CVWD’s Water Infrastructure

A water distribution system is a network of pipes that carry potable water from the water company to its consumers.  While there are many material options for water pipes, the majority of the pipes you will find in the District are made of steel.

Steel pipes cost a little more than other pipe options, but steel is known for its strength and durability with an average lifespan of about 75 years.

The average age of CVWD’s pipes is 45 years, with 45% of the pipes beyond their expected life of 75 years. Furthermore, an additional 22 miles of pipe will reach the 75-year mark within the next 15 years.

For the past 10 years, the District has been replacing pipe at an average rate of one-half mile per year.  At this rate, the District is on track to replace pipe when it reaches an age of 200 years (a 200-year pipeline replacement program).

While this method may appear to save money today, it will likely cost the District more money in the long run. 

As pipes age, ruptures and leaks are more likely to occur. Consequently, costs for unforeseen repairs to pipes and streets (as a result of ruptures and leaks) also increase and can potentially draw down the District’s limited reserves.

In general, pipes that are still active beyond their useful lifespan are less reliable and at higher risk of failure.  Older pipes are particularly vulnerable during high-flow and high-stress/surges that are typically present during emergency events (e.g. suppressing wildfires, earthquakes, etc.).

Unforeseen expenditures are above and beyond the budgeted pipeline replacement program and require overtime work that contributes to higher labor costs and cost premiums associated with emergency construction work.

Unforeseen repairs to streets, public right-of-way, and (in some cases) private property can double the construction cost of a typical pipeline replacement project.

In summary, minimizing unexpected pipe failures through a proactive maintenance and replacement program will maximize rate-payer dollars by:

1) Lowering overall repair and replacement costs

2) Allowing the District to reinvest those savings into an effective asset management program (to ensure infrastructure reliability) and into other programs that improve operations, customer service or public outreach.

Bond financing is one option to fund a more appropriate pipeline replacement program.  Significant savings can be realized through economies of scale and more competitive bidding that larger pipeline projects and long-term contracts can attract.

Interest rates on bond financing are still at historic lows and are the same or lower than the rate of escalating construction costs, an effective hedge against inflation.

Future customers pay a fair share of the costs, instead of today’s customers absorbing the entire share through unsustainably high rates. Future generations that will share these costs will accordingly benefit from the infrastructure that is built from bond proceeds.

The District will be considering options to fund pipeline replacement and other capital improvement projects during this next 2020-21 budget cycle.  Please look for opportunities to attend public board meetings and workshops so that you can take part in the process. 

Meetings and information will be posted on our website www.cvwd.com.