HomeMy WebLinkAboutItem 2i - Purchase of 3,000 acre-feet of imported replacement waterrt
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STAFF REPORT
Public Works Services Department
DATE: April 7, 2015
TO:
FROM
Honorable Mayor and City Council
Tom Tait, Public Works Services Director
SUBJECT: PURCHASE 3,000 ACRE -FEET OF IMPORTED REPLACEMENT
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER FOR
A TOTAL COST OF $2,019,000
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. Some or all of this water will be used to satisfy over production for Fiscal Year
2014 -15 with any 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 approve the purchase of 3,000 acre -feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster for a total
cost of $2,019,000.
BACKGROUND
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
April 7, 2015
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 Operating Safe Yield for FY 2014 -15 was set at 150,000 acre -feet. 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.
DISCUSSION
Persistent drought conditions and lower groundwater levels in the Raymond Basin have
resulted in a reduction in pumping rights. This has resulted in 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. In Fiscal Year 2014 -15, the City will only be able to
pump 6,346 acre -feet of water from the Main Basin without incurring a Replacement
Water Assessment. It is anticipated that the City will need to pump approximately
13,500 acre -feet of water from the Main Basin to satisfy demands. Arcadia currently has
a balance of 1,012.15 acre -feet of Replacement Water in its Cyclic Storage Account. It
is likely that the City will need to buy additional Replacement Water at the end of the
fiscal year to satisfy over production. This purchase will be at the $773 an acre -foot
price unless additional Cyclic Storage Water becomes available and the City chooses to
purchase it.
The Main San Gabriel Basin Watermaster has set the cost for Replacement Water at
$773 an acre -foot. Pre - purchasing 3,000 acre -feet of imported supplemental water at
the rate of $673 an acre -foot will save the City $300,000. 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 2014 -15 Water Operations Budget for the
purchase of supplemental Replacement Water. The projected Fiscal Year 2014 -15
Replacement Water obligation is anticipated to be approximately 7,000 acre -feet. The
City has 1,012.15 acre -feet of Replacement Water in its Cyclic Storage Account that
can be used to satisfy the over production. Pre - purchasing imported Replacement
Water will save the City approximately $300,000 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
April 7, 2015
Page 3 of 3
RECOMMENDATION
It is recommended that the City Council approve the purchase of 3,000 acre -feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster for a total
cost of $2,019,000.
Approved
Dominic Lanza
City Manager