HomeMy WebLinkAboutItem 1e - Authorize Purchase of Cyclic Storage WaterU_vi I :S
TO:
FROM:
STAFF REPORT
Public Works Services Department
August 19, 2014
Honorable Mayor and City Council
Tom Tait, Public Works Services Director
SUBJECT: PURCHASE 2,676 ACRE -FEET OF IMPORTED REPLACEMENT
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER FOR
A TOTAL COST OF $1,800,948
Recommendation: Approve
SUMMARY
The City of Arcadia gets a major portion of its drinking water supply from the Main San
Gabriel Groundwater Basin ( "Main Basin "). The remaining demand is met from City
wells that pump a fixed amount of groundwater from the Raymond Basin. The City of
Arcadia has a Cyclic Storage account with the Main Basin that can be used to store
supplemental Replacement Water in the Main Basin for later use. The City has the
opportunity to pre - purchase imported water that has been made available through
Upper San Gabriel Valley Municipal Water District ( "Upper District ") for $673 an acre -
foot. This rate is about $100 an acre -foot less than normally purchased Replacement
Water. A portion of the Replacement Water will be used to satisfy over production for
Fiscal Year 2013 -14 with the remaining water to be placed in the City's Cyclic Storage
Account to be used at a later date.
It is recommended that City Council authorize and direct the purchase of 2,676 acre -
feet of imported Replacement Water from the Main San Gabriel Basin Watermaster for
a total cost of $1,800,948.
DISCUSSION
In 1973, as a result of overproduction of water from the Main Basin, a stipulated
judgment was entered into that created the Main San Gabriel Basin Watermaster. The
Main San Gabriel Basin Watermaster is a nine - person board appointed by the Los
Angeles County Superior Court that administers and enforces the provisions of the Main
San Gabriel Basin Judgment, which established water rights and responsibility for
efficient management of the quantity and quality of the Main Basin.
Purchase Water from the Main San Gabriel Basin Watermaster
August 18, 2014
Page 2 of 3
This is accomplished in part by the Main San Gabriel Basin Watermaster determining
the total amount of water that can be pumped from the Main Basin each year, free from
a Replacement Water assessment, which is referred to as the Operating Safe Yield.
The City of Arcadia's annual share of the Operating Safe Yield is 4.23 %. Pumping
more water than the amount established for a given year is allowed; however,
production in excess of the City's annual share requires purchase of Replacement
Water to recharge the groundwater basin.
Recent pumping restrictions imposed on City of Arcadia wells due to low groundwater
levels in the East Raymond Basin have put a greater demand on water pumped from
the Main Basin. For Fiscal Year 2013 -14, the City of Arcadia was allowed to pump
7,616 acre -feet of water from the Main Basin without incurring a Replacement Water
Assessment. During Fiscal Year 2013 -14 the City pumped 14,103.90 acre -feet of water
from the Main Basin, meaing the City is required to purchase 6,487.90 acre -feet of
Replacement Water. Due to previous purchases of supplemental Replacement Water,
the City has a balance of 4,824.05 acre -feet of Replacement Water in its Cyclic Storage
Account. Purchasing an additional 2,676 acre -feet of supplemental Replacement Water
will allow the City to satisfy its Replacement Water obligation of 6,487.90 acre -feet and
the left over amount of 1,012.15 acre feet will be added to the City's Cyclic Storage
Account to be used at a later date.
The Main San Gabriel Basin Watermaster has set the cost for Replacement Water at
$773 an acre -foot for Fiscal Year 2013 -14. Pre - purchasing 2,676 acre -feet of imported
supplemental water at the rate of $673 an acre -foot will save the City $267,600. The
advantages of pre - purchasing imported supplemental water and storing it in the City's
Cyclic Storage Account are two -fold. It ensures that "wet" water is delivered to the Main
Basin this year, which helps keep groundwater levels in the Main Basin higher than if
the water was purchased as Replacement Water. Also, the water is purchased at a
lower rate and can be stored in the City's Cyclic Storage Account for up to five years.
With Replacement Water costs rising annually, the savings will grow over time.
FISCAL IMPACT
Sufficient funds have been budgeted in FY 2013 -14 and FY 2014 -15 Water Operations
Budget for the purchase of supplemental Replacement Water. Fiscal Year 2013 -14
Replacement Water obligation is 6,487.90 acre -feet. The City has 4,824.05 acre -feet of
Replacement Water in its Cyclic Storage Account that can be used to satisfy the over
production. Pre - purchasing an additional 2,676 acre -feet of Replacement Water will
result in $1,119,771.05 be paid from Fiscal Year 2013 -14 Water Operations Budget,
and $681,176.95 be paid for out of Fiscal Year 2014 -15 Water Operations Budget. Pre -
purchasing imported Replacement Water will save the City approximately $267,600 and
can be used to satisfy the City's over production in the Main San Gabriel Groundwater
Basin in the future.
Purchase Water from the Main San Gabriel Basin Watermaster
August 18, 2014
Page 3 of 3
RECOMMENDATION
It is recommended that the City Council authorize and
acre -feet of Imported Replacement Water from the
Watermaster for a total cost of $1,800,948.
Approved
Dominic Lazzar
City Manager
direct the purchase of 2,676
Main San Gabriel Basin