HomeMy WebLinkAboutItem 11n - Purchase of Cyclic Storage WaterCyclic Water Purchase from the Main San Gabriel Basin Watermaster
August 16, 2022
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DATE: August 16, 2022
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE 6,000 ACRE-FEET OF IMPORTED CYCLIC STORAGE
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER IN
THE AMOUNT OF $5,412,000
Recommendation: Approve
SUMMARY
The City of Arcadia (“City”) 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 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 $902 an acre-foot. This rate is $156 an acre-
foot less than normally purchased Replacement Water. Some or all of this water will be
used to satisfy demands for Fiscal Year 2022-23, with any remaining water to be used at
a later date. By pre-purchasing at a lower rate, the City and its customers will save
approximately $936,000 in water costs.
It is recommended that City Council approve the purchase of 6,000 acre-feet of Imported
Replacement Water from the Main San Gabriel Basin Watermaster for a total cost of
$5,412,000.
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.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster
August 16, 2022
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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. This amount is referred to as the Operating Safe Yield.
The Operating Safe Yield for Fiscal Year 2022-23 was set at 150,000 acre-feet. The
City’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, the City
must then purchase Replacement Water to recharge the groundwater basin.
On July 8, 2021, Governor Newsom declared a drought emergency in fifty counties and
asked for Californians to voluntarily reduce water use by 15%. As of 2022, California is in
the third year of the drought. The ongoing drought continues to impact local groundwater
levels, with the Main Basin Key Well currently sitting just 14 feet above the historic low
level experienced in the prior drought. Consequently, pumping rights in the Raymond
Basin remain at reduced levels, which has put a greater demand for replacement water.
Under current conditions, it is anticipated that the City will need to pump approximately
12,300 acre-feet of water from the Main Basin to meet projected water demands this year;
meaning that that City will need to purchase about 6,000 acre-feet of replacement water.
DISCUSSION
The Main San Gabriel Basin Watermaster has set the cost for replacement water at
$1,058 per acre-foot for Fiscal Year 2022-23. However, in an effort to encourage water
agencies to purchase available water from the State Water Project, they are offering a
reduced rate of $902 per acre-foot if purchased before January 1, 2023. Pre-purchasing
6,000 acre-feet of imported supplemental water will save the City approximately
$936,000.
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 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 proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) under Section 15061 (b)(3) of the CEQA Guidelines, as it can be
seen with certainty that it will have no impact on the environment. Thus, this matter is
exempt under CEQA.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster
August 16, 2022
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FISCAL IMPACT
Sufficient funds have been budgeted in Fiscal Year 2022-23 Water Operations Budget
for the purchase of supplemental Replacement Water. No general funds are necessary
for this purchase. Pre-purchasing Imported Replacement Water at the reduced rate will
save the City approximately $936,000.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is, therefore, exempt under the California Environmental Quality Act
(“CEQA”); and approve the purchase of 6,000 acre-feet of imported cyclic storage water
from the Main San Gabriel Basin Watermaster in the amount of $5,412,000.