HomeMy WebLinkAboutItem 09m - Purchase of Cyclic Storage Water
STAFF REPORT
PUBLIC WORKS SERVICES DEPARTMENT
DATE: October 6, 2026
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Assistant City Manager/Public Works Services Director
By: John Corona, Utilities Manager
SUBJECT: PURCHASE 2,469.99 ACRE-FEET OF IMPORTED CYCLIC STORAGE WATER
FROM THE MAIN SAN GABRIEL BASIN WATERMASTER IN THE AMOUNT
OF $2,684,879.13
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The City of Arcadia obtains a significant portion of its drinking water supply from the
Main San Gabriel Groundwater Basin (“Main Basin”). The remaining water demand is
met through City-owned wells that pump a fixed quantity of groundwater from the
Raymond Basin. Arcadia maintains a Cyclic Storage Account with the Main Basin,
which allows the City to store supplemental Replacement Water for future use.
The City has an opportunity to pre-purchase imported water made available through
the Upper San Gabriel Valley Municipal Water District (“Upper Water”), at a cost of
$1,087 per acre-foot. This rate is $100 per acre-foot less than the typical cost of
Replacement Water. The purchased water will be used to meet the City’s water
demands during Fiscal Year 2026-27, with any unused water remaining in storage for
future use. By securing water at the lower pre-purchase rate, the City and its
customers are expected to realize savings of approximately $246,999 in water costs.
It is recommended that the City Council approve the purchase of 2,469.99 acre-feet
of Imported Cyclic Storage Water from the Main San Gabriel Basin Watermaster, in
the amount of $2,684,879.13.
Authorize Purchase of Cyclic Storage Water
October 6, 2026
Page 2 of 3
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 Judgment established water rights and responsibilities
for the efficient management of the quantity and quality of the Main Basin.
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 was set at 160,000 acre-feet. The City
of Arcadia’s annual share of the Operating Safe Yield is 4.23%, or 6,769.68 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.
DISCUSSION
The Main San Gabriel Basin Watermaster has established the Replacement Water
rate at $1,187 an acre-foot for Fiscal Year 2026-27. To encourage water agencies to
purchase available water from the State Water Project, a reduced rate of $1,087 per
acre-foot is being offered for purchases made prior to January 1, 2027. By pre-
purchasing 2,469.99 acre-feet of additional imported supplemental water at the
reduced rate, the City will save approximately $246,999 compared to purchasing
Replacement Water at the standard Fiscal Year 2026-27 rate.
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, which helps maintain higher groundwater levels than would
otherwise be achieved through the purchase of Replacement Water. Second, the
water is secured at a lower purchase price and may be credited to the City’s Cyclic
Storage account for up to five years, providing additional flexibility in managing
future water demands.
Authorize Purchase of Cyclic Storage Water
October 6, 2026
Page 3 of 3
Because the cost of Replacement Water is expected to increase annually, pre-
purchasing the imported supplemental water at the current reduced rate will provide
increasing cost savings 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.
FISCAL IMPACT
Sufficient funds have been budgeted in the Fiscal Year 2026-27 Water Operations
Budget for the purchase of Imported Cyclic Storage Water. No General Funds are
required for this purchase and pre-purchasing this water at the reduced rate will save
the City approximately $246,999.
RECOMMENDATION
It is recommended that the City Council determine that this action does not
constitute a project under the California Environmental Quality Act (“CEQA”); and
approve the purchase of 2,469.99 acre-feet of Imported Cyclic Storage Water from
the Main San Gabriel Basin Watermaster in the amount of $2,684,879.13.