percent on groundwater pumping during a dry year, and a normal year yield of 2,250 afy, this option could moderately help mitigate shortages associated with RWS supplies and reduce dependence on Tuolumne River supplies. The normal year yield for this option is based upon the Northwest County Recycled Water Strategic Plan analysis of the groundwater that could be pumped without negative impacts on sustainably managed groundwater levels (Todd Groundwater, 2018). CITY OF PALO ALTOONE WATER PLAN 4-12 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO The dry year yield for this option is expected to be approximately 20 percent lower than the normal year yield, as it is expected that in severe drought conditions, Valley Water, who manages sustainable groundwater levels in the county through active management of the basins, would enact mandatory water use reduction measures that may affect pumping from the Santa Clara Valley groundwater basin. While Valley Water has not implemented mandatory groundwater pumping restrictions during past droughts, and the development of such policies would include a public process, Valley Water has asked for voluntary and/ or mandatory reductions of 20 percent or more in past droughts. Valley Water’s level of service goal is 80 percent of water supply in droughts however, Valley Water did call for a 30 percent reduction in 2015. A 20 percent estimate was assumed to represent a moderate, but not major, reduction of yield in dry years. Table 4.10 Groundwater Evaluation Results Evaluation Criteria Reliability Score Score Explanation 2.6 With a dry year yield of 1,800 afy, this option falls slightly lower than the middle of the range of dry year yields of other options. Unit Cost 2.0 This option has an estimated unit cost of $4,663/af in 2023 dollars and $12,045/af in year 2045, which is relatively high compared to other options. These unit costs include the groundwater production charge, O&M costs, and capital costs. Environmental Benefits 7.7 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 2.7 With a normal year yield of 2,250 afy, this option moderately reduces Palo Alto's dependence on supplies from the Tuolumne River. Note that Valley Water manages the groundwater basin with local managed supplies and natural recharge as well as imported water that is not from the Tuolumne River but is from the Delta. Efficient Use of Water Ecological Benefits 2 3 This option is not considered to be an efficient use of water because it uses freshwater from an existing source of water supply. This option has limited benefits or negative impacts on ecosystems and watershed health and would require minimal energy for operation. The RO Concentrate disposal will create some changes to the wastewater discharge. Ease of Implementation 9.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 3 Many studies have been completed already. Permitting efforts would be needed, as well as design and construction of additional small treatment and infrastructure. This option has a typical implementation timeline of 2-5 years Operational Complexity Public Acceptance 3 3 This option would require some additional staff and training. Neutral or mixed opinions are expected, with some in support and others in opposition given some support for increased local reliability and some opposition to groundwater use due to perceived quality differences with RWS water supply. Total Unweighted Score 21.3 Out of a maximum score of 40. The Unit Cost for this option is the second highest of all options that passed the screening criteria, resulting in a relatively low score for this criterion. The high overall unit cost is driven by the high groundwater pumping charge (GPC) levied by Valley Water, which is expected to increase by almost four-fold over the OWP planning horizon and also by the need to build treatment facilities, including RO system and RO concentrate disposal pipeline approximately 2 miles from the wells to the City’s Bay outfall pipeline. The OWP assumes treatment is needed to bring the aesthetics (taste and odor) of the water to a comparable quality to the Regional Water System water that Palo Alto customers are accustomed to. The CITY OF PALO ALTOONE WATER PLAN 4-13 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Environmental Benefits and Ease of Implementation criteria score moderately well for this option, as it is not expected to have significant positive or negative environmental impacts except for the positive ecosystem benefits associated with the reduction of flows from the Tuolumne River. The implementation of this option is relatively straightforward compared to other options. Overall, Groundwater received moderate scores across most criteria but low scores for Unit Cost and Efficient Use of Water. As shown in Table 4.10, the combined, unweighted score of the Groundwater option is 21.3 out of a maximum score of 40. 4.4.5 DPR with Palo Alto Facility The evaluation of the DPR with Palo Alto Facility option against the evaluation criteria is shown in Table 4.11. With a dry year yield of 4,487 afy and a normal year yield of 4,723 afy, this option could mitigate shortages associated with the RWS and reduce dependence on Tuolumne River supplies. The dry year yield for this option is expected to be approximately 5 percent lower than the normal year yield, as indoor conservation during dry years may lead to lower flows to the RWQCP and thus result in less inflow available for the City’s DPR treatment facility. This slight reduction in dry year yield reflects the fact that potable reuse is generally considered to be a drought-resistant supply. Note that this option would not be feasible in the scenario where Valley Water exercises its option to transfer a portion of RWQCP effluent to Valley Water, as there would not be sufficient effluent remaining to support a City-owned DPR facility. Thus, the evaluation described in this section is only valid under the assumption that Valley Water does not exercise its option to Transfer a portion of RWQCP effluent to Valley Water, meaning that in the Evaluation Tool, the Valley Water transfer is inactive (selected as “no”). The Unit Cost for this option falls near the middle of all options considered in this OWP, resulting in a moderate Unit Cost criteria score. The Environmental Benefits criteria category is mixed, with the Palo Alto DPR Facility receiving high scores for Reduced Reliance on the Tuolumne River and Efficient Use of Water sub-criteria; however, Ecological Benefits receive a lower overall score due to its energy usage for typical DPR treatment technologies (Reverse Osmosis or RO) and RO concentrate disposal considerations. DPR also has a long implementation timeline that is likely to require 10 years or more due to permitting and community engagement needs, making it less feasible in the short term. Moreover, it is operationally complex, requiring additional training and staff. In terms of Public Acceptance, it is anticipated that this option could encounter more opposition from the public and stakeholders compared to other options; however, the reliability benefits can also make this more favorable for others. Although DPR is new for California, the public can be educated about the successful implementation in other places like Texas (over 11 years) and internationally. DPR is under consideration by multiple agencies across the state, including the SFPUC, in their Alternative Water Supply Plan. Overall, Palo Alto DPR addresses Reliability concerns and reduces Reliance on Tuolumne River, but it would be relatively complex and difficult to implement. As shown in Table 4.11, the combined, unweighted score of the DPR with Palo Alto Facility option is 22.9 out of a maximum score of 40. CITY OF PALO ALTOONE WATER PLAN 4-14 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.11 DPR with Palo Alto Facility Evaluation Results Evaluation Criteria Score Reliability Score Explanation 4.9 With a dry year yield of 4,487 afy (assuming a 5% cutback due to declining wastewater flows during dry years), this option has one of the highest dry year yields of all the options considered and would significantly benefit the City during dry years where RWS Supply is limited. Unit Cost 3.4 This option has an estimated unit cost of $3,594/af in 2023 dollars and $6,836/af in year 2045, generally in the middle of other option unit costs. Environmental Benefits 10.7 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 4.7 With a normal year yield of 4,723 afy, this option significantly reduces Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 4 This option scores well as an efficient use of water as it uses recycled water that would otherwise be discharged as treated effluent. 2 This option has a moderately negative impact on ecosystems and watershed health due to the RO concentrate discharge and increased energy use associated with RO treatment. However, reduction of flows from the Tuolumne River provides positive ecosystem benefits. Additionally, this option would reduce treated wastewater discharge which would allow a small, localized area to convert back to its historic salt marsh state, which is a benefit. Ease of Implementation 4.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 1 Given the recent approval of statewide DPR regulations, and additional administrative process at the state, and the fact that this option has not yet been implemented in California, additional pilot testing would be needed for this option compared to others. Lengthy permitting and CEQA processes are also expected, giving this option a long implementation timeline of 10 years or more. Operational Complexity Public Acceptance 1 2 This option is very complicated to operate relative to other non-DPR options, as the AWPF would require continuous process monitoring, 24/7 operation, an enhanced source control program, and significant staff training. This option is expected to have more opposition from the public than other non-DPR options due to general negative public perception around DPR. Extensive stakeholder engagement would likely be required to garner public support for this option. Total Unweighted Score 22.9 Out of a maximum score of 40. 4.4.6 DPR with Regional Facility The evaluation of the DPR with the Regional Facility option against the evaluation criteria is shown in Table 4.12. With a dry year yield of 1,681 afy and a normal year yield of 1,769 afy, this option could moderately help mitigate shortages associated with RWS supplies and reduce dependence on Tuolumne River supplies. The dry year yield for this option is expected to be approximately 5 percent lower than the normal year yield as indoor conservation during dry years may lead to lower flows to the RWQCP, and thus result in less inflow available for the DPR treatment facility. This slight reduction in dry year yield reflects the fact that potable reuse is generally considered to be a drought-resistant supply. Note that this option would only be feasible in the scenario where Valley Water constructs a DPR Regional Facility in Palo Alto. Thus, the evaluation described in this section is only valid under the assumption that the Valley CITY OF PALO ALTOONE WATER PLAN 4-15 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Water Transfer option is exercised, meaning that in the Evaluation Tool, the Valley Water transfer is active (selected as “yes”). Table 4.12 DPR with Regional Facility Evaluation Results Evaluation Criteria Reliability Score Score Explanation 2.5 With a dry year yield of 1,681 afy, this option would moderately benefit the City during dry years where RWS Supply is limited. Unit Cost 2.9 This option has an estimated unit cost of $4,024/af in 2023 dollars and $8,689/af in 2045, which is moderately less cost-efficient compared to other options. Environmental Benefits 8.4 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 2.4 With a normal year yield of 1,769 afy, this option moderately reduces Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 4 2 This option scores as an efficient use of water as it uses recycled water that would otherwise be discharged as treated effluent. This option has a moderately negative impact on ecosystems and watershed health due to the RO concentrate discharge and increased energy use associated with RO treatment. However, reduction of flows from the Tuolumne River provides positive ecosystem benefits. Additionally, this option would reduce treated wastewater discharge which would allow a small, localized area to convert back to its historic salt marsh state, which is a benefit. Ease of Implementation 8.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 1 Given the recent approval of statewide DPR regulations and the fact that this option has not yet been implemented in California, additional pilot testing would be needed for this option compared to others. Lengthy permitting and CEQA processes are also expected, giving this option a long implementation timeline of 10 years or more. Additionally, the development of this option is outside of Palo Alto’s control. Operational Complexity 5 2 Although operating an AWPF is generally complex, Valley Water would be operating the facility for this option. Palo Alto would receive potable water into its system in a similar manner as Palo Alto receives RWS Supply. Thus, operation from the City’s perspective would be more straightforward relative to the Palo Alto DPR option. Public Acceptance This option is expected to have more opposition from the public than other non-DPR options due to general negative public perception around DPR. Extensive stakeholder engagement would be required to garner public support for this option. Total Unweighted Score 21.7 Out of a maximum score of 40. The Unit Cost for this option falls near the middle of all options considered in this OWP, resulting in a moderate Unit Cost criteria score. The Environmental Benefits criteria category is mixed, with the DPR with Regional Facility receiving a high score for the Efficient Use of Water criteria; however, Ecological Benefits receive a lower overall score due to its energy usage for typical DPR treatment technologies (Reverse Osmosis), and RO concentrate disposal considerations. Nevertheless, DPR with Regional Facility has some positive ecosystem benefits from reduced flows from the Tuolumne River. DPR has a long implementation timeline likely to extend 10 years or more due to permitting and community engagement needs, making it less feasible in the short term, and it is less favorable due to anticipated public concerns compared to other non-DPR options. However, in contrast to the DPR with Palo Alto Facility option, the Operational CITY OF PALO ALTOONE WATER PLAN 4-16 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Complexity of the DPR with Regional Facility option would be straightforward for Palo Alto, as the City would receive purified water from Valley Water and not play a role in operating the Regional DPR facility. However, Palo Alto and Valley Water would work in close partnership. Overall, DPR with Regional Facility scores moderately well across most criteria, with high scores for Efficient Use of Water and Operational Complexity and lower scores when considering Ecological Benefits, Implementation Timeline, and Public Acceptance. As shown in Table 4.12, the combined, unweighted score of the Regional DPR Facility option is 21.7 out of a maximum score of 40. 4.4.7 DPR with Palo Alto Facility and SSRF The evaluation of the DPR with Palo Alto Facility and SSRF option against the evaluation criteria is summarized in Table 4.13. Table 4.13 DPR with Palo Alto Facility and SSRF Evaluation Results Evaluation Criteria Reliability Score 1.5 Score Explanation With a dry year yield of 599 afy, this option yield limits the benefit to the City’s dry year water supply where RWS Supply is limited. Unit Cost 1 This option has a unit cost of $8,897/af in 2023 dollars and $15,597/af for year 2045, which is highest among all of the options that passed through the pre-screening and screening steps. Environmental Benefits 7.5 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 1.5 With a normal year yield of 630 afy, this option yield provides limited benefit to Palo Alto's normal year dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 4 2 This option scores as an efficient use of water as it uses recycled water that would otherwise be discharged as treated effluent. This option has a moderately negative impact on ecosystems and watershed health due to the RO concentrate discharge and increased energy use associated with RO treatment. However, the reduction of flows from the Tuolumne River provides positive ecosystem benefits. Additionally, this option would reduce treated wastewater discharge which would allow a small, localized area to convert back to its historic salt marsh state, which is a benefit. Ease of Implementation 4.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 1 Given the recent approval of statewide DPR regulations and the fact that this option has not yet been implemented in California, additional pilot testing would be needed for this supply option compared to other non-DPR options. Lengthy permitting and CEQA processes are also expected, given that this option has a long implementation timeline of 10 years or more. Operational Complexity Public Acceptance 1 2 This option is very complicated to operate relative to other non-DPR options, as the AWPF and SSRF would require continuous process monitoring, 24/7 operation, an enhanced source control program, and significant staff training. This option is expected to have more opposition from the public than other non-DPR options due to general negative public perception around DPR. Extensive stakeholder engagement would be required to garner public support. Total Unweighted Score 14.0 Out of a maximum score of 40. CITY OF PALO ALTOONE WATER PLAN 4-17 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO With a dry year yield of 599 afy and a normal year yield of 630 afy, this option scores relatively lower on the Reliability and Reliance on Tuolumne River evaluation criteria and sub-criteria compared to options with a higher yield. The dry year yield for this option is assumed to be approximately 5 percent lower than the normal year yield as indoor conservation during dry years may lead to lower flows to the RWQCP, and thus result in less inflow available for the DPR treatment facility. This slight reduction in dry year yield reflects the fact that potable reuse is generally considered to be a drought-resistant supply. The Unit Cost for this option is the highest of all of the options that passed through the pre-screening and screening steps, resulting in the lowest Unit Cost score. The Unit Cost for this option is very high due to the capital cost associated with constructing a DPR facility while receiving very low yield as limited by Palo Alto’s portion of the SSRF capacity. The Environmental Benefits criteria category is mixed, with the DPR with Palo Alto Facility and SSRF receiving a high score in the Efficient Use of Water criteria but a lower score when considering Ecological Benefits due to its energy usage for typical DPR treatment technologies (Reverse Osmosis) and RO concentrate disposal considerations. Nevertheless, Palo Alto DPR Facility with SSRF has some positive ecosystem benefits from reduction of flows from the Tuolumne River. DPR has a long implementation timeline that is likely to require 10 years or more due to permitting and community engagement needs, making it less feasible in the short term. Moreover, it is operationally complex, requiring additional training and staff. In terms of Public Acceptance, it is less favorable and expected to encounter more opposition from the public and stakeholders compared to other options. Overall, DPR with Palo Alto Facility and SSRF scores low across many criteria due to its low yield, high cost, and significant Operational Complexity. As shown in Table 4.13, the combined, unweighted score of the Palo Alto DPR Facility with the SSRF option is 14.0 out of a maximum score of 40. This is the lowest total unweighted score of all nine (9) options that passed the screening criteria process described in Chapter 3. 4.4.8 IPR with Groundwater Injection The evaluation of the IPR via groundwater injection wells option against the evaluation criteria is shown in Table 4.14. With a dry year yield of 4,893 afy and a normal year yield of 5,150 afy, this option could mitigate shortages associated with RWS supplies and reduce dependence on Tuolumne River supplies. The OWP assumes the dry year yield for this option is approximately 10 percent lower than the normal year yield based on the fact that this option supplies groundwater and also relies on recycled water for groundwater replenishment. During a severe drought, Valley Water may call for voluntary or mandatory water use reductions. Recycled water is assumed to be reduced by 5 percent during dry years. Note that this option would not be feasible in the scenario where Valley Water exercises its option to transfer a portion of RWQCP effluent to Valley Water, as there would not be sufficient effluent remaining to support a City-owned IPR facility. Thus, the evaluation described in this section is only valid if Valley Water does not exercise its option to transfer a portion of RWQCP effluent, meaning that in the Evaluation Tool, the Valley Water transfer is inactive (selected as “no”). The Unit Cost for this option falls in the middle to upper end, resulting in a moderately low Unit Cost criteria score. The cost is higher than other large potable reuse options largely due to the high cost of pumping groundwater due to the expected increases in the GPC levied by Valley Water. The Environmental Benefits criteria category is mixed, with IPR receiving high scores for Reduced Reliance on the Tuolumne River and Efficient Use of Water criteria but a lower score when considering Ecological Benefits due to its energy usage for typical IPR treatment technologies (Reverse Osmosis) and RO concentrate disposal considerations. Nevertheless, the option has some positive ecosystem benefits CITY OF PALO ALTOONE WATER PLAN 4-18 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO associated with reduction of flows from the Tuolumne River. IPR has a moderately long implementation timeline of 5 to 10 years and is operationally complex, requiring additional training and staff. In terms of Public Acceptance, IPR with Groundwater Injection is expected to receive a mixed reception as IPR is generally accepted by the public but there may be pushback to using a groundwater-based source due to perceived water quality differences with the existing RWS Supply. Overall, IPR addresses Reliability concerns and reduces Reliance on Tuolumne River, but it would be relatively expensive and difficult to implement. As shown in Table 4.14, the combined, unweighted score of the IPR with groundwater injection option is 24.4 out of a maximum score of 40. This is the third highest total unweighted score of all nine (9) options that passed the screening criteria process (only RWS Supply and Enhanced Water Conservation Phase 1 score higher). Table 4.14 IPR with Groundwater Injection Evaluation Results Evaluation Criteria Reliability Score Score Explanation 5.0 With a dry year yield of 4,893 afy, this option has the highest dry year yield of all the options considered and would significantly benefit the City during dry years where RWS supply is limited. Unit Cost 2.4 This option has an estimated unit cost of $4,992/af in 2023 dollars and $10,267/af for in 2045, which is moderately less cost-efficient compared to other options. Environmental Benefits 10.0 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 5.0 With a normal year yield of 5,150 afy, this option significantly reduces Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 3 IPR is considered neutral in this criterion as it uses a combination of groundwater and injected recycled water. 2 This option has a moderately negative impact on ecosystems and watershed health due to the RO concentrate discharge and increased energy use associated with RO treatment. However, reduction of flows from the Tuolumne River provides positive ecosystem benefits. Additionally, this option would reduce treated wastewater discharge which would allow a small, localized area to convert back to its historic salt marsh state, which is a benefit. Ease of Implementation 7.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 2 While IPR has been extensively implemented in California, additional studies and preparation would be needed to implement this option, and design, CEQA, and permitting would take several years. The City could likely implement this option in 5-10 years. Operational Complexity 2 This option is fairly complicated to operate relative to other options, as the AWPF would require continuous process monitoring, 24/7 operation, an enhanced source control program, and significant staff training. Operation of the injection wells would not add significant operational complexity compared to using the wells for extraction. Overall, this option would likely require less extensive operational requirements than DPR, given the use of groundwater as an environmental buffer. Public Acceptance 3 Mixed opinions are expected, as IPR is more generally publicly accepted than DPR, but there may still be resistance to using groundwater-based IPR due to perceived water quality differences with RWS Supply. Total Unweighted Score 24.4 Out of a maximum score of 40. CITY OF PALO ALTOONE WATER PLAN 4-19 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.4.9 Bay Water Desalination Table 4.15 shows the evaluation of the Bay Water Desalination option against the evaluation criteria. With a dry year and normal year yield of 4,480 afy, this drought-proof option could mitigate shortages associated with the RWS and reduce dependence on Tuolumne River supplies. Despite its high yield, Bay Water Desalination has a very high Unit Cost compared to other options, making it challenging to implement cost-effectively. Moreover, Bay Water Desalination is expected to have negative impacts on ecosystems and watershed health related to the intake and RO concentrate disposal, as well as a notable increase in energy use. It is likely to face some public opposition due to these concerns. Bay Water Desalination’s long implementation timeline exceeding 10 years and high Operational Complexity requiring additional training and staff further add to implementation challenges. Overall, while Bay Water Desalination offers benefits in addressing water shortages and reducing Reliance on Tuolumne River, it faces significant challenges in terms of cost, ecological impact, and implementation hurdles. As shown in Table 4.15, the combined, unweighted score of the Bay Water Desalination option is 20.4 out of a maximum score of 40. Table 4.15 Bay Water Desalination Evaluation Results Evaluation Criteria Reliability Score Score Explanation 4.9 With a dry year yield of 4,480 afy, this option has one of the highest dry year yields of all the options considered and would benefit the City during dry years where RWS Supply is limited. Unit Cost 2.0 This option has an estimated unit cost of $6,768/af in 2023 dollars and $11,815/af in year 2045, which is higher than most other options. Environmental Benefits 8.5 Combined score of 3 sub-criteria (in italics below) Reliance on Tuolumne 4.5 With a normal year yield of 4,480 afy, this option reduces Palo Alto's dependence on supplies from the Tuolumne River. Efficient Use of Water Ecological Benefits 3 1 Bay Water Desalination is scored neutral in this criterion as it uses water from a non-potable (i.e., saline) water source. This option may have a negative impact on ecosystems and watershed health due to the RO concentrate discharge and increased energy use associated with RO treatment, as well as concerns about ecosystem damage around the intake structure. However, reduction of flows from the Tuolumne River provides positive ecosystem benefits. Ease of Implementation 5.0 Combined score of 3 sub-criteria (in italics below) Implementation Timeline 1 More in-depth feasibility studies and design processes would be needed for this option than others. Challenging and lengthy permitting and CEQA processes are also expected, giving this option a long implementation timeline of 10 years or more. Operational Complexity Public Acceptance 1 3 This option is very complicated to operate relative to other options, as the desalination facility would require continuous process monitoring, 24/7 operation, an enhanced source control program, and significant staff training. Mixed opinions are expected, with some in support of this option as a drought-proof and self-sufficient supply and with others in opposition due to environmental concerns. Total Unweighted Score 20.4 Out of a maximum score of 40. CITY OF PALO ALTOONE WATER PLAN 4-20 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.5 Option Evaluation Summary The evaluation criteria scores for each option are summarized in Table 4.17. Both the unweighted and weighted scores are presented. An example of how the weighted scores are calculated from the raw scores is shown in Table 4.16. Table 4.16 Example of Weighted Score Calculation Raw Score (A) Criteria Weight (B) Weighted Score (A x B)Evaluation Criteria Reliability 5.0 2.4 10.0 3.0 2.0 5.0 7.0 2.0 2.0 3.0 24.4 35% 20% 30% 10% 10% 10% 15% 5% 1.8 0.5 1.0 0.3 0.2 0.5 0.4 0.1 0.1 0.2 3.6 Unit Cost Environmental Benefits Reliance on Tuolumne Efficient Use of Water Ecological Benefits Ease of Implementation Implementation Timeline Operational Complexity Public Acceptance 5% 5% Total Unweighted Score 100% Notes: Example reflects the Raw and Weighted scores for the IPR with Groundwater Injection option. As shown in Table 4.17, the new options (excluding RWS Supply), that score the highest without applying any weighting factors, meaning that criteria and sub-criteria weight equally, are in order of decreasing total score: . . . Enhanced Water Conservation – Phase 1 (total score: 28.2). IPR with Groundwater Injection (total score: 24.4). Enhanced Water Conservation – Phase 2 (total score: 24.0). When considering all criteria and sub-criteria with their relative weighting factors developed with input from both City staff and stakeholders as summarized in Table 4.6, the following new options score the highest in order of decreasing score: . . . DPR with Palo Alto Facility (total score: 3.7). IPR with Groundwater Injection (total score: 3.6). Enhanced Water Conservation – Phase 1 and Bay Water Desalination (both total score: 3.2). It can be concluded that both Enhanced Water Conservation – Phase 1 and IPR with Groundwater Injection score in the top three (3) options, with and without the use of the relative weighting factors. This means that these options are robust solutions as these are not very sensitive to changes in the weighting factor percentages as these options score each well in multiple criteria. Moreover, it can be concluded that the DPR with Palo Alto Facility and SSRF option scores the lowest with and without weighting factors, due to multiple minimal scores, including Unit Cost, Reliability, Reliance on the Tuolumne River, Implementation Timeline, and Operational Complexity. CITY OF PALO ALTOONE WATER PLAN 4-21 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Table 4.17 Option Evaluation Results Summary Environmental Benefits Ease of Implementation Total Unweighted Score(3) Total Weighted Score(3,4) Reduced Tuolumne River Unit Cost Efficient Use of Water Option Reliability Ecological Implementation Operational Public Benefit Timeline Complexity Acceptance Reliance Criteria Weight 35% 1.0 1.6 1.5 2.6 4.9 2.5 1.5 5.0 4.9 20% 4.1 5.0 4.0 2.0 3.4 2.9 1.0 2.4 2.0 10% 1.0 1.6 1.5 2.7 4.7 2.4 1.5 5.0 4.5 10% 2 10% 2 5% 5 5% 5 5% 5 n/a n/a 2.4 3.2 2.8 2.5 3.7 2.7 1.7 3.6 3.2 RWS Supply 25.1 28.2 24.0 21.3 22.9 21.7 14.0 24.4 20.4 Enhanced Conservation – Phase 1 Enhanced Conservation – Phase 2 Groundwater 5 4 3 4 4 5 4 2 3 3 2 3 3 3 3 DPR with Palo Alto Facility(1) DPR with Regional Facility(2) DPR with Palo Alto Facility and SSRF IPR with Groundwater Injection(1) 4 2 1 1 2 4 2 1 5 2 4 2 1 1 2 3 2 2 2 3 Bay Water Desalination Notes: 3 1 1 1 3 (1) DPR with Palo Alto Facility and IPR with Groundwater Injection options assume that Valley Water does not exercise its option to transfer a portion of RWQCP effluent (selected “No” in the Evaluation Tool). (2) The DPR with Regional Facility option assumes that Valley Water exercises its option to transfer a portion of RWQCP effluent (selected “Yes” in the Evaluation Tool) (3) Quantitative criteria scores (Reliability, Unit Costs, Reliance on Tuolumne River) are shown with two significant figures as these are calculated values, while qualitative criteria scores are scored using whole integers. (4) The three highest scores of new options (excluding the benchmark RWS Supply) are shown in bold font. CITY OF PALO ALTOONE WATER PLAN 4-22 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO 4.5.1 Results without Valley Water Transfer The weighted-criteria evaluation results without Valley Water exercising the RWQCP effluent transfer option are shown in Figure 4.2. These results show that DPR with Palo Alto Facility and IPR with Groundwater Injection are the most favorable options, largely due to their significant contribution to Reliability (the criterion with the highest weight). Bay Water Desalination and Enhanced Conservation – Phase 1 also score highly. Meanwhile, DPR with Palo Alto Facility and SSRF, Groundwater, and RWS Supply all have lower total overall scores. It should be noted that DPR with Regional Facility is not shown in this scenario, as this option is not feasible without Valley Water exercising the transfer option. Figure 4.2 Options Evaluation Results without the Valley Water Transfer 4.5.2 Results with Valley Water Transfer The weighted-criteria evaluation results with Valley Water exercising the RWQCP effluent transfer option are shown in Figure 4.3. These results show that the highest-scoring options are Bay Water Desalination and Enhanced Conservation (Phase 1 and Phase 2). DPR Regional Facility, and Groundwater score moderately well, while RWS Supply and DPR with Palo Alto Facility and SSRF have lower scores overall. It should be noted that DPR with Palo Alto Facility and IPR with Groundwater Injections are not shown in this scenario, as these options are not considered feasible with the Valley Water Transfer. The bar charts also show again visually that the DPR with Palo Alto Facility and SSRF scores the lowest of all evaluated options. The findings presented in this chapter are used to develop the water supply portfolios that consider the implementation of different combinations of these options. Chapter 5 presents the portfolios development and evaluation. CITY OF PALO ALTOONE WATER PLAN 4-23 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Figure 4.3 Options Evaluation Results with the Valley Water Transfer It can be observed that the weighted score of Bay Water Desalination (3.2) is higher than the weighted score of DPR with Regional Facility (2.7). Although the DPR with Regional Facility option scores higher on cost, efficient use of water, ecological benefit, and operational complexity (combined scores of 1.42 compared to 0.85 for Bay Water Desalination; difference of 0.6), these combined benefits are less than the benefits of Bay Water Desalination for reliability, reducing reliance on the Tuolumne River, and public acceptance (combined scores of 1.2 compared to 2.3 for Bay Water Desalination; difference of 1.1). It should also be noted that Bay Water Desalination scores very high when compared with the other options, however when compiled in Portfolio C (see Chapter 5), Bay Water Desalination does not score as high. There are two (2) key explanations that are both related to the two (2) highest weighted criteria, reliability and cost as follows: .Reliability Score: This criterion has the highest relative weight of 35 percent. Due to the assumed yield and drought proof supply of Bay Water, this contributes to the majority of the total option score as shown in the blue bars of Figure 4.2 and Figure 4.3. Bay Water Desalination scores 175 percent higher than the average reliability score of all options. However, when combined in the portfolios, the relative reliability benefit is reduced as all portfolios have a combined high yield and therefore strong reliability score. This reduces the relative supply reliability benefit in the portfolio evaluation. .Cost Score: Bay Water Desalination is expensive and thus brings the overall score down compared to supply options and portfolios with less expensive options. However, in the options comparison, DPR with Palo Alto Facility and SSRF is actually a more expensive option, limiting influence of this low score as the scoring of all options is based on the combined range (highest and lowest scores). Because DPR with Palo Alto Facility and SSRF is not included in any of the portfolios, the high cost of Bay Water Desalination brings the total cost down more in the portfolio evaluation (Portfolio C cost score is 29 percent of the average of all portfolios) compared to in the option evaluation (Bay Water Desalination is 69 percent of the average of all options). This increases the relative impact of the high cost of Bay Water Desalination in the portfolio evaluation. CITY OF PALO ALTOONE WATER PLAN 4-24 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO Hence, these two (2) opposing dynamics result in a high score of Bay Water Desalination in the option evaluation, but a lower score when this option is combined with Enhanced Water Conservation Phase 1 and 2 in the portfolio evaluation which is discussed in Chapter 5. CITY OF PALO ALTOONE WATER PLAN 4-25 CHAPTER 4 OCTOBER 2024 / FINAL / CAROLLO -This Page Intentionally Left Blank- CITY OF PALO ALTOONE WATER PLAN 4-26 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 5 PORTFOLIO DEVELOPMENT AND EVALUATION Portfolios in the One Water Plan (OWP) consist of recommended combinations of options. This chapter describes the portfolio evaluation approach and the portfolio development. The chapter then describes the data inputs, user selections and outputs of the customized One Water Evaluation Tool (Evaluation Tool or Tool) and details the results (Tool outputs): Portfolio Supply Summary, Portfolio Cost Estimates and Portfolio Evaluation. The chapter then outlines a sensitivity analysis of the evaluation criteria weighting and testing under different scenarios for water demand, RWS Supply shortage and Water Shortage Contingency Plan shortage stages. The chapter concludes with a summary of the portfolio evaluation outcomes and that collectively meet the City’s water supply objectives most beneficially. These combinations of options are flexible and can be updated as future conditions change. Chapter 6 describes a trigger-based implementation roadmap that provides the basis for the City to implement an adaptable water supply strategy. 5.1 Portfolio Approach As described in Chapters 3 and 4, a total of 27 options underwent a preliminary high-level screening process that resulted in 15 options that were then narrowed down to nine options using three (3) screening criteria. The nine options that successfully passed this initial screening were then further developed and subjected to a comprehensive evaluation process using four (4) evaluation criteria as described in Chapter 4. Table 5.1 below summarizes the evaluation scoring results and normal and dry year yields of the nine options that passed the screening process (Table 4.16 provides more details on the option evaluation results and Figure 5.1 summarizes the option evaluation results visually). Figure 5.1 Option Evaluation Process Based on the results and discussions with City staff, it was decided to include eight (8) of the nine (9) options in the seven (7) portfolios that are described in this chapter. The only option that was not included in any of the portfolios is Direct Potable Reuse (DPR) with a dedicated Palo Alto facility and the Small Saltwater Removal Facility (SSRF) because it scored significantly lower than all other options, while CITY OF PALO ALTOONE WATER PLAN 5-1 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO the alternative of Palo Alto DPR (without the SSRF) had the highest weighted score of 3.7 as shown in Table 5.1. Table 5.1 Options Evaluation Results Summary Total Unweighted Score(2) Normal Year Dry Year Dry Year Yield(3) (afy) Weighted Score(2) Yield (afy) Reduction (%)(3)Options(1) DPR with Palo Alto Facility (4) Palo Alto IPR (4) 3.6 3.6 3.2 3.2 2.8 2.7 2.5 2.4 1.7 22.9 24.4 28.2 20.4 24.0 21.7 21.3 25.1 14.0 4,723 5,150 724 5% 10% 0% 4,487 4,635 724Enhanced Conservation - Phase 1 Bay Water Desalination Enhanced Conservation - Phase 2 DPR with Regional Facility (4) Groundwater 4,480 618 0%4,480 6180% 1,769 2,250 12,546 630 5%1,680 1,800 6,273 599 20% 50% 5% RWS Supply (5) DPR with Palo Alto Facility and SSRF Notes: (1) Options sorted by weighted score in descending order. (2) See details in Table 4.17. (3) Dry Year Reduction is a user-input to the Tool. (4) The Regional DPR option assumes that Valley Water exercises its option to transfer a portion of treated effluent from the RWQCP (selected “Yes” in the Tool). All other options assume Valley Water does not exercise the effluent transfer option (selected “No” in the Tool). (5) Based on estimated supply capacities (and medium growth demand forecast for RWS Supply) in year 2045. The options evaluation results informed which options the OWP included in the portfolio evaluation. The option to build a Direct Potable Reuse (DPR) dedicated Palo Alto facility and the Small Salt Removal Facility (SSRF) was not included in any of the portfolios because it scored significantly lower than all other options. 5.2 Portfolio Development As part of this OWP, a total of seven portfolios (A through G) were developed and evaluated. These portfolios are as follows: A. Baseline (business as usual relying only on RWS Supply). B. Enhanced Conservation Phase 1 and 2. C. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination. D. Enhanced Conservation Phase 1 and 2 with Groundwater. E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR. F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR. G. Enhanced Conservation Phase 1 and 2 with Regional DPR. The options included in each of these portfolios were based on the option evaluation scoring as described in Chapter 4 and discussions with City staff. Portfolios A – D can be implemented independent on whether Valley Water exercises its option to transfer a portion of the treated effluent from the RWQCP. Portfolios E and F may only be implemented if Valley Water does not exercise the effluent transfer option, while CITY OF PALO ALTOONE WATER PLAN 5-2 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Portfolio G may only be implemented if Valley Water does exercise the effluent transfer option. Table 5.2 summarizes the options included in each portfolio. Table 5.2 Overview of Options included in each Portfolio Enhanced DPR withConservation RWS Phase 1 and Bay Water Ground- Palo Alto Palo Alto Regional Portfolio Supply Phase 2 Desalination water DPR IPR Facility A. Baseline X XB. Enhanced Conservation Phase 1 and 2 X XC. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination X X X X X X D. Enhanced Conservation Phase 1 and 2 with Groundwater X X X X X E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR X F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR X G. Enhanced Conservation Phase 1 and 2 with Regional DPR X 5.2.1 Portfolio A – Baseline Portfolio A represents the baseline portfolio which is the City's existing potable water supply from the RWS and serves as the benchmark for comparing other potential portfolios. This baseline portfolio represents the status quo of the City’s water supply including already planned projects that are assumed to be implemented regardless of the findings of this OWP. For the City of Palo Alto this means continued full reliance on imported water from the RWS, and the planned water conservation programs as outlined in Appendix B. 5.2.2 Portfolio B – Enhanced Conservation Phase 1 and 2 Portfolio B builds on portfolio A with the addition of Enhanced Conservation Phase 1 and Phase 2, each encompassing a series of targeted water conservation measures. Enhanced Conservation Phase 1 includes measures that are easier and cheaper to implement (generally less than $1,000 per acre-foot ($/af), while Enhanced Conservation Phase 2 consists of more challenging and costly measures, each estimated to exceed $1,000/af. The projected yields of the different water conservation measures included in Enhanced Conservation Phase 1 and Phase 2 are summarized in Table 5.3. With the implementation of Enhanced Conservation Phase 1 (724 afy), and Enhanced Conservation Phase 2 (618 afy), the offset to RWS Supply water usage would gradually increase to 1,342 afy. Figure 5.2 shows the combined water supply mix under normal demand conditions using the medium demand forecast. The OWP assumes Enhanced Conservation Phase 1 and Phase 2 save the same amount of water during normal and dry years. This portfolio can be implemented whether or not Valley Water exercises the option to transfer a portion of the treated effluent from the RWQCP. CITY OF PALO ALTOONE WATER PLAN 5-3 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Table 5.3 Projected Yield of Enhanced Water Conservation Phase 1 and 2 Enhanced Conservation Phase 1 Measures Outdoor Irrigation Efficiency for CII Properties 3-Day Watering Week Yield in 2045 (afy) 229 212 Non-Functional Turf Ban for CII Properties Lawn Limitation for New Development and Major Retrofits Low Income Residential HET Replacement Program Totals 132 139 11 724 Enhanced Conservation Phase 2 Measures Lawn Limitation for Residential Properties Upon Resale HET Replacement Program for CII Properties City Landscaping Support for Turf Replacement Totals Yield in 2045 (afy) 446 21 152 619 Total Yield Estimate (Phase 1 and Phase 2)1,342 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RWS Supply Enhanced Conservation, Phase 1 Enhanced Conservation, Phase 2 Figure 5.2 Normal Year Supply and Demand Projection for Portfolio B 5.2.3 Portfolio C –Enhanced Conservation Phase 1 and 2 with Bay Water Desalination This portfolio builds upon Portfolio B with the addition of Bay Water Desalination using a dedicated 5-mgd Palo Alto facility. The added local supply yield to supplement the existing imported water supply from the RWS would increase to 4,480 afy from the 5-mgd desalination plant. Together with the usage offset yield expected by 2045 from Enhanced Conservation Phase 1 (724 afy), and Enhanced Conservation Phase 2 (618 afy), the portfolio would gradually increase to yield a total of 5,823 afy, to supplement RWS Supply. The OWP assumes no dry year reduction in supply from the Bay Water Desalination plant. CITY OF PALO ALTOONE WATER PLAN 5-4 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.3 depicts the estimated sources of supply and assumes the desalination plant comes online in 2035. This portfolio can be implemented with or without the potential Valley Water Transfer. 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RWS Supply Bay Water Desalination Enhanced Conservation, Phase 1 Enhanced Conservation, Phase 2 Figure 5.3 Normal Year Supply and Demand Projection for Portfolio C Due to the long implementation timeline anticipated to design, permit, and construct a desalination facility, this portfolio would provide the same added supply reliability as Portfolio B (Enhanced Conservation only) through year 2035 when the OWP assumes the Bay Water Desalination plant could be operational. 5.2.4 Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater This portfolio is similar to Portfolio C; however, Bay Water Desalination is replaced with the addition of groundwater from the conversion of City’s emergency supply wells. As part of this portfolio, the City would equip two of the existing emergency supply wells with treatment facilities and convert these from emergency supply to regular potable use. The added local supply yield to supplement the existing RWS Supply would increase to 2,250 afy. Together with the usage offset yield expected by 2045 from the implementation of Enhanced Conservation Phase 1 (724 afy), Enhanced Conservation Phase 2 (618 afy), and groundwater, the portfolio would gradually increase to yield a total of 3,592 afy to supplement RWS Supply. The OWP assumes a 20 percent groundwater supply reduction during dry years to account for potential pumping restrictions during drought conditions. Hence, the supplemental yield of the portfolio under drought conditions would be 3,143 afy. Figure 5.4 depicts the estimated sources of supply under the medium demand forecast. Palo Alto could implement this portfolio whether or not Valley Water exercises its option to transfer a portion of the treated effluent from the RWQCP. CITY OF PALO ALTOONE WATER PLAN 5-5 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RWS Supply Groundwater Enhanced Conservation, Phase 1 Enhanced Conservation, Phase 2 Figure 5.4 Normal Year Supply and Demand Projection for Portfolio D 5.2.5 Portfolio E –Enhanced Conservation Phase 1 and 2 with Palo Alto DPR This portfolio is similar to Portfolio C with the addition of a Palo Alto DPR facility instead of Bay Water Desalination. The added local supply yield to supplement the existing imported water supply from SFPUC would increase to 4,723 afy from the 5-mgd DPR facility. Together with the usage offset yield expected by 2045 from the implementation of Enhanced Conservation Phase 1 (724 afy), and Enhanced Conservation Phase 2 (618 afy), the portfolio would yield a total of 6,065 afy to supplement SFPUC supplies. The net yield of a 5-mgd DPR facility is assumed to be higher than for a 5-mgd desalination plant due to a higher advanced water treatment recovery for treating recycled water compared to Bay water. The OWP assumes a 5 percent dry year reduction to the DPR facility yield to account for lower wastewater flows due to increased water conservation during drought conditions. Hence, the supplemental yield of the portfolio under drought conditions would be 5,829 afy. Figure 5.5 depicts the estimated sources of supply under the medium demand forecast and assumes the DPR plant comes online in 2035. This portfolio can only be implemented if Valley Water does not exercise the option to transfer a portion of the treated effluent from the RWQCP because with the transfer there would not be sufficient wastewater flows for the City to construct a viable DPR facility. Due to the long implementation timeline anticipated to design, permit, and construct a dedicated DPR facility, this portfolio would provide the same added supply reliability as Portfolio B (Enhanced Conservation Phase 1 and 2) through year 2035 when the Palo Alto DPR facility is assumed to be operational. CITY OF PALO ALTOONE WATER PLAN 5-6 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RWS Supply DPR with Palo Alto Facility Enhanced Conservation, Phase 2Enhanced Conservation, Phase 1 Figure 5.5 Normal Year Supply and Demand Projection for Portfolio E 5.2.6 Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR This portfolio is similar to Portfolio C with the addition of Indirect Potable Reuse (IPR) with groundwater injection and the construction of an AWPF (Advanced Water Purification Facility) (Palo Alto IPR option) instead of Bay Water Desalination. The added local supply yield to supplement the existing imported water supply from SFPUC would increase to 5,150 afy with the 2.5-mgd AWPF facility and groundwater injection IPR facilities. Together with the usage offset yield expected by 2045 from the implementation of Enhanced Conservation Phase 1 (724 afy), and Enhanced Conservation Phase 2 (618 afy), the portfolio would gradually increase to yield a total of 6,492 afy to supplement SFPUC supplies. The OWP assumes a 10 percent dry year reduction to account for potential pumping restrictions during drought conditions. Hence, the supplemental yield of the portfolio under drought conditions would be 5,978 afy. Figure 5.6 depicts the estimated sources of supply under the medium demand forecast. The difference between the City’s demand and the Palo Alto IPR yield would be provided by RWS Supply. This portfolio can only be implemented if Valley Water does not exercise the option to transfer a portion of the treated effluent from the RWQCP because, with the transfer in effect there would not be sufficient wastewater flows for the City to construct a viable IPR facility. This portfolio would offer the same added supply reliability as Portfolio B (Enhanced Conservation only) until 2030, when the Palo Alto AWPF facility is expected to become operational. Due to the anticipated need for more extensive community outreach for DPR versus IPR, the implementation timeline anticipated to design, permit, and construct a dedicated AWPF facility is faster than the DPR options. CITY OF PALO ALTOONE WATER PLAN 5-7 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RWS Supply IPR with Palo Alto Facility Enhanced Conservation, Phase 2Enhanced Conservation, Phase 1 Figure 5.6 Normal Year Supply and Demand Projection for Portfolio F 5.2.7 Portfolio G –Enhanced Conservation Phase 1 and 2 with Regional DPR This portfolio is similar to Portfolio E with the addition of a Regional DPR water purification facility constructed by Valley Water located in Palo Alto instead of a dedicated Palo Alto DPR Facility. The added local supply yield to supplement RWS Supply would be 1,769 afy from the regional purification facility. Together with the usage offset yield expected by 2045 from the implementation of Enhanced Conservation Phase 1 (724 afy), and Enhanced Conservation Phase 2 (618 afy), the portfolio would gradually increase to yield a total of 3,111 afy. The OWP assumes the DPR facility has a 5 percent dry year reduction to account for lower wastewater flows due to increased water conservation during drought conditions. Hence, the supplemental yield of the portfolio during drought conditions would be 3,023 afy. Figure 5.7 depicts the estimated sources of supply and assumes the medium demand forecast. Palo Alto can only implement this portfolio if Valley Water exercises the option to transfer a portion of the treated effluent from the RWQCP because without the transfer there would be no Valley Water regional facility located in Palo Alto. Due to the long implementation timeline anticipated to implement the Regional DPR option, this portfolio would provide the same added supply reliability as Portfolio B (Enhanced Conservation Phase 1 and 2) until 2040 when the Regional Facility is assumed to become operational. A few of the challenges to implement this option—that each could take years to complete—are the design, permitting, and construction of a Regional Facility, as well as establishing an agreement for DPR water deliveries to Palo Alto. CITY OF PALO ALTOONE WATER PLAN 5-8 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 SFPUC Supply DPR with Regional Facility Enhanced Conservation, Phase 2Enhanced Conservation, Phase 1 Figure 5.7 Normal Year Supply and Demand Projection for Portfolio G 5.3 Evaluation Tool The Palo Alto One Water Evaluation Tool facilitates the comparison of up to eight portfolios, each comprising as many as 12 options, including combinations of up to 12 water conservation measures. The Tool allows the user to develop and test the performance of the portfolios across a range of supply, conservation, and demand scenarios. The OWP uses the Tool to evaluate the portfolios described above but the Tool can also be used to evaluate new and different portfolios that may be developed and considered in the future. Figure 5.8 shows a flow chart of the Evaluation Tool data inputs, user selections and outputs, while Appendix D provides a more detailed description of the Tool and its functionalities. CITY OF PALO ALTOONE WATER PLAN 5-9 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.8 Evaluation Tool Flow Chart CITY OF PALO ALTOONE WATER PLAN 5-10 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 5.3.1 Data Inputs Data inputs to the Tool include water demand forecast scenarios, option cost estimates (including capital and O&M costs projected for each year in the projection period), option yields during normal and dry years also projected for each year in the projection period, criteria and weightings to use to evaluate the options as well as the criteria scores for qualitative criteria and sub-criteria. The qualitative sub-criteria in the OWP are: Efficient use of Water, Ecological Benefit, Implementation Timeline, Operational Complexity, and Public Acceptance. 5.3.2 User Selections Within the tool, the user makes selections regarding future scenario assumptions including demand, Palo Alto’s Shortage Stage of the Water Shortage Contingency Plan, the percentage cutback of RWS Supply for Palo Alto, and whether Valley Water exercises the transfer option. The Tool assumes supply gaps are mitigated based on the maximum planned conservation savings for the Shortage Stage selected from the implementation of Palo Alto's Water Shortage Contingency Plan. “Unplanned Supply Gap” in the Tool refers to additional supply gaps remaining beyond the planned conservation savings from the selected Shortage Stage. The user also selects the start year for each option, the reduction percentage for each water supply during dry years. The user then inputs portfolio names, selects options to include in each portfolio, selects the cost year to display and the criteria weights. The user selections used in the OWP to evaluate portfolios A through G include: . . . Demand Scenario: the medium demand scenario Dry Year Reduction: a reduction in RWS Supply of 50 percent Emergency Shortage Stage: assumed implementation of a Shortage Stage II (up to 20 percent) under Palo Alto’s Water Shortage Contingency Plan .Criteria Weights: Chapter 4, Section 4.3 presents the criteria weights selected for this OWP The OWP assumes a reduction in RWS Supply of 50 percent as the City anticipates the need to implement water use reductions in the range of 35 percent to 55 percent during droughts after the implementation of the Bay-Delta Plan. This assumption is close to the high-end of that range to plan for the largest expected cutbacks. Palo Alto has a Water Shortage Contingency Plan with six stages, including Shortage Stage V which provides for up to a 50 percent cutback. This would fully mitigate the reduction in RWS Supply through water use restrictions and customer response. However, this Shortage Stage would be very impactful to Palo Alto residents and businesses, and it would involve drought rate structures, water allocations, and severe water use restrictions. Additionally, making this assumption for analytical purposes would not yield different results across portfolios to test the water supply benefits of the different portfolios during droughts. For this reason, the OWP assumes Palo Alto implements a Shortage Stage II (up to 20 percent water savings). Given these stated assumptions, the resulting unplanned supply gap quantities are for illustrative purposes only and do not represent a dire projection for Palo Alto’s water supply. The unplanned supply gap quantities provide a comparison metric to examine which portfolio limits the unplanned supply gap CITY OF PALO ALTOONE WATER PLAN 5-11 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO to a greater or lesser degree, thus limiting the severity of severely impactful drought measures Palo Alto must implement. It should be noted that although the RWS Supply cutback assumption of 50 percent is maintained across all Portfolios, the resulting cutback volume varies by portfolio as it is assumed that it will be based on the normal year RWS Supply volume with the respective portfolio supply and conservation options implemented. For example, for Portfolio D (Enhanced Conservation Phase 1 and 2 with Groundwater), the City has a total demand of 12,546 afy in 2045. In a normal year, this portfolio includes 724 afy from Enhanced Conservation Phase 1, 618 afy from Enhanced Conservation Phase 2, and 2,250 afy from groundwater. This results in normal year RWS Supply need of 8,953 afy. During a 50 percent RWS Supply cutback, this normal year demand would be reduced by 50 percent to 4,477 afy. For ease of comparison, the portfolio evaluation keeps assumptions constant. However, the user can modify each of these key assumptions in the Evaluation Tool based upon changing conditions. In addition, Section 5.6 analyzes the sensitivity of the results to changing many of these key assumptions. 5.3.3 Tool Outputs The Tool summarizes data inputs and user selections at the portfolio level. The sections below provide an overview of each of the main outputs from the tool (Portfolio Evaluation, Portfolio Supply Summary, and Portfolio Cost Estimates). Appendix D provides screenshots illustrating the Tool interface and graphical outputs from the Tool. The subsequent Evaluation Results section 5.4 of this chapter provides the results of the Tool outputs for the portfolio evaluation as well as the portfolio supply summary, and portfolio cost estimates. 5.3.3.1 Portfolio Evaluation The portfolio evaluation is the development of weighted evaluation criteria scores for each portfolio and the comparison of weighted evaluation criteria scores across portfolios. To calculate the weighted evaluation criteria scores for each portfolio, the Tool first calculates the raw criteria score for each portfolio by combining the qualitative criteria scores for each option (user input), with the calculated quantitative criteria scores for each option (for the OWP, the quantitative criteria are Cost and Reliability and the quantitative sub-criterion is Reliance on Tuolumne). With the combined raw criteria scores, together with the assumptions and scenarios selected by the Tool user, the Tool calculates the weighted portfolio scores for each evaluation criteria by multiplying the raw criteria score for each portfolio by the user-selected criteria weighting and normalizing the score on a scale of 1 - 5. Table 5.4 and Table 5.5 present the raw and weighted criteria scores by portfolio, respectively. The weighted score for each portfolio allows the portfolios to be evaluated by comparing them to the Baseline Portfolio and comparing across portfolios. The portfolio with the highest score is the most beneficial for Palo Alto based upon the assumptions and criteria weightings specified. Additionally, the portfolio evaluation presents the weighted portfolio scores for each portfolio and for both Valley Water to exercise or not exercise the option to transfer a portion of the treated effluent from the RWQCP. For more details on the criteria weighting, see Section 4.3. CITY OF PALO ALTOONE WATER PLAN 5-12 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 5.3.3.2 Portfolio Supply Summary The Tool includes a normal and dry year supply analysis simulated for each portfolio. The normal year analysis is based on the full yield of each option, (including the usage offset yield from the Enhanced Conservation options) and the demand for RWS Supply; the Tool calculates demand for RWS Supply as the difference between the selected demand scenario (low, medium, high) and the combined yield for the supplies included in the respective portfolio. In the dry year analysis, the Tool calculates the available supply from the RWS as the normal year supply multiplied by the dry year reduction percentage selected by the user. A user-selected dry year reduction percentage is also applied to the other options, where applicable as listed in Table 5.1. 5.3.3.3 Portfolio Cost Estimates The Tool uses the cost estimates provided by the user to calculate portfolio weighted unit costs based on normal year supply conditions. The Tool can express the portfolio weighted unit costs in 2023 dollars and 2045 dollars. The weighted unit costs are projected for each year based on inflation assumptions outlined in the costs section of Chapter 3 for each option as well as in Appendix C. 5.4 Portfolio Evaluation Results The Supply Evaluation Tool was used to evaluate the seven portfolios (A through G). The results presented herein are based on the medium demand scenario, and an RWS Supply reduction of 50 percent, combined with the implementation of a Level II (up to 20 percent) Emergency Shortage. For ease of comparison, these assumptions are kept constant in the portfolio evaluations described in the following subsections. However, each of these key assumptions can be modified in the Evaluation Tool based changing conditions. In addition, the sensitivity of many of these key assumptions are analyzed and discussed separately in Section 5.6. Table 5.4 and Table 5.5 summarize the raw and weighted portfolio evaluation scores, respectively. The top three scores for each criterion and for the total score are shown in bold font. It can be concluded that Portfolio B (Enhanced Conservation Phase 1 and 2) has the highest raw score, while Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the highest weighted score. Additionally, the weighted portfolio evaluation scores are also presented graphically in Figure 5.9 and Figure 5.10. As shown, the unit cost and reliability scores are shown in red and blue, respectively, while the three environmental benefit sub criteria are shown in different shades of green. Similarly, the three ease of implementation subcategories are shown in different shades of purple. Figure 5.9 shows the results if Valley Water does not exercise the option to transfer a portion of effluent from the RWQCP, while Figure 5.10 shows the results if Valley Water does exercise the transfer option. It can be concluded that Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the highest score if Valley Water does not exercise the effluent transfer option, while Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the highest score if Valley Water does exercise the effluent transfer option. Hence, the combination of enhanced conservation and a type of DPR is the most attractive path forward to further strengthen Palo Alto’s supply reliability, independent of Valley Water’s decision of exercising the transfer option. A discussion of the portfolio evaluation results by portfolio in alphabetical order is presented in the following subsections, while a more detailed comparison between the portfolios is discussed in Section 5.5.1. CITY OF PALO ALTOONE WATER PLAN 5-13 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Table 5.4 Portfolio Evaluation Results – Raw Scores C. Enhanced Conservation Conservation with Bay Water D. Enhanced Conservation with E. Enhanced Conservation with Palo Alto DPR(2) F. Enhanced Conservation with Palo Alto IPR(2) G. Enhanced Conservation with Regional DPR(3) B. Enhanced Criteria Sub-Criteria Unit Cost A. Baseline(2) Phase 1 and 2(2) Desalination(2) Groundwater(2) Unit Cost(1) Reliability 4.73 1.00 2.00 2.00 1.00 5.00 5.00 1.71 2.32 2.21 1.43 5.96 1.00 4.09 2.68 1.86 2.86 7.40 2.93 2.43 2.32 2.39 2.15 6.86 3.50 3.97 3.07 2.21 2.93 8.21 1.32 3.90 2.73 2.21 3.07 8.01 4.06 2.56 2.60 2.21 1.99 6.80 Reliability Efficient Use of Water Ecological Benefit Reliance on Tuolumne Subtotal Environmental Benefits Implementation Timeline 5.00 4.74 3.31 4.38 3.23 3.51 4.17 Ease of Implementation Operational Complexity Public Acceptance Subtotal 5.00 5.00 4.84 4.84 3.42 4.13 4.48 4.48 3.34 3.71 3.61 4.02 4.84 4.42 15.00 25.73 14.42 27.09 10.86 23.34 13.34 25.56 10.28 25.96 11.14 24.37 13.43 26.85Total(2,3) Notes: The top three scores for each criterion and for the total score are shown in bold. (1) Based on estimated year 2045. (2) Portfolios A-F assume that Valley Water does not exercise its option (selected “No” in the Tool). (3) Portfolio G assumes that Valley Water does not exercise its option to transfer a portion of RWQCP treated effluent (selected “Yes” in the Tool). CITY OF PALO ALTOONE WATER PLAN 5-14 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Table 5.5 Portfolio Evaluation Results – Weighted Scores C. Enhanced B. Enhanced Conservation D. Enhanced E. Enhanced F. Enhanced G. Enhanced Conservation Phase 1 and 2(2) with Bay Water Desalination(2) Groundwater(2) Conservation Conservation Conservation Conservation with with Palo Alto with Palo Alto with RegionalCriteriaA. Criteria Sub-Criteria Unit Cost Weight 20% 35% 10% 10% 10% 30% Baseline(2)DPR(2) 0.70 1.39 0.31 0.22 0.29 0.82 IPR(2) 0.26 1.37 0.27 0.22 0.31 0.80 DPR(3) 0.81 0.90 0.26 0.22 0.20 0.68 Unit Cost(1) Reliability 0.95 1.00 0.60 0.23 0.22 0.14 0.59 0.20 1.43 0.27 0.19 0.29 0.75 0.59 0.85 0.23 0.24 0.21 0.68 Reliability 0.35 Efficient Use of Water Ecological Benefit Reliance on Tuolumne Subtotal 0.20 0.20Environmental Benefits 0.10 0.50 Implementation Timeline 5% 5% 0.25 0.25 0.24 0.24 0.17 0.17 0.22 0.22 0.16 0.17 0.18 0.18 0.21 0.24Operational ComplexityEase of Implementation Public Acceptance 5% 15% 100% 0.25 0.75 2.55 0.24 0.72 2.92 0.21 0.55 2.91 0.22 0.66 2.79 0.19 0.52 3.43 0.20 0.56 2.99 0.22 0.67 3.06 Subtotal Total(2, 3) Notes: The top three scores for each criterion and for the total score are shown in bold. (1) Based on estimated year 2045. (2) Portfolios A-F assume that Valley Water does not exercise its option (selected “No” in the Tool). (3) Portfolio G assumes that Valley Water does not exercise its option to transfer a portion of RWQCP treated effluent (selected “Yes” in the Tool). CITY OF PALO ALTOONE WATER PLAN 5-15 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.9 Weighted Portfolio Scores without the Valley Water Transfer option Figure 5.10 Weighted Portfolio Scores with the Valley Water Transfer option 5.4.1 Portfolio A - Baseline Portfolio A has a weighted unit cost of $2,210/af in 2023 dollars and $4,088/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (2.55) as listed in Table 5.5. This portfolio scores high (0.95) in the unit cost criteria due to the relatively low unit cost. It also scores high for ease of implementation (0.75) as this is the City’s existing potable water supply. This portfolio scores the lowest of CITY OF PALO ALTOONE WATER PLAN 5-16 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO all the portfolios (0.35) in the reliability criteria and in the environmental benefits criteria (0.5) due to its reliance on the Tuolumne River. 5.4.2 Portfolio B – Enhanced Conservation Phase 1 and 2 Portfolio B has a weighted unit cost of $2,075/af in 2023 dollars and $3,903/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (2.91) as listed in Table 5.5. The relatively low cost of conservation measures contributes to this portfolio’s top score for unit cost (1.00). Additionally, conservation measures also have a relatively high ease of implementation compared with some of the more infrastructure intensive portfolios, which leads to a high ease of implementation score for this portfolio (0.72). Although water conservation has substantial environmental benefits, the yields are limited and this contributes to the relatively low weighted criteria score for environmental benefits (0.59) and reliability (0.60). 5.4.3 Portfolio C – Enhanced Conservation Phase 1 and 2 with Bay Water Desalination Portfolio C has a weighted unit cost of $3,854/af in 2023 dollars and $6,663/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (2.91) as listed in Table 5.5. With the addition of the costly desalination plant of approximately $252 million (2023 dollars) and land acquisition estimated at $43 million (2023 dollars) and the associated high O&M cost including energy costs together totaling approximately $11 million per year (2023 dollars), this portfolio receives a low score for unit cost (0.20). This desalination plant would have a capacity of 5-mgd (4,480 AFY) which contributes to this portfolio’s high reliability score (1.43). This portfolio receives a low score in the implementation category (combined score of 0.55). Due to the long implementation timeline of the desalination plant, it should be noted that most of the added reliability benefit would not be realized until 2035 or beyond. While environmental impacts associated with a bay water desalination plant would be substantial, this portfolio would substantially reduce the City’s reliance on the Tuolumne River and this contributes to the portfolio’s relatively high environmental benefits score (0.75). 5.4.4 Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater Portfolio D has a weighted unit cost of $2,566/af in 2023 dollars and $5,330/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (2.78) as listed in Table 5.5. The conversion of the City’s emergency groundwater wells to regular operations with full treatment would add a combined yield of 2,250 AFY in addition to RWS with enhanced water conservation Phase 1 and Phase 2. Because this is a moderate yield compared to some of the larger water reuse options, and because groundwater is subject to Valley Water’s voluntary and mandatory calls for water use restrictions during drought, this portfolio receives a medium score for reliability (0.85). Treatment facilities for groundwater are costly ($23 million in 2023 dollars) and conveyance is necessary for brine disposal from the treatment process ($26 million in 2023 dollars). The unit cost of groundwater with treatment is relatively high also due to the O&M cost for treatment ($1.8 million per year), as well as the groundwater production charge imposed by Valley Water ($5.2 million per year) shown in Appendix C. This portfolio receives a relatively low score for unit cost of (0.59). This portfolio can be implemented whether or not Valley Water exercises its option to transfer a portion of treated effluent from the RWQCP. This portfolio receives a medium score in environmental benefits (0.68) and ease of implementation (0.66) compared to all seven portfolios. In other CITY OF PALO ALTOONE WATER PLAN 5-17 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO words, it does not perform very well nor very poor in any of the categories. Due to the ease of implementation compared to the other portfolios with new large local supply sources (Desal, IPR, and DPR), it should be noted that most of the added reliability benefit of this portfolio could be realized as soon as 2025. 5.4.5 Portfolio E – Enhanced Conservation Phase 1 and 2 with Palo Alto DPR Portfolio E has a weighted unit cost of $2,654/af in 2023 dollars and $4,938/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score of (3.43) as listed in Table 5.5. The addition of a Palo Alto DPR facility with a yield of 4,723 AFY would have a combined cost of approximately $105 million in 2023 dollars. Land acquisition is estimated to cost an additional $11 million and annual O&M costs including energy required for treatment would be approximately $9.4 million (2023 dollars). These costs contribute to the low to moderate unit cost (0.70). However, the reliability score is high for this option (1.39) due to the high yield that is not likely sensitive to drought cutbacks. Although, the reliability benefit of this portfolio would not be realized until 2035 or beyond due to the long implementation timeline of the Palo Alto DPR facility. This portfolio scores low on ease of implementation (0.52) and high on environmental benefits (0.82). 5.4.6 Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR Portfolio F has a weighted unit cost of $3,323/af in 2023 dollars and $6,440/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (2.99) as listed in Table 5.5. The addition of a Palo Alto IPR water purification facility, with injection wells and subsequent treatment of groundwater extracted at three existing City wells would add approximately $189 million in capital costs. Land acquisition is estimated at $7.4 million. Treatment O&M is estimated at $6 million annually with nearly $1 million in additional energy costs. Additionally, since IPR relies on pumping groundwater, it is sensitive to the projected escalation of the groundwater production charges that are estimated to cost $5.7 million annually (2023 dollars). This portfolio receives one of the lowest scores for unit cost (0.26) and also a low score for ease of implementation. However, the yield of IPR is the highest of all the alternative water supply projects at 5,150 AFY, which contributes to this portfolio’s high reliability score (1.37). This portfolio scores fairly high on environmental benefits primarily because its high yield reduces the City’s reliance on the RWS. Portfolio F can only be implemented if Valley Water elects to not exercise its option to transfer a portion of treated effluent from the RWQCP. 5.4.7 Portfolio G – Enhanced Conservation Phase 1 and 2 with Regional DPR Portfolio G has a weighted unit cost of $2,355/af in 2023 dollars and $4,552/af in 2045 dollars as listed in Table 5.7. This portfolio has a total weighted criteria score (3.06) as listed in Table 5.5. The OWP estimates that the cost of 1,763 AFY of water from a Regional DPR facility would be approximately $6 million per year (2023 dollars). Palo Alto would need to also build conveyance from the Regional DPR facility to the Palo Alto water distribution system and this would be approximately $16.4 million additional in capital costs. Despite these costs, the portfolio is one of the highest scoring for the unit cost criteria (0.81) and also scores high in the ease of implementation criteria (0.67) because Palo Alto is not the project owner and rather would work in close partnership with Valley Water on the facility. Nevertheless, the facility would have a long implementation timeline and reliability benefits would not be realized until 2040 or beyond. The portfolio receives a moderate score for reliability (0.90). This portfolio also receives a CITY OF PALO ALTOONE WATER PLAN 5-18 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO moderate score for environmental benefits (0.68). Notably, this portfolio is only possible if Valley Water opts to exercise its option to transfer a portion of the RWQCP’s treated effluent and builds a Regional DPR facility located in Palo Alto. 5.5 Portfolio Evaluation Comparisons This section describes a comparison of the portfolio evaluation results following the three key outputs from the Tool, namely the portfolio evaluation scores, the supply mix and potential for unplanned shortfalls under various RWS cutback and Shortage State declarations, and lastly the portfolio costs. This section is concluded with a summary of the results with respect to the decision of Valley Water to exercise the option to transfer a portion of the RWQCP effluent. 5.5.1 Portfolio Scores Based upon the raw criteria scores shown in Table 5.4, the highest scoring portfolios are: . . . Portfolio B (Enhanced Conservation Phase 1 and 2 Portfolio E (Enhanced Conservation with Palo Alto DPR) and Portfolio G (Enhanced Conservation with Regional DPR) Portfolios B and G score highly in the Unit Cost and Ease of Implementation Criteria, while Portfolio E has a relatively high score for Reliability and Environmental Benefits. Based upon the weighted criteria scores shown in Table 5.5, the highest scoring portfolios are: . . . Portfolio E (Enhanced Conservation with Palo Alto DPR), Portfolio G (Enhanced Conservation with Regional DPR) and Portfolio F (Enhanced Conservation with Palo Alto IPR) Portfolio E and G are top-scoring portfolios based on raw and weighted criteria, while Portfolio B is only a top-scoring portfolio with raw criteria scores. This is because Portfolio B has one of the lowest weighted criteria scores for Reliability. Portfolio B does not introduce an alternative water supply source while each of the Portfolios C through G each introduce an alternative water supply source. Based upon the weighted criteria scores, Portfolio F (Enhanced Conservation with Palo Alto IPR) rises to be one of the top three highest-scoring portfolios. This Portfolio scores higher on Reliability and Environmental Benefits relative to the other portfolios. Notably, Portfolio E and F are only feasible if Valley Water does not exercise its option to transfer a portion of the RWQCP effluent, while Portfolio G is only feasible if Valley Water Transfer does exercise the option. The reasons explaining the weighted scoring results are presented below in alphabetical order. Portfolio B – Enhanced Conservation Phase 1 and 2 Although Portfolio B (Enhanced Conservation Phase 1 and 2) is not a top-scoring portfolio looking at portfolio weighted criteria scores, the portfolio scores more highly in the Reliability criteria (0.60) compared to the Baseline Portfolio (0.35) and also scores higher for Environmental Benefits weighted criteria (0.59) compared to the Baseline Portfolio (0.50). This portfolio scores similarly in the Ease of Implementation criteria compared to the Baseline Portfolio (with a weighted score of 0.72 compared to 0.75 for the Baseline Portfolio). Additionally, Enhanced Conservation Phase 1 and Phase 2 measures are CITY OF PALO ALTOONE WATER PLAN 5-19 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO beneficial irrespective of which water supply infrastructure option Palo Alto moves forward with. For these reasons, all other portfolios (C through G) include Enhanced Conservation Phase 1 and Phase 2. Portfolio C – Enhanced Conservation Phase 1 and 2 with Bay Water Desalination Portfolio C (Enhanced Conservation with Bay Water Desalination) scores highly in the Reliability criteria, and in the Environmental Benefits criteria, despite having the lowest score in the Ecological Benefit sub-criteria. This portfolio scores more highly in the environmental benefits criteria due to the quantity of water available to supplement the RWS Supply and reduce Palo Alto’s Reliance on the Tuolumne River during dry and normal years. This portfolio receives the lowest weighted unit cost criteria score of all the portfolios and also receives one of the lowest weighted criteria scores for the ease of implementation criteria. The weighted unit cost score is the primary reason that this option performs worse in the portfolio than as a standalone option, as described at the end of Chapter 4. Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater Portfolio D (Enhanced Conservation with Groundwater) scores in the middle for all weighted criteria scores compared to all seven portfolios. The weighted score for the Environmental Benefits criteria is 0.68 which is higher than the Baseline Portfolio weighted score of 0.5. The weighted score for the Ease of Implementation criteria is 0.66, which is lower than the Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and 2) and is higher than portfolios C, E and F, which each include a large Palo Alto infrastructure project. Because this portfolio does not score highly in any particular criteria category, it is not one of the most highly scoring portfolios. Palo Alto could realize most of the added reliability benefit of this portfolio more quickly than for the water purification or desalination options. However, this option would require a RO Concentrate pipeline to be constructed from the location of the wells to the RWQCP outfall pipeline, which is a costly and time-consuming capital project. Additionally, this Portfolio utilizes city-owned park sites for installing treatment facilities and does not require additional cost and time for land acquisition. Portfolio E – Enhanced Conservation Phase 1 and 2 with Palo Alto DPR Portfolio E (Enhanced Conservation with Palo Alto DPR) has a weighted criteria score (3.43), which is the highest scoring portfolio. This portfolio has a high weighted criteria score for reliability (1.39) and is the highest scoring portfolio for the Environmental Benefits weighted criteria (0.82). This portfolio scores the lowest of all portfolios for the Ease of Implementation weighted criteria (0.52). Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR Portfolio F (Enhanced Conservation with Palo Alto IPR) has the third highest weighted criteria score (2.99). Portfolio F has the second highest unit cost of all seven portfolios (only Portfolio C Enhanced Conservation Phase 1 and 2 with Bay Water Desalination is more expensive), and therefore Portfolio F has a low weighted cost score of 0.26. However, this portfolio has a high weighted score for reliability (1.37) compared to the Baseline Portfolio benchmark of 0.35. This portfolio has a high weighted criteria score (0.80) for the Environmental Benefits criteria; this is almost as high as the highest scoring portfolio Portfolio E (Palo Alto DPR). This portfolio has a low weighted score of 0.56 for the Ease of Implementation criteria. It should be noted that a significant increase in supply reliability could likely be realized faster with Portfolio F (Enhanced Conservation Phase 1 and 2 with Palo Alto IPR) compared to Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination) or Portfolio E or G which both include DPR CITY OF PALO ALTOONE WATER PLAN 5-20 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO facilities. This is because there is an anticipated need for more extensive community outreach and additional pilot testing to optimize and verify treatment schemes for DPR versus IPR. Portfolio G – Enhanced Conservation Phase 1 and 2 with Regional DPR Portfolio G (Enhanced Conservation with Regional DPR) is the portfolio with the second highest weighted criteria score (3.06). With the Regional DPR facility, the unit cost of Portfolio G is significantly higher than the Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and Phase 2). Portfolio G has a medium unit cost compared to all seven portfolios, and therefore has a medium cost score (0.81), while this portfolio also has an above average reliability score (0.90) compared to the Baseline Portfolio benchmark of 0.35. This portfolio has a medium weighted score for the Environmental Benefits criteria (0.68) compared to other portfolios. This portfolio has a weighted score of 0.67 for Ease of Implementation, which is a higher weighted score than other portfolios that involve infrastructure projects that Palo Alto would build itself and is a lower score than the Baseline Portfolio A or Portfolio B (Enhanced Conservation Phase 1 and 2). 5.5.2 Portfolio Supply Mix and Unplanned Shortfalls Figure 5.11 provides a graphical summary from the Tool output that compares Palo Alto’s year 2045 water supply yields and demands of the seven portfolios side-by-side for a normal year conditions. Figure 5.11 Normal Year Supply and Demand Analysis by Portfolio for 2045 CITY OF PALO ALTOONE WATER PLAN 5-21 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO As shown in Figure 5.11, the amount of RWS Supply varies considerably between the portfolios, ranging from 100 percent of the forecasted demand in 2045 of 12,546 afy (medium growth scenario) in Portfolio A to as low as 6,053 afy or 48 percent of the total demand in Portfolio F. There is no unplanned supply shortfall for any of the portfolios under normal year supply and demand conditions. However, as shown in Figure 5.12, the supply and demand balance would change drastically under dry year conditions with an assumed 50 percent cutback of RWS Supply. Under these conditions, it is likely that the City would (as a minimum) declare a Shortage Stage II, which would trigger a 20 percent mandatory demand reduction per the City’s Water Shortage Contingency Plan. Figure 5.12 Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 50 percent RWS Supply Cutback Based on 2045 demand conditions, a 20 percent demand reduction would lower the normal year demand of 12,546 afy to a reduced “wet” demand of 10,037 afy. If the City’s supply from the RWS were subject to a 50 percent cutback, the City would still receive 50 percent of 12,546 AFY, which amounts to 6,273 AFY. Hence, the unplanned supply gap would be 3,764 afy (10,037-6,273) for the Baseline Portfolio A. This unplanned supply gap is depicted in Figure 5.12 with the red hatched area of the bar chart. An unplanned supply gap of 3,764 afy, equates to 30 percent of the projected normal year demand of 12,546 afy in year 2045. For analytical purposes, this analysis assumes that the City would only implement a Shortage Stage II to assess how robust each portfolio is to withstand the effects of drought. However, realistically, Palo Alto would consider implementing Shortage Stage V to target a 50 percent demand reduction if faced with a 50 percent supply reduction. Unplanned supply gaps (shown as red hatched areas in Figure 5.12 and listed in Table 5.6, range from 18 percent to 77 percent in Portfolios B through G. As listed in Table 5.6, Portfolio B accomplishes an 18 percent reduction in the unplanned supply gap relative to the baseline through the implementation of the enhanced water conservation Phase 1 and Phase 2 measures. Portfolios C, E, and F each reduce the CITY OF PALO ALTOONE WATER PLAN 5-22 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO unplanned supply gap by greater than 70 percent relative to the baseline portfolio. While Portfolios D and G achieve a 36 percent and 39 percent reduction in the unplanned supply gap, respectively, relative to the baseline portfolio. Table 5.6 Unplanned Supply Gap Volumes by Portfolio During Dry Year % Reduction in Baseline Unplanned Supply Gap Volume Unplanned Supply Gap Volume (AF)Portfolio A. Baseline 3,764 3,092 852 0% 18% 77% 36% 74% 73% 39% B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR G. Enhanced Conservation Phase 1 and 2 with Regional DPR 2,417 967 1,032 2,296 5.5.3 Portfolio Costs The Evaluation Tool also calculates and compares the weighted unit costs for each portfolio. As noted in the tool description and Appendix D, the Tool can compare unit costs for each planning year from 2023 dollars through 2045 dollars. Note that some water supply options have extended implementation timelines of a decade or more and the expression of the cost in 2023 dollars is for comparison purposes only. Figure 5.13 and Figure 5.14 resent the unit cost comparisons by portfolio expressed in 2023 dollars and 2045 dollars, respectively. These figures depict the relative contribution of the total unit cost by supply and water conservation option component. In addition, the total unit costs for each portfolio in both 2023 and 2045 dollars are summarized in Table 5.7. Table 5.7 Total Estimated Unit Cost by Portfolio Portfolio Unit Cost in 2023 dollars ($/af) Unit Cost in 2045 dollars ($/af) A. Baseline $2,210 $2,075 $3,854 $2,556 $2,645 $3,323 $2,355 $4,088 $3,903 $6,663 $5,330 $4,938 $6,440 $4,552 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR G. Enhanced Conservation Phase 1 and 2 with Regional DPR CITY OF PALO ALTOONE WATER PLAN 5-23 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.13 Weighted Unit Cost by Portfolio (2023 dollars) Figure 5.14 Weighted Unit Cost by Portfolio (2045 dollars) The following subsections provide observation about the weighted unit costs each portfolio in alphabetical order. Portfolio A – Baseline With Baseline Portfolio A, the unit cost of RWS Supply is as forecasted in SFPUC’s 10-year Financial Plan for FY 2023/24 to FY 2032/33 (SFPUC, 2023b) through year 2033 and a subsequent extrapolation of unit CITY OF PALO ALTOONE WATER PLAN 5-24 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO cost based on the average historical rate increase since 2013 applied to years 2034 to 2045. The portfolio weighted unit cost is anticipated to increase from $2,210/af in 2023 to $4,088/af in 2045. Portfolio B – Enhanced Conservation Phase 1 and 2 Portfolio B (Enhanced Conservation Phase 1 and 2) has the lowest unit cost and is the only portfolio with a lower weighted unit cost than the baseline Portfolio A. The portfolio weighted unit cost of Portfolio B is $2,075/af in 2023 dollars. This unit cost is mostly driven by the projected unit cost of SFPUC’s water deliveries ($2,210/af), and to a lesser extent by the cost of Enhanced Conservation Phase 1 ($323/af) and Phase 2 ($1,939/af). Portfolio C – Enhanced Conservation Phase 1 and 2 with Bay Water Desalination Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination) is the most expensive when expressed in both 2023 and 2045 dollars. With the addition of the costly desalination plant, with an estimated capital cost of roughly $252 million in 2023 dollars (excluding land acquisition cost), and the associate high O&M cost, the unit cost of this portfolio are significantly higher than the Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and 2). Table 3.2 shows the capital and O&M costs for Bay Water Desalination and other options. The portfolio weighted unit costs of Portfolio C are estimated to increase from $3,854/af in 2023 to $6,663/af in 2045. Portfolio D – Enhanced Conservation Phase 1 and 2 with Groundwater Portfolio D (Enhanced Conservation with Groundwater) is more expensive than the baseline in both 2023 and 2045 dollars and is more expensive than Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) and Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) in 2045 dollars. Portfolio D has a weighted average portfolio unit cost of $2,556/af in 2023 dollars and $5,330/af in 2045 dollars. Despite the much lower capital cost required for the groundwater treatment facilities ($50 million in 2023 dollars) compared to the Bay Water Desalination and Palo Alto DPR options, the unit cost of groundwater is relatively high due to the O&M cost for treatment of Fe, Mn, and TDS, as well as the groundwater production charge imposed by Valley Water. With the addition of treated groundwater, the unit cost of this portfolio is significantly higher than Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and Phase 2). Portfolio E – Enhanced Conservation Phase 1 and 2 with Palo Alto DPR Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) and Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) have a similar weighted unit cost in 2023 and 2045 dollars. For Portfolio E (Enhanced Conservation with Palo Alto DPR), with the addition of the costly advanced water treatment facility, estimated at roughly $105 million in 2023 dollars (excluding land acquisition cost) and the associated high O&M cost, the unit costs of this portfolio are significantly higher than Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and 2). Portfolio E has a weighted average portfolio unit cost of $2,645/af in 2023 dollars and $4,938/af in 2045 dollars. Portfolio F – Enhanced Conservation Phase 1 and 2 with IPR Portfolio F (Enhanced Conservation Phase 1 and 2 with Palo Alto IPR) is the second most expensive portfolio and it is relatively more expensive when expressed in 2045 dollars and gets nearly as expensive and Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination). Portfolio F CITY OF PALO ALTOONE WATER PLAN 5-25 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO (Enhanced Conservation Phase 1 and 2 with Palo Alto IPR) and Portfolio D (Enhanced Conservation with Groundwater) each become relatively more expensive when expressed in 2045 dollars due to the faster escalation of the groundwater water production charge compared to the inflation correction for the option components of the other portfolios. Portfolio F, with the addition of the costly Palo Alto IPR project (estimated at roughly $189 million in capital cost in 2023 dollars, excluding land acquisition cost) and the associated high O&M cost and groundwater production charges, the weighted unit cost of this portfolio are significantly higher than the Baseline Portfolio A and Portfolio B (Enhanced Conservation Phase 1 and 2). Portfolio F has a weighted average portfolio unit cost estimated to increase from $3,323/af in 2023 to $6,440/af in 2045. Portfolio G – Enhanced Conservation Phase 1 and 2 with Regional DPR Portfolio G has a weighted average portfolio unit cost of $2,355/af in 2023 dollars and $4,552/af in 2045 dollars. The Regional Facility in this portfolio is owned and operated by Valley Water and the Portfolio assumes Palo Alto’s cost is via an O&M payment to Valley Water to pay for the cost of treating the water that is estimated at $6 million in 2023 dollars annually while capital costs of approximately $16.4 million are primarily to pay for conveyance of the water to Palo Alto’s distribution system. 5.5.4 Valley Water Transfer Decision Figure 5.15 shows the highest scoring portfolios with green scores, the medium scoring portfolios with yellow scores, and the lowest scoring portfolios with red scores. This figure also organizes the scores based on the dependency of each portfolio on the Valley Water Transfer option decision. Key observations from the portfolio evaluation, considering the scores and cost estimates, are provided below the figure. Figure 5.15 Portfolio Evaluation Results Schematic with Valley Water Transfer trigger Portfolio B (Enhanced Conservation Phase 1 and Phase 2) is the cheapest portfolio and for this reason is the portfolio with the highest score for weighted criteria unit cost. Additionally, Portfolio B scores among the highest weighted criteria score for Ease of Implementation (the only portfolio with a higher score is CITY OF PALO ALTOONE WATER PLAN 5-26 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO the baseline). Investing in the enhanced conservation program to supplement the already planned water conservation measures and targets is beneficial, irrespective of which water supply infrastructure option Palo Alto moves forward with. However, water conservation alone is not sufficient to significantly reduce or eliminate an unplanned supply gap. Portfolio B has an overall weighted criteria score of 2.91, which is not a top scoring portfolio, however it is a higher score than the baseline. If Valley Water does not exercise its option to transfer a portion of RWQCP treated effluent, the most cost-effective and beneficial option to add to the enhanced water conservation options is the Palo Alto DPR Facility, as in Portfolio E. This portfolio has a weighted unit cost of $2,645/af in 2023 dollars and $4,938/af in 2045 dollars and would reduce the unplanned supply gap from 3,764 afy (Baseline) by 74 percent to 967 afy, this is close to the largest reduction in unplanned supply gap of any of the portfolios (which is a 77 percent reduction to 852 afy from Portfolio C (Enhanced Conservation with Bay Water Desalination). The overall weighted criteria score of this portfolio is 3.43 as shown in green in Figure 5.9, the highest score of any portfolio. If Valley Water exercises its option to transfer a portion of RWQCP treated effluent, the most cost-effective and beneficial option to add to the enhanced water conservation options is the Regional DPR Facility, as combined in Portfolio G. However, the unplanned supply gap volume would only be reduced from 3,764 afy (Baseline Portfolio) to 2,296 afy or 39 percent. The overall weighted criteria score of this portfolio is 3.06 as shown in green in Figure 5.15. Both portfolios involving DPR, Portfolios E and G, are contingent on the Valley Water option to Transfer, which is anticipated to be resolved in 9 years. Once it is known whether Valley Water will exercise its option to transfer RWQCP treated effluent, Palo Alto would likely know more information about whether Valley Water would build a DPR Regional Facility (rather than an IPR Regional Facility). If so, Palo Alto may want to explore the feasibility of the DPR Regional Facility option. Another relatively high-scoring portfolio not dependent on the Valley Water Transfer is Bay Water Desalination Portfolio C, with an overall weighted criteria score of 2.91. Although this portfolio does not depend on whether Valley Water exercise its option to transfer a portion of RWQCP effluent, Portfolio C (Enhanced Conservation with Bay Water Desalination) has a high capital cost, and high operating cost that would itself take more than a decade to permit and build. Because of these cost and time considerations, Palo Alto would likely explore this option once it is known whether Valley Water will exercise its transfer option and if Palo Alto explores the DPR Regional Facility option and finds that it is not feasible. Except for the Baseline Portfolio A, the lowest scoring portfolio that is independent on the decision of Water Valley to transfer treated effluent is Portfolio D (Enhanced Conservation with Groundwater) with an overall weighted criteria score of 2.78. This portfolio does score higher than the baseline primarily because it increases reliability. This portfolio has a higher unit cost (and lower capital cost) and would reduce the unplanned supply gap from 3,764 afy (Baseline) to 2,417 afy with a faster implementation timeline than the two DPR options. However, because of the high weighted unit cost of this portfolio both now ($2,556/af) and growing in the future to an estimated $5,330/af, Palo Alto would likely wait to explore this option once it is known if Valley Water will exercise its transfer option and also if the higher scoring DPR options are not feasible. CITY OF PALO ALTOONE WATER PLAN 5-27 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 5.6 Sensitivity and Scenario Analysis A sensitivity analysis was conducted to identify how or if the findings change when the evaluation criteria are weighted differently. In addition, the sensitivity analysis evaluates the portfolios under other supply and demand scenarios and under different RWS Supply cutback conditions and different Water Shortage Contingency Plan Stages. Table 5.8 summarizes the criteria and sub-criteria weighting used in the sensitivity analysis. The sensitivity analysis changes the criteria weighting in one criterion at a time, and all other criteria are adjusted proportionally to isolate the intended effect. The results of the sensitivity analysis are then compared as a final score across the range of weighted scorings. The findings of the sensitivity to the assumptions for the key criteria are described in the following subsections, while the results for all criteria and weighting percentages listed in Table 5.8 are included in Appendix E. Table 5.8 Range of Criteria Weighting in Sensitivity Analysis Criteria / Sub-Criteria Initial Weighting Lower Weighting Higher Weighting 50%Unit Cost 20% 35% 30% 10% 10% 10% 15% 5% 5% 20% 15% 5% Reliability 50% Environmental Benefit (total) Efficient Use of Water Ecological Benefit 45% 15% 5%15% Ecological Benefit 5%15% Ease of Implementation (total) Implementation Timeline Operational Complexity Public Acceptance 0%30% 0%10% 5%0%10% 5%0%10% 5.6.1 Unit Cost Criterion Figure 5.16 compares the results of the sensitivity analysis for the unit cost criterion for each portfolio. The sensitivity analysis adjusts the unit cost weighting from 20 percent (shown in grey bars) to 5 percent in the lower weighting scenario (green bars) and 50 percent in the higher weighting scenario (blue bars). As shown, Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the most robust results, with the highest score under the baseline scoring (3.43) as well as with lower (3.41) weighting of the unit cost criterion, while Portfolio B (Enhanced Conservation Phase 1 and 2) has the highest score with the higher unit cost criterion weighting. Among the options available to Palo Alto if Valley Water exercises its option to transfer a portion of treated effluent from the RWQCP, Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the highest score under the initial scoring (3.06), while Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination) has the highest score (3.27) under the lower weighting, and Portfolio B has the highest score (3.70) under the higher weighting. Portfolio B is the lowest cost portfolio and Portfolio C is the highest cost portfolio. These portfolios are more sensitive to changes in the weighting of the unit cost criterion. CITY OF PALO ALTOONE WATER PLAN 5-28 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.16 Results of Sensitivity Analysis for Unit Cost Criterion 5.6.2 Reliability Criterion The results of the sensitivity analysis for the reliability criterion are compared for each portfolio in Figure 5.17 . The sensitivity analysis adjusts the initial weighting from 35 percent (shown in grey bars) to 20 percent in the lower weighting scenario (green bars) and 50 percent in the higher weighting scenario (blue bars). The results are shown in Figure 5.17 . As shown, Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the most robust results, with the highest overall score under the initial scoring (3.43) as well as with lower (3.30) and higher (3.55) weighting of the unit cost criterion. Among the options available if Valley Water exercises the option to transfer a portion of treated effluent from the RWQCP, Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the highest score under the baseline scoring (3.06), while Portfolio B (Enhanced Conservation Phase 1 and 2) has the highest score (3.20) with the lower weighing, and Portfolio C has the highest score (3.19) with the higher weighting. As Portfolio C has a larger reliability score and Portfolio B has a lower reliability score, these portfolios are, therefore, sensitive to changes in the weighting of the unit reliability criterion. CITY OF PALO ALTOONE WATER PLAN 5-29 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.17 Results of Sensitivity Analysis for the Reliability Criterion 5.6.3 Environmental Benefit Criterion The sensitivity analysis for the Environmental Benefit criterion adjusts the weighting from 30 percent to 15 percent in the lower weighting scenario and to 45 percent in the higher weighting scenario. This includes adjusting each of the three sub-criteria from 10 percent to 5 percent in the lower weighting and 15 percent in the higher weighting. Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the most robust results with the highest score under all weighing scenarios. For the options available if Valley Water exercises the option to transfer a portion of treated effluent from the RWQCP, Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the most robust results with the highest score under all criteria weighting scenarios. CITY OF PALO ALTOONE WATER PLAN 5-30 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.18 Results of Sensitivity Analysis for the Environmental Benefit Criterion 5.6.4 Ease of Implementation Criterion The sensitivity analysis for the ease of implementation criterion adjusts the weighting of the ease of implementation criteria from 15 percent to 0 percent in the lower weighting scenario and 30 percent in the higher weighting scenario. This includes adjusting each of the three sub-criteria from 5 percent to 0 percent in the lower weighting and 10 percent in the higher weighting. Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) has the most robust results with the highest score under all weighing scenarios. For the options available if Valley Water exercises the option to transfer a portion of the treated effluent from the RWQCP, Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) has the most robust results with the highest score under all weighting scenarios. CITY OF PALO ALTOONE WATER PLAN 5-31 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO Figure 5.19 Results of Sensitivity Analysis for the Ease of Implementation Criterion 5.6.5 Demand Scenario The sensitivity analysis was also conducted for two other demand projections, a high demand, and a low demand. Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) had the highest score under all demand scenarios. For the options available if Valley Water exercises the option to transfer a portion of the treated effluent from the RWQCP, Portfolio G (Enhanced Conservation Phase 1 and 2 with Regional DPR) had the highest score in all demand scenarios. Hence, it can be concluded that the portfolio analysis results are not sensitive to the demand assumptions. 5.6.6 RWS Supply Cutback and Shortage Stage Scenarios In addition to the multi-criteria scoring, the added supply reliability of each portfolio varies based on the severity of the RWS Supply cutback and the water shortage stage. Palo Alto has six water shortage stages in the Water Shortage Contingency Plan – Stages I through VI that are designed to achieve water savings of up to 10 percent, 20 percent, 30 percent, 40 percent, 50 percent, and greater than 50 percent. Table 5.9 summarizes the unplanned supply gap volumes for each portfolio for the 50 percent RWS Supply cutback with the Shortage Stage II from Palo Alto’s Water Shortage Contingency Plan (as discussed in Section 5.2). Table 5.9 also summarizes supply gaps from each portfolio at a Shortage Stage III (more severe water conservation mandates) from Palo Alto’s Water Shortage Contingency Plan and a 30 percent RWS Supply cutback (less severe conditions). As shown, none of the portfolios would avoid an unplanned supply gap during a 50 percent RWS Supply cutback with a Shortage Stage II drought restrictions, with supply gaps from 3,764 afy for the baseline portfolio to 852 afy for Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination). However, if Palo Alto imposes Shortage Stage III during a 50 percent RWS Supply cutback, or if the CITY OF PALO ALTOONE WATER PLAN 5-32 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO cutback was limited to 30 percent, three of the six portfolios would provide sufficient local supply capacity to avoid an unplanned supply gap. Table 5.9 Unplanned Supply Gaps under RWS Supply Cutback and Emergency Shortages Unplanned Supply Gap (afy) 50% RWS Supply 50% RWS Supply 30% RWS SupplyPortfoliosCutback & Cutback & Cutback & Shortage Stage II Shortage Stage III Shortage Stage II A. Baseline 3,764 3,092 852 2,509 1,838 0 1,255 852 0 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Bay Water Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR 2,417 967 1,163 0 627 0 1,032 2,296 0 0 G. Enhanced Conservation with Regional DPR 1,042 410 Increasing supply reliability generally comes at an increasing cost. However, some combinations of options are clearly more cost effective than others. Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR) would be the lowest cost and best scoring portfolio of these three, while Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination) would be the most expensive portfolio while Portfolio F (Enhanced Conservation Phase 1 and 2 with Palo Alto IPR) scores in between. With a 30 percent cutback of RWS Supply, together with Shortage Stage II implementation in Palo Alto, the total supply shortfall is eliminated completely for Portfolios C, E, and F, while a smaller supply deficit remains for Portfolios A, B, D, and G as shown in Figure 5.20. Additional details for the sensitivity analysis can be found in Appendix E. Figure 5.20 Dry Year Supply and Demand Analysis by Portfolio for 2045 with a 30 percent RWS Supply Cutback CITY OF PALO ALTOONE WATER PLAN 5-33 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO 5.7 Conclusions In addition to the summary observations described in Section 5.5, there are several key conclusions from the sensitivity analysis. As there are many variables at play, the conclusions can be separated in the portfolio scoring results, supply reliability, and implementation considerations. 5.7.1 Scoring Results Portfolio E (Enhanced Conservation with Palo Alto DPR) scored the highest in the event that Valley Water does not exercise its option to transfer a portion of RWQCP treated effluent. The sensitivity analysis showed this portfolio remains the top-scoring portfolio regardless of changes in cost or reliability criteria and usually outperforms other portfolios. The only case where Portfolio E (Enhanced Conservation with Palo Alto DPR) is not the portfolio with the highest weighted criteria score is when unit cost has additional weighting. There, Portfolio B (Enhanced Conservation Phase 1 and 2) becomes the highest scoring portfolio, and the baseline portfolio scores lower (3.37) but very close to Portfolio E (3.45). In that case, the Palo Alto DPR facility is still the most favorable infrastructure investment compared with the other local supply options; however, considering the cost of the facility relative to other benefits, Palo Alto may want to continue with business as usual or implement enhanced conservation measures instead. Portfolio G (Enhanced Conservation with Regional DPR) scores the highest if Valley Water does exercise the option to transfer a portion of treated effluent from the RWQCP. However, if unit cost is weighted less heavily and supply reliability is weighted more heavily, Portfolio C (Enhanced Conservation with Bay Water Desalination) scores higher than Portfolio G if Valley Water exercises the option to transfer a portion of treated effluent from the RWQCP. If unit cost is given additional weight, Portfolio C (Enhanced Conservation with Bay Water Desalination) scores lower than all other options, including Baseline Portfolio A, while Portfolio B (Enhanced Conservation Phase 1 and 2) is the top-scoring portfolio and Portfolio G (Enhanced Conservation with Regional DPR) is the top scoring supply infrastructure portfolio. This result is also sensitive to changes in the Reliability criteria weighting. With a lower Reliability criteria weighting, Portfolio B (Enhanced Conservation Phase 1 and Phase 2) is the top-scoring portfolio, while with a higher Reliability weighting, Portfolio C (Enhanced Conservation with Bay Water Desalination) is the top-scoring portfolio if Valley Water does not exercise the option to transfer a portion of treated effluent from the RWQCP. The top scoring portfolios remain the same regardless of changes in Environmental Benefits or Ease of Implementation criteria: Portfolio E if Valley Water does not exercise the option to transfer a portion of treated effluent from the RWQCP and Portfolio G if Valley Water does exercise the transfer option. The portfolio evaluation results are also not sensitive to the demand assumptions. 5.7.2 Supply Reliability With an assumed 50 percent RWS Supply cutback and implementation of Shortage Stage III (up to 30 percent demand mandatory demand reduction), three portfolios provide sufficient local water supply to avoid an unplanned supply gap - Portfolio E (Enhanced Conservation Phase 1 and 2 with Palo Alto DPR), is the lowest cost and best scoring portfolio of these three, while Portfolio C (Enhanced Conservation Phase 1 and 2 with Bay Water Desalination) is the most expensive portfolio and the only portfolio of the three that can be implemented if Valley Water exercises the option to transfer a portion of CITY OF PALO ALTOONE WATER PLAN 5-34 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO treated effluent from the RWQCP, while Portfolio F (Enhanced Conservation Phase 1 and 2 with Palo Alto IPR) scores in between. 5.7.3 Implementation Considerations As an implementation consideration, the City plans to make the necessary improvements to convert two additional emergency wells to active stand-by mode for use during drought emergencies. This will allow the City to blend groundwater with RWS Supply during severe droughts only. In addition, improvements to the City’s groundwater-related infrastructure will provide benefits even if the City pursues other supply options in the future. The City will be able to use groundwater on a regular basis or as a supplemental supply during emergencies or in a portfolio that includes a water reuse or desal option, if sized at a smaller capacity that assumed in this OWP. Additionally, as an implementation consideration, if Palo Alto plans to implement Conservation Phase 1 and 2. Additional analysis and exploration of the feasibility, staffing and cost of the measures included in these Phases and refinement of those measures may be needed. For IPR, DPR, and the Bay Water Desalination options, Palo Alto would need to develop and implement community outreach strategies to achieve public acceptance. Although IPR regulations have been adopted in California for over a decade, and IPR projects have been widely implemented across California and other places in the US and the world, this supply option would be new to Palo Alto's customers. Before moving forward with a project that would involve IPR, it would be customary to conduct a community engagement campaign to gather information about public concerns and gauge the level of public acceptance for IPR. Similarly for Bay Water desalination, although Desalination has been implemented at various locations in California for decades and ocean desalination is widely implemented across the US and the world, Bay Water Desalination would be new to the customers of Palo Alto. Before moving forward with a project that would involve Ocean Desalination or IPR, it would be customary to conduct a community engagement campaign to gather information about public concerns and gauge the level of public acceptance for Ocean Desalination or IPR. Considering that SFPUC is planning efforts for DPR options, there may be opportunities to collaborate with SFPUC, BAWSCA and others to develop a regional stakeholder engagement and community outreach program. Benefits could include but are not limited to cost saving due to economies of scale, sharing of resources, levering technical and engagement expertise, and minimizing stakeholder fatigue and confusion if multiple parallel efforts would be launched in the same geographic area for similar topics and projects., Since the California DPR regulations were only recently adopted in December 2023, there are no active DPR projects yet in the state of California. However, DPR has been implemented in other states (e.g., Texas since 2014) and other parts of the world (e.g., Namibia since 1968). Before implementing DPR, this option would be considered very innovative in California at this time; it is likely that the City would first conduct a broad community engagement campaign to gather information about public concerns and gauge the level of public acceptance. Chapter 6 describes the OWP recommendations and provides more details regarding implementation. CITY OF PALO ALTOONE WATER PLAN 5-35 CHAPTER 5 OCTOBER 2024 / FINAL / CAROLLO -This Page Intentionally Left Blank- CITY OF PALO ALTOONE WATER PLAN 5-36 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO CHAPTER 6 ONE WATER IMPLEMENTATION PLAN This chapter begins by summarizing the prioritized water supply and conservation portfolios discussed in Chapter 5. Next, a trigger-based implementation roadmap is presented to guide the City with decision-making as conditions will continue to evolve in the future. This chapter concludes with specific recommended implementation actions and next steps. 6.1 Prioritized Portfolios This One Water Plan (OWP) analyzed seven portfolios (A-G) with different combinations of the highest ranked water supply and conservation options (options) that are described in Chapter 3 and evaluated in Chapter 4. Portfolio A (Baseline) represents the traditional “Do Nothing” or “Business as Usual” alternative, exclusive of any new options. However, this baseline includes the City’s already-planned water conservation measures aimed at achieving the targets set forth in the Making Conservation a California Way of Life water use efficiency legislation. Portfolios (B-G) each include different combinations of options. These six portfolios were each compared to the Baseline Portfolio (A). As described in detail in Chapter 5, each portfolio was evaluated based on the four following evaluation criteria: . . . Environmental Benefit is scored for three sub-criteria including Reduced Reliance on the Tuolumne River, Efficient Use of Water and Ecological Benefits. Unit Cost is scored based on the projected unit cost expressed in dollar per acre-foot ($/af) of each portfolio using the capacity weighted unit cost of all options in the respective portfolio. Reliability is scored based on results of the dry year supply analysis for each portfolio using the unplanned supply gap expressed in acre-foot per year (afy) during a 50 percent reduction in water deliveries to Palo Alto from the Regional Water System (RWS). .Ease of Implementation is scored based on three sub-criteria: Implementation Timeline, Operational Complexity, and Public Acceptance. The raw portfolio scores for each of the evaluation criteria are multiplied by the criteria weighting to get a weighted score for each portfolio. Additionally, a sensitivity analysis was conducted to identify the portfolios that are especially sensitive to changes to the weighting of the evaluation criteria and other supply and demand scenarios to confirm that the recommended portfolios are robust across a range of future conditions as well as changes to community priorities and values. A summary of the options included in each portfolio is presented in Table 6.1. The portfolios were compiled in a progressive manner using the highest scoring options first (Enhanced Conservation Phase 1 and 2) and then adding the other supply options in order of the highest evaluation score, but also considering the total additional supply needed to fill the projected remaining supply gap in 2045 under a 50 percent supply cutback scenario from the RWS and only implementing Stage II from the City’s Water Shortage Contingency Plan. As all other options besides Enhanced Conservation are relatively large supply projects, each portfolio only includes one additional option. CITY OF PALO ALTOONE WATER PLAN 6-1 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Table 6.1 Overview of Options included in each Portfolio Enhanced Conservation Phase 1 and Phase 2 DPR withPortfolioRWS Supply Bay Water Desalination Ground Palo Alto Palo Alto Regional water DPR IPR Facility A. Baseline X B. Enhanced Conservation Phase 1 and 2 X X XC. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR X X X X X X X X X X X X X G. Enhanced Conservation Phase 1 and 2 with Regional DPR X Notes: DPR = Direct Potable Reuse; IPR = Indirect Potable Reuse; RWS = San Franciso’s Regional Water System. Table 6.2 summarizes the weighted portfolio scores, yield, and unit cost by portfolio in both 2023 and 2045 dollars. It should be noted that the Tool used for the portfolio analysis can also display the escalated unit cost for any year between 2023 and 2045. As shown in Table 6.2, four (4) of the seven (7) portfolios are not sensitive to the decision of Valleyas Water to exercise the option to transfer effluent. If exercised, this would provide sufficient supply for the DPR with Regional Facility option included in Portfolio G. However, if this option is not exercised, Palo Alto would retain sufficient wastewater effluent to implement either the Palo Alto DPR of IPR options included in Portfolios E and F, respectively. Table 6.2 Portfolio Evaluation Summary Valley Water Transfer Option Exercised Weighted Portfolio Score(1) Yield (afy)Unit Supply Cost ($/af) Portfolio Names Normal Dry 2023 2045 year year dollars dollars(2) A. Baseline.not sensitive not sensitive 2.55 2.92 0(1)0(1)$2,210 $2,075 $4,088 $3,903B. Enhanced Conservation Phase 1 and 2 1,342 5,823 1,342 C. Enhanced Conservation Phase 1 and 2 with Bay Water Desalination D. Enhanced Conservation Phase 1 and 2 with Groundwater E. Enhanced Conservation Phase 1 and 2 with Palo Alto DPR F. Enhanced Conservation Phase 1 and 2 with Palo Alto IPR not sensitive not sensitive only without only without only with 2.91 2.79 3.43 2.99 3.06 5,823 3,143 5,829 5,978 3,023 $3,854 $2,556 $2,645 $3,323 $2,355 $6,663 $5,330 $4,938 $6,440 $4,552 3,592 6,065 6,492 3,111G. Enhanced Conservation Phase 1 and 2 with Regional DPR 1) The weighted portfolio score in the Evaluation Tool is based on the portfolio weighted unit costs in 2045 dollars. 2) The Baseline Portfolio solely relies on imported water from the SFPUC via its RWS supply system, combined with already-planned water conservationprograms that are not included in the Enhanced Conservation measures as described in Chapter 3. Figure 6.1 shows the weighted scores summarized in Table 6.2 with a breakdown of the different portfolio evaluation categories. The unit cost and reliability scores are shown in red and blue, respectively, while the three environmental benefit sub-criteria are shown in different shades of green. Similarly, the three ease of implementation subcategories are shown in different shades of purple. CITY OF PALO ALTOONE WATER PLAN 6-2 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Figure 6.1 Comparison of Weighted Portfolio Evaluation Scores. As shown in Figure 6.1, all portfolios score higher than the Baseline, making the “Do Nothing” alternative the least attractive portfolio based on the combined scores and the size of the projected supply shortfall under various RWS cutback scenarios. Moreover, Portfolios B through G all included Enhanced Conservation Phase 1 and Phase 2 because of the favorable individual option evaluation scores presented in Chapter 4. Since Enhanced Water Conservation is beneficial in all conditions, it is a high priority to develop further and implement. As such, both Enhanced Conservation Phase 1 and Phase 2 are included in all portfolios except the Baseline (A). Figure 6.1 also shows that Portfolio E (Enhanced Conservation with Palo Alto DPR) scores the highest, with the added reliability being a major contributor to the overall score. However, this portfolio would only be implemented if Valley Water decides not to exercise its option to transfer a portion of treated effluent from the Regional Water Quality Control Plant (RWQCP). As it is anticipated that this decision will not be until the end of 2032, Palo Alto could consider other portfolios in the interim that do not depend on this decision. The portfolio with the highest combined weighted score that is not dependent on Valley Water’s transfer option decision is Portfolio B (Enhanced Water Conservation Phase 1 and 2), followed by Portfolio C (Enhanced Water Conservation with Bay Water Desalination. The highest scoring portfolio if Valley Water exercises the option to transfer a portion of treated effluent from the RWQCP is Portfolio G (Enhanced Conservation with Regional DPR). This option is also dependent on Valley Water opting to build a Regional DPR facility located in Palo Alto (rather than an IPR facility that is currently envisioned). CITY OF PALO ALTOONE WATER PLAN 6-3 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO In summary, the portfolios are prioritized based on the combined weighted multi-criteria scores and the Valley Water transfer option decision as follows: . . . Portfolio B: Enhanced Conservation Phase 1 and 2 only (independent of Valley Water Transfer option decision). Portfolio E: Enhanced Conservation Phase 1 and 2 with the addition of a local Palo Alto DPR facility (only feasible if Valley Water does not exercise the transfer option). Portfolio G: Enhanced Conservation Phase 1 and 2 with the addition of a Regional DPR facility (only feasible if Valley Water does exercise the transfer option and opts to build a Regional DPR facility located in Palo Alto). 6.2 Trigger-Based Implementation When prioritizing the options described in this OWP and compiled in the various portfolios, it is important to acknowledge that many of the underlying planning assumptions and conditions present today are likely to evolve and change over time. For example, the forecasted water demand presented in the medium growth forecast may materialize faster or slower depending on economic, demographic, and regulatory conditions. These types of changes should be monitored over time to adjust project implementation timelines. However, these types of changes likely impact timing but not the choice between two or more options. Events and conditions that can have an impact on the prioritization of options are referred to as "triggers." Due to the complexity and magnitude of the options identified and evaluation as part of this OWP, there are several potential unforeseen conditions and trigger events. This means the proposed portfolios presented herein should only be taken as preliminary and may change. Moreover, some options may neither be feasible nor required under future circumstances. By identifying the primary trigger events for the highest scoring options and portfolios, it is possible to create a trigger-based implementation roadmap. The two major triggers that were identified for this OWP that could impact the decision on moving forward with one or more of the options are: 1. Need to Increase Supply Reliability 2. Valley Water Transfer Option These triggers are described in the following subsections. It should be noted that funding is not included as a trigger because sufficient funding is a common requirement for all projects. Although insufficient funding can certainly postpone, downsize, or eliminate projects, it was decided that funding should be considered as an implementation challenge rather than a trigger. Also important is public acceptance of IPR, DPR, and Bay Water Desalination. The challenge of public acceptance of these water reuse and desalination options exists whether or not Palo Alto elects to do any of the options considered in the OWP. This is because the San Francisco Public Utilities Commission (SFPUC) is currently evaluating the possibility of including DPR and/or Desalination in the RWS portfolio. Palo Alto plans to work collaboratively and actively with both SFPUC and the Bay Area Water Supply and Conservation Agency (BAWSCA) to incorporate messages and information about these topics into outreach materials. CITY OF PALO ALTOONE WATER PLAN 6-4 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO 6.2.1 Trigger 1: Increase Supply Reliability The decision on whether the City needs to further increase its supply reliability is contingent upon the following key considerations: 1. The forecasted water demand is based on anticipated growth due to demographic changes, development, real estate market conditions, economic factors, and regulatory conditions such as the allowance of accessory dwelling units (ADUs) and/or parcel subdivisions. 2. The forecasted supply availability and reliability of imported water delivered by the SFPUC via its RWS. The portfolio analysis presented in this OWP is based on a maximum cutback of 50 percent from Palo Alto’s baseline allocation together with the implementation of Shortage Stage II from Palo Alto’s Water Shortage Contingency Plan (WSCP), targeting a demand reduction of 10-20 percent. This is a conservative assumption for the purpose of comparing the robustness of each of the portfolios to drought. To illustrate the impact of this assumption, the changes in the projected supply shortfall with both a 50 percent and a 30 percent cutback are shown in Table 6.3. 3. The City’s existing water conservation program, thus excluding the Enhanced Conservation measures of this OWP, is projected to decrease water demands of the City’s service population in 2020 by approximately 500 afy in 2045 (Palo Alto, 2021). If these measures result in either more or less water use reduction, the projected remaining supply gap under the assumptions mentioned above would decrease or increase, respectively. Hence, the success of the ongoing water conservation program will impact the City’s need to increase water supply reliability. 4. The implementation of one or more local water supply options, such as the options evaluated in this OWP, would decrease the magnitude and risk of a potential supply shortfall. The combination of these factors described above needs to be considered in the trade-off decision process to determine if the City needs to increase its water supply reliability with the addition of other local options. As shown in Table 6.3, the projected supply shortfall for the Baseline Portfolio is 3,764 afy during a 50 percent RWS cutback with implementation of Emergency Stage II. However, the unplanned supply gap is estimated to be reduced to 2,509 afy with the implementation of Stage III or to 1,255 afy if the RWS cutback was limited to 30 percent. Moreover, it can be concluded that none of the other portfolios (B-G) would avoid an unplanned supply gap during a 50 percent RWS cutback with an Emergency Shortage Stage II. However, if Palo Alto imposed Emergency Shortage Stage III during a 50 percent RWS supply cutback, or if the cutback were limited to 30 percent, three of the six portfolios would provide sufficient local supply capacity to avoid a supply shortfall. Hence, the trigger question “Does the City need to increase its supply reliability?” is strongly dependent on the type and duration of a potential RWS cutback, which the City aims to prepare for. CITY OF PALO ALTOONE WATER PLAN 6-5 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Table 6.3 Projected Unplanned Supply Gap under various RWS Cutback and Shortage Scenarios Projected Remaining Unplanned Supply Gap (afy) Portfolios 50% RWS cutback 50% RWS cutback 30% RWS cutback & Stage II 3,764 3,092 852 & Stage III & Stage II A. Baseline 2,509 1,838 0 1,255 852 0 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Bay Water Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR 2,417 967 1,163 0 627 0 1,032 2,296 0 0 G. Enhanced Conservation with Regional DPR 1,042 410 6.2.2 Trigger 2: Valley Water Transfer Option Per the agreement dated November 18, 2019 (Palo Alto 2019c), the Valley Water Effluent Transfer Option involves a contractual obligation for Palo Alto and Mountain View to transfer a minimum flow delivery of an annual average of 9 mgd of effluent from the RWQCP to Valley Water. The agreement provides Valley Water 13 years (from 2019 to 2032) to decide whether to exercise the Effluent Transfer Option. If Valley Water exercises the option, Valley Water may elect to develop a Regional Purification facility to purify the water and use it for beneficial use in Santa Clara County south of Mountain View. A final decision is not anticipated until 2032. Table 6.2 summarizes the weighted portfolio scores, yield, and unit cost by portfolio in both 2023 and 2045 dollars. It should be noted that the Tool used for the portfolio analysis can also display the escalated unit cost for any year between 2023 and 2045. As shown in Table 6.2, four (4) of the seven (7) portfolios are not sensitive to the decision of Valley Water to exercise the option to transfer effluent. If exercised, this would provide sufficient supply for the DPR with the Regional Facility option included in Portfolio G. However, if this option is not exercised, Palo Alto would retain sufficient wastewater effluent to implement either the Palo Alto DPR or IPR options included in Portfolios E and F, respectively. Table 6.2, four of the seven portfolios are not impacted by the execution of Valley Water’s transfer option under this agreement because the options included in these portfolios can be implemented with or without the Valley Water Transfer in place. However, the following options and portfolios are dependent on this trigger as follows: .Palo Alto DPR in Portfolio E (Enhanced Conservation with Palo Alto DPR). This portfolio can only be implemented if Valley Water does not exercise the Effluent Transfer Option as the transfer would limit the amount of wastewater flows still available for reuse to approximately 1.9 mgd by 2045, including redirecting permanent dewatering flows. If Valley Water exercises the Effluent Transfer Option, this portfolio would not be feasible. Hence, the Palo Alto DPR option should only be set in motion once Valley Water makes a final decision to not exercise the Effluent Transfer Option. .Palo Alto IPR in Portfolio F (Enhanced Conservation with Palo Alto IPR). Similar to Palo Alto DPR, this portfolio can only be implemented if Valley Water does not exercise the Effluent Transfer Option. Although the addition of up to 3,000 afy of groundwater in the IPR option would allow for a larger project than the Palo Alto DPR option, it was concluded that if Valley Water exercises the Effluent CITY OF PALO ALTOONE WATER PLAN 6-6 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Transfer Option, this portfolio would not be feasible. Hence, the Palo Alto IPR option should only be set in motion once Valley Water makes a final decision to not exercise the Effluent Transfer Option. .Regional DPR in Portfolio G (Enhanced Conservation with Regional DPR). This portfolio can only be implemented if the Valley Water Effluent Transfer Option is exercised, and Valley Water builds a regional DPR facility located in Palo Alto. Palo Alto should maintain close communication and partnership with Valley Water to be aware of Valley Water’s plans. This approach would allow Palo Alto to advance a water supply option if a beneficial solution can be developed in partnership with Valley Water’s Regional Purification facility. Implementation of water supply projects and water conservation programs typically requires broad public support, especially projects involving significant investments of rate payers’ money, new construction, the use of new treatment technologies for the existing customer base, potential changes in water quality characteristics, potential environmental impacts, among other factors. Regardless of whether Palo Alto considers IPR, DPR, or desalination options, it is essential to develop outreach strategies to gain public acceptance. Unique conditions for IPR, DPR, and Desalination are addressed in Chapter 5 section 5.7.3 Implementation Considerations. 6.3 Trigger-Based Implementation Roadmap A trigger-based implementation roadmap was developed to guide the City of Palo Alto with prioritization and the decision-making processes for future option implementation. These options are all new local water supply concepts and new water conservation measure concepts. No action or decision is being recommended at this time regarding the implementation of any of these options. The purpose of identifying these options is to increase local supply reliability in the event of a prolonged outage or reduction in imported water deliveries from the RWS. Should one of these conditions arise, the options can be further evaluated as needed. The One Water Plan (OWP) screened 27 options through a two-step process (pre-screening and screening as described in Chapter 3) and used this process to narrow the options to 15. The OWP then evaluated the remaining 15 options against four evaluation criteria and this process narrowed the options to seven for inclusion in portfolios (Chapter 4 provides a detailed description of the evaluation criteria and option evaluation). The OWP also evaluated the portfolios against the evaluation criteria to select the highest- scoring portfolios (Chapter 5). Additionally, the City conducted workshops with City staff, stakeholder meetings with community members and regional partners, and provided updates to the Utility Advisory Commission (UAC). Although some of the options did not score favorably at this time under the current screening and evaluation criteria, it should be noted that such options may be viable if conditions change. The implementation of the options and/or portfolios described in this OWP is also dependent on the occurrence of certain triggers. To guide the City’s future decision-making, a trigger-based implementation roadmap was developed, which is graphically depicted in Figure 6.2. As shown in Figure 6.2, the trigger-based implementation roadmap follows a pathway indicated by the blue arrows pointing to triggers described in Sections 6.2.1 and 6.2.2, leading to trigger decisions that are shown as orange diamonds. Each trigger is a key decision point that leads to different pathways depending on the answer to the trigger question with either a YES or NO. Note that in reality, the answers are not binary, and some grey areas will exist. CITY OF PALO ALTOONE WATER PLAN 6-7 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Figure 6.2 Trigger-Based Implementation Roadmap 1. The “Increase Supply Reliability?” trigger occurs multiple times in the pathway as the City may want to revisit this decision after implementing new options to verify if the City’s total supply portfolio meets the reliability goal needs or if additional local water supplies are needed. The new local supply and conservation options are depicted in blue boxes. The sequence of the options along the pathway reflects the portfolio evaluation findings presented in Chapter 5. The triggers and pathways of decisions regarding these options are depicted in Figure 6.2. As noted earlier, this trigger-based implementation roadmap is a simplified version of many decisions, and priorities can change in the future as the underlying conditions, assumptions, and triggers evolve over time. Additionally, other triggers, such as land availability and political will, are likely part of the decision-making process. Moreover, multiple triggers can change at the same time, opening a variety of pathways. Despite its simplification, the purpose of the trigger-based implementation roadmap is to lead the City to the options with the highest scores first, followed by lower scoring options. As triggers and conditions such as technological advancements and cost escalation rate of the groundwater production charge (GPC) can change priorities, it is critical that the city reconsider the benefits of all options that are impacted by these changes when deciding to move forward with the implementation of any of these options. For example, technological advancements in both treatment technologies and energy efficiency would make all options involving advanced treatment score higher and possibly more attractive than options that score higher at the time of this OWP development. CITY OF PALO ALTOONE WATER PLAN 6-8 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO 6.3.1 Enhanced Conservation Phase 1 and Phase 2 Water conservation measures included in Enhanced Conservation Phase 1 result in a higher weighted criteria score and lower unit cost ($323/af) than the measures included in Phase 2 ($1,939/af). The OWP concluded that Enhanced Conservation measures could be implemented in phases, such that the City would start with adding the Phase 1 water conservation measures that are estimated to cost less and are generally considered easier to implement, before adding the Phase 2 measures. These water conservation measures are described in detail in Chapter 3, while the gradual increase to the projected combined yield of 1,332 afy over time is shown in Figure 6.3. These enhanced water conservation measures are in addition to the ongoing water conservation program activities aimed to reduce per capita water use to comply with the statewide regulation for “Making Water Conservation a California Way of Life” (DWR, 2017). Figure 6.3 Projected Yield Trajectory of Enhanced Conservation Phase 1 and 2. 6.3.2 Groundwater As the combined yield of the Enhanced Water Conservation Phase 1 and 2 is estimated to be 1,332 afy once all measures have reached the full saturation, this option would not be sufficient to meet the projected remaining supply gap of 3,764 afy under a 50% RWS cutback and Stage II shortage scenario (see Table 6.3). Knowing the City is planning to implement the option to blend groundwater with RWS supply during emergencies, if the answer to the “Increase Supply Reliability?” trigger question remains YES, the next recommended option involving groundwater would be to install Iron, Manganese, and Total Dissolved Solids treatment at two of the City’s existing emergency supply groundwater wells to repurpose the wells for regular potable use as described in Portfolio D (Enhanced Conservation and Groundwater). Continuous operation of the groundwater wells would require treatment to improve the taste and odor of the water to the level Palo Alto customers are accustomed to (see the groundwater treatment options discussed in Chapter 3). This option is estimated to yield 2,250 afy. The Valley Water groundwater production charge would apply to each unit of groundwater pumped. CITY OF PALO ALTOONE WATER PLAN 6-9 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO 6.3.3 Direct Potable Reuse Options If the City decides that public acceptance for a local DPR project would be achievable with a community engagement and education campaign, the status of Valley Water’s decision on whether to exercise the Effluent Transfer Option will determine which type of DPR project is most beneficial and cost-effective for the City. 1. If Valley Water does not exercise the Effluent Transfer Option, the City would have sufficient wastewater flows to implement DPR with a Palo Alto Treatment Facility with an estimated yield of 4,723 afy under normal year conditions and 4,487 afy under dry year conditions. Hence, once this project is in place, the City would have more than sufficient local supply to meet the unplanned supply gap under a 50 percent RWS cutback and Shortage Stage II conditions. However, the capacity of this option could potentially be reduced depending on the success of already planned and the enhanced water conservation measures. Portfolio E (Enhanced Conservation and Palo Alto DPR) is the top-scoring portfolio if Valley Water does not exercise the Effluent Transfer Option. 2. If Valley Water exercises the Effluent Transfer Option, Palo Alto would not have sufficient wastewater flows to implement DPR with a Palo Alto treatment facility. In this case, if Valley Water also decides to build a Regional DPR facility located in Palo Alto, working with Valley Water on a Regional DPR option for Palo Alto, as described in Portfolio G, is the highest scoring portfolio. As described in Chapter 3, the Regional DPR facility would have an estimated yield for Palo Alto of 1,769 afy under normal year conditions and 1,681 afy under dry year conditions. Hence, once this project is in place and the Enhanced Conservation Phase 1 and Phase 2 measures have reached saturation, the City would have increased its local water supply by 3,111 afy, nearly enough local supply to meet a 3,764 afy remaining supply gap. 6.3.4 Other Options 3. Although the other options involving IPR, Bay Water Desalination, and Groundwater Treatment scored lower overall than the two DPR options, the City could also decide to implement any of these options when conditions change. For example, if there is urgency to develop local water supplies while there is uncertainty about whether Valley Water will exercise the Effluent Transfer Option, the implementation priority of the other options is as follows based on the multi-criteria evaluation described in Chapter 5: 1. Indirect Potable Reuse (Portfolio F with a weighted score of 2.99) 2. Bay Water Desalination (Portfolio C with a weighted score of 2.91) 3. Groundwater with Treatment (Portfolio D with a weighted score of 2.79) The triggers and pathways of these options are depicted in Figure 6.2. As noted earlier, this trigger-based implementation roadmap is a simplified version of many decisions, and it is likely that multiple pathways can be chosen. By updating the underlying assumptions, cost estimates, and scoring periodically, the City can use this trigger-based implementation roadmap concept for adaptive plan implementation. The OWP considered all other water supply and conservation options and either pre-screened or screened out those options through the process described in Chapter 3. Appendix B describes pre-screened out options in more detail while Chapter 3 details options removed through the screening process. These options include new irrigation wells, DPR with Palo Alto Facility and Small Salt Removal Facility, CITY OF PALO ALTOONE WATER PLAN 6-10 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO Non-Potable Reuse with Phase 3 expansion, graywater capture and reuse, residential rainwater capture, green stormwater infrastructure, and multi-source storage. 6.4 Next Steps The One Water Plan presents a 20-year adaptable roadmap of prioritized options that provides an achievable path toward meeting the City’s water supply and water conservation goals. When implemented, the selected combination of options may mitigate the impact of future water supply uncertainties such as severe multi-year drought or changes in climate, water demand, and regulations. As stated in Chapter 1, the two main work products of the OWP effort are 1) the OWP document, and 2) an Excel-based tool that can be used to evaluate and prioritize water supply and water conservation portfolios now and as future uncertainties are resolved. The City is already planning the following activities: 1. Continue with planned water conservation program activities to meet the Making Conservation a California Way of Life water use efficiency targets. 2. Make the necessary improvements to get the two emergency groundwater wells (El Camino Well and Eleanor Park Well) on active stand-by mode with proper valving, controls, and blending equipment for use during droughts and/or emergencies. These improvements would allow the City to operate the groundwater wells concurrently with RWS water supply as future conditions warrant. 3. Continue to monitor external funding opportunities from Federal, State, or Local grant funding and loan programs that could provide an opportunity to make any of the supply and conservation options more affordable. 4. Continue to coordinate with BAWSCA, SFPUC, and Valley Water regularly to learn from their outreach and education efforts about the public acceptance of water reuse options and desalination options. The OWP recommends the following actions to enhance the City’s water supply reliability that reflect the priorities of the City, as well as the input received from regional partners and the community during the stakeholder engagement process utilities for the development of this Plan: 1. Start with the planning and exploration of the Enhanced Water Conservation measures included in Phase 1 including but not limited to the following: a. Outdoor Irrigation Efficiency for Commercial, Industrial, or Institutional (CII) Properties. b. 3-Day Watering Week. c. Non-Functional Turf Ban for CII Properties. d. Lawn Limitation for New Development and Major Retrofits. e. Low-Income Residential High Efficiency Toilet (HET) Replacement Program. 2. Once the Enhanced Conservation Phase 1 program activities are set in motion, start with the planning and exploration of the Enhanced Conservation Phase 2 measures, namely: a. Lawn Limitation for Residential Properties upon Resale. b. HET Replacement Program for CII Properties. c. City Landscaping Support for Turf Replacement. CITY OF PALO ALTOONE WATER PLAN 6-11 CHAPTER 6 OCTOBER 2024 / FINAL / CAROLLO 3. Incorporate education and monitoring of the level of support for IPR, DPR, and/or Bay Water Desalination in Palo Alto’s community outreach and engagement activities in close collaboration with SFPUC, BAWSCA, and other regional agencies and neighboring agencies. 4. Update the option cost estimates, and Excel-based Evaluation Tool assumptions as new information becomes available and periodically update the portfolio analysis to confirm or adjust the trigger-based roadmap implementation plan. 5. Prepare a conceptual feasibility study for the DPR, IPR, Bay Water Desalination, and/or Groundwater Treatment option(s) once there is more clarity on which of these larger supply options may be implemented in the future (if any). A feasibility study could include, but is not limited to: .Facilities Planning: Conduct a more detailed technical analysis to size infrastructure components, develop treatment process options, prepare conceptual site plans, identify land acquisition or lease agreement needs, and develop a list of special studies required to further advance the project, such as geotechnical, hydrogeological, and water quality analysis to name a few. . . Cost Estimating: Utilizing the additional information from the facilities planning, refine cost estimates to a Class 5 level (-50% or +100%) or Class 4 level (-10% to +30%) as appropriate. Funding and Financing: Identify potential Federal, State, and Local funding and grant options. Evaluate/prioritize these options and decide on the timeline to apply for the most attractive programs, considering the timelines to obtain and use the funds, administration cost, and overall competitiveness. . . Inter-agency Agreements: Depending on the option, one or more inter-agency agreements may be needed for the use/discharge of flows, brine discharges, energy use, land easements, collaborative stakeholder/community engagement program(s), etc. Environmental Documentation Needs: Based on the facilities planning effort, identify the appropriate environmental documentation pathway under the California Environmental Quality Act (CEQA) and/or National Environmental Policy Act (NEPA). Bigger projects likely require a full Environmental Impact Report (EIR) or could be bundled in a Programmatic EIR under CEQA. Moreover, identify the potential stakeholders that need to be engaged early to avoid potential delays, prepare an overall timeline for the Environmental Documentation process as this can span multiple years and obtain a budget estimate to incorporate in the funding strategy. .Permitting Needs: Based on the facilities planning effort, identify the appropriate permits that are likely required from local and state agencies, such as the State Water Resources Control Board (SWRCB), including the Division of Drinking Water (DDW) as well as other agencies like the San Francisco Bay Regional Water Quality Control Board (RWQCB), California Department of Fish and Wildlife (CDFW), and Caltrans as applicable. Identify the essential documentation needed to start the permitting process and develop an approximate timeline and budget estimate to obtain the most critical permits. .Stakeholder and Community Outreach: Based on the City’s understanding of the level of support for the proposed project from the ongoing educational and monitoring activities, it may be prudent to develop and implement a dedicated community engagement campaign, possibly in collaboration with Valley Water, BAWSCA and/or SFPUC. CITY OF PALO ALTOONE WATER PLAN 6-12 OCTOBER 2024 / FINAL / CAROLLO APPENDIX A REFERENCES CITY OF PALO ALTOONE WATER PLAN APPENDIX A APPENDIX A OCTOBER 2024 / FINAL / CAROLLO APPENDIX A REFERENCES (AWWA, 2023)American Water Works Association. Website with Factsheet on Ammonia What Every Operator Should Know. Information obtained in June 2023. https://www.awwa.org/Portals/0/AWWA/ETS/Resources/AWWA's%20Ammonia%20Fac t%20Sheet.pdf (B&V, 2021) (B&C, 2021) Black and Veatch, Advanced Water Purification System - Basis of Design Report, Prepared for the City of Palo Alto. November 2021. Brown and Caldwell, Countywide Water Reuse Master Plan (CoRe Plan). Prepared for Valley Water, June 2021. (Carollo, 2000)Carollo Engineers, 2000. Long Term Water Supply Plan. Prepared for the City of Palo Alto. May 2000. (Carollo, 2018a) (Carollo, 2018b) (Carollo, 2021) (Carollo, 2023a) Carollo Engineers, Inc., One Water LA 2040 Plan prepared for the City of Los Angeles, April 2018. Carollo Engineers, Inc., One Water LA 2040 Plan prepared for the City of Los Angeles, April 2018, Technical Memorandum 5.1 Appendix G Tables G12 – G20. Carollo Engineers, Inc., One Water 2050 Plan (Draft) prepared for the City of South Pasadena, CA. November 2021 Carollo Engineers, Countywide Potable Reuse Study prepared for the City of Santa Barbara, November 2023a. (Carollo, 2023b) (DWR, 2017) Carollo Engineers, Inc., Water, Recycled Water, and Wastewater Master Plan Updates prepared for Elsinore Valley Municipal Water District, August 2023. California Department of Water Resources, Making Water Conservation a California Way of Life, Implementing Executive Order B-37-16, April 2017. (CDM Smith, 2015) (EPA, 2018) CDM Smith, Inc. Long Term Reliable Water Supply Strategy - Strategy Phase II Final Report, prepared for the Bay Area Water Supply & Conservation Agency (BAWSCA). February 2015. Environmental Protection Agency (EPA), Life Cycle and Cost Assessments of Atmospheric Water Generation Technologies and Alternative Potable Water Emergency Response Options, EPA, 2018 https://pasteur.epa.gov/uploads/10.23719/1503094/AWG_LCA_Report_Final.pdf (EPA, 2021)Environmental Protection Agency (EPA), Atmospheric Water Generation Research – Evaluating technologies that produce potable water from air. January, 2021. https://19january2021snapshot.epa.gov/water-research/atmospheric-water- generation-research_.html. (Homes Directory, 2023) (Maddaus, 2022) Historical Housing Market for Palo Alto, CA, 2023. https://www.newhomesdirectory.com/California/Palo_Alto/historical-housing-report Maddaus Water Management, Inc., in collaboration with Brown and Caldwell (B&C) and Western Policy Research. Regional Water Demand and Conservation Projections Update. Draft. Prepared for Bay Area Water Supply & Conservation Agency (BAWSCA) November 17, 2022 CITY OF PALO ALTOONE WATER PLAN A-1 APPENDIX A OCTOBER 2024 / FINAL / CAROLLO (NOAA, 2018) (OSHA, 2023) National Oceanic and Atmospheric Administration (NOAA) Climate Data Online: Palo Alto Rainfall Data from 2000 to 2018. Occupational Safety and Health Administration Standard Number 1910.141 – Sanitation. Information obtained in June, 2023 https://www.osha.gov/laws- regs/regulations/standardnumber/1910/1910.141#1910.141(c)(1)(i) (Pacific Institute, 2020)Economic Evaluation of Stormwater Capture and its multiple benefits in California, March 2020. https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0230549 (Palo Alto, 2005) (Palo Alto, 2006) Palo Alto Monthly Wastewater Flows, July 2005. Final EIR, City of Palo Alto Emergency Water Supply and Storage Project, SCH #2006022038 (Palo Alto, 2008)City of Palo Alto, December 2008. Recycled Water Facility Plan. https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/water- quality/final_palo_alto_rwmp_dec08.pdf (Palo Alto, 2017) (Palo Alto, 2018a) City of Palo Alto, 2017. 2017 Water Integrated Resources Plan. January 2017. City of Palo Alto, Feed to an Advanced Water Purification Facility. May 2018. (Palo Alto, 2018b)City of Palo Alto, Graywater Laundry to Landscape Workshop. https://www.valleywater.org/news-events/events/graywater-laundry-landscape- workshop-palo-alto. December 2018. (Palo Alto, 2018c) (Palo Alto, 2018d) City of Palo Alto, July 2018. Preliminary Design Report. City of Palo Alto City Council Minutes, August 20, 2018. https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/00-archive/2018/08-20-2018- final-ccm-minutes.pdf (Palo Alto, 2019a)City of Palo Alto, Green Stormwater Infrastructure Plan. 2019 https://www.cityofpaloalto.org/files/assets/public/public-works/environmental- compliance/stormwater-wpg/green-stormwater-infrastructure- gsi/cpa_gsi_plan_document_2019_final_rev2_lr.pdf.. (Palo Alto, 2019b) (Palo Alto 2019c) City of Palo Alto, Wastewater service connection charges utility rate schedule s-5, September 2019. https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/rates- schedules-for-utilities City of Palo Alto, City Council Staff Report ID #10627, Water Reuse Agreement with Valley Water, November 18, 2019. https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10627-mini-packet- 11182019.pdf (Palo Alto, 2021) (Palo Alto, 2022a) City of Palo Alto, 2020 Urban Water Management Plan and Water Shortage Contingency Plan, June 2021. https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/uwmp/2020-uwmp_final- submission-to-dwr.pdf City of Palo Alto, 2022. Comprehensive Plan 2030. Adopted by City Council November 2017, amended December 2022. CITY OF PALO ALTOONE WATER PLAN A-2 APPENDIX A OCTOBER 2024 / FINAL / CAROLLO https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/3.-comprehensive-plan/comprehensive-plan/full-comp-plan-2030_with- dec19_22-amendments.pdf. (Palo Alto, 2022b)City of Palo Alto,2023-2031 Housing Element, December 2022. https://paloaltohousingelement.com/wp-content/uploads/2022/12/Palo-Alto-Housing- Element-2023-2031.pdf (Palo Alto, 2023a) (Palo Alto, 2023b) City of Palo Alto correspondence with Carollo. New DPR Option with SSRF, 6/23/2023 email from Lisa Bilir to Madison Rasmus. City of Palo Alto, 2022 Sustainability and Climate Action Plan (S/CAP). Adopted by City Council June 5, 2023. https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2022-scap- report_final.pdf (Palo Alto,2023c)City of Palo Alto, 2023. Watershed Protection – Apply for a Rain Barrel Rebate. https://www.cityofpaloalto.org/Departments/Public-Works/Watershed- Protection/Stormwater-Rebates/Rain-Barrels. Last updated January 2023. (Palo Alto, 2023d) (Palo Alto, 2023e) City of Palo Alto, Commercial wastewater collection and disposal utility rate schedule s- 2, July 2023f. https://www.cityofpaloalto.org/files/assets/public/v/5/utilities/rates- schedules-for-utilities City of Palo Alto, Historical Billing data on City Park Water Usage from 2018 to 2022. January 2023. (Palo Alto, 2023f) (Palo Alto, 2023g) (Palo Alto, 2023h) (Palo Alto, 2023k) City of Palo Alto, Addendum to Guaranteed Feed Memo. March 2023. City of Palo Alto. Current and Projected SFPUC Supply Costs for Palo Alto, 2023. City of Palo Alto, Waterfluence Data CII Savings. 2023 City of Palo Alto, Website information regarding the Rain Barrel Rebate. Information obtained in June, 2023 https://www.cityofpaloalto.org/Departments/Public- Works/Watershed-Protection/Stormwater-Rebates/Rain-Barrels (Palo Alto, 2023l) (Palo Alto, 2023m) City of Palo Alto, Project correspondence with Carollo regarding project construction bids for WMR 29 (June, 2023) and WMR 27 (June, 2019). 2023 City of Palo Alto, Website information regarding the Landscape Rebate Program. Information obtained in June, 2023 https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/bill- inserts/landscape_ad_v01.pdf (Palo Alto, 2023n) (Palo Alto, 2024a) City of Palo Alto, Staff Report 2308-1863 Approval of Financing Plan for Local Salt Removal Facility at the Regional Water Quality Control Plant, October 16, 2023 https://cityofpaloalto.primegov.com/meeting/document/2844.pdf?name=Item%2010% 20Staff%20Report City of Palo Alto, Website information regarding Smart Metering Program. Information obtains in January 2024. https://www.cityofpaloalto.org/Departments/Utilities/Customer-Service/Meter- Reading-Info-Schedule/Advanced-Metering-Infrastructure-and-Smart-Grid (SFPUC, 2018)San Francisco Public Utilities Commission, San Francisco Graywater Design Manual for Outdoor Irrigation. 2018. https://www.urbanfarmerstore.com/wp- CITY OF PALO ALTOONE WATER PLAN A-3 APPENDIX A OCTOBER 2024 / FINAL / CAROLLO content/uploads/2021/05/6_Graywater-L2L_RGW3-Graywater-Design-Manual- SFPUC.pdf. September 2018. (SFPUC, 2021)San Francisco Public Utilities Commission, 2020 Urban Water Management Plan for the City and County of San Francisco. April 2021. https://www.sfpuc.org/sites/default/files/documents/UWMP%20Public%20Review%20 Draft%2004012021%20FINAL.pdf. (SFPUC, 2023a) (SFPUC, 2023b) San Francisco Public Utilities Commission. Fiscal Year 2023-2024 Wholesale Water Rates. May 9, 2023. https://sfpuc.sharefile.com/share/view/se733246b7afe457080762bfc20b8fe2b. San Francisco Public Utilities Commission,. SFPUC 10-Year Financial Plan FY 2023-2024 to FY 2032-2033. February 2023. https://sfpuc.org/sites/default/files/about-us/policies-reports/FY24-10-Year-Financial- Plan-Report.pdf (SFPUC, 2024) (SWRCB, 2018) San Francisco Public Utilities Commission, Alternative Water Supply Plan. February 2024. https://sfpuc.org/sites/default/files/about-us/policies- reports/AWS%20Report%20Feb2024_web.pdf. State Water Resources Control Board, Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary. Dec 12, 2018. https://www.waterboards.ca.gov/plans_policies/docs/2018wqcp.pdf (SVI, 2020)Silicon Valley Institute for Regional Studies. Palo Alto Business & Economic Activity, May 2020. https://jointventure.org/images/stories/pdf/palo-alto-report-2020-05.pdf (Todd Groundwater, 2018)Todd Groundwater in association with Woodard and Curran, 2018. Northwest County Strategic Plan, Groundwater Assessment and Indirect Potable Reuse Feasibility Evaluation and Implementation Strategy. Prepared for the City of Palo Alto and Santa Clara Valley Water District. November 2018. https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=64573.3&BlobID=68051 (Valley Water, 2019) (Valley Water, 2021) Valley Water in partnership with the cities Palo Alto and Mountain View, Agreement to Advance Resilient Water Reuse Programs in Santa Clara County. December 10, 2019. Santa Clara Valley Water District 2021 Groundwater Management Plan for the Santa Clara and Llagas Subbasins, November 2021. https://s3.us-west- 1.amazonaws.com/valleywater.org.us-west-1/s3fs-public/2021_GWMP.pdf (Valley Water, 2022)Valley Water, Protection and Augmentation of Water Supplies for FY 2022-2023. February 25, 2022. https://www.valleywater.org/sites/default/files/2022-02/2022-02- 18_2022%20PAWS%20Report_for%20online%20version-compressed.pdf. (Valley Water, 2023a) (Valley Water, 2023b) Valley Water (VW, Desalination as a Potential Water Supply in Santa Clara County Presentation, March 2023. Valley Water, 2024-2028 Five-Year Capital Improvement Program, July 2023. https://s3.us-west-1.amazonaws.com/valleywater.org.us-west-1/s3fs-public/2023- 07/CIP_Tab-02_071923_MN.pdf CITY OF PALO ALTOONE WATER PLAN A-4 APPENDIX A OCTOBER 2024 / FINAL / CAROLLO (Valley Water, 2023c) (Valley Water, 2023d) Valley Water, Protection and Augmentation of Water Supplies, 52nd Annual Report, February 2023. https://online.flipbuilder.com/tkap/jyxl/ Valley Water, Website with FAQs regarding Purified Water – Information regarding energy usage and brine disposal. Information obtained in June 2023. .https://beheard.valleywater.org/purifiedwaterproject/widgets/34076/faqs#question610 6 (Valley Water, 2023e) (Valley Water, 2024) Valley Water, Website with information regarding Valley Water’s Graywater Rebate. Information obtained in June 2023. https://www.valleywater.org/saving-water/rebates-surveys/graywater-rebate Valley Water News, Website information regarding Residential Graywater Systems. Information obtained in May, 2024. https://valleywaternews.org/2019/03/21/graywater-direct-install-program-helps- disadvantaged-communities-reuse-water/ (WaterReuse, 2012) (W&C, 2019) WaterReuse Association, Seawater Desalination Costs, January 2012. Woodard & Curran, Recycled Water Strategic Plan Report, Northwest County Recycled Water Strategic Plan. Final Report. Prepared for the City of Palo Alto and Valley Water. July 2019. https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/water- quality-control-plant/recycled-water/2021/rw-strategic-plan-rpt_vol1_body.pdf (W&C, 2023), (W&C, 2017) Woodard & Curran, Preliminary Finance Plan for the Advanced Water Purification System Phase 1. Prepared for the City of Palo Alto. April 2023. Woodard & Curran, 2017, Northwest County Recycled Water Strategic Plan Presentation. https://watereuse.org/wp-content/uploads/2017/04/RMC-Woodard-and-Curran-_Bay- Area-WateReuse-Prese-Palo-Alto-Recycled-Water-Strategic-Plan.pdf CITY OF PALO ALTOONE WATER PLAN A-5 OCTOBER 2024 / FINAL / CAROLLO APPENDIX B SUPPLY OPTIONS PRE-SCREENING CITY OF PALO ALTOONE WATER PLAN APPENDIX B APPENDIX B OCTOBER 2024 / FINAL / CAROLLO APPENDIX B OPTIONS PRE-SCREENING 1.1 Introduction A total of 27 options were initially identified for consideration as a part of the One Water Plan. These options were subjected to a pre-screening process that removed options if they were either 1) already ongoing or planned or 2) if they were deemed not feasible at this time. Table B-1 provides the initial prescreening results. The following sections provide a description of the eight (8) options that were removed because of the prescreening process as well as the justification for removal. The 15 options remaining (shown as “pass” in Table B-1) after this pre-screening process were subjected to the screening process described in Chapter 3. Table B-1 Summary of Option Prescreening Pre-ScreeningCategory Conservation Option Results Ongoing Pass Planned/Ongoing Conservation Efforts Enhanced Conservation – Phase 1 Enhanced Conservation – Phase 2 Pass Advanced Metering Program Ongoing Ongoing Pass Distribution System Water Loss Reduction GroundwaterGroundwater Water Reuse New Irrigation Wells Pass Non-Potable Reuse (NPR), Phase 3 Extension to Foothills Direct Potable Reuse (DPR) with Palo Alto Treatment Facility DPR with Regional Treatment Facility DPR with Palo Alto Treatment and Small Salt Removal Facility Indirect Potable Reuse (IPR) with Groundwater Injection IPR with Lagunita Groundwater Recharge Graywater Capture and Reuse Pass Pass Pass Pass Pass Removed Pass Blackwater Capture and Reuse Removed PassStormwater Capture Residential Rainwater Capture and Use Green Stormwater Infrastructure RWS Imported Water Pass Imported Water Pass Valley Water Treated Water Removed CITY OF PALO ALTOONE WATER PLAN B-1 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO Pre-Screening ResultsCategoryOption Interagency Transfer Agreement Removed Removed Removed Removed Pass Tuolumne River Purchases Atmospheric Water Generators Local Storage Other Multi-Source Storage Bay Water Desalination, Distributed or Centralized Temporary Dewatering Sites Permanent Dewatering Sites Pass Removed Removed(1) Notes: (1) Eliminated as a standalone alternative, will be considered as a component of reuse projects. 1.2 Planned/Ongoing Conservation Efforts Description The City has been engaged in a series of conservation and efficiency efforts, including the preparation of the 2020 Urban Water Management Plan and Water Shortage Contingency Plan (Palo Alto, 2021). Water conservation efforts are coordinated and implemented in partnership with agencies such as Valley Water and BAWSCA to offer programs to Palo Alto customers including the following: Valley Water Program Partnerships Water Wise Survey Program: Offered in partnership with Valley Water, this survey informs and educates consumers on how to use less water for landscaping and within the home. o The DIY indoor Water Wise Survey portion includes a survey kit and guides to enable customers to check their homes for leaks and other efficiency improvements. The outdoor Water Wise Survey includes a comprehensive, professional irrigation consultation. o   Landscape Rebate Program: Provides rebates to convert high-water use landscapes to low- water landscapes, stormwater rebates, and irrigation upgrades. WaterSmart Home Water Use Report Program: The City delivers monthly home water use reports through WaterSmart to residential properties enabling them to compare their water use to other similar households and receive personalized tips. Customers can also log into the WaterSmart portal to learn more about their usage patterns.   Submeter Rebate Program: Aides in converting mobile home and apartment complexes from a master water meter to individual submeters. Waterfluence Irrigation Budget Program: Waterfluence provides a suggested monthly irrigation budget for commercial sites with dedicated irrigation meters. The budgets are based on site specific characteristics such as landscape type and local weather data. CITY OF PALO ALTOONE WATER PLAN B-2 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO Large Landscape Survey: Professional landscape irrigation surveys for commercial, industrial, institutional, and multi-family complex customers with over one-half acre of landscape area. The survey provides recommendations for improving system efficiency. BAWSCA Program Partnerships BAWSCA maintains a Regional Water Conservation program which the City of Palo Alto participates in. Examples of program elements include educational public workshops to promote smart water practices, and general technical assistance to member agencies. Justification for Removal The existing conservation programs have been removed from consideration due to these already being implemented. Instead, two phases of further conservation efforts have been identified and will be considered in the OWP. 1.3 Advanced Metering Program Description Advanced metering infrastructure (AMI) entails the installation of “smart” technology to utilize radio and cell signal telecommunications to detect and transmit utility meter data. The City of Palo Alto is currently in the process of installing AMI to the approximately 20,000 water service connections within its service territory. AMI infrastructure is anticipated to be fully implemented for City electric, water, and gas meters by 2025. AMI infrastructure will allow consumers to monitor their hourly near-real-time consumption data via the WaterSmart portal. The City will also send out automated continuous use alerts to customers to notify them of potential leaks. Justification for Removal This alternative was removed from consideration because the program is already in the process of being implemented. With full implementation for AMI infrastructure already planned, there is no additional expansion opportunities for this project within the OWP. 1.4 Distribution System Water Loss Reduction Program Description Non-revenue water is the difference between the amount of water purchased (from SFPUC in this case) and the amount sold to consumers. This difference is usually due to water metering inaccuracies in the water system, system flushing, firefighting water, and pipe leakage. In 2023, Palo Alto completed a review of non-revenue water and determined meter inaccuracies accounted for the majority of non-revenue water and that pipe leakage was relatively low. Justification for Removal This alternative was removed from consideration because this program is already underway and will be maintained by the City in coming years. There are no additional expansion opportunities for this project within the OWP. CITY OF PALO ALTOONE WATER PLAN B-3 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO 1.5 IPR, Lagunita Groundwater Recharge Description The alternative would include construction of an IPR facility and associated infrastructure to transport purified water to Lagunita, located on Stanford University campus. Water in Lagunita percolates into the underlying groundwater basin and the new water supply would be used for additional recharge. In turn, the City could withdraw more water supply from the groundwater basin. Justification for Removal Successful implementation of this project requires participation from both the City and Stanford University. Using a new water source in Lagunita would also require consultation and approval from United States Fish and Wildlife Service (USFWS) and California Department of Fish and Wildlife (CDFW). Lagunita was originally a naturally occurring vernal pool, now modified and managed as an ephemeral wetland, that already provides groundwater recharge from local runoff and supplemental local water sources. At this time, Stanford has concerns about pursuing the use of Lagunita as a recharge basin using other water sources, primarily due to environmental and legal concerns. Lagunita currently supports California tiger salamanders, a federal and state-protected species. Lagunita is a focal point of Stanford’s Habitat Conservation Plan, with state consistency determination; a series of permits to Stanford from the USFWS and CDFW. Lagunita also supports more than 400 additional native species of amphibians, reptiles, mammals, birds, fungi, invertebrates, and plants. Discussions with Stanford regarding the feasibility of using reclaimed water to partially fill Lagunita have occurred in the past, for the purposes of this One Water Plan, other water reuse options were pursued instead. 1.6 Blackwater Capture and Use Description This alternative includes the on-site reuse of blackwater either on a customer-scale or at City facilities. Blackwater is wastewater from toilets. An onsite blackwater system commonly treats the water to non- potable reuse standards for use in on-site irrigation. This alternative would include City-provided rebates for customer-installed blackwater systems as well as system installations at City facilities such as fire stations, community centers, and libraries. Justification for Removal This alternative was removed from consideration due to operational and regulatory complexities as well as potential depletion of wastewater flows to the Regional Water Quality Control Plant which would reduce the treated effluent available for possible water reuse options. A blackwater system is effectively a small- scale wastewater treatment plant, requiring multiple treatment processes and continuous monitoring. Ineffective operation and maintenance of these systems could lead to public health concerns. There would likely need to be dedicated staff to maintain the City-installed systems and a comprehensive level of public outreach and education to implement customer-scale systems. By focusing on larger-scale water reuse, the City would achieve a higher volume of water reuse per FTE of city staff. CITY OF PALO ALTOONE WATER PLAN B-4 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO Should blackwater be considered in the future, it ideally would be implemented in conjunction with adjacent cities/utilities. Having a regional, coordinated, effort would reduce burden on local staffing and provide more coordinated local ordinances to facilitate the use of non-traditional water sources, such as blackwater. 1.7 Valley Water Treated Water Description This alternative would extend the existing Valley Water treated water distribution system by constructing the West Pipeline to connect to the RWS and serve Palo Alto at the Page Mill turnout. Palo Alto would purchase potable water from Valley Water and receive it via the West Pipeline connection. Valley Water manages the Santa Clara County groundwater and produces and delivers treated drinking water to retail agencies throughout the county. In addition to groundwater, their water portfolio includes State Water Project (SWP) and Central Valley Water Project water as well as local reservoirs. Valley Water anticipates reliable water supply through 2040 (Palo Alto, 2017). Justification for Removal Ultimately, development and implementation of this project is not within the City’s control at this time and would require a regional effort with many collaborating agencies to initiate. In addition, Valley Water’s existing supply portfolio will also be challenged with similar climate change-exacerbated issues and prioritizing serving their existing customers. The 2017 WIRP analysis found that Valley Water is unlikely to have water available to sell to Palo Alto in dry years and the cost of constructing the West Pipeline, should it be borne solely by Palo Alto, would be significantly more expensive than other water options. 1.8 Interagency Transfer Agreement Description A specific project is not defined, but this would include purchasing additional water from another water agency and constructing the necessary infrastructure, similar to the Valley Water Treated Water supply alternative. Justification for Removal This alternative was removed from consideration because it is not within the City’s control to initiate a transfer agreement. Additionally, other local suppliers are likely to be facing similar future supply issues as Palo Alto (via RWS) will face. 1.9 Tuolumne River Purchases Description An option proposed during the stakeholder process is Tuolumne River water rights purchases. This entails approaching farmers or others to purchase water released for fish in Tuolumne River. CITY OF PALO ALTOONE WATER PLAN B-5 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO Justification for Removal Further investigation revealed that this alternative would not provide new supply to the City. Rather, purchasing these water rights is an environmental action to protect fish habitat in the Tuolumne River. 1.10 Atmospheric Water Generators Description This alternative includes the on-site use of Atmospheric Water Generators (AWGs) either on a customer- scale or at City facilities. This alternative would include City-provided rebates for customer-installed AWGs as well as system installations at City facilities such as fire stations, community centers, and libraries. AWGs range from home-based units that can produce 1 to 20 liters of water per day to commercial-scale units capable of 1,000 to over 10,000 liters per day. Water production rates are highly dependent upon the air temperature and the amount of water vapor (i.e., humidity) in the air. The most commonly used AWG systems employ condenser and cooling coil technology to pull moisture from the air in the same way a household dehumidifier does. Although significant quantities of energy can be required to operate these condenser and fan systems, recent technological advancements have substantially improved the energy-water ratio (EPA, 2021). Justification for Removal This alternative was removed from consideration due to high unit cost and low water yield. A 2018 EPA report performed a life cycle cost assessment of a range of AWGs. Home scale AWGs yield 1 to 20 L/day and commercial scale AWGs yield 1,000 to 10,000 L/day, which equates to approximately 0.3 to 3 afy (EPA, 2018). The subsequent unit cost is around $100,000/af, significantly higher than other options being considered. 1.11 Local Storage Description A specific project is not defined, but this would include building surface storage within the City's boundaries and/or a local watershed. This could be larger-scale underground or above ground storage for stormwater or recycled water. Justification for Removal There were no additional local storage ideas identified aside from the multi-source storage and Lagunita storage (via IPR) which were addressed as separate alternatives. Therefore, it was decided that storage options were adequately addressed in other alternatives that moved forward in the screening process. CITY OF PALO ALTOONE WATER PLAN B-6 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO 1.12 Temporary Dewatering Sites Description Shallow groundwater in the City leads to frequent instances of dewatering necessitated when a basement is constructed. In some instances, the City utilizes the water for localized reuse and fill stations during a dewatering project (WIRP). Dewatering is permitted from April through Oct (to avoid overflowing the storm drain system) and allowed for a 12-week duration plus a 2-week startup per site. Exceptions are granted under special circumstances and must be permitted by the City. 461 AF of water was produced from 15 sites that were dewatered from July 2019 to Aug 2020. Only 6 AF of this water was reused. (W&C, 2020a). This temporary dewatering alternative would propose utilizing all, or a larger portion of, the water from existing temporary dewatering sites for City park irrigation. Justification for Removal The alternative was removed from consideration due to lack of local control, high cost, and environmental concerns. This alternative does not provide the City a with locally controlled source of supply. Typically, these are residential construction projects on private property so the yield would be inconsistent and up to the discretion of the property owner to a degree. In addition, because these sites are all over the City, trucking would be required to move the water to areas for use. It is estimated to cost approximately $73,000 to haul 2.8 AF of water, resulting in a unit cost of approximately $26,000/AF for truck trips only, significantly higher than other options being considered. (W&C, 2020a) Although this option will not be carried forward for consideration in this Plan, it is recommended the City continue encouraging local reuse for these projects as there is considerable local support. 1.13 Permanent Dewatering Sites Description Due to the shallow groundwater table, there are two permanent dewatering sites within the City, located at the Oregon Expressway and at Palo Alto City Hall. The Oregon Expressway is located at the Oregon Expressway underpass (at the intersection of the Oregon Expressway and Alma Street) and owned and operated by Santa Clara County. Annual discharge has ranged from 103 to 179 MG/year since 2016. Average daily flow between 0.3 to 0.5 MGD over the same time period. Discharge is highest from February to July and lowest in December and January. Flows are conveyed to the stormwater system and ultimately discharged to the Bay. (W&C, 2020a) The City Hall site (located at Palo Alto City Hall) is owned and operated by the City. There are no flow records, but it is assumed that flows are approximately the same as Oregon Expressway site. This alternative would redirect the discharge from both of these sites to the sewer system flowing to Palo Alto’s Regional Water Quality Control Plant (RWQCP). This additional water source would increase flows for a future potable reuse project. CITY OF PALO ALTOONE WATER PLAN B-7 APPENDIX B OCTOBER 2024 / FINAL / CAROLLO Justification for Removal This alternative is being removed from consideration as a singular option but will remain in the water supply portfolios considered as a component of the water reuse project(s) carried forward. Because this supply will ultimately be used to augment water reuse projects, it will be considered as additional flow to these selected projects. CITY OF PALO ALTOONE WATER PLAN B-8 OCTOBER 2024 / FINAL / CAROLLO APPENDIX C COST ESTIMATING DETAILS CITY OF PALO ALTOONE WATER PLAN APPENDIX C Summary 2023 Costs Imported SFPUC* Conservation Groundwater Water Reuse Desalination Enhanced Enhanced Conservation, Phase 2 Emergency Well Conversion Full Treatment DPR, Palo Alto Facility with SSRF IPR, Groundwater Injection DPR, Palo Alto Facility Non Potable Reuse Bay Water DesalinationConservation, Phase 1 DPR, Regional Facility OWP Capital Cost ($) Treatment Conveyance Pump Stations Storage Tank Injection Well $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $23,132,965 $26,143,000 $64,723 $26,517,236 $10,345,323 $3,460,571 $8,194,056 $0 $0 $5,324,997 $5,555,533 $1,944,837 $4,605,050 $0 $52,754,827 $57,646,675 $2,638,532 $624,723 $1,480,400 $60,027,579 $6,849,565 $0 $251,832,599 $0$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,286,400 $0 $0 $0 $420,073 $0 $0 $0 $6,446,109 $68,824,318 $188,900,000 $7,400,000 $196,300,000 $0 $0 Mark-ups & General Requirements Capital Cost Excluding Land Acquisition Land Acquisition Cost Included $49,760,760 $0 $56,733,887 $105,251,073 $11,463,000 $116,720,000 $9,117,126 $16,410,000 $0 $31,466,953 $48,897,370 $7,400,000 $56,300,000 $80,169,543 $148,510,000 $0 Included $251,832,599 $43,560,000 $295,400,000$49,770,000 $16,410,000 $148,510,000Total Capital Cost (rounded) Operations & Maintenance (O&M) Cost ($) Treatment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,811,749 $8,975,193 $7,397 $223,122 $90,863 $81,913 $0 $0 $2,007,583 $1,783 $53,774 $45,045 $19,742 $0 $6,012,364 $30,065 $141,558 $988,458 $0 $358,400 $74,903 $447,087 $117,044 $0 $9,827,073 Conveyance $0 $4,780 $0 Pump Stations, Except Energy Costs Energy Costs $0 $0 $0 $99,964 Included in Cost of Water $1,281,486 Storage Tank $0 $0 $0 $0 $0 $0 $0 Injection Wells $0 $5,172,000 $0 $0 $0 $96,692 $5,671,960 $0 $0 Groundwater Pumping Charge Wellhead Treatment $0 $0 $0 $0 $0 $0 $0 Cost of Water $24,267,125 $0 $0 $6,044,840 $0 $0 $0 Average Lifetime Staffing and Program Costs $0 $188,176 $190,000 $639,142 $640,000 $0 $0 $0 $0 $0 $0 $0 $24,270,000 $7,090,000 $9,380,000 $6,050,000 $2,130,000 $12,950,000 $1,000,000 $11,110,000Total OWP O&M Cost (rounded) 1 Summary (AF) Imported SFPUC Conservation Groundwater Water Reuse Desalination Units Enhanced Enhanced Conservation, Phase 2 Emergency Well Conversion Full Treatment DPR, Palo Alto Facility with SSRF IPR, Groundwater Injection DPR, Palo Alto DPR, Regional Facility Facility Non Potable Reuse Bay Water DesalinationConservation, Phase 1 Cost Escalation Programmatic Cost Programmatic Cost Cost Escalation Cost Escalation Cost Escalation Cost Escalation Cost Escalation Cost Escalation Cost EscalationCost Method Method Estimate Estimate Method Method Method Method Method Method Method Total Capital Cost Capital Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $49,760,760 $0 $105,257,000 $11,463,000 $7,592,804 $16,410,000 $0 $48,900,000 $7,400,000 $3,662,396 $188,900,000 $7,400,000 $148,510,000 $0 $251,832,599 $43,560,000 $19,215,712 $ $ $ Land Acquisition Cost Amortized Capital and Land Cost Total Annual O&M Cost Groundwater Production Charge O&M Cost $3,408,068 $1,067,494 $12,769,597 $9,660,789 $0 $24,267,125 $0 $0 $188,176 $0 $0 $639,142 $0 $5,172,000 $1,811,749 $99,964 $0 $0 $0 $5,671,960 $6,213,260 $1,054,780 $0 $0 $ per Year $ per Year $ per Year $9,305,267 $74,733 $6,049,640 $270,999 $1,897,644 $45,045 $909,679 $82,592 $9,827,073 $1,281,486Energy Cost Total Unit Cost Total Annual Cost $24,267,125 $188,176 $639,142 $10,491,781 $16,972,804 $7,117,134 $5,605,085 $25,709,597 $10,570,467 $30,324,272 $ per Yr Acre Feet per YearProject Yield 10,982 $0 582 $0 330 $0 2,250 $1,515 $2,299 $805 4,723 $1,608 $0 1,769 $603 $0 630 $5,813 $0 5,150 $2,480 $1,101 $1,206 $205 1,100 $8,783 $0 4,480 $4,289 $0 Capital Cost Unit Cost GPC Unit Cost $ per AF $ per AF $ per AF $ per AF $ per AF $0 $0 $0 O&M Unit Cost $2,210 $0 $323 $0 $1,939 $0 $1,970 $16 $3,420 $153 $4,024 $3,012 $71 $827 $75 $2,193 $286Energy Unit Cost Total Unit Cost $44 $2,210 $323 $1,939 $4,663 $3,594 $8,897 $4,992 $9,610 $6,768 Note: Energy cost estimate for DPR, Regional Facility is a separate estimate and is not additive to O&M estimate; energy cost estimate for DPR, Palo Alto Facility and Emergency Well Conversion Full Treatment includes pump station energy costs while the energy costs of treatment are included with other O&M costs. Future Cost Basis 2045 Imported Conservation Groundwater Water Reuse Desalination Units Enhanced Conservation, Phase 1 Enhanced Conservation, Phase 2 Emergency Well Conversion Full Treatment DPR, Palo Alto Facility with SSRF IPR, Groundwater Injection DPR, Palo Alto DPR, Regional Non Potable Reuse Bay Water DesalinationSFPUCFacilityFacility Total Capital Cost Capital Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $53,304,971 $0 $159,050,554 $17,321,380 $11,473,247 $29,450,626 $0 $73,891,257 $11,181,908 $5,534,131 $240,333,553 $9,414,867 $188,946,193 $0 $380,536,347 $65,822,151 $29,036,261 $ $ $ Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost $3,650,808 $1,915,805 $16,246,493 $12,291,221 Groundwater Production Charge O&M Cost $0 $49,517,551 $0 $0 $418,502 $0 $0 $1,421,444 $0 $19,262,570 $4,029,311 $159,607 $0 $0 $0 $21,124,618 $13,818,221 $1,684,115 $0 $0 $ per Year $ per Year $ per Year $20,694,811 $119,323 $13,454,332 $432,691 $4,220,340 $71,921 $2,023,115 $131,871 $21,855,303 $2,046,084Energy Cost Total Unit Cost Total Annual Cost $0 $418,502 $1,421,444 $27,102,295 $32,287,381 $15,370,137 $9,826,392 $52,873,447 $14,446,208 $52,937,648 $ per Yr Acre Feet per YearProject Yield 12,113 $0 582 $0 330 $0 2,250 $1,623 $8,561 $1,791 $71 4,723 $2,429 $0 1,769 $1,083 $0 630 $8,784 $0 5,150 $3,155 $4,102 $2,683 $327 1,100 $11,174 $0 4,480 $6,481 $0 Capital Cost Unit Cost GPC Unit Cost O&M Unit Cost Energy Unit Cost Unit Cost $ per AF $ per AF $ per AF $ per AF $ per AF $0 $0 $0 $4,088 $0 $719 $0 $4,313 $0 $4,382 $25 $7,606 $245 $6,699 $114 $1,839 $120 $4,878 $457 $4,088 $719 $4,313 $12,045 $6,836 $8,689 $15,597 $10,267 $13,133 $11,815 Note: Energy cost estimate for DPR, Regional Facility is a separate estimate and is not additive to O&M estimate; energy cost estimate for DPR, Palo Alto Facility and Emergency Well Conversion Full Treatment includes pump station energy costs while the energy costs of treatment are included with other O&M costs. 2 Assumptions Cost Methods Description Cost Escalation Method Costs are based onaprevious study and are updated to account for escalation or anticipated changes in timefor labor, material, and equipment. Programmatic Cost Estimate Bottom Up Calculation Annual estimation of costs and water use/water savings for projects withoutcomponent.a significant capital/infrastructure Full conceptual level cost estimate for projects that do not haveaprevious cost study. Construction Cost Markups (used to calculate Capital Cost Multipliers)(1) Total Raw Construction Cost Subtotal (1)100% General Requirements, incl. de/mobilization Sales Tax 8%of Subtotal (1) of Subtotal (1)9.375% 17%Construction Cost Subtotal Construction Cost Contingency Construction Cost Total Subtotal (2) Subtotal (3) 117% 164% 40% 40% of Subtotal (2) General Contractor Overhead (OH), Profit, Risk, 3% Bond Insurance 10%of Subtotal (3) of Subtotal (3) Pre-design pilot testing/outreach (Direct Potable Reuse (DPR)/Desalination(Desal))10% 0%Pre-design pilot testing/outreach (other) Engineering(2)10% 10% 5% of Subtotal (3) of Subtotal (3) of Subtotal (3) of Subtotal (3) of Subtotal (3) Construction Management Admin, Environmental Admin, Environmental & & Legal (DPR/Desal) Legal (other)3%Engineering Services During Construction Capital Cost 4% DPR/Desal Options 49% 37% Subtotal (4)245% 225%Other Options (1) Breakdown ofmarkups in this table are used to calculate markups for "Capital CostMultiplier byProjectType" table (2) Reflects an average of10%for engineering. Could range from6%(pipelines) to 12%(treatmentplants, pump stations) Capital Cost Multiplier by Option Type (USED FOR OPTION CALCS) (1) Capital Cost multiplier (DPR/desal) (Subtotal (4))2.45 2.35(2) Capital Cost multiplier (IPR) (1) (3)+/ 2 (3) Capital Cost multiplier (other options/infrastructure) (Subtotal (5))2.25 1.17(4) Capital Cost multiplier (prefabricated components) (Subtotal (2)) Note: Accounting for variance in design/pilottesting/environmental/outreach complexities Engineering News Record (ENR)multiplier to Current Month/YearCost Basis Assumptions Value Current ENR Index (SF Area: Sept, 2023) Current Month/Year 15,490 September 2023 15,367ENR Index (Water Main Replacement (WMR) 29, June 2019)1.01 1.03ENR Index basis (Greater SF Area, September 2022)ENR Index (Northwest County Recycled Water Strategic Plan, TechnicalMemorandum 6.4, December 2020) 15,083 13,169 12,368 12,354 1.18 1.25 1.25 ENR Index (CoRe Plan, August 2019) ENR Index (WMR 27, June 2019) ENR Index (Groundwater Assessment/Indirect Potable Reuse (IPR) Study, Nov2018)12,110 12,015 11,155 1.28 1.29 1.58 ENR Index (NW County RWSP, June 2018) One Water Los Angeles 2040 Plan (Los Angeles, July 2016) ENR Index (BAWSCA Long Term Regional Water Strategy Phase II, Feb 2015) ENR Index (WateReuse Study, January 2012) 11,178 10,208 1.39 1.52 ENR Index (Carollo Groundwater Study, May 2000) RSMeans correction SoCal to Bay Area (2021) Interest Rate (50 year average) 7,164 2.16 1.14126.9/111.8 5.0%50-year Historical Fed RateUS Bureau of Statistics, CPI SanFranciscoInflation Rate (Bay Area, 2023)3.4% Long-Term Interest Rate (for future Capital Expense (CAPEX) escalation)5.0%Historic Average or Hard Enter Note: All ENR index values reflect Greater San Francisco Bay Area; RSMeans is a database of current construction cost estimates Depreciation Periods Civil infrastructure (pipelines, buildings)40 30 years yearsOptions with multiple components (civil, mechanical, structural) Mechanical infrastructure (Pump Station (PS), treatment plants) Electrical equipment (SCADA, monitoring) 20 15 10 years years yearsMembrane replacements Reverse Osmosis (RO) Pipeline Cost (pressurized, Water (W) & Recycled Water (RW)) Diameter (in) 4 Project Bid Time ENR (SFBAY)Unit Cost Bid Data Unit Cost (June '23 $)Bid Data Cost/inch Diameter Unit Cost ($/lineal ft)1 $520 Extrapolated Cost/inch diameter $130 Water Main Replacement (WMR) 29 Jun-23 Jun-23 Jun-23 Jun-23 Jun-19 Jun-19 15,367 15,367 15,367 15,367 12,354 12,354 $630 $530 $680 $730 $627 $688 $630 $530 $680 $730 $780 $856 $105 $66 $68 $61 $45 $43 $560 $936 8 WMR 29 WMR 29 WMR 29 WMR 27 WMR 27 $620 $690 $78 $69 $62 $56 $53 $51 $48 $42 $35 10 12 14 16 18 20 24 $740 $790 $850 $910 $960 $1,010 $1,06030 Special Construction Extra Markups Pipelines w/jack&bore Tunneling 200% 300% 50%Offshore pipelines Source: Palo Alto project bids for WMR 29 (June, 2023) and WMR 27 (June, 2019) and extrapolation of trendline 1) Where bid data differed from trendline, value from trendline was used. See graph to the right for trendline values Pump Stations (W & RW) Capacity (Horsepower (HP))Unit Cost ($/HP) 1-5 $10,000 $9,000 $8,000 $7,500 $6,700 $5,400 $4,000 5-10 10-50 51-100 101-250 250-500 500 and larger Source 100-500 HP: South Pasadena One Water Plan, Carollo (November 2021) with RS Means index (LA to SF) and ENR correction to 15,490. Source: <100 HP extrapolated from curve 100-750 HP (South Pasadena One Water Plan (November 2021)) after RS Means and ENR index corrections Groundwater Wells New Well Motor only $100,000 $150,000 $250,000 $500,000 $500,000 $1,000,000 New Well Pump only Well Rehab Drilling Equipping New Well (total) Source: South Pasadena One Water Plan, Carollo (November 2021) with RS Means index (LA to SF) and ENR correction to 15,490. Irrigation Demand Assumptions Irrigation Duration (hrs/day)4 6Peak Hour Demand Peaking Factor Minimum Net Positive Suction Head(NPSH) (psi)5 Minimum Irrigation pressure (psi)60 Concrete Storage Reservoirs (W & RW) Volume (million gallons (MG))Cost per gallon <1 $7.00 $5.50 $4.50 1 3 5 to to 3 5 to 10 $3.75 Special Construction Extra Markups Below-ground construction markup Small prefabricated tanks 100% $1.00 Assumed to be 2x more expensive Source: South Pasadena One Water Plan, Carollo (November 2021) with RS Means index (LA to SF) and ENR correction to 15,490. Labor Cost Category Annual Salary $/hr (raw salary)$/hr (labor cost) Labor Cost Labor Cost Labor Cost - - - low range mid range high range $50,000 $100,000 $150,000 3.5 $24 $48 $72 $84 $168 $252 City labor cost multiplier WC Staff Salary Benefits Salary Benefits -&$167,000 $167,000 n/a n/a $80 $80Operations Staff-& Land Cost Land Value in Palo Alto $/sq ft Source Land Value Rinconada $482 City Staff 3 Assumptions Land Value Fernando $330 $372 $50 City Staff Land Value Peers City Staff Low Industrial Land City Staff High Industrial Land $150 $200 $500 City Staff Value Used for Supply Options Land Value Used in RWSP City Staff (Todd Groundwater 2018) 4 Assumptions O&M Cost Estimates Pipelines Repair and Replacement 0.5% 1% of annual CAPEX of annual CAPEX of annual CAPEX Storage Tanks Repair and Replacement Pump Stations Repair and Replacement 2% Stormwater BMP Repair and ReplacementConventional Water Treatment Repair andReplacement 3% 4% of annual CAPEX of annual CAPEXAdvanced Water Treatment Repair andReplacement 6%of annual CAPEX Ocean Desal Treatment Repair andReplacement 25%of annual CAPEX per kWhEnergy Cost 2023 $0.10 COST ESCALATION METHOD Historical Cost Escalation (ENR index) Historical Cost Escalation (Handy-Whitman) Cost Escalation from previous reports to current year Selected Method Rate 3.50% 5.70% Notes/Sources Average ENR increase for San Francisco Bay Area from 2003 to 2023 Average Handy-Whitman (water sector specific) increase for San Francico Bay Area from 2003 to 2023 Historical Cost Escalation (ENR index) Selected Multiplier for current year estimates Future Cost Escalation for Capital Cost Future Cost Escalation for O&M Cost Construction Materials 3.5% 3.50% 3.70% 2.15% 2.92% Using RS Means City Cost Index for San Jose, 2007 to 2023 Electricity Uses the average increase in electricity cost for the City of Palo alto over the next 20 years Average Future Cost Escalation for Labor Cost Construction Labor/Installation Cost 5.30%Using RS Means City Cost Index for San Jose, 2007 to 2023. In-house Government Labor in water sector Average 3.10% 4.20% Using Federal Reserve Economic Data for State and Local Government Workers service occupations, 2005 to 2023. COST ESCALATION ASSUMPTIONS 22 variable 3.5%3.7%4.2%3.4%9.5%2.1% GW production charge(2)w/inflation 2033-2024 GW production charge(2)w/9.5% escalation 2033-2024Planning Year Net Present Value 2023 SFPUC Rates (1) ($/AF)Capital Cost O&M Cost Labor Cost Energy Cost % Increase Energy Cost $1,693 $2,345 $3,033 $0.08 $2,069 $2,269 $2,269 $2,269 $2,313 $2,452 $2,541 $2,612 $2,617 $2,630 $2,688 $2,800 $2,898 $2,999 $3,104 $3,213 $3,326 $3,442 $3,562 $3,687 $3,816 $3,950 $4,088 100% 104% 107% 111% 115% 119% 123% 127% 132% 136% 141% 146% 151% 156% 162% 168% 173% 179% 186% 192% 199% 206% 213% 100% 104% 108% 112% 116% 120% 124% 129% 134% 139% 144% 149% 155% 160% 166% 172% 179% 185% 192% 199% 207% 214% 222% 100% 104% 109% 113% 118% 123% 128% 133% 139% 145% 151% 157% 164% 171% 178% 185% 193% 201% 210% 219% 228% 237% 247% $1,724 $1,983 $2,280 $2,506 $2,754 $3,027 $3,327 $3,656 $3,894 $4,147 $4,289 $4,436 $4,587 $4,744 $4,906 $5,074 $5,248 $5,427 $5,613 $5,805 $6,003 $6,209 $6,421 $1,724 $1,983 $2,280 $2,506 $2,754 $3,027 $3,327 $3,656 $3,894 $4,147 $4,541 $4,972 $5,445 $5,962 $6,528 $7,149 $7,828 $8,571 $9,386 $10,277 $11,254 $12,323 $13,493 $0.10 $0.11 $0.11$0.11 $0.11 $0.12 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 $0.13$0.14 $0.14 $0.14 $0.15 $0.15 $0.15 $0.16 $0.16 $0.16 $0.17 2024 103% 106% 108% 109% 111% 113% 115% 117% 119% 120% 122% 124% 127% 129% 131% 134%136% 138% 140%143% 145% 147% 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 (1) From SFPUC published rates in (SFPUC 2023a), (SFPUC 2023b), and 2034 through 2045 projected from historical rate increase since 2013 (See SFPUC Tab) (2): From (Valley Water, 2022) (Figure 4-2.1) projected Groundwater Production Charge through year 2023. Escalated with inflation from 2033-2045. Selection GW Production Charge Inflation 2033-2024 9.5% escalation 2033-2024 Treatment and Pumping Efficiencies DPR (W&C, 2019)75% 84% 70% DPR (B&C, 2021) Pump Station pump& motor efficiency Secondary UV Capital Cost Sources and Escalation Secondary UVModelApproximate Flow (mgd) 0.3 Direct Cost $70,800 Source Notes $100,000 $50,000 $0 Spektron 250 Spektron 350 (Carollo 2023a) The Spektron 350 is appropriate for flow ranges from 0.4 to0.7 mgd, this cost was selected for the DPRoption. y=0.542000x+0.6582000.7 $87,600 +SSRF supply 0 0.1 0.2 0.3 0.4 0.7 0.8(Carollo 2023a)Flow (MGD)Interpolation for Palo Alto DPR 1.00 $100,200 Developing anticipated unit cost based on vendor quotes Calcite Contactor Capital Cost Sources and Escalation Calcite Contactors Model Approximate Flow (mgd)Direct Cost Source Notes $540,000$520,000$500,000$480,000$460,000 Wigen, Two 6' Dia Vessels with 7' sidewalls Wigen, Two 8' Dia Vessels with 7' sidewalls 0.1 0.2 $470,000 $520,000 (Carollo 2023a) (Carollo 2023a) y=500000x 0.1 +420000 0.1500.05 0.2 0.25 Developing anticipated unit cost based on vendor quotes. Assuming approximately 30% of flow through contactor.Flow (MGD)Interpolation for Palo Alto DPR 1.00 $920,000 Conservation Rebates Device/Program Rate ($)Unit / toilet / survey Cost per toilet replacement City Spatial Analysis Survey $875 $15,000 $2 $ $ Turf Replacement Turf Replacement - - Rebate Rate $ $ / square foot / square footInstallation Costs $2 Conservation Measure Savings Rates Device/ProgramSavings per High Efficiency ToiletReplacement Rate ($)Unit Source ccf/year 12.19 36 City Staff City StaffTurf Replacement Savings Rate gallons/square foot Treatment Costs Sewer Connection Fee Sewer Capacity Fee Details One Time Rate, 6-inch connection,depth at feet and below Cost ($/unit)Unit Per Connection $/100 ft^3 6 $9,846 $9.08Quantity Rate, per 100 cubic feet Unit Conversions From To mgd mg/year AF Conversion (divide by) afy 1,120 afy 3.57 325,851 1.61 gallon gpm mgd mg afy gpm ccf 694.44 1,336.80 436ccfaf acre mile sq ft ft 43,560 5,280 Treatment Costs Type of Treatment Groundwater Nitrate Treatment Satellite Surface WTP Original Unit Cost ($/gallon)Cost Basis Year Current Unit Cost ($/gallon)Source$1.00 $3.00 $15.00 $3.00 $5.00 $7.00 $8.00 $4.00 $12.00 $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $2018 dollars (SoCal) $1.50 $4.50 (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) (Carollo, 2018b) Satellite (Wastewater) WRP Satellite Stormwater Treatment Plant Membrane Bioreactor Treatment Advanced WTF for IPR $22.00$4.50 $7.50 $10.25$11.75 $6.00 Advanced WTF for DPR Brackish Groundwater treatment Ocean Desalination $17.75 5 SFPUC SFPUC Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $0 $0 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost $ per Year Groundwater Production Charge (GPC)$ per Year$0 $24,267,125 $0 O&M Cost $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $24,267,125 10,982.4 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost O&M Unit Cost Energy Unit Cost Unit Cost 0.0 0.0 $ per AF $ per AF $ per AF $ per AF $ per AF $2,210 0.0 $2,210 Cost Escalation Method Unit Cost Quantity Unit Unit Cost Cost Estimate Source Notes Unit Cost SFPUC Base Rate BAWSCA Debt Service Cost Summary Total Cost 10,982 1 af $ $2,069 $22,723,701 $1,543,424 (SFPUC, 2023a, Slide 7) Estimate from City Staff Palo Alto demand multiplied by unit cost $1,543,424 $24,267,125 10,9822023 Demand (afy) Unit Cost per AF $2,210 6 SFPUC Projected Costs and Demand Year Palo Alto Demand (4) BAWSCA Debt Service (5)SFPUC Base Rate (1, 2, 3)Unit Cost Total Projected Cost CY $/ccf 2.93 2.45 2.93 3.75 4.10 4.10 4.10 4.10 4.10 4.10 4.75 5.21 5.21 5.21 5.31 5.63 5.83 6.00 6.01 6.04 6.17 6.43 6.65 6.89 7.13 7.38 7.63 7.90 8.18 8.46 8.76 9.07 9.38 Annual Increase - $/af afy $$/af - $ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 1,276 1,067 1,276 1,633 1,786 1,786 1,786 1,786 1,786 1,786 2,069 2,269 2,269 2,269 2,313 2,452 2,541 2,612 2,617 2,630 2,688 2,800 2,898 2,999 3,104 3,213 3,326 3,442 3,562 3,687 3,816 3,950 4,088 --- -16.4% 19.6% 28.0% 9.3% 0.0% 0.0% 0.0% 0.0% 0.0% 15.9% 9.7% 0.0% 0.0% 1.9% 6.0% 3.6% 2.8% 0.2% 0.5% 2.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% ---- ---- ---- 10,061 11,156 10,562 10,921 10,986 10,811 10,982 11,182 11,287 11,295 11,316 11,350 11,374 11,394 11,421 11,447 11,476 11,508 11,546 11,591 11,641 11,691 11,743 11,801 11,864 11,926 11,988 12,051 12,113 1,889,496 1,782,456 1,991,736 1,806,144 1,737,240 1,726,200 1,543,424 1,681,620 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 1,602,921 0 1,974 1,946 1,975 1,951 1,944 1,946 2,210 2,420 2,411 2,411 2,455 2,594 2,682 2,753 2,757 2,770 2,828 2,939 3,037 2,999 3,104 3,213 3,326 3,442 3,562 3,687 3,816 3,950 4,088 $19,857,998 21,706,580 20,855,002 21,310,568 21,357,752 21,034,169 24,267,125 27,058,148 27,217,379 27,236,552 27,777,619 29,437,937 30,500,716 31,362,781 31,491,284 31,709,873 32,450,948 33,826,060 35,062,419 34,767,117 36,137,661 37,564,940 39,051,149 40,617,382 42,262,997 43,971,280 45,749,079 47,599,155 49,517,551 0 0 0 0 0 0 0 0 0 1 (SFPUC, 2023a, Slide 7) 2 (SFPUC, 2023a, Table 1) 3 SFPUC Rates from 2032-2045 calculated using average % increase since 2013 4 City Staff. 5 BAWSCA Debt Service from City Staff Estimate. Assumes this remains zero after 2036 7 Enhanced Conservation Enhanced Conservation Project Cost Estimate Summary Table Phase 1 Phase 2 Units Total Capital Cost Capital Cost $0 $0 $0 $0 $0 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost $ per Year O&M Cost $188,176 $639,142 $ per Year Total Unit Cost Total Annual Cost $188,176 582 $639,142 330 $ per Year AFYProject Yield Capital Cost Unit Cost O&M Unit Cost Total Unit Cost $0 $0 $ per AF $ per AF $ per AF $323 $323 $1,939 $1,939 Programmatic Cost Estimate Project Costs Project Assumptions Units Cost Notes General Assumptions Staffing Cost - Salary and Benefits $167,000 per FTE Salary + benefits per Palo Alto direction Project Period 21 years through 2045 Calculations 1) Outdoor Irrigation Efficiency for CII Properties Phase 1 5 -- Years to Saturation YR City Staffing Time Needed 0.6 FTE Staff time for technical guidance and landscaping support. No financial incentiveincluded, although customers may utilize the $2/sf turf replacement incentive. Program Savings Estimate 229.0 45.8 AFY AFY City Staff Estimate from Waterfluence Assumes all CII customers come down to irrigation level calculated by WaterFluence. Savings in 2024 Savings in 2045 229.0 4,351 Note that these savings potentially overlap with Measures #2 and #7. So if all of theseprograms are enacted, total savings will likely be lowerLinear ramp up until program saturation, then constant savings through planning horizon AFY AFTotal Savings Cost Summary Annual Staffing Cost $100,200 Staffing costs occur every year until program saturation. Annual Program Costs $0 Total Annual Costs $100,200 Lifetime Costs $501,000 Total cost through planning horizon Unit Cost ($/AF)$115 Total cost through planning horizon/total savings through planning horizon 2) Non-Functional Turf Ban for CII Properties Phase 1 -- In 2027 the City will have to adopt an ordinance to follow AB1572, this measure goes beyond the State requirment of not allowing watering non-functional turf and requiresproperties to remove turf and replace it with drought-tolerant plants. Years to Saturation 10 0.1 YR FTE FTE $ City Staff for Owner Notifications City Staff for Site Inspections City Spatial Analysis Survey 0.3 $15,000 Cost per survey Frequency of Spatial Survey 5 Assume this occurs every 5 years over 10 year saturation period One time costLegal review/possible challenges Acreage of turf replaced $100,000 $ 28 acres City Staff Estimate from Waterfluence City Staff EstimateTurf Replacement Savings Rate 36 gal/sq ft AF/acre AFY Turf Replacement Savings Rate 4.8 Savings in 2024 13.2 Note that these savings potentially overlap with Measures #1 and #7. So if all of theseprograms are enacted, total savings will likely be lower Linear ramp up until program saturation, then constant savings through planninghorizon Savings in 2045 Total Savings 132.3 AFY AF2,184 Cost Summary Annual Staffing Cost $66,800 $14,500 $81,300 $813,000 $372 Staffing costs occur every year until program saturation. Annual Program Costs Total Annual Costs Lifetime Costs Annual costs averaged over implementation period (does not include staffing) Total cost through planning horizon Unit Cost ($/AF)Total cost through planning horizon/total savings through planning horizon 8 Enhanced Conservation 3) Low Income Residential HET Replacement Program Phase 1 -- Years to Saturation 10 YR City Staffing Time Needed 0.05 FTE Rebate Rate $875 $ / toilet City Staff Estimate, 7/28/23, pg 5 Assumes full cost of toilet replacement is borne by Palo Alto Number of DUs targeted 200 2 DU toilet ccf/yr AFY Number of toilets per DU Savings per Toilet Replacement Savings per Toilet Replacement 12.19 0.028 City Staff Estimate Savings in 2024 1.1 Savings in 2045 11.2 AFY AF Linear ramp up until program saturation, then constant savings through planninghorizonTotal Savings 185 Cost Summary Annual Staffing Cost Annual Program Costs $8,350 $35,000 Total Annual Costs $43,350 Lifetime Costs $433,500 Total cost through planning horizon Unit Cost ($/AF)$2,347 Total cost through planning horizon/total savings through planning horizon 4) Lawn Limitation for New Development and Major Retrofits Phase 1 -- Years to Saturation ongoing 0.1 YR City Staffing - Plan Review FTE FTECity Staffing - Site Inspections City Staffing - Enforcement 0.1 0.1 City Staffing - Education & Outreach 0.1 Legal review/possible challenges $100,000 600 $One time cost Lawn size assumption based on approximate measuring Google Earth lawns and PaloAlto front lawn setback requirementsEstimated size of front lawn replaced sqft Number of major retrofits per year 100 1.4 36 Palo Alto Development Services estimates 50-100 major remodels per year. Estimated acreage of front lawns repl Turf Replacement Savings Rate Turf Replacement Savings Rate afy/ac gal/sq ft AF/acre AFY City Staff Estimate 4.8 Savings in 2024 6.6 Savings in 2045 Total Savings 139.2 AFY 1,531 AF Cost Summary Annual Staffing Cost Annual Program Costs Total Annual Costs $66,800 $1,509 Annual costs averaged over implementation period (does not include staffing) $68,309 Lifetime Costs $1,502,800 Total cost through planning horizon Unit Cost ($/AF) 5) 3-Day Watering Week Phase $981 Total cost through planning horizon/total savings through planning horizon 1 -- Years to Saturation 1 YR City Staffing - Enforcement 0.1 FTE City Staffing - Education & Outreach 0.1 FTE Total Palo Alto Water Use (2020) Indoor Water Use (2020) 10,722 6,342 4,286 3,282 11% (Palo Alto, 2021, Table 10) City Staff 2020 City of Palo Alto Flows to the RWQCP Outdoor Water Use in 2024 Outdoor water use minus savings assumed from other irrigation programs Outdoor water use decreases over time as other savings programs take effect Based on findings from 2022 watering restrictions Outdoor Water Use in 2045 Irrigation Reduction with 2 Day Irrigation Reduction with 3 DayWatering Week 5%City Staff Savings in 2024 214.3 164.1 3,973 AFY AFY AF Savings in 2045 Total Savings Cost Summary Annual Staffing Cost Annual Program Costs $33,400 $0 Total Annual Costs Lifetime Costs $33,400 $701,400 $177 Total cost through planning horizon Unit Cost ($/AF)Total cost through planning horizon/total savings through planning horizon 6) HET Replacement Program for CII Properties Phase 2 -- Years to Saturation 10 YR City Staffing Time Needed 0.3 FTE $Cost per toilet replacement Total Employees in Palo Alto $875 City staff comments 7/28/23, pg 5 (SVI, 2020, pg 5) Assumes full cost of toilet replacement is borne by Palo Alto 100,000 employees Range: 92,000 to 114,000 in 2018 Assuming that an average commercial toilet lasts 30 years and toilet age is equallydistributed in Palo Alto, 13% of toilets are estimated to be from before 1997, when lowflow toilet laws went into place. Percentage of Toilets Eligible for Replacement 13%% Total Employees Targeted Employees per Toilet 13,000 17 employees Number of employees who use toilets that are eligible for replacement employee / toilet (OSHA, 2023, Standard 1910.141( C )(1)(i)) Average required number of toilets per OSHA Assumes 1 toilet replacement per 17 employees (average required number of toiletsper OSHA)Total Replacements 765 12.19 0.028 2.1 EA ccf/yr AFY AFY AFY Savings per Toilet Replacement Savings per Toilet Replacement Savings in 2024 City Staff Estimate Savings in 2045 21.4 Total Savings 353 Linear ramp up until program saturation, then constant savings through planninghorizonAF Cost Summary Annual Staffing Cost Annual Program Costs Total Annual Costs Lifetime Costs $50,100 $66,912 Staffing costs occur every year until program saturation Program costs occur every year until program saturation $117,012 $1,170,118 $3,314 Total cost through planning horizon Unit Cost ($/AF)Total cost through planning horizon/total savings through planning horizon 9 Enhanced Conservation 7) City Landscaping Support for Turf Replacement Phase 2 -- Years to Saturation City Staffing Time Needed ongoing 0.4 YR No saturation within planning horizon given low rate of replacement FTE Existing rebate. Valley Water contributes another $2 so customers get a total of $4/sqft.Rebate Rate $2 $2 $ / sqft $ / sqft City Staff Estimate City Staff Estimate Cost to Help Cover Direct Installation Acres replaced per year 1.5 36 acres / yr gal / sq ft AF/acre Turf Replacement Savings Rate Turf Replacement Savings Rate 4.8 Savings in 2024 7.2 AFY Savings in 2045 151.6 1,668 Note that these savings potentially overlap with Measures #1 and #2. So if all of these programs are enacted, total savings will likely be lowerAFY AFTotal Savings Cost Summary Annual Staffing Cost Annual Program Costs Total Annual Costs Lifetime Costs $66,800 $261,360 $328,160 $6,891,360 $4,133 Total cost through planning horizon Unit Cost ($/AF)Total cost through planning horizon/total savings through planning horizon 8) Lawn Limitation for Residential Properties Upon Resale Phase 2 -- Years to Saturation Ongoing as turnover rate (400 per year) does not reach all Palo Alto homes (17,900)within planning horizonongoing 0.5 YR FTE FTE FTE FTE $ City Staffing - Plan Review City Staffing - Site Inspections City Staffing - Enforcement 0.3 0.4 City Staffing - Education & Outreach Legal review/possible challenges 0.3 $100,000 One time cost Estimated size of front lawn replaced Lawn size assumption based on approximate measuring Google Earth lawns and PaloAlto front lawn setback requirements600sqft DUTotal SFR in Palo Alto 17,900 (Palo Alto, 2022b, Table 2-36) (Homes Directory, 2023)Average SFR sold per year 2014-2022 per "New Homes Directory". May double-countretrofitted homes considered in Measure #6Houses turned over per year 400 80% 4.4 DU/yr %Expected Compliance (%) Estimated acreage of front lawns repl Turf Replacement Savings Rate Turf Replacement Savings Rate acres gal/sq ft AF/acre 36 City Staff Estimate 4.8 Savings in 2024 21.2 445.5 4,900 AFY AFY AF Savings in 2045 Total Savings Cost Summary Annual Staffing Cost Annual Program Costs Total Annual Costs Lifetime Costs $250,500 $236,818 $487,318 $5,360,500 $1,094Unit Cost ($/AF) Phase 1 Total Average Annual Cost Average Annual Project Yield Unit Cost ($/AF) $188,176 582 $323 Phase 2 Total Average Annual Cost Average Annual Project Yield Unit Cost ($/AF) $639,142 330 $1,939 1) Measures 1, 2, and 7 target outdoor irrigation and may have some overlap, leading to a reduction in total expected savings from those programs if they are all implemented. 2) Similar to Note #4, Measures 7 and 8 target residential front lawns and may overlap, leading to a reduction in total expected savings if they are both implemented. For example, if a customer first renovates a house and then sells it, there wouldnot be savings from the sale as the front lawn would have already been removed. 10 Enhanced Conservation Water Conservation Program Summary by Best Management Practice Phase Best Management Practice Description Total YieldThrough 2045(af) Unit Cost($/AFY)Program Cost 1 1 1 1) Outdoor Irrigation Efficiency for CII Properties 2) Non-Functional Turf Ban for CII Properties 3) Low Income Residential HET Replacement Program 4,351 $501,000 $813,000 $433,500 $115 $3722,184 185 $2,347 1 4) Lawn Limitation for New Development and Major Retrofits 5) 3-Day Watering Week 1,531 3,973 12,224 353 $1,502,800 $701,400 $981 $1771 Phase 1 Subtotal $3,951,700 $1,170,118 $6,891,360 $323 2 2 6) HET Replacement Program for CII Properties 7) City Landscaping Support for Turf Replacement $3,314 $4,1331,668 2 8) Lawn Limitation for Residential Properties Upon Resale 4,900 6,921 $5,360,500 $13,421,978 $17,373,678 $1,094 $1,939 $907 Phase 2 Subtotal Water Conservation Program Summary 19,145 Project Yield and Cost 8) Lawn Limitation for Residential Properties UponResale 1) Outdoor Irrigation Efficiency for CII 3) Low Income Residential HET Replacement Program 4) Lawn Limitation for New Development and Major Retrofits 6) HET Replacement Program for CII Properties 7) City Landscaping Support for Turf ReplacementYear2) Non-Functional Turf Ban for CII Properties 5) 3-Day Watering Week Phase 1 Total Phase 2 TotalProperties CY Count Yield 46 Cost Yield 13 Cost Yield Cost Yield 7 Cost Yield Cost Yield Cost Yield 7.2188 14 Cost Yield 21 Cost Yield 281 345 410 474 Yield 312025 2026 2027 2028 1 2 3 4 $100,200 $100,200 $100,200 $100,200 $181,800 $66,800 $66,800 $66,800 1 2 3 4 $43,350 $43,350 $43,350 $43,350 $166,800 $66,800 $66,800 $66,800 214 212 209 207 $33,400 $33,400 $33,400 $33,400 2 4 6 9 $117,012 $117,012 $117,012 $117,012 $328,160 $328,160 $328,160 $328,160 $350,500 $250,500 $250,500 $250,500 92 26 13 42 61 137 183 40 20 22 64 92 53 27 29 85 122 2029 5 229 $100,200 66 $81,800 6 $43,350 33 $66,800 204 $33,400 11 $117,012 36 $328,160 106 $250,500 538 153 2030 2031 6 7 229 229 $0 $0 79 93 $66,800 $66,800 7 8 $43,350 $43,350 40 46 $66,800 $66,800 202 199 $33,400 $33,400 13 15 $117,012 $117,012 43 51 $328,160 $328,160 127 148 $250,500 $250,500 557 575 183 214 2032 8 229 $0 106 $66,800 9 $43,350 53 $66,800 197 $33,400 17 $117,012 58 $328,160 170 $250,500 594 245 2033 9 229 $0 119 $66,800 10 $43,350 60 $66,800 194 $33,400 19 $117,012 65 $328,160 191 $250,500 612 275 2034 2035 10 11 229 229 $0 $0 132 132 $81,800 $0 11 11 $43,350 $0 66 73 $66,800 $66,800 192 189 $33,400 $33,400 21 21 $117,012 $0 72 79 $328,160 $328,160 212 233 $250,500 $250,500 631 635 306 334 2036 12 229 $0 132 $0 11 $0 80 $66,800 187 $33,400 21 $0 87 $328,160 255 $250,500 639 363 2037 2038 13 14 229 229 $0 $0 132 132 $0 $0 11 11 $0 $0 86 93 $66,800 $66,800 184 182 $33,400 $33,400 21 21 $0 $0 94 $328,160 $328,160 276 297 $250,500 $250,500 643 647 391 419101 2039 15 229 $0 132 $0 11 $0 99 $66,800 179 $33,400 21 $0 108 $328,160 318 $250,500 651 448 2040 2041 16 17 229 229 $0 $0 132 132 $0 $0 11 11 $0 $0 106 113 $66,800 $66,800 177 174 $33,400 $33,400 21 21 $0 $0 116 123 $328,160 $328,160 339 361 $250,500 $250,500 655 659 476 505 2042 18 229 $0 132 $0 11 $0 119 $66,800 172 $33,400 21 $0 130 $328,160 382 $250,500 664 533 2043 2044 2045 19 20 21 229 229 229 $0 $0 $0 132 132 132 $0 $0 $0 11 11 11 $0 $0 $0 126 133 139 $66,800 $66,800 $66,800 169 167 164 $33,400 $33,400 $33,400 21 21 21 $0 $0 $0 137 144 152 $328,160 $328,160 $328,160 403 424 445 $250,500 $250,500 $250,500 668 672 676 562 590 618 Total 4,351 $501,000 2,184 $813,000 185 $433,500 1,531 $1,502,800 3,973 $701,400 353 $1,170,118 1,668 $6,891,360 4,900 $5,360,500 12,224 6,921 11 Irrigation Wells Irrigation Wells Cost Estimate Summary Table Project Total Capital Cost Capital Cost Cost Units $1,000,000 $0 $ Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge (GPC) O&M Cost $M $65,051 $ per Year $93,096 $6,822 $3,276 $ per Year $ per Yr Energy Cost $ per Yr Total Unit Cost Total Annual Cost Project Yield $168,246 54 $ per AF AFY Capital Cost Unit Cost GPC Unit Cost $1,205 $1,724 $126 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost Energy Unit Cost $61 Unit Cost $3,116 Cost Escalation Period ENR Date ENR Index (Northwest County RecycledWater Strategic Plan, TechnicalMemorandum 6.4, December 2020)Current Cost Basis 13,169 15,490 December 2020 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source NotesAdjustmentsConstruction Cost Construction Cost Per Well 5 EA $75,000 $375,000 $844,220 (W&C, 2019, TM 6.4, Table 5, pdf pg 11) Construction Cost Markup Capital Cost 2.25 Added construction cost markup since it was not clearly included in original cost.$168,844 $993,011 SubtractionsTreatment Facilities Conveyance Storage Pump Stations Other Additions Treatment Facilities Conveyance Storage Pump Stations Other Total Capital Cost Original Total $375,000 $993,011 Subtractions Additions -- -- $0 $0 Calculated Total Capital Cost Total (Rounded) -- -- $993,011 $1,000,000 O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments O&M Cost Original O&M wo GW Production Charge Original Groundwater Production Charge $5,800 $6,822 (W&C, 2019, TM 6.4, Table 6, pdf pg 11) $105,000 -- --(W&C, 2019, TM 6.4, Table 6, pdf pg 11) (Valley Water, 2022)New Groundwater Production Charge 54 $/AF $1,724 $93,096 Subtractions Treatment Conveyance Pipelines Pump Station(s) Storage Other Additions Treatment Conveyance Pipelines Pump Station(s) Storage Other Energy Cost for Pumping O&M Total 45,000 Kwh $0.10 $9,000 $3,276.19 City Staff Estimate O&M Subtotal $119,800 $99,918 $0Subtractions Additions $3,276 Calculated O&M Total $110,800 $103,194$110,000Total O&M Cost (Rounded) 12 Groundwater Emergency Well Conversion Cost Estimate Summary Table Iron (Fe)/Manganese(Mn)/Total Dissolved Solids(TDS) Treatment Difference (TreatmentCost (Option 4) -Blending Cost (Option1)) El Camino Only with Fe/Mn/TDSTreatment El Camino OnlyBlending (Option1B) Blending(Option 1)(Option 4B)(Option 4)Cost Units Total Capital Cost Capital Cost $49,760,760 $0 $1,532,363 $0 $48,228,398 $0 $25,472,442 $0 $0 $0 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge (GPC) O&M Cost $3,408,068 $92,395 $3,315,673 $1,788,376 $ per Year $5,172,000 $1,811,749 $99,964 $5,172,000 $212,010 $99,964 $0 $1,599,739 $0 $4,137,600 $1,362,069 $74,426 $4,137,600 $169,608 $74,426 $ per Year $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $10,491,781 $5,576,369 $4,915,412 $7,362,471 $4,381,634 $ per Yr AFY2,250 3,000 $31 1,800 $994 2,400 $0Capital Cost Unit Cost GPC Unit Cost $1,515 $1,484 $575 $ per AF $ per AF $ per AF $ per AF $ per AF $2,299 $805 $1,724 $71 $2,299 $757 $1,724 $71O&M Unit Cost $735 Energy Unit Cost $44 $33 $11 $41 $31 Unit Cost $4,663 $1,859 $2,804 $4,090 $1,826 Cost Escalation Period ENR Date ENR Index (Carollo Groundwater Study, May 2000)Current Cost Basis 7,164 May, 2000 15,490 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Construction Cost Original Construction Cost varies by Option. See Summary Table for Options 1-4 above (Column L-R).AdjustmentsLand Acquisition Original Land Acquisition n/a (no land needed for the 2 selected wells)Revised Land Acquisitionn/aSubtractions Treatment Facilities n/a Conveyancen/aStorage n/a Pump Stations n/a Other n/aAdditionsTreatment Facilitiesn/a (already included in 2000 Study) Conveyance Option 4: Brine line for RO waste stream Brine line flowrate assumption for Fe/Mn filter backwashing Brine line flowrate assumption for RO treatment Brine line flowrate assumption Total 5% 20% 25% 372 250 622 5 of Q_well of Q_well of Q_well gpmBrine line flowrate El Camino Well (1488 gpm) Brine line flowrate Eleanor Pardee Park Well (372 gpm) Brine line flowrate (both wells) gpm gpm Design velocity ft/sec Assumes pressurized flow of brine to RWQCP outfall Brine Line El Camino to Eleanor Pardee Park @ 1000 gpm Brine Line Eleanor Pardee Park to RWQCP @1000 gpm Brine Line El Camino to Eleanor Pardee Park @1488 gpm Brine Line Eleanor Pardee Park to RWQCP @1000 gpm 4.5 6.0 6.0 8.0 inches inches inches inches 9,000 10,600 9,000 feet feet feet feet $ $ $ $ 10,536,000 13,364,000 11,347,000 14,796,000 Assumes dedicated brineline is needed (most conservative) Assumes dedicated brineline is needed (most conservative) Assumes dedicated brineline is needed (most conservative) Assumes dedicated brineline is needed (most conservative)10,600 Storage Options 2, 3, 4: Backwash water storage for Fe & Mn treatment (2 sites) Backwash volume Backwash duration Backwash frequency 5 15 1 times Q_well mins/cycle time per day Options 2 and 4 (El Camino = 1,488 gpm & Eleanor Pardee = 372 gpm) Daily backwash volume El Camino Well @ 1,488 gpm 0.11 0.08 5.5 MG MG $1.00 $1.00 1,500 830 n/a n/a $ $ $ $ 251,229 168,844 Check backwash volume is approximately 5% of treatment flow (5%*1488 gpm = 748 gpm = 0.107 mgd Check backwash volume is approximately 5% of treatment flow (5%*372 gpm = 19 gpm = 0.027 mgdDaily backwash volume Eleanor Pardee Well @ 1000 gpm Sewer Connection from Camino Well to sewer (25%*1488=372 gpm) Sewer Connection from Eleanor Pardee Well to sewer (25%*1000=250 gpm) inches inches feet feet 1,891,052 ########################################### 971,641 ###########################################A A dedicated brineline is used (15% cheaper in $/AF than sewer connections w/charges) dedicated brineline is used (15% cheaper in $/AF than sewer connections w/charges)4.5 Option 3 (El Camino = 613 gpm& Eleanor Pardee = 524 gpm) Backwash volume El Camino Well @ 613 gpm 0.05 0.04 3.5 MG MG $1.00 $1.00 1,500 830 n/a n/a $ $ $ $ 103,478 88,501Backwash volume Eleanor Pardee Well @ 524 gpm Sewer Connection from Camino Well to sewer (25%*613=153 gpm) Sewer Connection from Eleanor Pardee Well to sewer (25%524=131 gpm)Options 4B (El Camino = 1,488 gpm) inches inches feet feet 1,755,977 ########################################### gpm on average 971,641 ########################################### gpm on average3.5 Backwash volume El Camino Well @ 1,488 gpm Sewer Connection from Camino Well to sewer (25%*1488=372 gpm) Pump Stations (Option 4 only) 0.11 5.5 MG $1.00 1,500 n/a $ $ 251,229 inches feet 1,891,052 ########################################### gpm on average Brine PS at El Camino Well @ 1000 gpm Brine PS at El Camino Well @ 1488 gpm Brine PS at Eleanor Well @ 1000 gpm 1 2 1 hp hp hp 20 20 20 feet TDH feet TDH feet TDH $ $ $ 26,015 38,708 26,015 Assumes pressurrized flow of brine to RWQCP outfall Assumes pressurrized flow of brine to RWQCP outfall Assumes pressurrized flow of brine to RWQCP outfall Sewer Connection Fees (not used) Sewer Connection Charge El Camino Well 1 1 connection connection $ $ 9,846 9,846 $ $ 9,846 9,846 WASTEWATER SERVICE CONNECTION CHARGES UTILITY RATE SCHEDULE S-5 WASTEWATER SERVICE CONNECTION CHARGES UTILITY RATE SCHEDULE S-5Sewer Connection Charge Eleanor Pardee Park Welln/a 13 Groundwater O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Current Scaled Capacity Cost (2023)Source Adjustments O&M Cost Original Annual O&M: Option 1 $ $ $ $ $ 1,084,968 542,484 $ $ $ $ $ 5,907,548 $ $ $ 5,483,974 Original Annual O&M: Option 1B (El Camino Well with blending only) Original Annual O&M: Option 2 2,944,458 5,997,959 2,201,372 7,162,610 4,381,634 7,413,618 n/a 1,121,459 429,768Original Annual O&M: Option 3 Original Annual O&M: Option 4 1,606,063 $7,083,713Subtractions Treatment 2023 Cost of Chlorine per 1000 gpm well $ $ 13,931 12.5% 1,741 per year Palo Alto staff estimate based on (AWWA, 2023) that the amount of ammonia required is 1/8 to 1/12 the ammount ofChlorine. This estimate assumes the escalated cost of chemicals from the 2000 Carollo Study to be the cost of ammoniamultiplied by (1/8) to get the cost of ammonia treatment.2024 Cost of Ammonia compared to Chlorine per 1000 gpm well - 2023 Cost of Ammonia per 1000 gpm well Conveyance Pipelines per year n/aPump Station(s)n/aStorage n/a Other n/aAdditionsTreatment n/a Conveyance Pipelinesn/aPump Station(s)neglible Storage n/a Other Annual Energy Cost for Groundwater pumping El Camino Well 204 280 ft ft 1,488 372 gpm gpm $ $ 50,014 68,647 $74,426 $25,538 (Todd Groundwater, 2018, Table 4-2) (Todd Groundwater, 2018, Table 4-2)Annual Energy Cost for Groundwater pumping Eleanor Pardee Park Well Annual Energy Cost for 2 wells pumping all year Groundwater Production Charges (El Camino only) Annual Sewer ServiceCharge for Option 4- El Camino RO Brine Annual Sewer ServiceCharge for Option 4- Eleanor RO Brine Annual Sewer Service Charge for Option 4- El Camino Backwash Annual Sewer Service Charge for Option 4- Eleanor Backwash Capacity Charge El Camino $99,964 2,400 $209,088 $52,272 $52,272 $13,068 afy ft^3 ft^3 ccf 1,724 $/AF (2023 dollars)$4,137,600 $1,898,515 $474,629 $474,629 $118,657 9.08 9.08 9.08 9.08 $/ccf $/ccf $/ccf $/ccf 44. COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-2ccf Capacity Charge Eleanor Backwash Water El Camino SFPUC Cost 125 84 afy afy $2,069 $2,069 $/AF $/AF $258,635 $173,822Backwash Water Eleanor SFPUC Cost Energy Cost for brine pumping neglibable O&M Total Original Total Subtractions $542,484 -- $2,944,458 $4,381,634 ---- Additions $50,014 $592,498 $50,014 $2,994,472 $74,426 $4,456,059Calculated Total O&M Cost Total (rounded)$593,000 $2,995,000 $4,457,000 14 Groundwater SUPPORTING CALCULATIONS BY OPTION (updating costs from the 2000 Carollo Study) Option 1 - Blending with SFPUC Water Capacity set to not exceed 3,000 afy (ToddGroundwater, 2018)Description Original Cost (1)Cost Adjustment 2000 -> 2023 Escalated Cost Estimate ($2023)Capacity Scaling in 2023 dollarsFLOW CAPACITY/YIELD GW Production CapacitySFPUC FlowTotal GW Yield (1,2)CAPITAL COSTFlow Control El Camino (1)Eleanor (1)Quantity Unit El Camino Eleanor El Camino (2)Eleanor (2)gpmgpmAFY 1,0003,1001,613 1,0003,1001,613 1,4884,6132,400 3721,1536001,613 1,613 149%in-place in-place 37%$$$$75,000100,000 $$75,000100,000 216% ENR ratio216% ENR ratio in-placein-place $$162,165216,220 $$60,32980,439Blending Facility(3) Pipeline $$ $ $ $ 50,000 225,000 21,238 42,461 n/a $ $ $ $ 1,730,000 1,905,000 179,819 42,461 n/a 216% ENR ratio in-place $ $ $ $ $ $ $ $ $ $ 3,740,606 4,118,991 248,358 113,977 68,647 in-place $ $ $ $ $ $ $ $ $ $ 1,391,594 1,532,363 92,395 CAPEX Subtotal $ $ $ $ $ $ $ $ $ - - $ $ $ $ $ $ $ $ $ - Annualized Capital Costs $/Yr - OPERATION & MAINTENANCE COST Energy Cost for GW pumping OPEX Subtotal 268% labor multiplier 1,724 $/AF (2023 dollars) 113,977 50,014 163,991 2,780,467 2,944,458 1,826 169,608 74,426 42,402 $/Yr 25,538 $/Yr $ $ $ $ $ 42,461 500,023 563,722 350 $ $ $ $ $ 42,461 500,023 722,303 448 182,623 2,780,467 3,211,449 1,991 244,034 4,137,600 4,381,634 1,826 67,940 GROUNDWATER PRODUCTION CHARGE Total Annual Cost $1,034,400 1,194,735 1,991 $/yr Unit GW Production Cost GW production cost without GW Production Charge $/afy 39 138 102 267 102 267 1) Production Capacity from (Todd Groundwater, 2018, Appendix B Cost Estimates)2) Increase production capacity for El Camino Well from Todd Groundwater, 2018 3) Addition of chelate recommended to keep Fe and Mn in solution. Option 2 - Fe and Mn Treatment at Each Well Description Exceeds 3000 afy (Todd Groundwater, 2018) Capacity Scaling in 2023 dollarsOriginal Cost (1) El Camino (1) Cost Adjustment 2000 -> 2023 Escalated Cost Estimate ($2023) FLOW CAPACITY/YIELD GW Production Capacity SFPUC Flow Eleanor (1)Quantity Unit El Camino 1,000 0 Eleanor El Camino (2)Eleanor (2) 1,000gpmgpmAFY 1,000-1,000-1,0000 1,4880 0Total Yield (1,2)1,613 1,613 1,613 1,613 2,400 1,613 CAPTIAL COST 149%100% Pressurized Filters $ $$ $900,000 n/a $900,000 n/a 216% multiplier $ $$$ $ 1,945,980 251,229 $ $$$ $ 1,945,980 168,844 $ $$$ $ 2,895,490 251,229 $ $$ 1,945,980 168,844Backwash Storage Tank (3)Sewer Connection (3)CAPEX Subtotal n/a n/a 1,891,0522,197,209 176,310 1,891,0522,114,824 169,699 1,891,0525,037,771 357,190 1,891,0524,005,876 276,197 $900,000 84,954 $900,000 84,954 $ Annualized costs $/Yr $$$ OPERATION & MAINTENANCE COST Operating Cost $/Yr$/Yr$/Yr $/Yr $/Yr $/Yr$/Yr $42,461n/a $42,461n/a 268% labor multiplier $$$ $ $ $$ 113,97750,0142,509 2,999 13,931 143 $$$ $ $ $$ 113,97768,6472,509 2,999 13,931 143 $$$ $ $ $$ 169,59074,4263,733 4,462 20,729 214 $$$ $ $ $$ 113,97725,5382,509 2,999 13,931 143 Energy Cost for GW pumpingEnergy Cost for treatment Replacement Media Chemicals $ $ $ $$ 1,506 1,254 5,825 60 $ $ $ $$ 1,506 1,254 5,825 60 167% energy multiplier 239% materials 239% materials Repair Valve Kits 239% materialsReplacement Valves 500 500 239% materials 1,196 1,196 1,779 1,196Personnel Costs $/Yr $9,100 $9,100 268% labor multiplier $24,427 $24,427 $36,345 $24,427OPEX Subtotal $/Yr $60,706 $60,706 $209,196 $227,829 $311,278 $184,720 GROUNDWATER PRODUCTION CHARGETotal Annual Cost $$500,023645,683 $$500,024645,684 $1,724 $/AF (2023 dollars)$$2,780,4673,165,973 $$2,780,4673,177,995 $$4,137,1524,805,620 $$2,780,4673,241,385$/yr Unit GW Production Cost $/afy $400 $400 $1,963 $1,970 $2,003 $2,010GW production cost without GW Production Charge $90 $90 $239 $246 $279 $2861) Production Capacity from (Todd Groundwater, 2018, Appendix B Cost Estimates) 2) Increase production capacity for El Camino Well from Todd Groundwater, 2018 3) Backwash tank sized to avoid large flow rate with Fe and Mn backwash water. Assumed that backwash water has sufficient pressure to drain to nearby sewer by gravity. 15 Groundwater Option 3 - Fe and Mn Treatment at Each Well plus BlendingDescription Original Cost (1)Cost Adjustment 2000 -> 2023 Escalated Cost Estimate ($2023)Capacity Scaling in 2023 dollarsFLOW CAPACITY/YIELD El Camino (1)Eleanor (1)Quantity Unit El Camino Eleanor GW Production CapacitySFPUC Flow gpmgpm 3803,720 3253,775 3803,720 325 Not scaled as the wells are already3,775 underutilized in 2000 Study. Total Yield (1,2)AFY 613 524 613 524 No information available onCAPTIAL COST upscaling with blending.Pressurized FiltersFlow ControlBlending Facilities $$$$$$ 700,00075,000100,00030,000n/an/a905,00085,426 700,00075,000100,0001,150,000n/an/a2,025,000191,146 216% multiplier216% multiplier216% multiplier216% multiplier $$$$$$$$ 1,513,540162,165216,22064,866103,4781,755,9773,816,246263,959 $$$$$$$$ 1,513,540162,165 This alternative is not carried forward216,220 and out of scope to analyze this further.Pipelines 2,486,53088,5011,755,9776,222,933404,216 Backwash Storage Tank (3)Sewer Connection (3)CAPEX SubtotalAnnualized costsOPERATION & MAINTENANCE COSTOperating CostEnergy Cost for GW pumpingEnergy Cost for treatmentReplacement MediaChemicals $/Yr $/Yr$/Yr$/Yr 20,381n/a1,5061,2545,82560 20,381n/a1,5061,2545,82560 268% labor multiplier $$$$$$$ 54,70819,0052,5092,99913,931143 $$$$$$$ 54,70822,3102,5092,99913,931143 167% energy multiplier239% materials239% materials239% materials239% materials $/Yr$/Yr$/YrRepair Valve KitsReplacement Valves 500 500 1,196 1,196 Personnel Costs $/Yr 9,100 9,100 268% labor multiplier $24,427 $24,427OPEX Subtotal 38,626 38,626 $118,919 $122,224 Groundwater Production Charge Total Annual Cost 190,009 314,061 512 162,507 392,279 748 $1,724 $/AF (2023 dollars)$ $ $ $ 1,056,578 1,439,455 2,349 $ $ $ $ 903,652 1,430,091 2,728 $/yr $ $ $ $ $ $ Unit GW Production Cost $/afyGW production cost without GW Production Charge 202 438 625 1,0041) Production Capacity from (Todd Groundwater, 2018, Appendix B Cost Estimates) 2) Increase production capacity for El Camino Well from Todd Groundwater, 2018 3) Backwash tank sized to avoid large flow rate with Fe and Mn backwash water. Assumed that backwash water has sufficient pressure to drain to nearby sewer by gravity. Capacity set to not exceed (3,000 afy) (ToddGroundwater, 2018)Option 4 - Fe, Mn, and TDS + Ammonia Treatment at Each WellDescription Original Cost (1)Cost Adjustment 2000 -> 2023Quantity Escalated Cost Estimate ($2023)Capacity Scaling in 2023 dollarsFLOW CAPACITY/YIELD GW Production Capacity SFPUC Flow El Camino Eleanor Unit El Camino 1,000 0 Eleanor El Camino (2)Eleanor (2) gpm gpm AFY 1,000 1,000 - 1,000 1,488 2,400 372 600 -0 0 0 Total Yield (1,2)1,613 1,613 1,613 1,613CAPTIAL COST Pressurized FiltersRO system 149%37%$$$ 900,0003,400,000n/a 900,0003,400,000n/a 216% multiplier216% multiplier $$1,945,9807,351,480n/a $$1,945,9807,351,480n/a $$$ 2,895,80310,939,702251,229 $$$ 1,945,9807,351,480168,844Backwash Storage Tank (3) Sewer Connection (3)Brine Disposal Pipeline (4)Brine Disposal PS (4)CAPEX SubtotalPressurized FiltersRO system $$$ n/an/an/a4,300,00084,960320,936n/a n/an/an/a4,300,00084,960320,936n/a n/an/an/a9,297,460156,150589,902- n/an/an/a9,297,460156,150589,902- $$$$$$$ 11,347,00038,70825,472,442232,367877,830678,179 $$$$$$$ 14,796,00026,01524,288,318156,150589,902873,640 $$$ $$$ $$$$$ $$$$$ $/Yr$/YrOther including Brine Disposal PipelineAnnualized costs $405,896 $405,896 746,052 746,052 1,788,376 1,619,692OPERATION & MAINTENANCE COSTWell Operating CostPressurized Filters O&M CostEnergy Cost for GW pumpingEnergy Cost for treatmentReplacement MediaAmmoniaChemicalsRepair Valve KitsReplacement ValvesPersonnel Costs $/Yr 42,461 42,461 268% labor multiplier $113,977 $113,977 $169,608 $42,402 $/Yr$/Yr$/Yr$/Yr$/Yr$/Yr$/Yr$/Yr n/a1,5061,254n/a5,82560 n/a1,5061,254n/a5,82560 $$$$$$$$ 50,0143,6022,9991,74113,931143 $$$$$$$$ 68,6473,6022,9991,74113,931143 $$$$$$$$ 74,4265,3604,4632,59120,731214 $$$$$$$$ 25,5381,3401,1166485,18353 167% energy multiplier239% materialsn/a239% materials239% materials239% materials268% labor multiplier n/a 5009,100 5009,100 1,19624,427 1,19624,427 1,77936,349 4459,087Subtotal$/Yr 18,245 18,245 98,053 116,686 $145,913 $43,410 RO O&M Cost Energy Cost 83,255 83,255 167% energy multiplier 239% materials $ $ 199,113 380,378 $ $ 199,113 380,378 $ $ 296,300 566,039 $ $ 74,075 Other O&M Cost $/Yr$/Yr$/Yr $/Yr $/Yr $/Yr 159,047 159,047 141,510Annual Sewer Service Charge for Option 4 BrineAnnual Sewer Service Charge for Option 4 Backwash Capacity Charge $ $ - 258,6351,436,4954,137,6007,362,471 3,068 $ $ - 173,822475,2181,034,4003,129,310 5,216 Backwash Water SFPUC CostOPEX SubtotalGROUNDWATER PRODUCTION CHARGE Total Annual Cost 303,008500,0231,208,927 750 303,008500,0241,208,928 750 791,5222,780,4674,318,0412,677 810,1542,780,4674,336,6742,689 $$ $ $ $$ $ $ $1,724 $/AF (2023 dollars)$$$ $ $$$ $ $$$ $ $$$ $ $/yr Unit GW Production Cost GW production cost without GW Production Charge $/afy 440 440 953 965 1,344 3,492 1) Production Capacity from (Todd Groundwater, 2018, Appendix B Cost Estimates)2) Increase production capacity for El Camino Well from Todd Groundwater, 2018 with sewer discharge option 3827 4855 3) Backwash tank sized to avoid large flow rate with Fe and Mn backwash water. Assumed that backwash water has sufficient pressure to drain to nearby sewer by gravity. 4) Brine disposal line from El Camino Well to Eleanor Park (segment 1), and then to RWQCP (segment 2) sized for cumulative flow loads at 5 ft/s. Distances see map on next page. 16 Groundwater Brine Pipeline to RWQCP for TDS removal options (3.7 miles)From El Camino Park to Eleanor Park:1.7 miles2.0 miles 9000 ftFrom Eleanor Pardee Park to RWQCP:10600 ft 17 Palo Alto DPR Palo Alto DPR Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $105,257,000 $11,463,000 $7,592,804 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge (GPC) O&M Cost $ per Year $0 $ per Year $ per Yr$9,305,267 $74,733Energy Cost $ per Yr Total Unit Cost Total Annual Cost Project Yield $16,972,804 4,723 1,608 0 $ per AF AFY Capital Cost Unit Cost GPC Unit Cost $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost 1,970 16Energy Unit Cost Unit Cost 3,594 Cost Escalation Period ENR Date ENR Index (NW County RWSP, June 2018) Current Cost Basis 12,015 15,490 June 2018 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments Note that the primary source document for this supply option (W&C, 2019) wasprepared prior to the release of final state regulations for DPR. Total capital cost ($104.6M) minus land acquisition ($25M). Capital Cost - Reduced Project Yield Original Project Yield Revised Project Yield Land Acquisition 4.73 4.22 MGD MGD $16,834,448 $16,834,448 $79,600,000 -- --(W&C, 2019), Option D1, pdf pg 134 $91,512,299 Capital cost escalated to 2023 and yield decreased. Original Land Acquisition 50,000 57,315 sq ft sq ft $500 $200 $25,000,000 -- --(W&C, 2019), Option D1, pdf pg 134 City Staff EstimateRevised Land Acquisition Subtractions $11,463,000 Treatment Facilities RO Concentrate treatment removed per direction of City, assuming RO Concentratetreatment not needed under current discharge permit.Removal of RO Concentrate Treatment Costs (W&C, 2019), Option D1, pdf pg 134 (W&C, 2019), Option D1, pdf pg 134 1.18 MGD $1,510,000 $1,784,971 $1,552,925 ($2,301,223) ($2,879,412)Construction Cost Markup Conveyance 0.870 multiplier (W&C, 2019) multiplier used to remove (W&C, 2019) -based cost Original HDPE Pipeline: 12 inch Original HDPE Pipeline: 20 inch Original HDPE Pipeline: 24 inch 5,000 500 lf lf lf $254 $334 $381 $462 $1,270,000 $167,000 $533,400 ($1,637,312) ($215,300) ($687,671) Original pipeline costs from (W&C, 2019) removed in order to use updated pipelinecosts(W&C, 2019), Option D1, pdf pg 1341,400 Original HDPE Pipeline: 30 inch Construction Cost Markup 2,600 0.870 lf $1,201,200 $2,759,292 ($1,548,613) ($3,557,339)multiplier (W&C, 2019) multiplier used to remove (W&C, 2019)-based cost Storage n/aPump Stations n/a Other n/aAdditions Treatment Facilities Cost scaling factor applied to water stabilization and secondary UV. Vendor quotesused for scaling include equipment only. Estimated adder accommodates installationand required structural and mechanical work. Cost Scaling Factor 2.0 -- Assuming 30% flow through calcite contactor, based on recent similar projectestimates.Water Stabilization (Calcite Contactor) Addition of Secondary UV 1.26 MGD $920,000 $100,200 -- -- $2,327,513 (Carollo, 2023a) (Carollo, 2023a)4.22 MGD $844,988 Construction Cost Markup Conveyance 1.448 multiplier $4,595,185 Pipeline: 12 inch 5,000 500 lf lf lf $740.00 $960.00 -- -- -- -- $3,700,000 $480,000 (W&C, 2019), Option D1, pdf pg 134 (W&C, 2019), Option D1, pdf pg 135 (W&C, 2019), Option D1, pdf pg 136 (W&C, 2019), Option D1, pdf pg 137 Pipeline: 20 inch Pipeline: 24 inch 1,400 $1,010.00 $1,060.00 $1,414,000 Pipeline: 30 inch Construction Cost Markup Storage 2,600 1.251 lf $2,756,000 $10,447,958multiplier n/a Pump Stations n/aOthern/a Total Capital Cost Capital Cost $79,600,000 $91,512,299 $11,463,000 $102,975,299 ($12,826,870) $26,565,644 $116,714,073$116,720,000 Land Acquisition Original Total Subtractions Additions $25,000,000 $104,600,000 -- -- Calculated TotalCapital Cost Total (rounded)-- 18 Palo Alto DPR O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments O&M Cost - Reduced Project Yield Original Project Yield 4.73 4.22 MGD MGD $1,694,019 $1,694,019 $8,010,000 -- --(W&C, 2019), Option D1, pdf pg 135 Revised Project Yield $9,208,713 O&M cost escalated to 2023 and yield decreased due to decreased RWQCP flows Subtractions Treatment RO Concentrate treatment removed per direction of City, assuming RO Concentratetreatment not needed under current discharge permit.Removal of RO Concentrate Treatment Costs 1.18 MGD $226,000 ($267,155)($344,422)(W&C, 2019), Option D1, pdf pg 135 Conveyance Pipelinesn/aPump Station(s) n/aStorage n/a Other Original Energy Costs Additions 718,547 KWh/yr $0.15 ($107,782)City Staff Treatment of annual CAPEX(not including landacquisition)Calcite Contactor Secondary UV 4% 4% $6,847,119 $6,847,119 $273,885 $273,885 Estimated as 4% of annual capital cost. Operating costs for calcite contactors include stabilization chemicals (calcite, sodium hypochlorite) and a small amount of power. of annual CAPEX(not including landacquisition) Estimated as 4% of annual capital cost. Operating costs for secondary UV includepower and lamp replacement. Conveyance Pipelinesn/a Pump Station(s) n/aStorage n/aOther 718,547 KWh/yr is from the Recycled Water Strategic Plan, city staff provided the costper KWhEnergy Costs $0.10718,547 KWh/yr $74,733 Recycled Water Strategic Plan and City Staff O&M Total ($/year) O&M Subtotal $8,010,000 $9,208,713 ($452,204) $622,503 Subtractions -- --Additions Calculated Total O&M Cost Total ($/year) $9,379,012 $9,380,000 19 Regional DPR Regional DPR Cost Estimate Summary Table (Palo Alto) (2) Project Cost Estimate Summary Table (Valley Water) (1) Cost Units Project Cost Units Total Capital Cost Total Capital Cost Capital Cost $16,410,000 $0 $ $ Capital Cost $779,008,732 $0 $ $Land Acquisition Cost Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Amortized Capital and Land Cost Total O&M Cost $1,067,494 $ per Year $50,675,636 $ per Year Groundwater Production Charge (GPC)$0 $ per Year $ per Yr O&M Cost $31,340,000 $ per Year $ per Yr O&M Cost (including Cost of Water) Energy Cost (separate estimate, not added to O&M) $6,049,640 Total Unit Cost $ per Yr Total Annual Cost$270,999 $82,015,636 24,000Total Unit Cost Project Yield Unit Cost AFY Total Annual Cost $7,117,134 1,769 $ per AF AFY $3,417 $ per AF 1) This table calculates the estimated unit cost of the Regional DPR Facility with capital and O&M costs paid by Valley WaterProject Yield Capital Cost Unit Cost GPC Unit Cost $603 $0 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $3,420 $153 $4,024 Energy Unit Cost Unit Cost (Including Cost of Water) 2) This table calculates the capital and O&M costs paid by Palo Alto for the pipeline from the Regional DPR facility to Palo Alto's distribution system and adds the unit cost of that pipeline to the unit cost of water from the Regional DPR Facility, reflecting what Palo Alto would pay for this water on a unit basis. Cost Escalation Period ENR Index (CoRe Plan, August 2019) Current Cost Basis ENR Date Aug-1912,368 15,490 September 2023 20 Regional DPR Yield Calculations Yield Unit Source Notes Yield Available to Palo Alto Flow available to Palo Alto based on 2022 flows to RWQCP; assumes no SSRF and all partners send only 9 mgd to Regional FacilityFlow available for Local Reuse 0.88 1.0 mgd mgd mgd (Palo Alto, 2023f) Dewatering flow (W&C, 2019) TM 6.5, Section 8 Total flow available (influent) Treatment Efficiency Production Capacity (effluent) Yield 1.88 84% 1.58 1,769 (B&C, 2021) Appendices, Appendix A-2, Section 2.1 mgd afy Total Regional Facility Yield Regional Facility Yield 24,000 afy (B&C, 2021), Page 1 (Valley Water, 2023d) Selected based on Valley Water's potable reuse goal of producing 24,000 afy by 2040. Pulled from the Valley Water FAQs: Energy Assumption Energy Assumption 1.65 GWh/MGD 21 Regional DPR Cost Escalation Method Capital Cost (Valley Water) Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments CoRe Plan DPR Options CoRe Plan 1b: San Jose Raw Water Augmentation (RWA) (Low)19,800 afy afy afy afy afy $32,828 $27,083 $29,680 $23,125 $650,000,000 $650,000,000 $650,000,000 $555,000,000 (B&C, 2021), Table 6-13 (B&C, 2021), Table 6-13CoRe Plan 1b: San Jose RWA (High) CoRe Plan 1b: San Jose RWA (average) 24,000 21,900 24,000 24,000 Note: Raw Water Augmentation is defined in (B&C, 2021) as sending purified water into a pipeline system that delivers untreated water to a drinking water treatment plant. Treated Water Augmentation is defined in (B&C, 2021) as sending purified water directly into the drinking water system. CoRe Plan 1c: San Jose Treated Water Augmentation (TWA), Milpitas Pipeline (B&C, 2021), Table 6-13 (B&C, 2021), Table 6-13CoRe Plan 1d: SJ TWA, new pipeline $25,208 $605,000,000 CoRe Plan DPR Average $26,005 $622,000,000 $779,008,732 Capital Cost Total (Rounded)--$779,008,732 O&M (Valley Water) Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments CoRe Plan DPR Options CoRe Plan 1b: San Jose RWA (Low) CoRe Plan 1b: San Jose RWA (High) 19,800 24,000 21,900 afy afy afy $1,237 $1,021 $1,119 $24,500,000 $24,500,000 $24,500,000 (B&C, 2021), Table 6-13 (B&C, 2021), Table 6-13 CoRe Plan 1b: San Jose RWA (average) CoRe Plan 1c: San Jose TWA, Milpitas Pipeline 24,000 24,000 afy afy $1,004 $1,004 $1,042 $0.10 $24,100,000 $24,100,000 $25,016,438 (B&C, 2021), Table 6-13 (B&C, 2021), Table 6-13CoRe Plan 1d: San Jose TWA, new pipeline Escalated with ENR Index. No O&M cost provided in (B&C, 2021) Not added to O&M, but estimated separately for the purposes of energy cost tracking CoRe Plan DPR Average 24,000 $31,331,228 Estimated Energy Cost 35,352,596 KWh $3,676,886 City Staff O&M Cost Total (Rounded)--$31,340,000 22 Regional DPR Capital Cost (Palo Alto) Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Treatment Facilities n/a Conveyance Length from Regional AWPF to Palo Alto Distribution System if Regional AWPF located in Palo Alto on the former Los Altos Treatment Plant sitePipeline Length 2 mi ftPipeline (10")10,560 125% $690 $7,286,400 $9,117,126 10" diameter estimated for expected flow and vmax = 5 fps Construction Cost Markup Storage n/a Pump Stations n/a Other n/a Calculated Total -- -- $16,403,526 $16,410,000Capital Cost Total (Rounded) O&M Cost (Palo Alto) Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Treatment Facilities n/a Conveyance Pipeline (10")0.5%of annual CAPEX $955,967 $4,780 Storage n/a Pump Stations n/a Other n/a Calculated Total O&M Cost Total (Rounded) -- -- $4,780 $4,800 23 DPR + SSRF DPR with Small Salt Removal Facility (SSRF) Cost Estimate Summary Table Project Cost Units Keep or Remove SSRF Phase Remove 1 Costs Total Capital Cost Capital Cost $48,900,000 $7,400,000 $3,662,396 $ $ < Select Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $ per Year $0 $ per Year $ per Year $ per Year $1,897,644 $45,045Energy Cost Total Unit Cost Total Annual Cost Project Yield $5,605,085 630 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $5,813 $0 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $3,012 $71Energy Unit Cost Unit Cost $8,897 Cost Escalation Period ENR Date ENR Index (NW County RWSP, June 2018) Current Cost Basis 12,015 15,490 June 2018 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments Option D1 - Project Subtotal Raw Construction Cost Treatment - Original Capacity Ozone $43,006,000 (W&C, 2019), Option D1, pdf pg 134 4.73 4.73 4.73 4.73 MGD MGD MGD MGD $359,530 $317,232 $465,274 $274,934 $1,700,000 $1,500,000 $2,200,000 $1,300,000 -- -- -- -- (W&C, 2019), Option D1, pdf pg 134 (W&C, 2019), Option D1, pdf pg 134 (W&C, 2019), Option D1, pdf pg 134 (W&C, 2019), Option D1, pdf pg 134 BAC Advanced Oxidation and Disinfection Free Chlorine Treatment - Reduced Capacities Ozone BAC Back calculating from RO feed flow of 2.72 mgd. Assuming ~5%treatment loss through preceding MF/UF system and minimal losses through the preceding Ozone or BAC system for an initial feed flow of 2.85 mgd (2.72 mgd = 2.85 * ~95%) 2.85 MGD MGD $463,513 $408,982 -- -- $1,321,013 $1,165,600 (B&V, 2021), Table 5-12 (B&V, 2021), Table 5-122.85 1.6 Cost scaling factor applied to advanced oxidation/disinfection andfree chlorine processes to accommodate economy of scalelosses scaling from initial supply option D1. Assumed to be similar cost factor used in the desalination supply option. Cost Scaling Factor -- Advanced Oxidation and Disinfection Assuming 25% of Phase 2 SSRF capacity allocated to Palo Alto Assuming 25% of Phase 2 SSRF capacity allocated to Palo Alto 0.56 0.56 MGD MGD $599,841 $354,451 -- -- $548,292 $323,991Free Chlorine Additional Capital Costs - Reduced Capacities Remaining capital costs from include required infrastructure (size adjusted): storage tanks, pump stations, mobilization, and trafficcontrol.Remaining Raw Capital Costs $17,534,400 -- -- Remaining Raw Capital Costs Subtractions 0.50 multiplier $11,332,882 Treatment Facilities MF/UF system 4.73 4.73 1.20 MGD MGD MGD $6,200,000 $7,500,000 $1,900,000 RO System (W&C, 2019), Option D1, pdf pg 134 Included in SSRF costing below instead RO Concentrate Treatment Conveyance Original HDPE Pipeline: 12 inch 5,000 500 lf lf lf lf $254 $334 $381 $462 $1,270,000 $167,000Original HDPE Pipeline: 20 inch Original HDPE Pipeline: 24 inch Original HDPE Pipeline: 30 inch Storage Original pipeline costs from (W&C, 2019) removed in orderto use updated pipeline costs(W&C, 2019), Option D1, pdf pg 1341,400 2,600 $533,400 $1,201,200 Pump Stations Other Additions Treatment Facilities Cost scaling factor applied to water stabilization and secondaryUV. Vendor quotes used for scaling include equipment only.Estimated adder accommodates installation and requiredstructural and mechanical work. Cost Scaling Factor 2.0 -- Water Stabilization (Calcite Contactor)(Carollo, 2023a)Assuming 30% flow through calcite contactor, based on recentsimilar project estimates.0.17 0.56 MGD $920,000 N/A $310,500 $175,200Addition of Secondary UV Conveyance (Carollo, 2023a)The Spektron 350 is appropriate for flow ranges from 0.4 to 0.7mgd, this cost was selected for the DPR + SSRF supply option.MGD N/A Pipeline: 12 inch -- -- -- -- 5,000 500 lf lf lf lf $740 $960 $3,700,000 $480,000Pipeline: 20 inch Pipeline: 24 inch Pipeline: 30 inch Palo Alto project bids for Water MainReplacement 29 (June, 2023) and Water MainReplacement 27 (June, 2019) and extrapolationof trendline1,400 $1,010 $1,060 $1,414,000 2,6000.50 $2,756,000 $4,186,087Reduced Capacity MultiplierConveyance Total (Reduced Capacity) Storage Pump Stations Other Total Capital Cost Raw Construction Cost Construction Cost Markup SSRF $19,363,566 $47,410,5772.45 multiplier Salt Removal Capital, Phase 1 Salt Removal Capital, Phase 2 Capital Cost Total 1.125 2.25 MGD MGD $0 (W&C, 2023), pg 4 $1,480,400 $48,900,000 City Staff Estimate -- Land Cost Original Capital Costs Land required from DPR Dedicated Project Size (DPR Dedicated) 50,000 57,315 4.22 sqft sqft $500 $200 $25,000,000 --(W&C, 2019), Option D1, pdf pg 134 MGD Project Size (Based on MF/UF Treatment Capacity) Land scaled to size required for MF/UF component of SSRFfacility.2.72 MGD sqft (B&V, 2021) Table 5-12 Land required (scaled down)36,973 -- -- $7,394,592 Land Cost Total $7,400,000 24 DPR + SSRF O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Option D1 - Original O&M Total O&M $8,010,000 W&C, 2019, Option D1, pdf pg 134 Adjustments Treatment - Original Project Capacity Ozone 4.73 4.73 4.73 4.73 4.73 4.73 MGD MGD MGD MGD MGD MGD $93,055 $131,123 $338,381 $571,018 $74,021 $31,723 $440,000 $620,000 $1,600,000 $2,700,000 $350,000 $150,000 -- -- W&C, 2019, Option D1, pdf pg 134 W&C, 2019, Option D1, pdf pg 134 W&C, 2019, Option D1, pdf pg 135 W&C, 2019, Option D1, pdf pg 136 W&C, 2019, Option D1, pdf pg 134 W&C, 2019, Option D1, pdf pg 134 BAC MF/UF System RO System Advanced Oxidation and Disinfection Free Chlorine -- -- Treatment - Reduced Project Capacity Ozone Back calculating from RO feed flow of 2.72 mgd. Assuming ~5% treatment loss through preceding MF/UF system and minimal losses through the preceding Ozone or BAC system for an initialfeed flow of 2.85 mgd (2.72 mgd = 2.85 * ~95%) 2.85 MGD $119,968 -- -- $341,909 BAC 2.85 2.72 MGD MGD $169,046 $436,248 $481,781 $296,649 Advanced Water Purification System, (B&V, 2021), Table 5-12 MF/UF System Based on RO feed flow rate. O&M for SSRF processes has beenscaled to 25% to match Palo Alto/Mountain View cost sharing. Process capacity based Phase 2 gross production rate. O&M forSSRF processes has been scaled to 25% to match PaloAlto/Mountain View cost sharing.RO System 2.32 0.56 0.56 MGD MGD MGD $736,168 $95,429 $40,898 $426,978 $53,440 $22,903 Advanced Oxidation and Disinfection -- -- Advanced Water Purification System, (B&V, 2021)Assuming 25% of Phase 2 SSRF capacity allocated to Palo AltoFree Chlorine Resized and Escalated O&M Costs Remaining O&M includes energy and consumables, and labor associated with required infrastructure (conveyance piping, storage tanks, pump stations).Remaining O&M Costs $1,762,218 -- -- Remaining O&M Costs Subtractions 0.28 multiplier $488,267 Treatment Facilities RO Concentrate treatment removed per direction of City,assuming RO Concentrate treatment not needed under current discharge permit. RO Concentrate Treatment 4.73 MGD ($280,000)($360,982) ($107,782)Original Energy Costs Conveyance 718,547 KWh/yr $0.15 Input by City Storage Pump Stations Other Additions Treatment Facilities of annual CAPEX(not including landacquisition) of annual CAPEX(not including landacquisition) Estimated as 4% of annual capital cost. Operating costs forcalcite contactors include stabilization chemicals (calcite, sodiumhypochlorite) and a small amount of power.Calcite Contactor Secondary UV 4%$3,181,015 $127,241 Estimated as 4% of annual capital cost. Operating costs forsecondary UV include power and lamp replacement.4%$3,181,015 $0.10 $127,241 $45,045Energy Costs Total O&M Cost ($/year) O&M Subtotal Subtractions 433,098 KWh/yr City Staff Estimate -- -- -- $2,111,927 ($468,764) $299,526Additions Calculated Total $1,942,689$1,950,000O&M Cost Total ($/year) 25 IPR Indirect Potable Reuse (IPR) Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $188,900,000 $7,400,000 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost $12,769,597 $ per Year Groundwater Production Charge (GPC) O&M Cost $5,671,960 $6,213,260 $1,054,780 $ per Year $ per Yr Energy Cost $ per Yr Total Unit Cost Total Annual Cost Project Yield $25,709,597 5,150 $ per AF AFY Capital Cost Unit Cost GPC Unit Cost O&M Unit Cost Energy Unit Cost Unit Cost $2,480 $1,101 $1,206 $205 $ per AF $ per AF $ per AF $ per AF $ per AF$4,992 Cost Escalation Period ENR Date ENR Index (NW County RWSP, June 2018) Current Cost Basis 12,015 15,490 June 2018 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source NotesCapital Cost Original Capital Cost $70,700,000 $91,147,982 W&C, 2019, Option C1, pdf pg 128 Total capital cost ($92.2M) minus land acquisition ($21.5M), escalated to 2023 Adjustments (Land Acquisition only)Land AcquisitionOriginal Land Acquisition Treatment Facility Land Cost Rinconada Land Cost 20,000 9,000 sq ft sq ft sq ft $500 $500 $500 $10,000,000 $4,500,000 $7,000,000 W&C, 2019, Option C1, pdf pg 128 W&C, 2019, Option C1, pdf pg 128 W&C, 2019, Option C1, pdf pg 128 Cost provided in RWSP as lump sum Cost provided in RWSP as lump sumPeers Land Cost 14,000 Revised Land Acquisition Treatment Facility Land Cost El Camino Park Well (Qmax = 1,850 gpm) Eleanor Pardee Park Well (Qmax =1000 gpm) Rinconada Land Cost 23,000 0 sq ft sq ft sq ft sq ft sq ft $200 $200 $200 $200 $200 4,600,000 City Staff Estimate City Staff Estimate$0 $0 There is sufficient land for Manganese (Mn), Iron (Fe), and Total Dissolved Solids (TDS) treatment at this site There is sufficient land for Manganese (Mn), Iron (Fe), and Total Dissolved Solids (TDS) treatment at this site Not included in OWP since 3 wells are sufficient to produce expected yield 0 City Staff Estimate 9,000 14,000 Area calculated from Cost in W&C, 2019 Area calculated from Cost in W&C, 2019Peers Well (Qmax =1700 gpm) Adjustments (Treatment only) Treatment Facilities $2,800,000 Updated land cost based on $200/sft instead of $500/sft. Wellhead Treatment at El Camino Well 1,000 1,000 1,700 0 gpm gpm gpm gpm gpm gpm $ $ $ $ $ $ - - - - - - $ $ $ 9,297,460 Assumes treatment for Fe, Mn and TDS (Carollo, 2000, Option #4) Assumes treatment for Fe, Mn and TDS (Carollo, 2000, Option #4) Assumes treatment for Fe, Mn and TDS (Carollo, 2000, Option #4) Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield (Carollo, 2000) and (Todd Groundwater,2018)Wellhead Treatment at Eleanor Pardee Well Wellhead Treatment at Peers Park Well Wellhead Treatment at Hale Park Well Wellhead Treatment at Rinconada Park Well 9,297,460 11,675,879 (Carollo, 2000) and (Todd Groundwater,2018)0 Wellhead Treatment at Library Park Well Total Adjustment 0 $30,270,798 Subtractions Treatment Facilities n/a Conveyance Original HDPE Pipeline: 8 inch 2,000 1,500 5,000 20,500 0.870 lf $200 $212 $254 $277 $400,000 $318,000 ($515,689) Original HDPE Pipeline: 10 inch Original HDPE Pipeline: 12 inch Original HDPE Pipeline: 16 inch Construction Cost Markup lf ($409,973) ($1,637,312) ($7,320,846) ($8,598,923) Original pipeline costs from W&C, 2019 removed in order to use updated pipeline costs W&C, 2019 multiplier used to remove RW&C, 2019-based cost lf lf $1,270,000 $5,678,500 $6,669,855 W&C, 2019 Option C1, pdf pg 128 multiplier Storage n/a Pump Stations n/a Other n/aAdditions Conveyance (RO waste stream/brine)Brine line flowrate assumption (RO and Fe/Mn)25% 250 of Q_well Brine line flowrate El Camino Well Brine line flowrate Eleanor Pardee Park Well Brine line flowrate Peers Park Well Brine line flowrate Hale Park Well gpm requires a 4.5 4.5 6.0 inch diameter brine line 250 gpm requires a requires a inch diameter brine line; and 8" once combined with brine from El Camino Well and Peers Well inch diameter brine line; and 6" once combined with brine from El Camino Well425gpm 0 gpm Not included in OWP since 3 wells are sufficient to produce expected yield Brine line flowrate Rinconada Park Well Brine line flowrate Library Park Well Brine line flowrate (all 6 wells) 0 gpm Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield0gpm 925 gpm Design velocity 5 ft/sec Brine line from El Camino and Peers Well to junction (6 inch) Brine Line from El Camino & Peers Wells to Eleanor Well (6 inch) Brine Line from Elenaor Well to RWQCP (8 inch) Brine Line from El Camino Well to Sewer (6 inch) Brine Line from Peers Well to Sewer (6 inch) Brine Line from Eleanor Well to Sewer (6 inch) Brine Line from Hale Well to Sewer (6 inch) Brine Line from Rinconada Well to Sewer (6 inch) Brine Line from Library Well to Sewer (6 inch) Pipeline: 8 inch 7,500 6,400 10,600 1,500 100 lf $560 -- -- $9,455,261 $8,068,489 $14,795,231 lf $560 $620 $560 $560 $560 $560 $560 $560 $620 $690 $740 $850 lf -- --lf Discharge to sewer replaced with dedicated brine line. lf -- -- -- -- -- Discharge to sewer replaced with dedicated brine line. 830 lf Discharge to sewer replaced with dedicated brine line. 100 lf Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield 100 lf 100 lf 2,000 1,500 5,000 20,500 1.251 lf -- -- -- -- $1,240,000 $1,035,000 $3,700,000 $17,425,000 $29,279,309 Pipeline: 10 inch lf W&C, 2019 Option C1, pdf pg 128Pipeline: 12 inch lf lfPipeline: 16 inch Pipeline Construction Cost Markup multiplier StorageOptions 4: Backwash water storage for Fe & Mn treatment (3 sites) Backwash volume 5 times Q_well mins/cycle time per day MG Backwash duration Backwash frequency 15 1 Backwash volume El Camino Well @ 1000 gpm Backwash volume Eleanor Pardee Well @ 1000 gpm Backwash volume Peers Well @ 1700 gpm Backwash volume Hale Well @ 609 gpm Backwash volume Rinconada Well @ 609 gpm Backwash volume Library Well @ 609 gpm Connection to sewer EC/EP/P well Pump Stations (Option 4 only) 0.08 0.08 0.13 0.00 0.00 0.00 4 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 100 n/a n/a n/a n/a n/a n/a $ $ $ 168,844 MG 168,844 287,035MG MG Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield MG MG inches feet $117,065 ######################################## gpm on average Brine PS at El Camino Well @ 250 gpm Brine PS at Eleanor Well @ 250 gpm Brine PS at Peers Well @ 425 gpm Construction Cost Markup 2 2 hp hp 20 20 20 feet TDH feet TDH feet TDH $ $ $ $ 40,648 40,648 69,102 188,186 Assumes pressurized flow of brine to RWQCP outfall Assumes pressurized flow of brine to RWQCP outfall Assumes pressurized flow of brine to RWQCP outfall3hp 1.251 multiplier Other n/a Sewer Connection Charge El Camino Well Sewer Connection Charge Eleanor Pardee Park Well Sewer Connection Charge Peers Park Well Sewer Connection Charge Hale Park Well Sewer Connection Charge Rinconada Park Well 1 1 1 1 1 1 connection connection connection connection connection connection 9,846 9,846 9,846 9,846 9,846 9,846 9,846 9,846 9,846 WASTEWATER SERVICE CONNECTION CHARGES UTILITY RATE SCHEDULE S-5 WASTEWATER SERVICE CONNECTION CHARGES UTILITY RATE SCHEDULE S-6 WASTEWATER SERVICE CONNECTION CHARGES UTILITY RATE SCHEDULE S-7 Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yieldSewer Connection Charge Library Park Well Total Capital Cost Capital Cost $70,700,000 $21,500,000 $92,200,000 $91,147,982 Land Acquisition $7,400,000 Original Total $98,547,982 Adjustments (treatment) Subtractions $ $ 30,270,798 -- -- -- -- ($18,482,741) 85,961,595 $196,297,634 ##### Additions Calculated Total Capital Cost Total (Rounded) 26 IPR O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes AdjustmentsO&M Cost Original Annual O&M $14,820,000 W&C, 2019, Option C1, pdf pg 129 W&C, 2019, Option C1, pdf pg 129Groundwater Production Charges (RWSP)5,900 afy $1,960 ($11,564,000) $3,256,000Original Annual O&M without GW Prodcution Charge $4,197,706 $5,671,960 Per discussions with VW, it is reasonable to assume that there may be some losses associated with recharge water, so the GPC may apply to a portion of the volume associated with recharge. Assuming 10% per similar recharge assumptions in other California projects. Groundwater Product Charge Recharge Loss Assumption 10% Pumping charge should only be applied to GW pumping amount (3,000 afy), not recharge amount (5,900 afy)Groundwater Production Charges (Adjusted)3,290 afy $1,724 Subtractions Treatmentn/a Conveyance Pipelines n/aPump Station(s)n/a Storage n/a Other Original Energy Cost 342,958 KWh/yr $0.15 $51,444 $66,322 Additions Treatment (Fe/Mn and Ammonia) Wellhead Treatment: El Camino Well Wellhead Treatment: Pardee Park Well Wellhead Treatment: Peers Park Well Wellhead Treatment: Hale Park Well Wellhead Treatment: Rinconada Park Well Wellhead Treatment: Library Park Well SFPUC water for backwash of Wellhead Treatment: El Camino Well SFPUC water for backwash of Wellhead Treatment: Pardee Park We SFPUC water for backwash of Wellhead Treatment: Peers Park Well RO Treatment: El Camino Well 1,000 1,000 1,700 0 gpm gpm gpm gpm gpm gpm afy $ $ $ 46,947 46,947 50,539 Included in Carollo 2000, but not in Todd Groundwater, 2018 Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield 0 0 84 $2,069 $2,069 $2,069 $/AF $/AF $/AF $ $ $ $ $ $ 173,822 173,822 295,497 380,378 380,378 596,369 84 afy 143 1,000 1,000 1,700 afy gpm gpm gpm RO Treatment: Pardee Park Well RO Treatment: Peers Park Well Conveyance Pipelines n/a Pump Station(s) n/a Storage n/a Other Energy Cost for Groundwater pumping El Camino Well Energy Cost for Groundwater pumping Eleanor Pardee Park Well Energy Cost for Groundwater pumping Peers Park Well Energy Cost for Groundwater pumping Hale Park Well Energy Cost for Groundwater pumping Rinconada Park Well Energy Cost for Groundwater pumping Library Park Well Energy Cost for RO treatment for El Camino Well Energy Cost for RO treatment for Eleanor Pardee Park Well Energy Cost for RO treatment for Peers Park Well 204 280 850 828 900 285 ft ft ft ft ft ft 1,000 gpm gpm gpm gpm gpm gpm $50,019 Todd Groundwater, Table 4-2 Todd Groundwater, Table 4-2 Todd Groundwater, Table 4-2 1,000 $68,654 1,700 $354,304 Scaled Peers Well production to not exceed 5900 afy = 3700 gpm) Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield Not included in OWP since 3 wells are sufficient to produce expected yield - - (3,700) $138,705 $138,705 $238,069 Sewer Service Charge for 3 wells Brine Sewer Service Charge for 3 wells Backwash Sewer Capacity Charge O&M Total ($/year) 64,984,401 13,540,169 ft^3 ft^3 9.08 9.08 $/hcf $/hcf 5,900,584 COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-2 1,229,447 COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-3 1 Original Total $14,820,000 $9,869,666 ($66,322) 3,133,156 Subtractions -- -- -- Additions Calculated Total $12,936,500 $12,940,000Total O&M Cost ($/year, Rounded) 27 NPR Non Potable Reuse (NPR) Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $148,510,000 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $9,660,789 $ per Year $0 $ per Year $ per Year $ per Year $909,679 $82,592Energy Cost Total Unit Cost Total Annual Cost Project Yield $10,570,467 1,100 $8,783 $0 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $827 Energy Unit Cost Unit Cost $75 $9,610 Cost Escalation Period ENR Date ENR Index (NW County RWSP, June 2018) Current Cost Basis 12,015 15,490 June 2018 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments Capital Cost Original Capital Cost Subtractions Treatment Facilities n/a $63,000,000 $81,220,974 W&C, 2019, Option A2, pdf pg 116 Conveyance Original HDPE Pipeline: 8 inch 50,383 8,600 5,500 1,000 7,115 lf lf lf lf lf $200 $212 $254 $277 $334 $10,076,600 $1,823,200 $1,397,000 $277,000 ($12,990,972) ($2,350,509) ($1,801,043) ($357,114) Original HDPE Pipeline: 10 inch Original HDPE Pipeline: 12 inch Original HDPE Pipeline: 16 inch Original HDPE Pipeline: 20 inch Original pipeline costs from W&C, 2019 removed in order to use updated pipeline costsW&C, 2019, Option A2, pdf pg 116 $2,376,410 ($3,063,720)W&C, 2019, multiplier used to remove W&C, 2019,-based costConstruction Cost Markup $11,809,206 ($15,224,686)0.870 multiplier Storage n/a Pump Stations n/a Other n/a Additions Treatment Facilities SSRF Phase 1 costs removed as MV agreed to paythe remaining capital costs.Small Salt Removal Capital, Phase 1 Salt Removal Capital, Phase 2 $0 W&C, 2023, pg 4 City Staff Estimate$1,480,400 Conveyance Pipeline: 8 inch Pipeline: 10 inch Pipeline: 12 inch Pipeline: 16 inch Pipeline: 20 inch 50,383 8,600 5,500 1,000 7,115 1.251 lf $620 $690 $740 $850 $960 $31,237,460 $5,934,000 $4,070,000 $850,000 lf lf W&C, 2019, Option A2, pdf pg 116lf lf $6,830,400 $52,667,045Construction Cost Markup multiplier Storage n/a Pump Stations n/a OtherEnergy CostTotal Capital Cost Original Total $63,000,000 $81,220,974 ($35,788,044) $103,069,305 $148,502,234 $148,510,000 Subtractions Additions -- -- -- -- Calculated Total Capital Cost Total (Rounded) 28 NPR O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source NotesAdjustments O&M Cost Original Annual O&M $520,000 $670,395 W&C, 2019, Option A2, pdf pg 117 Subtractions Treatment n/a Conveyance Pipelines n/a Pump Station(s) n/a Storagen/a Other Original Energy Cost 794,111 KWh/yr $0.15 ($119,117)Input by City Additions Treatment n/a Conveyance Pipelines n/a Pump Station(s) n/a Storage n/a Other SSRF O&M 1,100 0.56 afy MGD Calculated average O&M cost per mgd from enhancedrecycled water demand scenarios included in (W&C, 2023) and increased to the yield for this supply option.$640,000 per MGD KWh/yr $358,400 $82,592 W&C, 2023, Section 4.2 Energy Cost O&M Total ($/year) Original Total 794,111 $0.10 $520,000 $670,395 ($119,117) $440,992 $992,271 $1,000,000 Subtractions -- -- -- Additions Calculated Total Total O&M Cost ($/year, Rounded) 29 Desalination Desalination Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $251,832,599 $43,560,000 $19,215,712 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $ per Year $0 $ per Year $ per Year $ per Year $9,827,073 $1,281,486Energy Cost Total Unit Cost Total Annual Cost Project Yield $30,324,272 4,480 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $4,289 $0 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $2,193 $286Energy Unit Cost Unit Cost $6,768 Cost Escalation Period ENR Date Feb-15ENR Index (BAWSCA Long Term Regional Water Strateg Current Cost Basis 11,178 15,490 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Adjustments Capital Cost Escalation BAWSCA 15 mgd Open Bay Intake - Low BAWSCA 15 mgd Open Bay Intake - High BAWSCA 15 mgd Open Bay Intake - Average 15 mgd Open Bay Intake - Escalated Adjustment for Change in Size 5 mgd Open Bay Intake 15 15 15 15 MGD MGD MGD MGD $20,600,000 $24,133,333 $22,366,667 $30,994,781 $309,000,000 $362,000,000 $335,500,000 Cost estimate from BAWSCA study includes intake, treatment, and conveyance and does not include land acquisition or brine disposal.CDM Smith, 2015, Table B-10 $464,921,721 $154,973,907 15 mgd facility escalated to 2023 cost 5 MGD $30,994,781 1.6 No loss of economies of scaleSee Additional Calculations for scaling factor to account for loss of economies of scale for smaller facility.Cost Scaling Factor (15 -> 5 mgd) BAWSCA 15 mgd Open Bay Intake - Average Land Acquisition $251,832,599 $43,560,000 Capital Cost including loss of economies of scale CDM Smith, 2015, Section B.3 1 acre/mgd of treated water capacityLand Acquisition Land Acquisition 5 ac sq ft217,800 $200 Total Capital Cost Capital Cost $251,832,599 $43,560,000 $295,392,599 $295,400,000 Land Acquisition Calculated Total Capital Cost Total (Rounded) 30 Desalination O&M Cost Project Quantity 73% 5 Unit Unit Cost $16,382,072 $437,000 Original Cost Current Cost Source Notes Adjustments O&M Cost $12,012,073 See Reference CalculationsO&M Total calculation Subtractions of annual CAPEX MGD Estimated from Table A9-B of the BAWSCA_Volume_II_Phase_II_A_AttachmentsEnergy Cost ($2,185,000)City Staff Estimate City Staff Estimate Additions Estimated energy required from Valley Water Recycled Water Committee presentation, From Watts to Water, May 2011Energy Cost KWh/AF2750.00 $0.104006 $1,281,486 $12,012,073 ($2,185,000) $1,281,486 $11,108,559 $11,110,000 Original Total Subtractions Additions -- -- --Calculated Total Total O&M Cost ($/year, Rounded) Reference Calculations for Estimating Capital and O&M Costs Assumptions 15 mgd Open Bay Intake - Low Source$309,000,000 3.5% CDM Smith, 2015, Table B-10Capital Cost Interest Rate in 2015 Amortized Capital Cost O&M annual $16,800,741 $13,200,000 $30,000,741 79% CDM Smith, 2015, Table B-10 Total Annual Cost O&M % of Annual CAPEX Assumptions 15 mgd Open Bay Intake - High Capital Cost $362,000,000 3.5% CDM Smith, 2015, Table B-10 CDM Smith, 2015, Table B-10 Interest Rate in 2015 Amortized Capital Cost O&M annual $19,682,422 $13,400,000 $33,082,422 68% Total Annual Cost O&M % of Annual CAPEX 31 Multi Source Storage Multi Source Storage Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $22,630,000 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $1,472,114 $ per Year $0 $60,000 $0 $ per Year $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $1,532,114 39 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $38,125 $0 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $1,554 $0Energy Unit Cost Unit Cost $39,679 Bottom Up Calculation Capital Costs Project Quantity Unit Unit Cost Cost Estimate Source Notes Treatment Facilities Peers Park, Dewatering Oregon Expressway Ramos Park, RW Connection Hoover Park, Oregon Expwy Dewatering Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering 0.068 0.045 0.063 0.040 0.028 MGD MGD MGD MGD MGD $4.50 $4.50 $4.50 $4.50 $4.50 $307,506 $202,809 $285,316 $179,678 $125,504 Using PHD/ADD peaking factor of 6.0 Conveyance 4-Inch Diameter Pipeline Peers Park, Dewatering Oregon Expressway Ramos Park, RW Connection Hoover Park, Oregon Expwy Dewatering Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering 3,000 4,000 4,000 3,000 1,500 LF LF LF LF LF $520 $520 $520 $520 $520 $1,560,000 $2,080,000 $2,080,000 $1,560,000 $780,000 Storage Peers Park, Dewatering Oregon Expressway Ramos Park, RW Connection Hoover Park, Oregon Expwy Dewatering Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering 12,000 8,000 11,000 7,000 5,000 gallons gallons gallons gallons gallons $14 $14 $14 $14 $14 $170,000 $120,000 $160,000 $100,000 $70,000 Pump Stations Supply PS Construction Cost (from Stormwater/Dewatering Site to Park) Peers Park, Dewatering Oregon Expres Ramos Park, RW Connection 1 1 1 1 1 hp hp hp hp hp $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Hoover Park, Oregon Expwy Dewaterin Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering Irrigation PS Construction Costs (from below-ground storage to feed irrigation system) Peers Park, Dewatering Oregon Expres Ramos Park, RW Connection 3 2 3 2 2 hp hp hp hp hp $10,000 $10,000 $10,000 $10,000 $10,000 $30,000 $20,000 $30,000 $20,000 $20,000 Hoover Park, Oregon Expwy Dewaterin Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering Other Report to be prepared by City, estimates per City staffTitle 22 Report 5 EA $20,000 $100,000 Land Acquisition Cost Total Capital Cost Assumption Cost Peers Park, Dewatering Oregon Expressway $2,097,506 Ramos Park, RW Connection Hoover Park, Oregon Expwy Dewatering Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering Total Raw Construction Cost (2023 $) Peers Park, Dewatering Oregon Expressway Ramos Park, RW Connection $2,452,809 $2,585,316 $1,889,678 $1,025,504 $10,050,814 $4,722,016 $5,521,893 $5,820,200 $4,254,143 $2,308,668 $22,626,920 Hoover Park, Oregon Expwy Dewatering Johnson Park, City Hall Dewatering Heritage Park, City Hall Dewatering Construction Cost Multiplier 2.25 Capital Cost Total (Rounded)$22,630,000 32 Multi Source Storage O&M Cost Project Quantity Unit Unit Cost Cost Estimate $6,448 Source Notes Treatment Capital Cost for Treatment only $2,478,210 $161,211Annualized Capital Cost for Treatment only Annual O&M 4% Conveyance Pipelines Capital Cost for Pipelines only Annualized Capital Cost for Treatment only Annual O&M $18,145,095 $1,057,463 0.5% 2.0% $5,287 Pump Station(s) Capital Cost for PS only Annualized Capital Cost for PS only Annual O&M $382,713 $30,710 $614 Storage Capital Cost for Storage only Annualized Capital Cost for Storage only Annual O&M $1,395,777 $112,001 1.0%$1,120 Land n/a Other O&M Staff (inspections per site) Number of sites 96 5 hrs/yr per site $/hourLabor Cost (salary + benefits)$80 $38,538 O&M Total Calculated O&M Total Total O&M Cost ($/year, Rounded) $52,008 $60,000 33 Green Infrastructure Green Infrastructure Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $4,080,000 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $265,410 $ per Year $0 $240,000 $0 $ per Year $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $505,410 30 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $8,847 $0 $ per AF $ per AF $ per AF $ per AF $ per AF O&M Unit Cost $8,000 $0Energy Unit Cost Unit Cost $16,847 Cost Escalation Period ENR 11,155 1.14 Date Jul-16One Water LA 2040 Plan (Final, April 2018) RS Means Adjustment SoCal to SF Bay Area Current Cost Basis Jul-05 15,490 September 2023 Cost Escalation Method Capital Costs Project Quantity Unit Unit Cost Original Cost Current Cost Source Notes Cost Estimating Basis One Water LA : Green Streets Option 1 length One Water LA : Green Streets Option 1 yield One Water LA : Green Streets Option 1 Capital Cost One Water LA : Green Streets Option 1 unit cost Capital Cost per mile (calculated) Adjustments 1,690 miles afy11,900 Carollo, 2018a, Volume 5. TM5.2 - Appendix Normal Year hydrology $M $875 $1,379 $11,821 $0.82 C, Concept Option #1 Average of high and low cost estimates $/AF $M/mile $7,500 $0.52 Palo Alto Project Sizing Estimated by approximating the miles of high and medium priority streets projects in the figureGreen Street length Yield Palo Alto, 2019a, Figure 4.15miles Note that infiltration may not necessarily lead to increased groundwater availability, so the yield for this project may actually be 0.Assumes linear cost relation (marginal economies of scale) 30 afy Capital Cost $/mile $816,000 $4,080,000 Subtractions Treatment Facilities n/a Conveyance n/a Storage n/a Pump Stations n/a Other n/a Additions Treatment Facilities n/a Conveyance n/a Storage n/a Pump Stations n/a Other n/a Total Capital Cost Capital Cost Land Acquisition Original Total Subtractions Additions $4,080,000 $0 n/a (green streets are assumed to be constructed in public Right of Way)$4,080,000 $0-- --$0 Calculated Total Capital Cost Total (Rounded) $4,080,000 $4,080,000-- 34 Green Infrastructure O&M Cost Project Quantity Unit Unit Cost Original Cost Current Cost Source Cost Estimating Basis Carollo, 2018a, Volume 5, TM5.2 - AppendixD, Concept Option #1One Water LA : Green Streets Option 1 O&M $/year $50,970,535 $30,200 $80,337,970 $47,500 One Water LA : Green Streets Option 1 length O&M Cost per mile (calculated) Adjustments 1,690 miles $/mile per year Palo Alto Project Sizing Palo Alto, 2019a, Figure 4.1 Estimated by approximating the miles of high and medium priority streets projects in the figureGreen Street length 5 miles O&M Cost $/mile $47,500 $237,500 Subtractions Treatment Facilities n/a Conveyance n/a Storage n/a Pump Stations n/a Other n/a Additions Treatment Facilities n/a Conveyance n/a Storage n/a Pump Stations n/a Other n/a O&M Total ($/year) O&M Cost $237,500 $0Subtractions Additions -- --$0 Calculated Total Capital Cost Total (Rounded) $237,500 $240,000-- 35 Graywater Graywater Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $0 $0 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $ per Year $0 $46,650 $0 $ per Year $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $46,650 5.7 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $0 $ per AF $ per AF $ per AF $ per AF $ per AF $0 O&M Unit Cost $8,215 $0Energy Unit Cost Unit Cost $8,215 Programmatic Cost Estimate Project Costs Project Yield and Cost Year Project Assumptions Units Cost Source Notes General Assumptions Staff Time Single Family Facilities City Facilities Single Family + City Facilities0.25 FTE Assuming 0.25 FTE per City input Staffing Cost - Salary and Benefits Annual Staffing Cost Calculations $167,000 $/FTE $41,750 CY Count Yield Install Cost Yield Install Cost Total Yield Total Cost 2024 1 0.44 $1,718 0.10 $10,000 0.54 $53,468 1) Single Family Facilities Saving Assumptions Single Family Accts (2040) 2025 2026 2 3 0.88 1.32 $1,718 $1,718 0.20 0.31 $10,000 $10,000 1.08 1.63 $53,468 $53,46822years accts Based on savings in 2045 18,869 (Palo Alto, 2021, Table 11) (Valley Water, 2023e) Single family account projections in 2045 Assuming 1% adoption from UWMP 2045 projection 2027 4 1.76 $1,718 0.41 $10,000 2.17 $53,468 Graywater Adoption Rate Annual Single Family Facilities Cost for Single Family Install 1% 9 $200 rate device/yr $/system 2028 2029 2030 5 6 7 2.20 2.64 3.08 $1,718 $1,718 $1,718 0.51 0.61 0.72 $10,000 $10,000 $10,000 2.71 3.25 3.80 $53,468 $53,468 $53,468Palo Alto's portion of the graywater rebate program.Average number of persons per home in Palo Alto per US Census dataPersons/Household 2.62 PPH US Census Bureau 2031 8 3.52 $1,718 0.72 $0 4.24 $43,468SFPUC manual assumes 15 gpd per person of graywater generation from laundry systems onlyGPD per person of graywater Graywater/Household SFPUC, 2018, pdf pg. 1915 39 gpd gpd 2032 2033 9 3.96 4.40 $1,718 $1,718 0.72 0.72 $0 $0 4.68 5.12 $43,468 $43,46810 Total Water Captured per Year (SFfacilities) Savings in 2024 0.44 AFY AFY AFY AF 2034 2035 2036 2037 11 12 13 14 4.84 5.28 5.72 6.16 $1,718 $1,718 $1,718 $1,718 0.72 0.72 0.72 0.72 $0 $0 $0 $0 5.56 6.00 6.44 6.88 $43,468 $43,468 $43,468 $43,468 0.44 9.7Savings in 2045 Total Savings 111.3 2) City Facilities 2038 20392040 15 1617 6.60 7.047.48 $1,718 $1,718$1,718 0.72 0.720.72 $0 $0$0 7.32 7.768.20 $43,468 $43,468$43,468Saving Assumptions Total City Facilities 77 yearssites Assuming one city facility installed per year 6 fire stations, 1 community poolAssuming 2x single family household yield per CityfacilityGraywater/City facility 79 gpd sites 2041 2042 2043 18 19 20 7.92 8.36 8.80 $1,718 $1,718 $1,718 0.72 0.72 0.72 $0 $0 $0 8.64 9.08 9.52 $43,468 $43,468 $43,468 Annual City Facilities 1.00 Cost for City Site Install $10,000 $/system Total Water Captured per Year (Cityfacilities) Savings in 2024 0.72 AFY AFY AFY AF 2044 2045 21 22 9.24 9.68 $1,718 $1,718 $37,800 0.72 0.72 13.6 $0 $0 9.96 10.40 124.9 $43,468 $43,4680.10 0.72 13.6 Savings in 2045 Total Savings Total (through 2045)111.3 $70,000 $1,026,300 Total Costs Total Annual Program Costs Lifetime Costs $46,650 $1,026,300 $8,215Unit Cost ($/AF) 36 Rain Barrels Rain Barrels Cost Estimate Summary Table Project Cost Units Total Capital Cost Capital Cost $0 $0 $0 $ $Land Acquisition Cost Amortized Capital and Land Cost Total O&M Cost Groundwater Production Charge O&M Cost $ per Year $0 $43,251 $0 $ per Year $ per Year $ per YearEnergy Cost Total Unit Cost Total Annual Cost Project Yield $43,251 0.7 $ per Yr AFY Capital Cost Unit Cost GPC Unit Cost $0 $ per AF $ per AF $ per AF $ per AF $ per AF $0 O&M Unit Cost $58,321 $0Energy Unit Cost Unit Cost $58,321 Programmatic Cost Estimate Project Costs Project Yield and Cost Project General Assumptions Staff Time Staffing Cost - Salary and Benefits Calculations Assumptions Units Cost Source Notes Rain Barrel Yield (AFY) 0.1 0.1 0.2 CY Count Cost ($/yr) $43,251 $43,251 $43,251 0.25 $167,000 FTE $/FTE Assuming 0.25 FTE per City input 2024 2025 2026 1 2 3 Project Yield 2027 4 0.3 $43,251 Available NOAA data for Palo Alto storm events was filtered to remove storm events that were too small (less than half an inch of rainfall) or too close together (less than 5-days apart). Data is from 2000 to 2017. Assumed that each inch of rainfall will fill a rain barrel. Approximated 100 gallon rain barrel size. NOAA Climate Data Online Palo Alto Rainfall DataAdjusted average annual rainfall 4.9 inches 2028 5 0.3 $43,251 Rain Collected 100 gal/in-rainfall 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 6 0.4 0.5 0.5 0.6 0.6 0.7 0.8 0.8 0.9 1.0 1.0 1.1 1.2 1.2 1.3 1.4 1.4 16.3 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $43,251 $951,521 Gal/Rain Barrel Average annual rainfall Rain Barrel Lifespan 490 0.00150 20 gal/yr AF/Barrel years $ 7 8 9 Cost to City/Barrel $35 Palo Alto Rain Barrel Rebate Program (Palo Alto, 2021, Table 11) Palo Alto's portion of rain barrel rebate 10 11 12 13 14 15 16 17 18 19 20 21 22 Single Family Accts (2040) Total Adoption Rate 2040 Total Barrels 2023 - 2040 Additional Barrels per Year Annual savings rate Savings in 2045 18,869 0.05 accts Single family account projections in 2045 Assuming 5% adoption from UWMP 2045 projection 943.5 43 device device AFY0.1 1.4 AFY Total Savings 16.3 AF Total Costs Annual Staffing Cost $41,750 $1,501Annual Rain Barrels Rebate Costs Annual Program Costs Lifetime Costs (through year 2045) Unit Cost ($/AF) 43 barrels per year at 35 per rain barrel $43,251 $952,000 $58,350 Total (through 2045) 37 OCTOBER 2024 / FINAL / CAROLLO APPENDIX D SUPPLY PORTFOLIO TOOL DOCUMENTATION CITY OF PALO ALTOONE WATER PLAN APPENDIX D APPENDIX D OCTOBER 2024 / FINAL / CAROLLO APPENDIX D EVALUATION TOOL DOCUMENTATION 1.1 Introduction The Palo Alto One Water Evaluation Tool (Tool) was created to compare up to eight portfolios composed of up to 12 water supply sources. The Tool can also evaluate combinations of up to 12 water conservation programs. The Tool compares options and portfolios based on their cost, full yield, and dry year yield, as well through a criteria analysis that includes eight criteria. 1.1.1 Organization This Tool is organized in a series of worksheets or tabs. The user can begin with the Readme tab for instructions on how to use the Tool. The user inputs and analysis tabs are numbered from one to six and are intended to be completed and reviewed in order. These include 1. User Inputs, 2. Option Yield and Cost Comparison, 3. Conservation Program Comparison, 4. Portfolio Selection, 5. Portfolio Cost, and 6. Criteria Analysis. The model tabs include the calculations used to generate the results and graphics in the Tool. These include the Supply Model, Cost Model, and Criteria Model. 1.2 Readme The Readme tab includes a short summary of the purpose and how to use the Tool and includes a short summary for what is included in each tab. This tab also includes a legend, shown in Table 1, explaining the color coding for each of the cell types found in the Tool. This color coding is consistent across cells in the Tool and the legend is shown on tabs that have user inputs. A screenshot of the readme tab is shown in Figure 1. Table 1 Legend for Cell Types Cell Type ￿ ￿￿￿￿￿￿￿￿￿￿￿ Users can input values to develop scenarios and portfolios. Used for naming options and portfolios.User Input Values from outside data sources. If any values are changed, provide documentation of the changes under notes.Outside Source Drop Down Selection Calculated Value User inputs with drop-down menus to select an option based on the Lists tab. NO ACTION: values based on formulas. CITY OF PALO ALTO ONE WATER PLAN D-1 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 1 Readme Tab CITY OF PALO ALTO ONE WATER PLAN D-2 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 2 User Inputs Tab CITY OF PALO ALTO ONE WATER PLAN D-3 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.3 User Inputs The User Inputs tab is the starting point for the Tool. The tab includes a Scenario Selection table with drop down menus to develop scenario assumptions, as well as a series of five tables for the user input Option Yield Assumptions, Demand Scenarios, Unit Cost, Capital Cost, and Evaluation Criteria. More information about each of these tables is provided in the sections below. A screenshot of the user inputs tab is shown in Figure 2. 1.3.1 Scenario Selection The Scenario Selection table has five drop-down menus that allow the user to develop a scenario. Results in all subsequent tabs use the scenario information selected by the user. Note that the Tool distinguishes between the demand year and the cost year. This table includes the following selections: Demand Year Projection: This drop-down menu allows the user to select the demand year used in the portfolio normal and dry year supply analysis. Selection currently includes all years from 2023 to 2045.    Cost Year Projection: This drop-down menu allows the user to select the cost year used in the option and portfolio cost analysis. Selection includes all years from 2023 to 2045. Demand Scenario: This drop-down menu allows the user to select among three demand scenarios (Low, Medium, High) as found in the Demand Scenarios table. Emergency Shortage Stage: This drop-down menu allows the user to select the maximum planned conservation savings from the implementation of Palo Alto's Water Shortage Contingency Plan. The plan includes six stages: Stage I (Up to 10%), Stage II (Up to 20%), Stage III (Up to 30%), Stage IV (Up to 40%), Stage V (Up to 50%), and Stage VI (greater than 50%). Valley Water Transfer: This drop-down menu has two options (Yes, No) to select between the No Valley Water Transfer and the Valley Water Transfer options under Option Yield in the Option Yield Assumptions table.  1.3.2 Option Yield Assumptions The Option Yield Assumptions table is used to set the yield, timeline, and dry year assumptions for RWS Supply and up to 11 options. The table includes the following:    Option Names: The user creates names for each option. This table controls the option names in all tables and graphics in Tool. Option Yield: The user can input the yields for the No Valley Water Transfer and Valley Water Transfer scenarios. RWS Supply is not included here as these are calculated values. Start Year: The user can input the start year for each option. Note: this changes the Option Timeline graphic in the Option Yield and Cost Comparison tab but does not change the timeline of options in the option and portfolio supply analysis. Dry Year Reductions: The user also selects the dry year reduction for each option. The dry year reductions are applied to each option in the dry year supply analysis. CITY OF PALO ALTO ONE WATER PLAN D-4 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.3.3 Demand Scenarios The Demand Scenarios table includes the demand scenarios (Low, Medium, High) for the portfolio supply analysis. The source of the demand scenarios and date accessed are provided under notes. 1.3.4 Unit Cost and Capital Cost The Unit Cost ($/AF) and Capital Cost ($M) tables include the cost information by option used in the option and portfolio cost analysis. Cost information has been imported from the One Water Screening Cost Estimates spreadsheet, with date, filename, and cost escalation assumptions included under notes. 1.3.5 Evaluation Criteria The Evaluation Criteria table includes the raw option scores and a drop-down menu of the criteria weighting used in the criteria analysis. Some of the criteria, including Reliance on Tuolumne, Unit Cost, and Reliability, are calculated separately in the Criteria Model tab. The table includes a check of the Total Weight to ensure that it equals 100%, otherwise the following warning is shown: “Weighting does not equal 100%.” 1.4 Options The Option Yield and Cost Comparison tab provides graphical summaries for the information provided in the User Inputs tab. This tab includes the Option Timeline and Yield Comparison which compares the full yield in normal years, and the dry year yield based on the dry year reduction selected by the user for each scenario. RWS is not shown in the Yield Comparison as this supply is calculated separately for each portfolio. The tab also includes the Unit Cost and Capital Cost based on the cost year selected by the user. Time series graphics of Unit Cost and Capital Cost are also included. A screenshot of the Projects tab with the option yield and cost comparison is shown in Figure 3. 1.5 Conservation Program Comparison The Conservation Program Comparison tab is used to evaluate changes to the conservation programs included Enhanced Conservation Phase 1 and Enhanced Conservation Phase 2. The User is able to name up to 12 conservation programs, provide the annual savings in AFY, the number of years to saturation, and indicate whether an option is included in Phase 1 or Phase 2 using the drop-down selection. The graphics shown include a Conservation Program Savings Summary showing the AF savings in 2045 for each conservation program, and the Conservation Program Annual Savings Summary showing the annual savings for the Phase 1 and Phase 2 based on the user inputs and selections. Note that the changes to conservation program assumptions in this tab do not change the supply or cost assumptions in this model. Changes to the conservation programs can be evaluated in this tab and changes can be made in the Option Yield and Unit Cost assumptions in the User Inputs tab. The functionality in this tab was kept separate from the option yield assumptions in order to maintain consistency with the option specific information in the One Water Plan. A screenshot of the Water Conservation tab with the conservation program comparison is shown in Figure 4. CITY OF PALO ALTO ONE WATER PLAN D-5 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 3 Projects Tab with Options Yield and Cost Comparisons CITY OF PALO ALTO ONE WATER PLAN D-6 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 4 Conservation Program Comparison Tab CITY OF PALO ALTO ONE WATER PLAN D-7 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.6 Portfolio Selection The Portfolio Selection tab is used to dynamically develop up to eight portfolios composed of up to 12 combinations of options. The user creates names for each portfolio under Portfolio Names and uses the drop-down menus under each option to select the options included in each portfolio. RWS Supply is included in each Portfolio and cannot be unselected. If the user attempts to select more than one Water Reuse option within a portfolio, the following warning is shown: “Only Select One Water Reuse Option per Portfolio”. The Portfolio Selection tab includes two graphics used to evaluate the performance of each portfolio under the selected scenario. The Normal Year Portfolio shows the normal year assumptions for each of the portfolios, and the Dry Year Portfolio shows the dry year assumption for each of the portfolios. Both graphics are based on the Demand Year Projection selected from the drop-down menu in the User Inputs tab. An Unplanned Shortage is shown if the dry year supply yield for a portfolio is unable to meet demands after accounting for the Shortage Stage selected from the drop-down menus in the User Inputs tab. A screenshot of the Portfolio Selection worksheet is shown in Figure 5. 1.7 Portfolio Costs The Portfolio Costs tab provides graphical summaries of the cost information for the portfolios selected in Portfolio Selection tab. This tab includes the Weighted Unit Cost by Portfolio, which summarizes the relative contribution of each option to the total unit cost of each portfolio. The second graphic includes the Total Capital Cost by option for each portfolio. The cost results for both of these graphics are based on the normal year yield for each portfolio. A screenshot of the Portfolio Cost worksheet is shown in Figure 6. 1.8 Criteria Analysis The Criteria Analysis tab allows the user to compare the results of the criteria analysis. Note that these results include calculated outputs based on the scenario developed in the User Inputs tab. The Weighted Criteria Ranking by Option table compares results by option using the scoring and weights from the User Inputs table. The Weighted Criteria Ranking by Portfolio table compares results by portfolio based on the contribution of each option to the portfolio. A screenshot of the Criteria Analysis tab is shown in Figure 7. CITY OF PALO ALTO ONE WATER PLAN D-8 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 5 Portfolio Selection Tab CITY OF PALO ALTO ONE WATER PLAN D-9 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 6 Portfolio Cost Tab CITY OF PALO ALTO ONE WATER PLAN D-10 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 7 Criteria Analysis Tab CITY OF PALO ALTO ONE WATER PLAN D-11 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.9 Model Tabs There are three analysis tabs. The Supply Model tab includes the calculations used for the normal year and dry year analysis. The Cost Model tab calculates the projected Unit Cost, Capital Cost, Total Annual Cost, and Weighted Unit Cost. A screenshot of the Supply and Demand Model tab is shown in Figure 8. 1.9.1 Supply Model This model calculates the normal and dry year yields for each portfolio. This tab includes the Normal Year Supply Analysis, Dry Year Supply Analysis, and Enhanced Conservation Analysis. 1.9.1.1 Normal Year Supply Analysis The normal year supplies for each portfolio are calculated based on the selected Demand Scenario, Valley Water Transfer, and Option Yield from User Inputs tab. A linear interpolation formula is used to generate annual water demands in each forecast year. Each portfolio includes the individual options selected from the Portfolio Selection tab. The demand for RWS Supply is calculated as the difference between the total demand for the selected scenario and the total yield for the selected supplies in the portfolio. 1.9.1.2 Dry Year Supply Analysis The dry year supplies for each portfolio are calculated based on the selected Demand Scenario, Valley Water Transfer, Yield, and Dry Year Reduction from User Inputs tab. Each portfolio includes the individual options selected from the Portfolio Selection tab. All options include the Dry Year Reduction. The available supply from RWS Supply is calculated as the Normal Year Supply for that year multiplied by the Dry Year Reduction. Supply shortages are mitigated based on the Emergency Shortage Stage selected in the User Inputs tab. 1.9.1.3 Enhanced Conservation Analysis The graphical outputs from the Conservation Program Comparison tab are also calculated in the Supply Model tab. These include the annual savings and program savings summary for the Enhanced Conservation Phase 1 and Enhanced Conservation Phase 2. Note that changes to conservation program assumptions do not change the cost or supply model. That information comes from the cost estimate spreadsheet information input into the User Inputs tab. 1.9.2 Cost Model This model calculates the annual unit cost, capital cost, total annual cost, and weighted unit cost for each option and portfolio. A screenshot of the Cost Model tab is shown in Figure 9. 1.9.2.1 Unit Cost These tables provide the unit costs for options that have been selected as part of each portfolio based on the unit costs in the User Inputs tab. The unit cost for each option in the selected Cost Year Projection is shown graphically in the Option Yield and Cost Comparison tab. CITY OF PALO ALTO ONE WATER PLAN D-12 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 8 Supply and Demand Model Tab CITY OF PALO ALTO ONE WATER PLAN D-13 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 9 Cost Model Tab CITY OF PALO ALTO ONE WATER PLAN D-14 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.9.2.2 Capital Cost These tables provide the capital costs for options that have been selected as part of each portfolio based on the capital costs in the User Inputs tab. 1.9.2.3 Total Annual Cost The total annual cost is calculated by multiplying the normal year yield for each option in the portfolio by the unit cost for the selected cost year. These tables are used as an intermediate step in calculating the weighted unit cost. 1.9.2.4 Weighted Unit Cost The weighted unit cost is calculated by dividing the total annual cost for each option in the portfolio by the total demand in that year. The weighted unit cost and capital costs are shown graphically in the Portfolio Cost tab. 1.9.3 Criteria Model This tab calculates the criteria scoring for each option and portfolio. This includes separate steps for option scores, and portfolio scores. A screenshot of the Criteria Model tab is shown in Figure 10. 1.9.3.1 Option Scores The Option Scores include raw and weighted scores. The weighted scores are calculated by multiplying the raw scores by the criteria weights selected in the User Inputs tab. Scores include a combination of inputs and calculated scores. Wise Use of Water, Ecological Benefit, Implementation Timeline, Operational Complexity, and Public Acceptance are inputs from in the User Inputs tab. The following scores are calculated based on the user selections for the Demand Year Projection and Cost Year Projection: Reliance on Tuolumne is scored based on the ability of the supply to reduce Palo Alto's reliance on supplies from the Tuolumne. Criterion is scored on a linear scale using the full yield in a normal year with the largest yield scored as 5 and no yield scored at 1. RWS Supply is scored as a 1.   Unit Cost is scored based on the unit cost for each option. The criterion is scored on a linear scale based on the Unit Cost in the selected Cost Year with the lowest non-zero cost scored as 5 and the highest cost scored at 1. Reliability is scored based on the ability to mitigate an RWS Supply shortage. The criterion is scored on a linear scale using the Dry Year Yield with the highest yield scored as 5 and 0 AFY scored at 1. RWS Supply is scored as a 1. CITY OF PALO ALTO ONE WATER PLAN D-15 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 10 Criteria Model Tab CITY OF PALO ALTO ONE WATER PLAN D-16 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO 1.9.3.2 Portfolio Scores The Portfolio Scores include raw and weighted scores. The raw scores are calculated using the weighted average of the raw score for each option and the normal year supply for each option under the selected Demand Year Projection in the User Inputs tab. The weighted scores are calculated by multiplying the raw scores by the criteria weights selected in the User Inputs tab. Scores include a combination of inputs and calculated scores. Wise Use of Water, Ecological Benefit, Implementation Timeline, Operational Complexity, and Public Acceptance are from in the User Inputs tab. The following scores are calculated based on the user selections for the Demand Year Projection and Cost Year Projection: Reliance on Tuolumne is scored based on the ability of the portfolio to reduce the reliance on supplies from the Tuolumne. Scored on a linear scale based on RWS Supply demand under normal year conditions under the selected demand year with the lowest demand scored as 5 and the highest demand scored at 1.   Unit Cost is scored based on portfolio unit cost from highest to lowest. The criterion is scored on a linear scale with the lowest unit cost scored as 5 and the highest unit cost scored at 1. Reliability is scored based on the dry year RWS Supply shortage in each portfolio. The criterion is scored on a linear scale using the Unplanned Shortage in the selected Demand Year with the lowest shortage scored as 5 and the highest shortage scored at 1. 1.9.4 Lists Tab The Lists tab includes drop down menus and other lists used in the model. A screenshot of the List tab is shown in Figure 11. CITY OF PALO ALTO ONE WATER PLAN D-17 APPENDIX D OCTOBER 2024 / FINAL / CAROLLO Figure 11 Lists Tab CITY OF PALO ALTO ONE WATER PLAN D-18 OCTOBER 2024 / FINAL / CAROLLO APPENDIX E SENSITIVITY ANALYSIS CITY OF PALO ALTOONE WATER PLAN APPENDIX E APPENDIX E OCTOBER 2024 / FINAL / CAROLLO APPENDIX E SENSITIVITY AND SCENARIO ANALYSIS Chapter 5, section 5.6 examines how the OWP findings change when the evaluation criteria are weighted differently and under different assumptions about future supply and demand. Section 5.6 presents and discusses the findings of the sensitivity and scenario analysis, and this appendix provides the numeric results for all criteria and weighting percentages listed in Table 5.8. The yellow highlighting indicates which criteria weight is changed compared to the initial weighting used in the OWP analysis. 1.1 Raw Scores and Weighted Scores The raw and weighted criteria scores by portfolio are based on the medium demand scenario, and a RWS Supply reduction of 50%, combined with the implementation of a Shortage Stage II (up to 20%) in year 2045. The scores below assume for Portfolio G (Enhanced Conservation with Regional DPR) that the Valley Water Transfer is implemented (selected “yes” in the Tool) while all other portfolios assume that the Valley Water Transfer is not implemented (selected “no” in the Tool). Table 1 Raw Criteria Scores by Portfolio with Initial Weighting Portfolio A. Baseline 2.0 2.3 2.7 2.3 3.1 2.7 2.6 2.0 2.2 1.9 2.4 2.2 2.2 2.2 1.0 1.4 2.9 2.1 2.9 3.1 2.0 5.0 4.7 3.3 4.4 3.2 3.5 4.2 5.0 4.8 3.4 4.5 3.3 3.6 4.8 5.0 4.8 4.1 4.5 3.7 4.0 4.4 4.7 5.0 1.0 2.9 3.5 1.3 4.1 1.0 1.7 4.1 2.4 4.0 3.9 2.6 25.7 27.1 23.3 25.6 26.0 24.4 26.9 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-1 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO Table 2 Weighted Criteria Scores by Portfolio with Initial Weighting Portfolio Weighting 10% 0.20 0.23 0.27 0.23 0.31 0.27 0.26 10% 0.20 0.22 0.19 0.24 0.22 0.22 0.22 10% 0.10 0.14 0.29 0.21 0.29 0.31 0.20 5%5%5%20% 0.95 1.00 0.20 0.59 0.70 0.26 0.81 35% 100% A. Baseline 0.25 0.24 0.17 0.22 0.16 0.18 0.21 0.25 0.24 0.17 0.22 0.17 0.18 0.24 0.25 0.24 0.21 0.22 0.19 0.20 0.22 0.35 0.60 1.43 0.85 1.39 1.37 0.90 2.5 2.9 2.9 2.8 3.4 3.0 3.1 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-2 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.2 Unit Cost Weighting This sensitivity analysis adjusts the Unit Cost criterion weighting from 20%, to 5% in the lower weighting scenario and 50% in the higher weighting scenario. Table 3 Weighted Criteria Scores by Portfolio with Lower Unit Cost Weighting Portfolio Weighting 12% 0.24 0.28 0.32 0.28 0.37 0.32 0.31 12% 0.24 0.26 0.22 0.28 0.26 0.26 0.26 12% 0.12 0.17 0.34 0.25 0.35 0.36 0.24 6%6%6%5%42% 100% A. Baseline 0.30 0.28 0.20 0.26 0.19 0.21 0.25 0.30 0.29 0.20 0.27 0.20 0.21 0.29 0.30 0.29 0.25 0.27 0.22 0.24 0.26 0.24 0.25 0.05 0.15 0.18 0.07 0.20 0.42 0.71 1.70 1.01 1.65 1.62 1.06 2.1 2.5 3.3 2.8 3.4 3.3 2.9 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 4 Weighted Criteria Scores by Portfolio with Higher Unit Cost Weighting Portfolio Weighting 6%6%6%3%3%3%50% 2.37 2.50 0.50 1.47 1.75 0.66 2.03 22% 100% A. Baseline 0.13 0.15 0.17 0.15 0.19 0.17 0.16 0.13 0.14 0.12 0.15 0.14 0.14 0.14 0.06 0.09 0.18 0.13 0.18 0.19 0.12 0.16 0.15 0.10 0.14 0.10 0.11 0.13 0.16 0.15 0.11 0.14 0.10 0.11 0.15 0.16 0.15 0.13 0.14 0.12 0.13 0.14 0.22 0.37 0.90 0.53 0.87 0.85 0.56 3.4 3.7 2.2 2.8 3.5 2.4 3.4 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-3 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.3 Reliability Weighting This sensitivity analysis adjusts the Reliability criterion weighting from 35%, to 20% in the lower weighting scenario and 50% in the higher weighting scenario. Table 5 Weighted Criteria Scores by Portfolio with Lower Reliability Weighting Portfolio Weighting 12% 0.25 0.29 0.33 0.29 0.38 0.34 0.25 12% 0.25 0.27 0.23 0.29 0.27 0.27 0.25 12% 0.12 0.18 0.35 0.26 0.36 0.38 0.12 6%6%6%25% 1.16 1.23 0.25 0.72 0.86 0.33 1.16 20% 100% A. Baseline 0.31 0.29 0.20 0.27 0.20 0.22 0.31 0.31 0.30 0.21 0.28 0.21 0.22 0.31 0.31 0.30 0.25 0.28 0.23 0.25 0.31 0.20 0.34 0.82 0.49 0.79 0.78 0.20 2.9 3.2 2.6 2.9 3.3 2.8 2.9 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 6 Weighted Criteria Scores by Portfolio with Higher Reliability Weighting Portfolio Weighting 8%8%8%4%4%4%15% 0.73 0.77 0.15 0.45 0.54 0.20 0.62 50% 100% A. Baseline 0.15 0.18 0.21 0.18 0.24 0.21 0.20 0.15 0.17 0.14 0.18 0.17 0.17 0.17 0.08 0.11 0.22 0.17 0.23 0.24 0.15 0.19 0.18 0.13 0.17 0.12 0.13 0.16 0.19 0.19 0.13 0.17 0.13 0.14 0.19 0.19 0.19 0.16 0.17 0.14 0.15 0.17 0.50 0.86 2.05 1.22 1.99 1.95 1.28 2.2 2.6 3.2 2.7 3.6 3.2 2.9 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-4 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.4 Environmental Benefits Weighting This analysis adjusts the Environmental Benefits criterion weighting from a total of 30%, to 15% in the lower weighting scenario and 45% in the higher weighting scenario. Table 7 Weighted Criteria Scores by Portfolio with Lower Environmental Benefits Weighting Portfolio Weighting 5%5%5%6%6%6%24% 1.15 1.21 0.24 0.71 0.85 0.32 0.99 43% 100% A. Baseline 0.10 0.12 0.13 0.12 0.15 0.14 0.13 0.10 0.11 0.09 0.12 0.11 0.11 0.11 0.05 0.07 0.14 0.11 0.15 0.15 0.10 0.30 0.29 0.20 0.27 0.20 0.21 0.25 0.30 0.29 0.21 0.27 0.20 0.22 0.29 0.30 0.29 0.25 0.27 0.23 0.24 0.27 0.43 0.73 1.74 1.03 1.69 1.66 1.09 2.7 3.1 3.0 2.9 3.6 3.1 3.2 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 8 Weighted Criteria Scores by Portfolio with Higher Environmental Benefits Weighting Portfolio Weighting 15% 0.30 0.35 0.40 0.35 0.46 0.41 0.39 15% 0.30 0.33 0.28 0.36 0.33 0.33 0.33 15% 0.15 0.21 0.43 0.32 0.44 0.46 0.30 4%4%4%16% 0.74 0.79 0.16 0.46 0.55 0.21 0.64 28% 100% A. Baseline 0.20 0.19 0.13 0.17 0.13 0.14 0.16 0.20 0.19 0.13 0.18 0.13 0.14 0.19 0.20 0.19 0.16 0.18 0.15 0.16 0.17 0.28 0.47 1.13 0.67 1.09 1.07 0.70 2.4 2.7 2.8 2.7 3.3 2.9 2.9 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-5 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.5 Ease of Implementation Weighting This analysis adjusts the Ease of Implementation criterion weighting from a total of 15%, to 0% in the lower weighting scenario and 30% in the higher weighting scenario. Table 9 Weighted Criteria Scores by Portfolio with Lower Ease of Implementation Weighting Portfolio Weighting 12% 0.24 0.27 0.32 0.27 0.36 0.32 0.31 12% 0.24 0.26 0.22 0.28 0.26 0.26 0.26 12% 0.12 0.17 0.34 0.25 0.35 0.36 0.23 0%0%0%24% 1.11 1.18 0.24 0.69 0.82 0.31 0.96 41% 100% A. Baseline 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.41 0.71 1.69 1.00 1.64 1.61 1.05 2.1 2.6 2.8 2.5 3.4 2.9 2.8 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 10 Weighted Criteria Scores by Portfolio with Higher Ease of Implementation Weighting Portfolio Weighting 8%8%8%10% 0.50 0.47 0.33 0.44 0.32 0.35 0.42 10% 0.50 0.48 0.34 0.45 0.33 0.36 0.48 10% 0.50 0.48 0.41 0.45 0.37 0.40 0.44 16% 0.78 0.82 0.16 0.48 0.58 0.22 0.67 29% 100% A. Baseline 0.16 0.19 0.22 0.19 0.25 0.22 0.21 0.16 0.18 0.15 0.20 0.18 0.18 0.18 0.08 0.12 0.24 0.18 0.24 0.25 0.16 0.29 0.49 1.18 0.70 1.14 1.12 0.74 3.0 3.3 3.0 3.1 3.4 3.1 3.3 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-6 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.6 Demand Scenarios This sensitivity analysis adjusts Palo Alto’s demands from the low demand to high demand scenarios. Table 11 Weighted Criteria Scores by Portfolio with Lower Demand Scenario Portfolio A. Baseline 0.20 0.24 0.28 0.24 0.33 0.29 0.27 0.20 0.23 0.18 0.25 0.23 0.23 0.23 0.10 0.15 0.32 0.24 0.33 0.35 0.22 0.25 0.23 0.15 0.21 0.15 0.16 0.20 0.25 0.24 0.16 0.22 0.15 0.17 0.24 0.25 0.24 0.20 0.22 0.17 0.19 0.22 0.94 1.00 0.20 0.78 0.74 0.44 0.87 0.35 0.65 1.63 0.94 1.58 1.55 1.00 2.5 3.0 3.1 3.1 3.7 3.4 3.2 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 12 Weighted Criteria Scores by Portfolio with Higher Demand Scenario Portfolio A. Baseline 0.20 0.23 0.27 0.23 0.31 0.27 0.26 0.20 0.22 0.19 0.24 0.22 0.22 0.22 0.10 0.14 0.28 0.21 0.29 0.30 0.20 0.25 0.24 0.17 0.22 0.16 0.18 0.21 0.25 0.24 0.17 0.22 0.17 0.18 0.24 0.25 0.24 0.21 0.22 0.19 0.20 0.22 0.94 1.00 0.20 0.78 0.74 0.44 0.87 0.35 0.59 1.41 0.84 1.37 1.35 0.88 2.5 2.9 2.9 3.0 3.4 3.1 3.1 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-7 APPENDIX E OCTOBER 2024 / FINAL / CAROLLO 1.7 RWS Supply Reliability Scenarios This sensitivity analysis adjusts Palo Alto’s required cutback from the RWS Supply and Palo Alto’s implemented Shortage Stage of the Water Shortage Contingency Plan. Table 13 RWS Reliability (30% RWS Supply Cutback/Shortage Stage II) Portfolio A. Baseline 0.20 0.23 0.27 0.23 0.31 0.27 0.26 0.20 0.22 0.19 0.24 0.22 0.22 0.22 0.10 0.14 0.28 0.21 0.29 0.30 0.20 0.25 0.24 0.17 0.22 0.16 0.18 0.21 0.25 0.24 0.17 0.22 0.17 0.18 0.24 0.25 0.24 0.21 0.22 0.19 0.20 0.22 0.94 1.00 0.20 0.78 0.74 0.44 0.87 0.35 0.79 1.75 1.04 1.75 1.75 1.27 2.5 3.1 3.2 3.2 3.8 3.5 3.5 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR Table 14 RWS Reliability (50% RWS Supply Cutback/Shortage Stage III) Portfolio A. Baseline 0.20 0.23 0.27 0.23 0.31 0.27 0.26 0.20 0.22 0.19 0.24 0.22 0.22 0.22 0.10 0.14 0.28 0.21 0.29 0.30 0.20 0.25 0.24 0.17 0.22 0.16 0.18 0.21 0.25 0.24 0.17 0.22 0.17 0.18 0.24 0.25 0.24 0.21 0.22 0.19 0.20 0.22 0.94 1.00 0.20 0.78 0.74 0.44 0.87 0.35 0.72 1.75 1.09 1.75 1.75 1.15 2.5 3.0 3.2 3.2 3.8 3.5 3.4 B. Enhanced Conservation Phase 1 and 2 C. Enhanced Conservation with Desalination D. Enhanced Conservation with Groundwater E. Enhanced Conservation with Palo Alto DPR F. Enhanced Conservation with IPR G. Enhanced Conservation with Regional DPR CITY OF PALO ALTOONE WATER PLAN E-8 OCTOBER 2024 / FINAL / CAROLLO APPENDIX F STAKEHOLDER ENGAGEMENT MATERIALS This Appendix include presentations materials from the following stakeholder engagement meetings: ￿ ￿ ￿ Stakeholder Engagement #1: Community Needs and Priorities (9/28/2022) Stakeholder Engagement #2: Exploring Water Supply and Conservation Options (12/6/2022) Stakeholder Engagement #3: Sharing Initial Analysis Results (6/3/2024) CITY OF PALO ALTOONE WATER PLAN APPENDIX F APPENDIX F OCTOBER 2024 / FINAL / CAROLLO Stakeholder Engagement #1: Community Needs and Priorities (9/28/2022) CITY OF PALO ALTOONE WATER PLAN Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 CITY OF PALO ALTO ONE WATER PLAN First Community Workshop to discuss COMMUNIT Y NEEDS & PRIORITIESSeptember 28, 2022 6:00 pm - 7:30 pm Palo Alto City Hall https://cityofpaloalto.zoom.us/j/89411156856 1 // Introductions – Palo Alto Team Utilities Department Staff Karla Dailey Assistant Director Lisa Bilir Senior Resource Planner Linda GrandSustainability ProgramsAdministrator Rebecca OliverAssociate ResourcePlanner Public Works Department Staff Karin North Assistant Director Samantha Engelage Pam Boyle Rodriguez Stormwater Compliance Program Manager Elise Sbarbori Environmental Control Program Manager Senior Engineer/Pretreatment Program Manager 2 2 1 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Introductions – Carollo Team Inge Wiersema Rachel Duncan Jacquelin Mutter Maddi Rasmus Project Manager Project Engineer Technical Advisor Staff Engineer 3 3 // Agenda 1. Welcome & Opening Remarks (10 mins) 2. Project Background (10 mins) 6:00-6:10 pm 6:10-6:20 pm 6:20-6:25 pm 6:25-6:30 pm 6:30-7:15 pm 7:15-7:30 pm 3. One Water Plan Overview (5 min) 4. City Water Supplies Overview (10 min) 5. Community Needs & Priorities Discussion (45 min) 6. Meeting Close (15 min) 4 4 2 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // First Community Workshop Housekeeping . In-person Logistics • • • Sign up to speak/comment during the Community Needs and Priorities discussion Use microphone at table, cell phone handy for live polls Please hold your questions until the dedicated Q&A pauses . Virtual Logistics • • • • Participants are muted by default Enter your question/comment into the chat box, questions will be addressed at the dedicated Q&A pauses Cell phone or web browser handy for live polls During the Community Needs and Priorities discussion, raise your virtual hand to speak (or press *9 onyour phone) and let us know if you would like to turn on your video . We want to hear from you! Thank you for contributing your comments andideas during this listening session. •We will do our best to address all questions possible, keeping time constraints in mind 5 5 // One Water Plan Roadmap in Uncertain Future . The One Water Plan: • Is a Key Action in Sustainability and Climate Action Plan • Is a long-term 20-year (through 2045) Water Supply Plan • Addresses future uncertainty such as SFPUC supply reliability, droughts, and climate change • Includes robust and meaningful stakeholder engagement • Is being completed by an outside consultant Carollo Engineers, a National One Water Thought Leader • Builds on existing plans/work . What the One Water Plan does not address: • Current ongoing drought • Short-term emergencies such as earthquakes and wildfires – addressed under separate emergency plans 6 3 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 Project Background 7 // There are many drivers for the One Water Plan Increased Housing Needs Supply Reliability (multi-year droughts) Recreational Water Needs (e.g., Boronda Lake) Limited Funding Regulatory Changes Increased Public Awareness Decisions about Joining Regional Efforts Instream Flows & Habitat Needs Climate Change 8 8 4 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 Source: WRF #4660 (2017)// What is One Water? 9 9 // The One Water Mindset: Think Differently All Water Has Value Integration Consider the entire water cycle Sustainable water management solutions, also linking land use, energy, etc. Collaboration Breaking down institutional silos, incl. non-water sector partners Inclusion From Elected officials to Community organizations Multi-benefits Broaden project goals like resilience, climate change, and water equity Innovation Embrace new technology and plan for future regulatory conditions 10 10 5 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // One Water Plan Goal and Objective Council adoption of a One Water supply plan that is a 20-year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives GOAL Address how the City of Palo Alto can mitigate the impact of future uncertainties such as severe multi-year drought, changes in climate, water demand, and regulations through integrated water resources supply planning OBJECTIVE 11 11 One Water Plan Overview 12 6 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // One Water involves watershed-based solutions and collaboration to address water management challenges for a more reliable water future 13 13 // One Water Plan Process Overview 14 14 7 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Roadmap to One Water Plan TODAY Sharing Initial Results(~Feb 2023) RecommendedSupply Strategy Trigger-basedImplementation StraFundingStrategySupply &Conservation PortfoliosWater Supply & ConservationOptions Data Gathering Community Needsand Priorities (Sept 2022) Assessment of unknowns SupplyOptions Screening Final OWP (~Aug 2023) Evaluation Criteria Draft Criteria &Exploring Water Supply and Conservation Options (~Nov 2022) 15 15 Pause for Q&A 16 16 8 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 City’s Water Supplies Overview 17 // Regional Water Supply System from San Francisco Public Utilities Commission (SFPUC) 18 18 9 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Palo Alto Distribution System 19 19 // City of Palo Alto Water and Recycled Water Distribution Systems Drinking Water Recycled Water . 5 Receiving Stations connected to . Distributes recycled water from the SFPUC Water System (58 MGD)RWQCP to: . 8 emergency wells within the city . City of Mountain View (19 MGD). Palo Alto facilities (including the Municipal Golf Course, Municipal Services Center, Animal Services Facility, and Greer Park) . 7 reservoirs (13 MG storage) . 6 interties to adjacent water agencies: • Mountain View • Stanford • Purissima Hills . Palo Alto uses approximately 0.28 MGD of recycled water (2.8% of total water demand) MG = million gallons; MGD = million gallons per day; RWQCP = Regional Water Quality Control Plant 20 20 10 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 Pause for Q&A 21 21 Community Needs & Priorities 22 11 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Please share your thoughts! 23 23 // What do you think is the biggest risk to long-term reliable water supply in Palo Alto? (select up to 2) . Climate Change (impact on water supply) . Droughts (temporary water use reductions) . Environmental Regulations . Sea Level Rise (impact on groundwater and water quality) . Increased Demand (resulting from housing requirements) . Impaired Water Quality . Wasteful Water Use . Emergency Disruptions (e.g., earthquakes or wildfires) 24 24 12 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Which of the following best reflect your top 3 water management priorities? (select up to 3) . Water supply reliability . Drinking water quality . Surface water quality/watershed health . Protection of tree canopy health . Affordability . Sustainability 25 25 // Which of the following water supply and conservation alternatives are most important for Palo Alto (select up to 3)? . Increased indoor water conservation . Increased outdoor water conservation . Increased use of non-potable recycled water . Purified water for drinking (potable reuse) . Utilization of groundwater . Stormwater capture and use . Desalination (SF Bay or brackish groundwater) 26 26 13 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Should Palo Alto invest in alternative water supplies to increase drought reliability? . Yes . No . SFPUC should invest in alternative water supplies 27 27 // What water use cutback percentage do you think is acceptable for the Palo Alto community during a drought? . 10% . 20% . 30% . 40% . 50% 28 28 14 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // What is your perspective on the water future for Palo Alto? (e.g., drinking water, groundwater, recycled water, stormwater, gray water, water conservation) . Very optimistic . Optimistic . Neutral . Worried . Very Worried 29 29 // Open Discussion: Community Priorities for the One Water Plan . In-person: add your name to the listand approach the table with themicrophone to speak when yourname is called . Virtual: Send your responses to theHost via chat Indicate whether you would like to go “live” by raising virtual hand or pressing * 9 on your phone. Let us know if you would like to turn on your video. 30 30 15 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // What are the most important outcomes for Palo Alto from this One Water Plan? Increased Green Spaces & Tree canopy Increased Affordability Environmental Protection 1 31 // Roadmap to One Water Plan Sharing InitialResults (~Feb 2023) Recommended Supply Strategy Trigger-basedImplementationStraFunding StrategySupply &ConservationPortfoliosWater Supply & Conservation Options Data Gathering Community Needs and Priorities(Today) Assessment of unknowns Supply Screening Final OWP(~Aug 2023) Evaluation Criteria Draft Criteria & Exploring Water Supply andConservation Options (~Nov 2022) 32 32 16 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 Next Steps 33 // We need to hear your voice! Please join us for the next 2 community meetings: . Meeting #1: Community Needs & Priorities . Meeting #2: Draft Criteria & Exploring Water Supply Options (~Nov 2022) . Meeting #3: Sharing the Initial Results (~Feb 2023) . We will share out to our distribution list/email/website/social media the link to the Draft One Water Plan (~June 2023) Subscribe to the One Water email distribution list to receive updates https://bit.ly/3qDWcXY 34 34 17 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Other Upcoming Events . . . . . Oct. 1, Rain Barrel Workshop: Learn how rain barrels can improve your property, conserve water, save money, and help protect local creeks. •10:00 am - 11:30 am at SummerWinds Nursery, 725 San Antonio Rd. Oct. 5, Bay Area SunShares Informational Webinar: Learn about how to receive discounts for rooftop solar and battery storage. •6:30pm - 7:30pm, Zoom webinar Oct. 15, Making Better Choices in Your Home Workshop: Learn about different climate-friendly choices you can make in your home. •10:00 am – 1:00 pm, Mitchell Park Community Center, 3700 Middlefield Rd. Oct. 18, Landscape Design 101 – How to Get Started: Learn how to create your own low water/lowmaintenance garden. •7:00 pm - 8:30 pm, Zoom Webinar Nov. 1, Lawn Conversion 101: Learn how to create your own low water/low maintenance garden. •7:00 pm - 8:30 pm, Zoom Webinar 35Register and learn more at CityofPaloAlto.org/Workshops 35 Meeting Close 36 18 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 CITY OF PALO ALTO ONE WATER PLAN THANK YOU! ADDITIONAL INFORMATION, PLEASE CONTACT: Lisa Bilir, City of Palo Alto E: lisa.bilir@cityofpaloalto.org P: (650) 329-2543 37 EXTRA GRAPHICS 38 38 19 Stakeholder Engagement #1: Community Needs and Priorities 09/28/2022 // Meeting #2: What are the categories of supply and conservation options this project will assess… Water Reuse Stormwater Capture & Use Water Supply Option Groundwater Water Conservation Option Water Storage Outdoor Conservation Agency Transfers Indoor Conservation Valley Water Treated Water Other 39 39 20 APPENDIX F OCTOBER 2024 / FINAL / CAROLLO Stakeholder Engagement #2: Exploring Water Supply and Conservation Options (12/6/2022) CITY OF PALO ALTOONE WATER PLAN Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 CITY OF PALO ALTO ONE WATER PLAN Community Stakeholder Workshop #2 EXPLORING WATER SUPPLY OPTIONS December 6, 2022 5:30 pm - 7:00 pm Mitchell Park Community Center https://cityofpaloalto.zoom.us/j/86907772889 1 // Introductions – Palo Alto Team Utilities Department Staff Karla Dailey Assistant Director Lisa Bilir Senior Resource Planner Linda Grand Sustainability ProgramsAdministrator Rebecca Oliver Associate ResourcePlanner Public Works Department Staff Welcome to City officials! Karin North Assistant Director Samantha Engelage Pam Boyle Rodriguez Stormwater Compliance Program Manager Elise Sbarbori Environmental Control Program Manager Senior Engineer/Pretreatment Program Manager 2 2 1 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Introductions – Carollo Team Inge Wiersema Rachel Duncan Jacquelin Mutter Maddi Rasmus Project Manager Project Engineer Technical Advisor Staff Engineer 3 3 // Agenda 1. Welcome & Opening Remarks (10 min) 2. One Water Plan Overview (10 min) 5:30 - 5:40 pm 5:40 - 5:50 pm 5:50 - 6:15 pm3. Potential Water Supply Options (25 min) 4. Draft Supply Option Screening & Evaluation Criteria (40 min) 6:15 - 6:55 pm 5. Next Steps & Meeting Close (5 min) 6:55 - 7:00 pm 4 4 2 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Housekeeping . This meeting will be recorded and posted on the City website . Please hold your questions until the dedicated Q&A pauses . In-person Logistics •Raise your hand to speak . Virtual Logistics • • • Participants are muted by default Enter your questions/comments into the chat Indicate whether you would like to go “live” by raising virtual hand or pressing * 9 on your phone . Cell phone or web browser handy for live polls . We want to hear from you! Thank you for contributing your comments and ideas during this listening session. 5 5 One Water Plan Overview 6 3 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // One Water Plan Roadmap in Uncertain Future . The One Water Plan: • Is a Key Action in Sustainability and Climate Action Plan • Is a long-term 20-year (through 2045) Water Supply Plan • Addresses future uncertainty such as SFPUC supply reliability, droughts,and climate change • Includes robust and meaningful stakeholder engagement • Is being completed by an outside consultant Carollo Engineers, a National One Water Thought Leader • Builds on existing plans/work . What the One Water Plan does not directly address: • Current ongoing drought • Short-term emergencies such as earthquakes and wildfires – addressed under separate emergency plans 7 // There are many drivers for the One Water Plan Increased Housing Needs Supply Reliability (multi-year droughts) Recreational Water Needs (e.g., Boronda Lake) Limited Funding Regulatory Changes Increased Public Awareness Decisions about Joining Regional Efforts Instream Flows & Habitat Needs Climate Change 8 8 4 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Roadmap to One Water Plan Sharing Initial Results(~Feb 2023) RecommendedSupply Strategy Trigger-basedImplementation StraFundingStrategySupply &Conservation PortfoliosWater Supply & ConservationOptions Data Gathering Community Needsand Priorities (Sept 2022) Assessment of unknowns SupplyOptions Screening Final OWP (~Aug 2023) Evaluation Criteria Exploring Water Supply Options (Dec 2022) TODAY 9 9 // As you may recall… In September we asked about community priorities for the One Water Plan Sharing Initial Recommended Supply StrategyResults (~Feb 2023)Trigger-basedImplementationStraFunding StrategySupply & ConservationPortfoliosWater Supply & Conservation Options Data Gathering Community Needs and Priorities(Sept 2022) Assessment of unknowns Supply Screening Final OWP(~Aug 2023) Evaluation Criteria Exploring WaterSupply Options (Dec 2022) 10 10 5 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // What is the 3-Step Water Supply Evaluation Process? Potential Water Supply and Conservation Options Themed Project Portfolios Recommended ImplementationStrategy Portfolio Evaluation Criteria Pre- Screening Project Screening Criteria “C”A B C D ~25 options ~15 options 4 portfolios 1 supply portfolio . Supply Availability . Supply Resilience . Community Benefits . Estimated Yield (afy) . Ongoing/Already . Life Cycle Costs ($/acre-ft)Planned . Increases supply reliability in drought years?. Not feasible at this time .Environmental Benefits . Other?. Life Cycle Cost. Moving forward . Ease of Implementation 11 11 // What is the 3-Step Water Supply Evaluation Process? Requesting your input today!Sharing how we are using input received at the first meetingPotential WaterSupplyand ConservationOptions Themed Project Portfolios RecommendedImplementationStrategy Portfolio Evaluation Criteria Pre- Screening Project Screening Criteria “C”A B C D ~25 options ~15 options 4 portfolios 1 supply portfolio 12 12 6 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Supply and Conservation Option Evaluation Process Q&A 13 13 Potential Water Supply & Conservation Options 14 7 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Supply and conservation options categories that this project will assess Groundwater Conservation Water Reuse Other Stormwater Capture & Use Imported Water 15 15 // Supply and conservation options category: Water Conservation Conservation •Planned/ongoing conservation •New conservation actions •Customer side water loss reduction 16 8 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Planned and ongoing City of Palo Alto water conservation programs . Water Conservation Tools and Resources: • WaterSmart customer web portal • Waterfluence large landscape irrigation budget program • Seasonal landscape workshops . Landscape efficiency rebates in partnership with Valley Water: • Landscape Conversion • Graywater Laundry to Landscape • Irrigation Upgrades • Stormwater Rebates . Advanced metering program . Distribution system water loss reduction Learn more at Cityofpaloalto.org/waystosave 17 17 // Supply and conservation options category: Groundwater Groundwater •Converting emergency supply wells •City park groundwater irrigation 18 18 9 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Supply and conservation options category: Water Reuse Water Reuse • • Non-potable reuse Direct potable reuse (City facility) • • • Direct potable reuse (regional facility) Indirect potable reuse (groundwater injection) Indirect potable reuse (Lake Lagunita groundwater recharge) • • Graywater capture & reuse Blackwater capture & reuse 19 19 // Supply and conservation options category: Stormwater Capture and Use Stormwater Capture & Use • • Residential or commercial-scale stormwater capture Green stormwater infrastructure 20 20 10 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Supply and conservation options category: Imported Water • • SFPUC supply Valley Water treated water (via new pipeline) •Interagency transfer agreement Imported Water 21 21 // Supply and conservation options category: Other • • • • • • • Atmospheric water generators Local surface water reservoir Regional storage Multi-source storage Desalination Temporary dewatering sites Permanent dewatering sites Other 22 22 11 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Water supply and conservation options: Feedback & new ideas 23 23 Draft Supply Option Screening & Evaluation Criteria 24 12 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Step 1: Pre-Screening Pre- Screening ~15 options .. OOnnggooini ngg/A/ Al rlreeaaddyy SharingPPl al annnneedd initial.. VNi aobtifleitaysfirbolme atptrheivsitoimusestudies results .. MMoovvi ni nggf oforrwwaarrdd 25 25 // Initial Pre-screening of Supply and Conservation Options 3 Preliminary Screening Categories Ongoing or already planned Not feasible at this time Moving forward 26 26 13 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Initial Pre-screening of Supply and Conservation Options: Ongoing or already planned . Planned/ongoing conservation . Advanced metering program . Distribution system water loss reduction . Non-potable reuseOngoing or already planned . SFPUC imported water supply 27 27 // Initial Pre-screening of Supply and Conservation Options: Not feasible at this time . Deemed Infeasible in Previous Studies • Temporary dewatering sites • Interagency transfer agreement . Excessive Cost or Complexity • Blackwater capture and reuse • Atmospheric water generatorsNot feasible at this time • Local surface water reservoir • Valley Water treated water (via new pipeline). Outside of City Control • Indirect potable reuse at Lake Lagunita (groundwater recharge) • Regional storage 28 28 14 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Initial Pre-screening of Supply and Conservation Options: Moving forward . New conservation actions . Converting emergency supply wells . City park groundwater irrigation . Direct potable reuse (via regional facility or City facility) . Indirect potable reuse via groundwater injection . Expanded non-potable reuse Moving forward . Permanent dewatering (as part of reuse options) .Graywater capture and reuse . Stormwater capture (residential/commercial-scale or GSI) . Multi-source below-ground storage (e.g. stormwater detention) . Desalination . Other ideas from today: _____________________ 29 29 // Initial Pre-Screening Results Feedback and Q&A 30 30 15 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Step 3: Draft Portfolio Evaluation Criteria Sharing how we are using input received at the first meeting… and requesting your input on importance Portfolio Evaluation Criteria ..SSuupppplylyAAvvaailialabbiliiltiyty ..SSuupppplylyRReessiliileiennccee ..CCoommmmuunnitiytyBBeenneefiftists ..EEnnvvi riroonnmmeenntatallBBeenneefiftists ..LLifiefeCCyyccleleCCoosstt ..EEaasseeooffImImppl el emmeenntatatitoionn 31 31 // Asking for your feedback! Upcoming Mentimeter exercise to rank these criteria Scale these criteria based on relative importance. 32 32 16 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Evaluation Criteria – Supply Availability and Resilience Community Priorities:Evaluation Criteria: Which of the following best reflect your top 3 water management priorities?Supply Availability • • Normal year reliability Dry year reliability Supply Resilience Vulnerability risk score (resilience to • uncertainties) 33 33 // Evaluation Criteria – Community Benefits and Environmental Benefits Community Priorities:Evaluation Criteria: Which of the following best reflect your top 3 water management priorities?Community Benefits Water quality Water equity • • Environmental Benefits • • Tree canopy health Sustainable water supplies •Watershed health 34 34 17 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Evaluation Criteria – Life Cycle Cost Community Priorities:Evaluation Criteria: What do you think are the barriers to the use of more water sources?Life Cycle Cost $/acre-foot cost of each portfolio • 35 35 // Evaluation Criteria – Ease of Implementation Community Priorities: Evaluation Criteria:What do you think are the barriers to the use of more Ease of Implementation Implementation timeline Operational complexity Alignment with other efforts Public acceptance • • • • • • water sources? Regulatory complexity Funding opportunities What do you think is the key to One Water success? 36 36 18 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Please share your thoughts! 37 37 // Summary of Evaluation Criteria Supply Availability Supply Resilience Life Cycle Cost • Normal year reliability • Dry year reliability • Vulnerability risk score(resilience to uncertainties) • $/acre-foot cost of each portfolio Community Benefits Environmental Benefits Ease of Implementation • Water quality • Water equity • Tree canopy health • Sustainable water supplies • Implementation timeline • Operational complexity • Alignment with otherefforts• Watershed health • Public acceptance • Regulatory complexity • Funding opportunities 38 38 19 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Step 2: Draft Screening Criteria and Portfolio Themes Requesting your input!ThemedProject Portfolios Screening Criteria A B C D . Estimated Yield (afy) . Life Cycle Costs ($/acre-ft) . Increases supply reliability in drought years? . Other? 39 39 // Supply and Conservation Options Draft Screening Criteria Initial ideas and input discussion Draft Screening Criteria Estimated Supply Yield Metric/Unit Potential Range acre-foot per year High: 2,000+ afy Medium: 100-2,000 afy Low: 0-100 afy (afy) Life Cycle Cost dollar per acre-foot $: <$2,000/acre-ft ($/acre-ft)$$: $2,000-$4,000/acre-ft $$$: >$4,000/acre-ft Increases supply reliability in drought years? qualitative Yes Neutral No Other Criteria 40 40 20 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Portfolio Theme Ideas Requesting your input!Required MaximizeLocalSupplies MaximizeDroughtResilience SustainableWaterSupplies BaselinePortfolio MinimizeCost OtherThemes Business asusual, onlyimplementing already What mix ofoptions What mix ofoptions arerenewable,equitable,and protectthe What mix ofoptionsWhat mix ofoptions willhave the further enable the City to bestmitigate theimpact of planned increase the City’s localwatersupplies the most? projects andprograms.lowestcombinedsupply cost?environment the most?Baseline forPortfoliocomparison droughts? 41 41 Next Steps 42 21 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Thank you for your input today! Sharing Initial Results RecommendedSupply StrategyPlease join us at the next meeting! (~Feb 2023)Trigger-basedImplementation StraFundingStrategySupply &Conservation PortfoliosWater Supply & ConservationOptions Data Gathering Community Needsand Priorities (Sept 2022) Assessment of unknowns SupplyScreening Final OWP (~Aug 2023) Evaluation Criteria Exploring Water Supply Options (Today) 43 43 // We need to hear your voice! Please join us for the next community meeting: . Meeting #1: Community Needs & Priorities . Meeting #2: Exploring Water Supply Options . Meeting #3: Sharing the Initial Results (~Feb 2023) . We will share out to our distribution list/email/website/social media the link to the Draft One Water Plan (~June 2023) Subscribe to the One Water email distribution list to receive updates https://bit.ly/3qDWcXY 44 44 22 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 // Other Upcoming Events . Dec. 16 – 17th, Lawn Busters DIY Workshop: discover the facets of drought-tolerant gardening, species selection, spacing, and general care and maintenance • • 12/16 - 6:00pm - 7:00pm, virtual 12/17 - 9:30am-12:30 pm, in-person Register and learn more at ourcityforest.org/diylawnbust 45 45 Meeting Close 46 23 Stakeholder Engagement #2: Exploring Water Supply and Conservation Options 12/06/2022 CITY OF PALO ALTO ONE WATER PLAN THANK YOU! ADDITIONAL INFORMATION, PLEASE CONTACT: Lisa Bilir, City of Palo Alto E: lisa.bilir@cityofpaloalto.org P: (650) 329-2543 47 24 APPENDIX F OCTOBER 2024 / FINAL / CAROLLO Stakeholder Engagement #3: Sharing Initial Analysis Results (6/3/2024) CITY OF PALO ALTOONE WATER PLAN Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 One Water Plan: Initial ResultsUtilities Advisory Commission June 3, 2024 www.cityofpaloalto.org 1 One Water Initial Results Outline 1. Goal, Overview & Approach 2. Supply and Conservation Projects 3. Water Supply & Conservation Portfolios 4. Initial Conclusions 5. Next Steps 2 www.cityofpaloalto.org 2 1 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Previous UAC Meetings on One Water Plan • July 7, 2021 – One Water Plan Draft Scope • February 1, 2023 – One Water Plan Update; provided update on screening process, stakeholder engagement and portfolio approach 3 www.cityofpaloalto.org 3 One Water Plan: Goal Council adoption of a One Water supply plan that is a 20-year adaptable roadmap for implementing prioritized portfolio alternatives for water supply and conservation 4 www.cityofpaloalto.org 4 2 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 One Water Plan: Approach• • • • • • Key Ac￿on in City’s Sustainability and Climate Ac￿on Plan (SCAP) Long-term 20-year (through 2045) Water Supply Plan Addresses future uncertainties Includes robust and meaningful stakeholder engagement In collaboration with Carollo Engineers, a national One Water thought leader Builds on exis￿ng plans/work One Water Plan does not directly address: • • Near-term drought Short-term emergencies such as earthquakes and wildfires – addressed under separate emergency plans •Building codes 5 www.cityofpaloalto.org 5 Key Uncertainties • Valley Water Transfer • About half of effluent from Regional Water Quality Control Plant • Option expires in 2033 • Transfer incompatible with some Palo Alto water supply options • Future Water Supply Availability (varies by water supply project) • Droughts • Climate Change • State regulations • SFPUC’s alternative water supply implementation • Cost 6 www.cityofpaloalto.org 6 3 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 One Water Plan: Overview (Summer 2024) (End of 2024) 2 7 www.cityofpaloalto.org 7 Water Supply and Conservation Project Screening . . Environmental Benefits Ease of Implementation Cost Reliability . . 8 www.cityofpaloalto.org 8 4 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Screening Results: Top Water Supply Projects Baseline - SFPUC (Regional Water System; Current Potable Water Supply) Conservation Phase 1 Conservation Phase 2 Groundwater Full Treatment (Iron, Manganese, Total Dissolved Solids) Groundwater Blending Direct Potable Reuse - Palo Alto Facility Direct Potable Reuse - Regional Facility Direct Potable Reuse - Palo Alto Facility with Small Salt Removal Facility Indirect Potable Reuse Bay Water Desalination Note: full list of water supply and conservation options attached to this presentation, and schematics on upcoming slides 9 www.cityofpaloalto.org 9 Enhanced Conservation Phase 1 & 2 Possible Measures Conservation Phase 1 Conservation Phase 2 Outdoor irrigation assistance for commercial customers High Efficiency Toilet direct install for commercial customers Non- functional turf ban for commercial customers Turf conversion support for residential customers Front lawn limitation for residential new developments and major retrofits Front lawn limitation for residential properties upon resale Permanent 3-day watering week restriction Low-income residential High Efficiency Toilet direct install 10 www.cityofpaloalto.org 10 5 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Groundwater Options Groundwater with blending plus Iron (Fe), Manganese (Mn) and Total Dissolved Solids (TDS) treatment SFPUC Water Groundwater Blending Only (no treatment) – not carried forward in One Water Plan, need to understand public acceptance 11 www.cityofpaloalto.org 11 Direct Potable Reuse (DPR) DPR Treatment Facility with three possible configurations: 1) Palo Alto DPR Facility Or 2) Regional DPR Facility owned by Valley Water, if effluent transfer occurs Or 3) Palo Alto DPR Facility that utilizes the Small Salt Removal Facility currently being built at the Regional Water Quality Control Plant 12 www.cityofpaloalto.org 12 6 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Indirect Potable Reuse (IPR) 13 www.cityofpaloalto.org 13 Baywater Desalination 14 www.cityofpaloalto.org 14 7 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Project Normal Year Yield Comparison (Acre Feet per Year) 15 www.cityofpaloalto.org 15 Project Unit Cost Per Acre Foot Comparison 16 www.cityofpaloalto.org 16 8 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Project Compatibility With Valley Water Effluent Transfer No Valley Water Transfer With Valley Water Transfer Baseline - SFPUC (Regional Water System; Current Potable Water Supply) Conservation Phase 1 ￿ ￿ ￿ ￿ ￿ Conservation Phase 2 ￿ ￿Groundwater Full Treatment (Fe, Mn, TDS) Groundwater Blending ￿ ￿ ￿ ￿ No ￿ Direct Potable Reuse - Palo Alto Facility Direct Potable Reuse - Regional Facility Direct Potable Reuse - Palo Alto Facility with SSRF Indirect Potable Reuse – Palo Alto Facility Bay Water Desalination No ￿￿ ￿No ￿￿ Note: list of water supply and conservation options attached to this presentation 17 www.cityofpaloalto.org 17 Water Supply andConservationTool & Portfolios 18 9 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Tool for Water Supply Portfolio Analysis Data Inputs User Selections Outputs Water Demand Forecast Future Scenario Assumptions Portfolio Supply Summary Project Yields Project Variables Portfolio Costs EstimatesProject Cost Estimates Project Evaluation Portfolio Development Project Costs Estimates Portfolio Evaluation Portfolio Evaluation Graphical Outputs 19 www.cityofpaloalto.org 19 Water Supply Portfolio Evaluation Criteria & Suggested Weights Evaluation Criteria Weight Reliability Reliability Unit Cost 35% 20% 5% 5% 5% 10% 10% 10% Suggested weights from stakeholder engagement meeting with community and interdepartmental staff as well as online survey Cost Implementation Timeline Operational Complexity Public Acceptance Wise Use of Water Ecological Benefit Reliance on Tuolumne Ease of Implementation Environmental Benefits 20 www.cityofpaloalto.org 20 10 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Initial Water Portfolio Evaluation Results Weighted Criteria Ranking by Portfolio - No Valley Water Transfer - 2045 Evaluation Criteria Note: 1) Each portfolio includes Conservation Phase 1 and Phase 2, except Baseline SFPUC 2) Each portfolio includes SFPUC supply 21 www.cityofpaloalto.org 21 Initial Water Portfolio Evaluation Results Weighted Criteria Ranking by Portfolio - With Valley Water Transfer - 2045 Evaluation Criteria Note: 1) Each portfolio includes Conservation Phase 1 and Phase 2, except Baseline SFPUC 2) Each portfolio includes SFPUC supply 22 www.cityofpaloalto.org 22 11 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Initial Observations • Conservation Phase 1 and Phase 2 score higher than “do nothing” and do not require large investment to proceed (included in every portfolio other than the SFPUC or “do nothing”) • Highest Scoring Portfolios: ￿ DPR - Palo Alto Only No Valley Water Transfer ￿ DPR - Regional Facility with Valley Water Transfer• Both DPR portfolios contingent on Valley Water Effluent Transfer; resolved in nine years • Baywater Desal is highest scoring portfolio not dependent on the Valley Water Effluent Transfer • Other high scoring portfolio is emergency supply well conversion with blending only (no treatment); lower water quality so not included 23 www.cityofpaloalto.org 23 Sensitivity of Initial Results Weighted Criteria Ranking by Portfolio - No Valley Water Transfer - 2045 Evaluation Criteria Evaluation WeightCriteria Reliability Cost 20% 35% 5% 5% 5% Ease of Implementation 10% 10% 10% Environmental Benefits Note: 1) Each portfolio includes Conservation Phase 1 and Phase 2, except Baseline SFPUC 2) Each portfolio includes SFPUC supply 24 www.cityofpaloalto.org 24 12 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Sensitivity of Initial Results Weighted Criteria Ranking by Portfolio - With Valley Water Transfer - 2045 Evaluation Criteria Evaluation WeightCriteria Reliability Cost 20% 35% 5% 5% 5% Ease of Implementation 10% 10% 10% Environmental Benefits Note: 1) Each portfolio includes Conservation Phase 1 and Phase 2, except Baseline SFPUC 2) Each portfolio includes SFPUC supply 25 www.cityofpaloalto.org 25 Initial Results Sensitivity to Cost Weighting • Top portfolios unchanged￿ DPR - Palo Alto Only No Valley Water Transfer ￿ DPR - Regional Facility with Valley Water Evaluation Criteria Weight Transfer Reliability 20% • Conservation scores higher Cost 35% 15% 30% Ease of Implementation• Only the top scoring portfolio and Conservation score higher than Baseline – SFPUC Environmental Benefits• Groundwater blending only (no treatment) is second-highest scoring infrastructure project and scores higher than Baseline – SFPUC 26 www.cityofpaloalto.org 26 13 Stakeholder Engagement #3: Sharing Initial Analysis Results 06/03/2024 Next Steps UAC Final One Water Plan (Fall 2024) • Recommended supply strategy • Trigger-based implementation plan City Council Final One Water Plan (End of 2024) Future Activities • • • Funding Strategy Implementation Updating One Water Tool as conditions change 27 www.cityofpaloalto.org 27 14