HomeMy WebLinkAboutItem d - Authorize Purchase of Cyclic Storage WaterPurchase of Additional Cyclic Water from the Main San Gabriel Basin Watermaster
November 29, 2022
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DATE: November 29, 2022
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE 875 ACRE-FEET OF ADDITIONAL IMPORTED CYCLIC
STORAGE WATER FROM THE MAIN SAN GABRIEL BASIN
WATERMASTER FOR A TOTAL COST OF $789,250
CEQA: Not a Project
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 can purchase additional
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 additional water will be
used to satisfy demands for Fiscal Year 2022-23, with any remaining water stored and
used later. By pre-purchasing at a lower rate, the City and its customers will save at least
$136,500 in water costs.
Due to the prolonged drought and the uncertainty of imported Cyclic Storage water being
available for purchase next fiscal year, it is recommended that City Council approve the
purchase of 875 acre-feet of additional Imported Cyclic Storage Water from the Main San
Gabriel Basin Watermaster for a total cost of $789,250.
BACKGROUND
Due to an overproduction of water from the Main Basin in 1973, 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 of Additional Cyclic Water from the Main San Gabriel Basin Watermaster
November 29, 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, which 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 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, any extra
pumping requires the purchase of Replacement Water to recharge the groundwater
basin.
On July 8, 2021, Governor Newsom declared a drought emergency in 50 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 San Gabriel Basin Key Well currently just 10 feet above the historic
low level. Consequently, pumping rights in the Raymond Basin remain at reduced levels,
which has put a greater demand for replacement water.
On August 16, 2022, the City Council approved a 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. Due to the prolonged drought and the uncertainty of imported Cyclic Storage
water available for purchase next fiscal year, the City has inquired about the potential of
purchasing 875 additional acre-feet of Imported Cyclic Water. City staff confirmed the
availability of purchasing an additional 875 acre-feet to place in our Cyclic Storage Water
account for future use. This additional water will act as a reserve for the City water supply
should drought conditions continue to affect the San Gabriel Valley. This additional water
will remain in the City’s Cyclic Storage account for up to 5 years and may be applied to
any overproduction, should the need arise.
DISCUSSION
The Main San Gabriel Basin Watermaster has set the cost for replacement water at
$1,058 an acre-foot for Fiscal Year 2022-23. However, 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 875 acre-feet
of additional imported supplemental water will save the City approximately $136,500. With
Replacement Water costs increasing annually, the savings will grow over time. All
remaining Cyclic Storage Water unused for Fiscal Year 2022-23 will remain in the City’s
Cyclic Storage account for up to 5 years for use at any future time.
ENVIRONMENTAL ANALYSIS
The purchase of Imported Cyclic Storage Water from the Main San Gabriel Basin
Watermaster is not considered a project as defined by California Environmental Quality
Act (“CEQA”) Section 15378.
Purchase of Additional Cyclic Water from the Main San Gabriel Basin Watermaster
November 29, 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 Cyclic Storage Water. No general funds are necessary
for this purchase. Pre-purchasing Imported Cyclic Storage Water at the reduced rate will
save the City approximately $136,500.
RECOMMENDATION
It is recommended that the City Council approve the purchase of 875 acre-feet of
Imported Cyclic Storage Water from the Main San Gabriel Basin Watermaster in the
amount of $789,250.