HomeMy WebLinkAboutItem 10i - Purchase of Cyclic Storage WaterCyclic Water Purchase from the Main San Gabriel Basin Watermaster
October 17, 2023
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DATE: October 17, 2023
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE OF 3,203 ACRE-FEET OF IMPORTED CYCLIC STORAGE
WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER IN
THE AMOUNT OF $3,068,474
CEQA: Not a Project
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 of
Arcadia has a Cyclic Storage account with the Main Basin that can be used to store
supplemental Replacement Water 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 $958 an acre-foot. This rate is $148 an acre-
foot less than Replacement Water that is regularly purchased. Some, or all of this water
will be used to satisfy demands for Fiscal Year 2023-24, 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 $474,044 in water costs.
It is recommended that the City Council approve the purchase of 3,203 acre-feet of
Imported Replacement Water from the Main San Gabriel Basin Watermaster in the
amount of $3,068,474.
BACKGROUND
In 1973, an overproduction of water from the Main Basin resulted in a stipulated judgment
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.
This Judgement established water rights and responsibilities for the efficient management
of the quantity and quality of water in the Main Basin.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster
October 17, 2023
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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 2023-24 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. For context, one
acre-foot is approximately the size of an entire football field buried in one foot of water.
Although Governor Newsom eased drought restrictions through Executive Order N-5-23
on March 24, 2023, 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 placed a greater demand on water pumped from the Main Basin.
DISCUSSION
The Main San Gabriel Basin Watermaster has set the cost for replacement water at
$1,106 an acre-foot for Fiscal Year 2023-24. However, to encourage water agencies to
purchase available water from the State Water Project, the Watermaster is offering a
reduced rate of $958 per acre-foot, if purchased before January 1, 2024. Pre-purchasing
3,203 acre-feet of imported supplemental water will save the City approximately
$474,044.
The advantage 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, 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
credited toward the City’s 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.
FISCAL IMPACT
Sufficient funds have been budgeted in Fiscal Year 2023-24 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 $474,044.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster
October 17, 2023
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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 3,203 acre-feet of imported cyclic storage water
from the Main San Gabriel Basin Watermaster in the amount of $3,068,474.