HomeMy WebLinkAboutItem 2g - Purchase of Imported Replacement Water from Main San Gabriel Basin WatermasterPurchase Water from the Main San Gabriel Basin Watermaster October 3, 2017
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DATE: October 3, 2017
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director By: Mandy Jiang, Management Aide
SUBJECT: PURCHASE 3,500 ACRE-FEET OF IMPORTED REPLACEMENT
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER FOR
A TOTAL COST OF $2,691,500 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 $769 an acre-
foot. This rate is $129 an acre-foot less than normally purchased Replacement Water.
Some or all of this water will be used to satisfy demands for Fiscal Year 2017-18, with
any remaining water to be placed in the City’s Cyclic Storage Account to be used at a
later date. By pre-purchasing at a lower rate, the City and its customers will save at least $451,500 in water costs.
It is recommended that City Council approve the purchase of 3,500 acre-feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster for a total
cost of $2,691,500.
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 October 3, 2017
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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 Fiscal Year 2017-18 was set at 150,000 acre-feet. The City of Arcadia’s annual share of the Operating Safe Yield is 4.23%, or 6,346 acre-feet. 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
Although Governor Brown declared the drought over through Executive Order B-40-17
on April 7, 2017, Southern California groundwater basins continue to be recovering from
the recent multi-year drought. Consequently, pumping rights in the Raymond Basin remain at reduced levels. This has put a greater demand on water pumped from the Main Basin.
Under current conditions, it is anticipated that the City will need to pump approximately
10,800 acre-feet of water from the Main Basin to meet projected water demands this year, meaning that that City will need to purchase about 4,500 acre-feet of replacement water. Arcadia currently has a balance of just over 1,000 acre-feet of Replacement
Water in its Cyclic Storage Account, leaving a net demand of 3,500 acre-feet of water.
The Main San Gabriel Basin Watermaster has set the cost for Replacement Water at $898 an acre-foot for FY 2017-18. However, in an effort to encourage cities to pre-fill the Main Basin with the runoff from 2017’s strong winter precipitation, they are offering a
reduced rate of $769 per acre-foot if purchased by January 1, 2018. Pre-purchasing
3,500 acre-feet of imported supplemental water will save the City approximately
$451,500. See attached cyclic storage water invoice, shown as Exhibit “A”. The advantages of pre-purchasing imported supplemental water and storing it in the City’s Cyclic Storage Account are two-fold. First, it ensures that “wet” water is delivered to the
Main Basin this year, which helps maintain higher groundwater levels than if the water
was purchased as Replacement Water. Second, 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 increasing annually, the savings will grow over time.
ENVIRONMENTAL ANALYSIS
The purchase of Imported Replacement Water from the Main San Gabriel Basin Watermaster is not considered a project as defined by California Environmental Quality Act (“CEQA”) Section 15378.
Purchase Water from the Main San Gabriel Basin Watermaster October 3, 2017
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FISCAL IMPACT
Sufficient funds have been budgeted in FY 2017-18 Water Operations Budget for the
purchase of supplemental Replacement Water. Pre-purchasing imported Replacement
Water at the reduced rate will save the City approximately $451,500. RECOMMENDATION
It is recommended that the City Council approve the purchase of 3,500 acre-feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster for a total cost of $2,691,500.
Attachment: Exhibit “A” – Watermaster Cyclic Storage Invoice