HomeMy WebLinkAboutItem 10g - Purchase of Imported Replacement Water from Main San Gabriel Basin WatermasterPurchase Water from the Main San Gabriel Basin Watermaster
November 5, 2019
Page 1 of 3
DATE: November 5, 2019
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE OF 5,000 ACRE-FEET OF IMPORTED REPLACEMENT
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER IN
THE AMOUNT OF $4,170,000
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 $834 an acre-foot. This rate is $124 per
acre-foot less than the price of Replacement Water. Some or all of this water will be used
to satisfy demand during Fiscal Year 2019-20, 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 $620,000.
It is recommended that City Council approve the purchase of 5,000 acre-feet of Imported
Replacement Water from the Main San Gabriel Basin Watermaster in the amount of
$4,170,000.
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 water in the Main Basin.
Purchase Water from the Main San Gabriel Basin Watermaster
November 5, 2019
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 Fiscal Year 2019-20 was set at 150,000 acre-feet. The City of
Arcadia’s annual share of the Operating Safe Yield is 4.23%, or 6,345 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.
Although Governor Brown declared the drought over through Executive Order B-40-17
on April 7, 2017, Southern California groundwater basins continue to recover from the
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.
DISCUSSION
Under current conditions, it is anticipated that the City will need to pump approximately
12,500 acre-feet of water from the Main Basin to meet projected water demands this year.
Arcadia currently has 722.75 acre-feet of replacement water in its Cyclic Storage Account,
leaving a net demand of 5,432.25 acre-feet. Therefore, the City will likely need to
purchase at least 5,000 acre-feet of replacement water this year to satisfy projected
demand.
The Main San Gabriel Basin Watermaster has set the cost for replacement water at $958
an acre-foot for Fiscal Year 2019-20. However, in an effort to encourage water agencies
to purchase available water from the State Water Project, they are offering a reduced rate
of $834 per acre-foot if purchased before January 1, 2020. Pre-purchasing 5,000 acre-
feet of imported supplemental water will save the City approximately $620,000. 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 if any of
the water is unused.
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
November 5, 2019
Page 3 of 3
FISCAL IMPACT
Sufficient funds have been budgeted in Fiscal Year 2019-20 Water Operations Budget
for the purchase of supplemental Replacement Water. Pre-purchasing imported
Replacement Water at the reduced rate will save the City approximately $620,000.
RECOMMENDATION
It is recommended that the City Council approve the purchase of 5,000 acre-feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster in the
amount of $4,170,000.