W r Vision s - East Bay Municipal Utility District

East BayMunicipalUtilityDistrict2009Water VisionsA Clear Path to the Future

2009 HighlightsExtraordinary.How else do you describe the past year for EBMUD andCalifornia water issues? After three years of low rainfall,Governor Schwarzenegger declared a drought emergencyin the state and called on all Californians to cut wateruse by 20 percent. For EBMUD, drought struck early, andour customers responded to calls for conservation withtheir typical zeal. East Bay residents will have a buffer infuture droughts from the Freeport Regional Water Project,a drought-year water supply more than 30 years in themaking. The project was identified as a pivotal part of apast Water Supply Management Program. We’ve updatedour long-term plans with WSMP 2040. The plan preparesEBMUD to adjust to new regulations and water systemchanges, including the far-reaching statewide legislationaffecting the Sacramento-San Joaquin River Delta, andaddresses future uncertainties, including climate change.The national financial crisis hit EBMUD, with less revenuefrom new service connections and higher borrowing costsfor capital projects. But responsible fiscal practices andquick action helped protect our 1.3 million customers fromeven greater financial hardship. This year has clearly beena pivotal one for shaping California’s water history. Thedecisions that come from issues being debated up anddown the state will be with us for generations to come.Dennis M. DiemerGeneral ManagerJuly 1, 2008 through June 30, 2009Water Supply Management Program 2040EBMUD completed development of Water SupplyManagement Program (WSMP) 2040, the District’s plan forproviding water to its customers over the next 30 years. Theplan calls for maintaining a reliable, high-quality water supplyby aggressively conserving and recycling water, while settinglimits to drought rationing. New water supplies will comefrom water transfers, groundwater storage and regionalsupply projects.Quick Response Minimizes Drought ImpactIn May 2008, EBMUD’s water supply outlook was so poor thatfor the first time in nearly twenty years the District declareda drought emergency and instituted mandatory rationing.A drought outreach campaign informed customers of theneed to conserve and how to do so. EBMUD provided ahands-on touch too, putting together a water savings teamthat visited neighborhoods to help customers in person. Evenwith slightly warmer than average temperatures during thedrought, customers stepped up to respond as they have inthe past, and reduced water use by 13 percent.Dry-Year Water Supply Project Near CompletionWorking together as the Freeport Regional Water Authority,EBMUD, Sacramento County and the City of Sacramentoare near completion of the Freeport Regional Water Project,one of the largest California water supply projects in years.Construction began in June 2007, and in FY09 EBMUD completedthe 19 miles of pipeline that allow water to be movedfrom the Sacramento River to EBMUD’s system through theFolsom South Canal. Now the District is completing thetesting and final work needed to deliver a new supplementalwater supply to be used in times of drought. The SacramentoRiver source will alleviate much of the pain of future droughts,and also will benefit Sacramento County, our project partner.Weathering a Financial StormIn a year of extraordinary financial challenges, EBMUD reactedquickly to the national financial crisis. We struggled throughcost cutting, a hiring freeze and other measures to keep vitalservices in place so our customers could continue to receivehigh-quality water and reliable service at reasonable rates.New Phase in Bay ProtectionEBMUD is in the forefront of a new movement to protect SanFrancisco Bay. Under a settlement agreement with the U.S.Environmental Protection Agency, the State Water ResourcesControl Board and Regional Water Quality Control Board,EBMUD will lead a renewed charge to make San Francisco Bayeven healthier. To help reduce the amount of excess sewageflows that come during large storms and reach the Bay, EBMUDwill assist as cities and private property owners fix damagedsewer pipes, and seek improvements in our wastewatertransmission system as well.The Delta: Watershed of Common ConcernThe Mokelumne River, EBMUD’s primary water source, flowsinto the Sacramento-San Joaquin Delta, a diverse and fragileecosystem at the epicenter of California’s water system. WhileDelta flows do not supply EBMUD, the Delta is critical toour water supply reliability and fishery protection programs.EBMUD has tirelessly advocated for a long-term sustainabilityplan that addresses both ecosystem and levee restoration.The impacts of far-reaching statewide legislation affectingthe Delta will be taken into account as EBMUD implementsWSMP 2040, our long-term water supply plan.25 Years of Contract EquityIn 1984, EBMUD adopted its first policy to ensure a businessenvironment where discrimination is not allowed. The currentContract Equity Program was created in 1999 based on theDistrict’s commitment to nondiscrimination, to promotesmall business and local business participation in Districtcontracts, and to enable all qualified, competitive contractorsto legitimately compete for contract awards.The level of EBMUD contracting with historically underutilizedbusinesses (ethnic minorities and women) has grown fromapproximately 8 percent in 1984 to 35 percent in 2009.FY09 marks the highest level of ethnic minority businessparticipation in the 25-year history of the program. Fair,active, and open competition is good for the District becauseit enhances the likelihood that we will receive the best valuefor our ratepayers’ dollars.

Water SupplyLong-term planning is a traditionat EBMUD. Key policy decisionsare deliberated thoughtfully,and are based on providing thegreatest community benefit.The Mokelumne Riverwatershed, whichprovides 90 percent ofEBMUD’s water supply,is relatively small andsubject to fluctuation– receiving up to tentimes less precipitationin dry years than in wet.Droughts do occur,and although EBMUDcustomers are knownfor their commitment toconservation, withouta supplemental supplythey could be requiredto cut water use up to 65percent during a severedrought. This past yearwe neared completionof a major dry-yearwater supply project,the Freeport RegionalWater Project, and finalizeddetails of a 30-yearplan for providing waterto our customers.30-Year Vision to Keep Customers in Waterthrough 2040New water projects take years to develop, so long-termplanning is the only way to ensure reliable water suppliesfor the future. In FY09 EBMUD completed its Water SupplyManagement Program (WSMP) 2040, the District’s plan forproviding water to its customers over the next 30 years.The plan emphasizes the District’s continued commitment topreserve and protect the environment and seek cost-effectivecollaborative solutions. WSMP 2040 prepares EBMUD toadjust to new regulations and water system changes, andprovides the flexibility to address uncertainties includingclimate change and repercussions of statewide legislationaffecting the Sacramento-San Joaquin River Delta.Savings from continued aggressive levels of water conservation,recycling and rationing in dry years will meet theincreased water needs from expected service area populationgrowth. But new water sources will be needed as Sierrafoothill communities along EBMUD’s primary source of water,the Mokelumne River, grow and use more of the river’s water.The need for additional water also will be driven by theDistrict’s intent to lessen the burden of droughts by limitingcustomer rationing to 15 percent.New water supplies will come from a combination of watertransfers, groundwater storage and regional supply projects.The two regional supply projects under consideration aredesalination of ocean, bay or Delta water and enlargement ofPardee Reservoir to meet regional water needs.Freeport Project Close to Completion:REGIONAL SOLUTION Will Provide ReliefOne form of drought relief soon to arrive is the FreeportRegional Water Project, which will bring water from theSacramento River to EBMUD’s Mokelumne Aqueducts,stretching 90 miles to the East Bay. EBMUD, along withSacramento County and the City of Sacramento, are workingjointly as the Freeport Regional Water Authority on thiscollaborative project.Construction began in June 2007, and in FY09 EBMUDcompleted the final miles of pipeline that allow water tobe moved from the Sacramento River to EBMUD’s systemthrough the Folsom South Canal. Now we are completing thetesting and final work needed to deliver a new supplementalwater supply. The Sacramento River source will alleviatethe severe pain of future droughts, and also will benefitSacramento County, our project partner and ally.This large California water supply project will deliver up to100 million gallons per day (mgd) to EBMUD during droughts.Sacramento County will have 85 mgd to boost waterMore than 30 years in the making, the Freeport Regional Water Supply Project will draw water in dry years from the Sacramento Riverat Freeport (above). Featuring art and poetry, the project’s intake facility (partial rendering at bottom of page 2) commemorates theriver and the importance of water in our daily lives.supplies and protect its groundwater basin from depletion.Freeport complements EBMUD’s strong conservation andrecycling programs to meet the East Bay’s needs, and boostswater system reliability.The Delta: Watershed of Common ConcernThe Mokelumne River, EBMUD’s primary water source, flowsinto the Sacramento-San Joaquin Delta, a diverse and fragileecosystem at the epicenter of California’s water system. WhileEBMUD’s supplies are not taken directly from the Delta, theentire Delta watershed is critical to our water supply reliabilityand fishery protection programs.The Delta’s health has been a concern for decades, but inrecent years real alarm has developed over its aging earthenlevees. In a 90-mile stretch between the Sierra and the EastBay, EBMUD’s aqueducts cross a number of islands in theDelta that are actually below sea level. A 2004 levee breakat the Jones Tract inundated EBMUD’s aqueducts, whichcould have interrupted supplies for up to six months. EBMUDinvests more than a million dollars annually in Delta leveemaintenance, but it is the proverbial boy with a finger in thedike. The Jones Tract break heightened public awareness ofDelta levee problems.The health of the Delta is critical to the Mokelumne fishery aswell, as the Delta’s altered waterways and large-scale water2 3

Water SupplyAn online Drought Help Centerprovided customers with “onestop-shopping”information andservices during the drought.diversions canpose obstacles tosalmon migratingtoward theirhome spawninggrounds. Thecondition ofthe Delta andthe operationof majordiversionsandpumpingplantsalsoaffectstherearingandoutmigrationof young salmon andsteelhead as they move from riversto the ocean.The Delta has been the subjectof difficult negotiations for years.EBMUD hastirelessly advocated for a long-termsustainability plan that addresses bothecosystem and levee restoration. Theimpacts of far-reaching statewidelegislation affecting the Delta willbe taken into account as EBMUDimplements WSMP 2040, our longtermwater supply plan.Quick Response MinimizesDrought ImpactIn May 2008, EBMUD’swater supply outlook wasso poor that for the firsttime in nearly twentyyears mandatorywater use rationingwas necessary.The District’srelatively smallMokelumneRiver watershedput us in rationingbefore other Bay Area agencies, and getting customers tounderstand that they needed to comply with mandatoryrestrictions was initially challenging. Adding to the challengewas ensuring that customers understood the drought ratestructure and water-use restrictions.A strong public information campaign spread the wordabout ways customers could save water in their homes andbusinesses. The District re-tooled its website, creating anonline Drought Help Center that was a one-stop educationresource. Online videos highlighted what customers weredoing in their own homes and yards to save water, and weeklywater conservation tips showcased simple changes that couldadd up to significant savings. Through www.ebmud.com,customers could order free water-conserving devices suchas showerheads, faucet aerators, hose shut-off nozzles andconservation publications.EBMUD provided a hands-on touch too,putting together a water savings teamthat responded to reports of waterwaste and visited neighborhoods andbusiness communities to distributefree water-saving devices and showcustomers how to comply with newwatering restrictions.Even with slightly warmer thanaverage temperatures during thedrought, customers stepped up torespond like they have done in thepast, and reduced water use by anaverage of 13 percent.Large irrigators achievedmore than half of theirsavings goal and industrialcustomers nearly tripled theirgoal. Residential, commercialand institutional customersall came close to achievingtheir goals.EBMUD had its own goals too, assigning waterbudgets to all of our facilities and redoubling effortsto repair water system leaks. We held to our waterbudgets, and surpassed our goal of fixing 90 percent of allleaks within seven days.Customer efforts and ample rainfall in spring 2009 allowedthe District to lift mandatory restrictions, followed by a requestfor 10 percent voluntary conservation to further protectfuture supplies and support Governor Schwarzenegger’srequest for water savings from all Californians.Conservation and Recycling: Steady SupplyThe importance of water conservation was emphasized tocustomers during the drought, but in every year, droughtor not, water conservation and water recycling are criticalelements of the District’s water supply plan.EBMUD has one of the longest-standing conservation programsin the state and continually encourages its customersto conserve. We take a rigorous approach to analyzing whichprograms bring the greatest level of water savings. In an “allhands-on-deck”response to drought, our staff emphasizededucating customers on which water-savingactivities could bring quick savings,while reinforcing thechangesEBMUD spread the wordabout the need to conserveduring the drought with anadvertising campaign featuringthe character “Running Water.”Our customers listened, andcaptured significant savings.EBMUD’s water conservation program was one of the first in California.Our tradition includes educating customers on making smart choices fortheir home, from appliances to outdoor landscaping.that residential and business customers can make to realizesavings for years to come. In FY09, the District completedand distributed its highly regarded WaterSmart BusinessDevelopment Guidebook, which gives commercial, industrialand institutional customers information on the latest technologies,products and methods to operate at the highestlevel of water efficiency. EBMUD staff worked directly withbusinesses to implement changes that not only help customerssave money by lowering water use, but save on energyand chemical costs as well.Water recycling customers enjoyed a worry-free watersupply during the drought. Through steady expansion overthe years, our capacity to treat and deliver recycled waterhas reached 11.7 mgd. EBMUD benefitted from $6.4 millionin grant funding for the San Ramon Valley RecycledWater Program, including $2.9 million in federal WaterResources DevelopmentAct appropriations and $3.5million in federal economicstimulus funding (AmericanRecovery and ReinvestmentAct of 2009). These fundswill be used to implement aplanned distribution systemexpansion of this successfulwater-saving project.4 5

Emergency ResponseTrained first responders and continualinfrastructure improvements keepservice interruptions to a minimum.Disaster AvertedEBMUD customers, through the District’s Seismic ImprovementProgram, have made a $200-million investment in protectingthe water system, making it possible to restore water servicemuch faster after a major earthquake. Nevertheless, a majorearthquake will cause fire and ambulance services, police, andutility crews like EBMUD to be over-committed. Practice forresponse to emergencies such as earthquakes paid off withthe activation of the District’s Emergency OperationsTeam in February 2009, when a 36-inch steelwater main on Chabot Road inOakland failed.The water main, which crosses the Hayward Fault near theleak location, is the sole source of water to approximately13,500 homes and businesses in Piedmont and Oakland.The leak was located in a tunnel under the off-ramp of amajor East Bay freeway interchange.Declaring an emergency and activating our EmergencyOperations Team allowed EBMUD to plan repairs so thatcustomers in the affected area did not lose water serviceand the integrity of the Highway 24/13 interchange wasnot compromised. Two large portable pumps were quicklyinstalled in Piedmont to re-route plumbing in the area sothe water main could be shut down for repairs. The quick,thoughtful action averted a possible double disasterof reduced water service and traffic disruptions. Priorexercises got the seasoned and well-rehearsed staffup and running quickly.Sharing Water for SafetyAs part of a regional partnership with other BayArea water agencies to increase water servicereliability, EBMUD and the San Francisco PublicUtilities Commission (SFPUC) have created aconnection for the two systems (the HaywardIntertie) to share up to 30 million gallons ofwater a day during emergencies or plannedcritical work. In June 2009, the agenciessuccessfully completed the first half of anextended test of the intertie that beganin October 2008. During the test, 4,000acre-feet of water was transferred fromthe SFPUC to EBMUD. In early 2010, thiswater will be returned to the SFPUCto complete the extended test of theintertie and to support some of SFPUC’splanned seismic upgrade-relatedsystem outages.The three-year project required two wintertime outages.When a critical portable pump motor burned out just beforethe final outage was to begin, EBMUD crews built a new onein a week—a project that usually takes months. The Districtran the water system without the tunnel for four months. Toaccommodate the work, a public outreach campaign helpedkeep customer water demand low into the spring.The seismic upgrade included a new tunnel section designedto survive a major temblor, and a smaller pipe within the faultzone to keep water running even if the main one is damaged.The ASCE Pankow Award for Innovation is one of the industry’shighest honors. Completion of the Seismic ImprovementProgram has greatly improved EBMUD’s seismic readiness,and our effort is now a model for other utilities.Claremont TunnelBefore EarthquakeAfter EarthquakeA seismic upgrade to the Claremont Tunnel (schematic above, newportion of tunnel under construction below), a critical water line,capped a 10-year Seismic Improvement Program and earned one ofEngineering’s highest honors, the American Society of Civil EngineersCharles Pankow award. The fix also provides a high level of waterservice reliability for our customers.Living in earthquakecountry, we all need to beprepared for emergencies. EBMUDmakes special efforts to safeguard its criticalfacilities to minimize disruptions to water service, andwe help our customers prepare for natural disasters too.Claremont Tunnel ProjectWins Major AwardIn California, preparing for emergencies means preparingfor earthquakes. The District has won the Charles PankowAward from the American Society of Civil Engineers for itsinnovative seismic fix to the Claremont Tunnel, a major waterartery that crosses the Hayward Fault. This keystone projectof our Seismic Improvement Program presented dauntingchallenges. The tunnel’s vulnerability to a Hayward Faultquake was established in the 1990s, but total replacementwould be hugely expensive. And how could the District shutdown a facility continuously serving 800,000 people?6 7

Workforce & Community DevelopmentA strong EBMUD workforce and focuson community leads to the highestquality product and best service forour 1.3 million customers.25 Years of Contract EquityIn 1984, EBMUD adopted its first policy to ensure a businessenvironment where discrimination is not allowed. The policygoal was to promote equal opportunity, diversity, and a levelplaying field among the contractors and businesses EBMUDhired for facilities construction,and professional and financialconsultation, and from whichthe District purchasedgoods, services andequipment.The levelof EBMUDcontractingwith historicallyunderutilizedbusinesses (ethnicminorities andwomen) has grown fromapproximately 8 percent in 1984to 35 percent in 2009. FY09 marks the highest level ofethnic minority business participation in the 25-year historyof the program. The District met and exceeded both itsethnic minority business and white men business contractingobjectives of 25 percent each in FY09.The current Contract Equity Program was created in 1999based on the District’s commitment to nondiscrimination,to promote small business and local business participationin District contracts, and to enable all qualified, competitivecontractors to legitimately compete for contract awards. TheContract Equity Program includes a 25 percent small businessset-aside provision for contracts of less than $60,000, and a5 percent small business bid discount not to exceed $50,000per year on multiple-year contracts.In FY09, the Contract Equity Program sponsored a number ofspecial outreach and training events for local businesses toenhance their ability to compete for District contracts. Thisincluded a partnership with Turner Construction and BARTto conduct 12 classes over a six-week period on constructionmanagement for small & local businesses, which coveredtopics such as insurance and bonding, financing, job sitesafety, project scheduling, and District requirements forconstruction projects.The continuing visionfor the Contract EquityProgram is to be a highlyeffective, lawful andintegral business practiceto increase the diversity andparticipation of small andlocal businesses in Districtcontracting. EBMUD seeksto ensure that all firms itdoes business with takelawful and adequate stepsto assure thatBeing fit takes morethan just exercise. Healthy eating is animportant part of any fitness plan. Start todayand soon you’ll be able to toast to good health and longevity.their employmentpractices comply withEqual EmploymentOpportunity laws.Cheers to50 YearsIf you’re in excellent health,it equips you to perform up to your full potential.So take care of yourself because it positions you to do your best work.Marge Louis does it the EBMUDway. In a creative poster series,the 50-year veteran inspired herco-workers to stay active for ahealthy and productive life.EBMUD’s commitment toequity in contracting hasbeen recognized nationally, underscoring a passion to assureall qualified entrepreneurs that they are welcome to dobusiness with us. Fair, active, and open competition is goodfor the District because it enhances the likelihood that we willreceive the best value for our ratepayers’ dollars.Preparing the Next Generation of LeadersIn anticipation of a workforce approaching retirement age,EBMUD launched in recent years a comprehensive workforceplanning effort that ensureswe have ample talent tocarry on the District’sLongevity.Worth theWeight.traditions of excellence.Beginning with a carefulanalysis of our workforcedemographics, we havefocused our efforts in theareas where significantnumbers of retirementsare anticipated, and havedeveloped programs to beresponsive to thoseneeds.Activeis asActiveDoesThink exercise takes too much time or energy?Nope. It’ll make you more productive and give you greater energy.It’s the best thing you can do to reduce stress, lose weight and stay young.Among themost successful programsare the DevelopmentalAcademies, designed to help pools of candidates be betterprepared to compete for promotional opportunities in areaswhere retirements are anticipated, such as supervisorypositions, especially among operations and maintenancestaff. Both LEAD and Pathways—EBMUD completed oneof each in FY09—are voluntary programs with prerequisitesand competitive selection. Participants attend workshops,half on paid time, half on personal time, and completereading and writing assignments on personal time. Theycreate individual development plans to help them achievetheir career goals,and work withexperienced staffas mentors.The academieshave beenvery successful:graduates havesignificantly higher successrates when seeking promotionsthan other internal candidates. We now have graduates inleadership positions at all levels of the organization, andsome have been promoted more than once. Additionally,many graduates from LEAD & Pathways have continued theiracademic education outside of work, stimulated by theiracademy experiences. Graduates say that the experience andcontacts they’ve made have broadened their perspectivesand understanding of the District organization andcontinue to provide support and resources long aftergraduation, both in their current positions as well asupon promotion.Marge Louis – Fifty-year EBMUD VeteranMarge is one of two people in EBMUD history to reachtheir 50th work anniversary. When she began in 1959 as aclerk, Eisenhower was president, “Gigi” won the best pictureOscar, and the Barbie doll was introduced. Asked “Whatadvice would you give to someone starting out?” Margereplied, “Be on time. When you’re supposed to be here,be here. Concentrate, don’t fool around, and when you’resupposed to go home, go.” That standard seems to haveworked well for Marge, her family, and the public she serves.To celebrate her achievement, the District created a series ofworkplace posters featuring Marge in action—inspiring herco-workers to choose health and a vibrant life. After 50 yearsof work, does Marge plan to retire anytime soon? No.Field Support for Pollution PreventionThe District continues to provide support to local communitiesby coordinating a regional fats, oils, and grease controlprogram, helping local cities and private property ownersidentify ways to prevent grease-related blockages and sewageoverflows. This year, the program expanded to includeoutreach to residential customers on ways they can helpprevent grease blockages. The District also provides supportto some cities with inspection services at industrial andcommercial facilities to help the cities meet their storm waterpermit requirements.8 9

Community StewardshipEast Bay residents demanded betterpublic health protections 85 years agoand formed EBMUD. We keep thetradition alive today by protecting ourcommunities and the environmentalresources that we are entrusted with.Stewardship comes in many forms. For EBMUD it meansprotecting the vital natural resources that we’re entrustedwith and implementing stringent public health protectionsfor the communities we serve. These tenets have always beenwith us: we see no other way to operate. This past year, ourstewardship efforts helped pass environmentally beneficiallegislation and seismically strengthened one of our largerdams, safeguarding thousands of residents downstream.Rebuilding San Pablo DamFY09 saw the start of construction of new safeguards toprotect San Pablo Dam from the damaging effects ofearthquakes. The dam, which holds back the source waterfor two water treatment plants, was built between 1917 and1921. It’s made of hydraulic fill, with earth washed from nearbyslopes to form the nucleus of the dam, which is 170 feethigh and 1,200 feet long. Twice before seismic evaluationsindicated improvements were necessary, and buttress fillswere constructed on the downstream and upstream slopes.The science of protecting infrastructure from earthquakes isconstantly evolving. In 2002, in conjunction with the State ofCalifornia Division of Safety of Dams, the District reanalyzedthe seismic stability of the dam. The new analysis, completed in2004, concluded that the dam could be deformed by an earthquakedue to liquefaction of the foundation and embankment.The reservoir level was immediately lowered to provide a safetymargin until the dam could be repaired. The solution chosenfor the retrofit was in-place improvement of a portion of thefoundation using an innovative technology known as cementTimes have changed since the construction of San Pablo Dam nearly a century ago. Using the innovative technology of Cement DeepSoil Mixing, EBMUD is now strengthening the dam to safeguard water supplies and protect nearby communities from flooding.From sponsoring statewide legislation to working with visitorsone-on-one, EBMUD takes a comprehensive approach toprotecting natural resources and public health.deep soil mixing (CDSM), and a new buttress fill at the downstream“toe.” This option ensured a continued water supplyand reduced disruption to the environment and recreation.1Auger is rotatedinto the soilCement Deep Soil Mixing (CDSM)Innovative Technology Protects San Pablo Dam2Cement grout isinjected and mixedwith the soil in placeAuger fully mixessoil with cementto target depthThe construction involves removing the old downstreambuttress fill and improvements of the dam’s foundation soilsusing the CDSM technique—now completed—plus installinga new compacted earth buttress downstream. The project ismoving ahead of schedule and is on track for returning thereservoir to normal operating levels in early 2010.34Auger is reversed andsoil-cement columnis allowed to cureLegislative Protections – Invasive Species & LeadQuagga and Zebra Mussels are invasive, non-native mollusksthat have been discovered recently in some California waters.State officials say the spread of the mussels threatens waterdelivery systems, hydroelectric facilities, agriculture, recreationalboating and fishing, and aquatic ecosystems across thestate. EBMUD sponsored AB 2065 (Hancock), signed into lawby Governor Schwarzenegger in September 2008, to requireanyone who owns or manages a water storage reservoir todevelop and implement a program designed to preventthe introduction of dreissenid mussels. EBMUD sponsoredthis measure in an effort to protect its reservoirs and saveratepayer money. Because much of California’s water supplysystem is interconnected, no single water supply agency canstop the spread of these invasive mussels by acting alone. Asa result of EBMUD’s advocacy, California’s waterways will enjoygreatly improved protections from invasive mussels.EBMUD sponsored two bills in 2008 to facilitate the effectiveimplementation of California’s landmark safer lead standard,established in 2006 by the EBMUD-sponsored measureAB 1953 (Chan). Combined, these measures provide a wayfor plumbing manufacturers to demonstrate compliance withthe AB 1953 standard and for consumers to have confidence10 11

Financial Strengththat the products they purchase meet this safer standard.The District’s successful sponsorship of these measures hasmade California the national leader in getting the lead outof drinking water plumbing. The two bills—SB 1395 (Corbett)and SB 1334 (Calderon)—were signed into law by theGovernor in September 2008.New Phase in Bay ProtectionOur efforts to protect San Francisco Bay began in 1944, whenEast Bay residents voted to create a regional wastewateragency to halt the discharge of raw sewage into the Bay. Overthe years, Bay protection agencies, environmental groups andEBMUD have all worked to keep the Bay as healthy as possible(our main wastewater treatment plant has operated for overten years within permit limits and without a National PollutantDischarge Elimination System violation). But despite thoseefforts, partially treated sewage can still enter the Bay duringheavy storms. Today a new effort is underway to change that.The East Bay has separate systems for storm water runoff andsewage, but storm water can seep into cracks in aging sewersystems during storms, resulting in excessive sewage flowsand the runoff of partially treated sewage into the Bay. Undera settlement agreement with U.S. Environmental ProtectionAgency, the State Water Resources Control Board and theRegional Water Quality Control Board, EBMUD will lead arenewed charge to keep the Bay healthy.Under the agreement, EBMUD will work with the cities inits wastewater service area (Oakland, Berkeley, Alameda,Albany, Piedmont, Emeryville and the Stege Sanitary District(El Cerrito, Kensington, and parts of Richmond)) to repairdamaged pipelines as quickly as possible, and provide anincentive program for the repair of leaking private sewers(laterals) serving residences or businesses.Local residents and businesses will have a role in keepingthe Bay healthy too. A new ordinance for property ownerswill require that their laterals are without defects and haveproper connections when the home is sold, when gettinga permit for certain levels of construction or modification,and when applying for a different size of water meter. Somecities already have similar ordinances in place, and haveseen positive impacts as a result.EBMUD’s efforts to protect San Francisco Bay includeda major public outreach campaign. The District led astatewide “No Drugs Down the Drain” program in October2008, with more than 60 agencies throughout the stateparticipating. In the EBMUD wastewater service area, theprogram aimed to raisepublic awareness ofalternatives to dumpingmedications down thedrain, which sends themthrough the wastewatersystem and potentiallyout to San Francisco Bay.The weeklong campaignencouraged the publicto dispose of theirunwanted medicationproperly, and broughtin nearly 200 poundsof pharmaceuticals fordisposal in EBMUD’sservice area alone.For more than 50 yearsEBMUD has protectedSan Francisco Baywith responsiblewastewater treatment.The District is part ofa new collaborativeeffort to protect theBay even further.In a year of extraordinary financialchallenges, the District wasable to keep vital services inplace and rates reasonable.Sustaining Strong Financial PerformanceDuring the past fiscal year, EBMUD faced a breakdownin the financial markets, severe reduction in localgrowth and development, a drought, and risingcosts including health care and energy. Despitethese challenges, EBMUD was able to sustainstrong financial performance.While revenues dropped due areduction in local developmentand a mandatory reduction inwater use from the drought,EBMUD implemented droughtrates, and significant cost and staffreductions to ensure that spendingmatched revenues. The District wasable to maintain its cash reserves andcontinued to meet its financial goals.WATER SYSTEM FY 2009 FY 2008During the Year:Total Water Production, millions of gallons 66,200 75,059Average Daily Water Production, MGD* 181 205Maximum Daily Water Production, MGD 262 288Minimum Daily Water Production, MGD 124 140At Year End:Number of Accounts 381,728 381,903Number of Employees 1,580 1,615Miles of Water Distribution Pipe 4,108 4,108Operating Distribution Storage Capacity, millions of gallons 812 812WASTEWATER SYSTEM FY 2009 FY 2008During the Year:Average Daily Wastewater Flow, MGD 66 69At Year End:Number of Accounts 172,035 177,852Number of Employees 267 262*=millions of gallons per dayBecause EBMUD has a strong history of financial performance,and maintained that performance during the recent failuresin the financial markets, Standard and Poor’s upgradedthe Water and WastewaterSubordinated Revenue Bondrating from AA+to AAA.12 13

Water SystemWastewater SystemWHAT WE RECEIVED[in millions]Total: $385.02 MInvestment$25.55Other$6.07Taxes$23.42Power$4.32CapitalContributions$38.35WaterRevenue$287.31HOW IT WAS USED[in millions]Total: $377.76 MInterest,Net andOther$78.75Depreciation$68.52Operations &Maintenance$230.49WHAT WE RECEIVED[in millions]Total: $89.51 M Other$1.03Taxes$7.38Investment$3.05ResourceRecovery$7.66Wet WeatherFacilities Charge$14.34CapitalContributions$8.96WastewaterRevenue$47.09HOW IT WAS USED[in millions]Total: $81.96 MDepreciation$18.30Interest,Net andOther$13.52Operations &Maintenance$50.14TOTAL EXPENSES[in millions]$400$300$200$100$0TOTAL REVENUES[in millions]01 03 05 07 09DepreciationInterest, Netand OtherOperations &MaintenanceWATER SYSTEM FINANCIAL HIGHLIGHTSOperating revenues and expenses have continued to grow at a steady rateover the past ten years with the difference between operating revenues andexpenses used to fund debt service and capital improvements.Total revenues for the Water System decreased eight percent from $417million in 2008 to $385 million in 2009 primarily due to a decrease in interestincome from investments, other income, and lower capital contributionsfrom a reduction in new development activity.Total expenses remained relatively even, increasing from $374 million in2008 to $378 million in 2009, primarily due to increases in raw water andwater treatment operating expenses offset by lower interest expense ondebt financing.Cash reserves are $115 million or $11 million above the target of $104 million.These excess reserves will be used to fund future capital improvements.The Water System refunded $331 million of outstanding subordinatedrevenue bonds during the fiscal year. The System’s bond rating wasupgraded to AAA during the fiscal year.TOTAL EXPENSES[in millions]$100$75$50$25$0TOTAL REVENUES[in millions]01 03 05 07 09DepreciationInterest, Netand OtherOperations &MaintenanceWASTEWATER SYSTEM FINANCIAL HIGHLIGHTSOperating revenues and expenses have continued to growat a steady rate over the past ten years with the differencebetween operating revenues and expenses used to fund debtservice and capital improvements.Total revenues for the Wastewater System increased eightpercent from $83 million in 2008 to $90 million in 2009,primarily due to increased capital contributions related to theCalifornia Department of Transportation.Total expenses increased four percent from $79 million in2008 to $82 million in 2009 primarily due to increases intreatment costs and depreciation expenses offset by lowerinterest expense on debt financing.Cash reserves are $36 million or $18 million above the targetof $18 million. These excess reserves will be used to fundfuture capital improvements.The Wastewater System’s bond rating was upgraded to AAAduring the fiscal year.$400$300$200$100Capital ContributionsOtherTaxesInvestmentPowerWaterCOMPONENTS OF WATER REVENUE[in millions]$300$200$100Public Authorities/OtherCommercialIndustrialResidential$100$75$50$25Capital ContributionsOtherTaxesInvestmentResource Recovery (beginning FY05)Wet Weather Facilities ChargeWastewater$001 03 05 07 09$001 03 05 07 09$001 03 05 07 0914 15

MissionEBMUD Mission StatementTo manage the natural resources with which the District is entrusted;to provide reliable, high quality water and wastewater services at fairand reasonable rates for the people of the East Bay; and to preserveand protect the environment for future generations.In accomplishing this mission, we will:• Exercise responsible financial management• Ensure fair rates and charges• Provide responsive customer service• Promote ethical behavior in the conduct of District business• Ensure fair and open processes involving the public• Provide a healthy work environment• Promote diversity and equality in personnel matters and contracting• Promote environmental responsibility and sustainability

EBMUD WARDSS A N P A B L OB A Y1San PabloRichmondPinoleElCerritoEl SobranteAlbany 4EmeryvilleRodeoHerculesBerkeleyCrockettSanPabloReservoir3PiedmontBrionesReservoirOrindaLafayetteReservoirLafayetteMoragaS U I S U NB A YPleasantHillWalnutCreek2AlamoBoard OF DIRECTORS — 2009Board Member WardLesa R. McIntosh 1John A. Coleman 2Katy Foulkes 3Andy Katz 4Doug Linney 5William B. Patterson 6Frank Mellon 7Board meetings are open to the publicand held the second and fourth Tuesdaysof each month at 1:15 p.m. in the BoardRoom, second floor, 375 11th Street,Oakland, California.NA SSanFranciscoFARC I N S COAlameda5B AOakland6UpperSan LeandroReservoirDanvilleSanRamonDennis M. Diemer, General ManagerPublished by the Public Affairs OfficeEBMUD SERVICE AREAS A N P A B L OB A YYEl SobranteRodeoHerculesPinoleCrockettSan LeandroSan LorenzoChabotReservoir7CastroValleyHaywardS U I S U NB A YEditor: Jeff BecerraDesign: Todd SalernoPhotography: Susan Bendarz, John Benson,Paul Cockrell, Getty Images, Karen Preuss,Scott Sommerfeld, Rich TurnerMaps/Illustrations: EBMUD Graphic Design,Kimiko Chan Design, Paul Kos, Carol H.Williams Advertising50%RECYCLEDCONTENT30%POST-CONSUMERWASTEDec 2009 5M Pub. 127NorthRichmondSan PabloRichmond ElCerritoSanPabloReservoirPleasantHillAlbanyBerkeleyEmeryvilleOrindaBrionesReservoirLafayetteLafayetteReservoirMoragaWalnutCreekAlamoA NSSanFranciscoFR AN C CI SAlamedaPiedmontOaklandUpperSan LeandroReservoirDanvilleOABSanRamonYChabotReservoirLegendWater Service AreaUltimate WaterService BoundaryWastewaterService AreaSan LeandroSan LorenzoCastroValleyHaywardEAST BAY MUNICIPAL UTILITY DISTRICT375 11th Street, Oakland, CA 946071-866-40-EBMUDwww.ebmud.com