District Potential Acquisition of N3 Ranch - July 8, 2021
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District Potential
Acquisition of N3 Ranch
July 8, 2021 1
Overview
• Review of the N3 Ranch Property
• Review of District’s Interests Associated
with N3 Ranch Property
• Potential Costs and Risks
• Public Input and Board Discussion
• Direction to Staff
2
Review of N3 Ranch Property
• ~50,500 acres, ~131 parcels
• Located in four counties over 80 square miles
– Santa Clara County: 19,935 +/- acres
– Alameda County: 16,880 +/- acres
– San Joaquin County: 9,095 +/- acres
– Stanislaus County: 4,590 +/- acres
• Originally listed Summer 2019 at $72M
• Recently listed at $68M
• Currently listed as “Sale Pending”
3
Review of N3 Ranch Property
• Historical use as cattle ranch
• Enrolled in Williamson Act – no
conservation easements
• ~200 miles of private roads
• Nine (9) inholdings
• Spans portions of four (4) sub-watersheds
4
Review of N3 Ranch Property
N3 Cattle Ranch
5
Review of N3 Ranch Property
Approximate Acreage by Watershed
Arroyo Mocho
3,765
7.5%
5,477 Upper Alameda
13,558 Creek
10.9%
27%
Arroyo Del Valle
207
0.4% San Antonio
27,135 Creek
54.1%
Outside Alameda
Creek Watershed
6
Review of District’s Interests
Associated with N3 Ranch Property
Alameda Creek
Watershed (local)
State Water Project
(imported)
San Francisco PUC
(imported)
7
Review of District’s Interests
Associated with N3 Ranch Property
• Primary Interests
– Watershed Protection
• Water Preservation
• Water Quality Protection
• Open Space Preservation
– Environmental Protection
• Work with other Partners
– Proposed acquisition as a means of:
• Protecting and preserving the property
• Watershed protection
• Potential development as a park
8
Review of District’s Interests
Associated with N3 Ranch Property
• Water rights are minimal
– Minor rights associated with springs and stock
ponds.
• Relocation of water rights subject to “no injury”
rule.
– Rights associated with any reservoir
constructed on the property would be junior to
ACWD and Zone 7 rights for Alameda Creek
and Del Valle Reservoir.
9
Review of District’s Interests
Associated with N3 Ranch Property
• Water quality protection
– Managing cattle impacts would have a
beneficial impact on downstream water
quality.
– Any development of the property subject to:
• Alameda County Measure D
– Low density/impact development
• California Environmental Quality Act
– Lake Del Valle (50% Recreation) currently
allows power boats and swimming, etc.
10Review of District’s Interests
Associated with N3 Ranch Property
• As the property is currently listed as “Sale
Pending,” District is considering submitting
a “backup offer,” which could be
considered should any current/pending
sale not be consummated.
• Such District proposal could ultimately
help meet the District’s objectives, and
those of other partners (assuming
compatible uses).
11Potential Costs and Risks
• Key Financial Assumptions and Risks:
– Purchase is at list price of $68M; actual price
would be negotiated
– Annual O&M for the entire property estimated at
$3M (this is a cost-conscious approach; providing
for full public access could be significantly higher)
– Uncertainty in amount of partner contributions
toward purchase, ongoing O&M, or revenue
potential
– Per the District’s financial advisor, financing
would be at 2.3% for 30-year, fixed-rate bonds
– Rate Impact Analysis: 1% rate increase correlates
to about $1.2M in revenue
12Potential Costs and Risks
• Staff evaluated three financial scenarios:
– $5M contribution toward purchase and $1M in
annual O&M (consistent with recent budget)
• About a 1% rate impact; already included in the
District’s financial plan
– $34M contribution toward purchase and $2M in
annual O&M
• $1.6M in debt service; 3% rate impact – 2% above
current planning
– $68M purchase and $3M in annual O&M
• $3.2M in debt service; 5.2% rate impact – 4.2% above
current planning (would be phased-in over several
years)
13Potential Costs and Risks
Debt Coverage Ratios
1000%
900%
800%
700%
600%
500%
400%
300%
200%
100%
0%
FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
FY 2021/22 & FY 2022/23 Adopted Budget N3 Ranch Purchase Scenario ($68M)
Status Quo Total Debt Service: $6.5M
With N3 Purchase Debt Service: $9.7M
14Potential Costs and Risks
• Potential Business Risks
– Purchase and transfer to other agencies may
be delayed or not completed
• Carry costs while awaiting “take outs”
• Ownership and management costs
– Condition of property (liabilities)
• Impacted by SCU Lightening Complex Fire
• Condition of title, hazmat, etc.
• Would be evaluated further in due diligence
15Public Input, Discussion, Direction
• Receive Input from Public
• Board Discussion
• Direction to Staff
16Alameda County Water District
Drought and Water
Conservation Update
Board of Directors Meeting, July 8, 2021
Staff Presentation – Agenda Item 6.3.1U.S. Drought Monitor Update
May 11, 2021 May 18, 2021 June 8, 2021
2Recent Updates
• Weather forecast modeling indicates increased
temperatures may be expected this summer
• Dept. of Water Resource (DWR) Delta Actions:
• Temporary Urgency Change Petition (TUCP)
• Emergency Drought Salinity Barrier
• DWR projected to maintain 2021 deliveries
as requested
• DWR keeping Lake Del Valle as full as possible
• Continued close coordination with DWR,
Semitropic, San Francisco, and other agencies
3Water Conservation Campaign
Outreach to date
• Website – Drought Resource Page
• Fact Sheet
• Tip Sheet
• Resource links
• Social Media – 30 posts in June
(Facebook, Twitter and Instagram)
12 posts in four languages
• Union City Cable Access Channel
• Print Media
• Tri-City Voice – three ads
• Outreach to Underrepresented
Groups
• Senior Center Staff –
Fremont, Newark and Union
City
• Fremont Family Resource
Center
4Water Conservation Campaign
Outreach to date
• Stakeholder Outreach – 220 contacts
• Engaged customers – 6,000 emails
• Nextdoor – over 5,000 impressions
(multiple posts)
• News release
• School Outreach
• 136 students, parents and teachers
• Bill Messages – July 1
• ACWD Aqueduct Newsletter & Bill
Insert – mid-July
Planned outreach
• Yard signs
• Targeted outreach
• HOAs, MFR, Business customers
HOAs – Homeowners Associations; MFR – Multifamily residential
5Water Use Efficiency (WUE) Activity
• Water Efficient Landscape (WEL) rebate increased to $2 per sq ft.
• Customer interest in WUE Programs increased:
• 7 times* the number of WEL rebate applications
• 3 times Water Conservation Kit orders
• 3.5 times Rachio controller redemptions
• Customer interest in drought and conservation increased:
• 7 times Water Waste Reports Successful residential water-
• 4 times customer calls and emails efficient landscape conversion
• Approx. 80% of which are related to the WEL rebate
• Upcoming:
• Targeted outreach materials
• Water Use Efficiency Program expansion
• Monitor availability of State funding
*Compared to the average monthly activity for January - March 2021 compared to June 2021 activity
62021 Demand Tracking
7In Summary
• Conservation campaign outreach is
ongoing
• Conservation program activity reflects
interest in water use efficiency
• Too early to tell impact on demand
• Will continue to monitor and provide
updates, and continue planning for 2022
8Questions Thank you!
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