UPDATE on water resources management and infrastructure

1. UPDATE on water resources management and infrastructure John M. Stomp III, PE,Chief Operating OfficerAlbuquerque Bernalillo County Water Utility Authority May2014

2. Rio Grande Water Table Wells Aquifer Background: Ground and surface water resources • Aquifer can no longer sustainably supply water at needed levels • Additional sources and management are required San Juan-Chama

3. Albuquerque Ground-Water Levels Show Huge Declines Pumping Cone of Depression in 2002

4. Water Authority’s 2007 Water Resources Management Strategy • Conservation • Reuse for industry and irrigation • Use of surface water (Colorado San Juan-Chama trans-basin diversion to Rio Grande) • Aquifer storage and recovery (related to surface water treatment) • New Supplies

5. 300,000 Renewable 200,000 Recycling Conservation New sources Water Demand (acre-feet/year) Non-Renewable 100,000 ~100KAFY Surface Water Owned by Water Authority Aquifer Drawdown ~50KAFY Renewable Groundwater 0 2000 2020 2040 2060 1960 1980 Year Water Authority’s water resource management strategy includes:

7. Comparison of Water Conservation Programs – Colorado River Users • Water Authority – 136 gpcd • Salt Lake City area – 244 gpcd • Tucson – 131 gpcd • Phoenix – 251 gpcd • Las Vegas – 251 gpcd • Los Angeles – 152 gpcd

8. San Juan-Chama Project

9. Reservoir Operations

10. Surface Water Supplies - Storage Projections

11. Transition to Renewable Supplies – SJC DWP

12. SJC DWP Restricted Diversions During Drought Remaining Ground Water Use Drought Minimum Ground Water Use

13. Drinking Water Project Operations • 2008 – 367 (1%) • 2009 – 21,357 (21%) • 2010 – 42,803 (40%) • 2011 – 41,281 (40%) • 2012 – 43,208 (41%) • 2013 – 39,929 (42%) • 2014 – 40,000 (?)

14. Groundwater Storage and Water Levels - Recent trends with DWP

15. What is happening to the aquifer? DWP Online

16. Future Reduced Depletions and Available Return Flows • More return flow is expected to be available in the future for other uses

17. ASR Projects • Bear Canyon Arroyo ASR Project • Completed two seasons of pilot testing • Application for full scale permit to be submitted in March 2014 • Large Scale ASR • Direct injection • Existing Wells – high arsenic • In design and testing phase

18. Water Authority’s Next Water Resources Management Strategy • Public Process – alternative development • Fall 2014 – Fall 2015 • Conservation – new goal? • Additional Reuse – indirect/direct potable • Diversion of native water rights • Aquifer storage and recovery (related to surface water treatment) • New Supplies

19. Overall Satisfaction with the Services Provided by the Water Authority 94% of customers are satisfied

20. Water Rates Should Be Increased to Cover the True Costs to Treat and Deliver Water to Our Homes and Businesses 64% of customers agree

21. Investing in the Repair and Replacement ofOld Water & Sewer Lines 88% of customers feel it is important

22. Condition of Water Lines The majority (57%) of residential customers express satisfaction. However, only 18% are very satisfied and over one-quarter (29%) report dissatisfaction with the condition of water lines.

23. Condition of Sewer Lines The majority (60%) of residential customers report satisfaction regarding the condition of sewer lines, though 17% say they are dissatisfied.

24. Water and Wastewater Service Charges- Residential 5/8” Meter

25. Bill Comparison – Local Low Use

26. Bill Comparison – Local High Use

27. Bill Comparison – Regional Low Use

28. Water Commodity Rates – FY14/15

29. Finance Plan Summary in thousands

30. Increase CIP Spending in thousands

31. Asset Management Program defines needed CIP renewal spending

32. Revenue shortfall will delay ramp-up in Renewal Program spending