Cyclic Water Purchase from the Main San Gabriel Basin Watermaster September 17, 2024
DATE: September 17, 2024
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE OF 3,322.16 ACRE-FEET OF IMPORTED CYCLIC
STORAGE WATER FROM THE MAIN SAN GABRIEL BASIN
WATERMASTER IN THE AMOUNT OF $3,342,092.96
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 for later use. The City has the opportunity to pre-purchase imported water that has been made available through the Upper San Gabriel Valley Municipal Water District (“Upper District”) for $1,006 an acre-foot. This rate is $100 an acre-foot less than Replacement Water that is typically purchased. Some, or all of this water, will be used to satisfy demands for Fiscal Year 2024-25, 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 $332,000 in water costs.
It is recommended that City Council approve the purchase of 3,322.16 acre-feet of Imported Replacement Water from the Main San Gabriel Basin Watermaster, in the amount of $3,342,092.96.
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 efficient management of the quantity and quality of the Main Basin.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster September 17, 2024
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 2024-25 was set at 160,000 acre-feet. The City’s annual share of the Operating Safe Yield is 4.23%, or 6,768 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 for 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 2024-25. However, to encourage water agencies to purchase available water from the State Water Project, the Watermaster is offering a reduced rate of $1,006 per acre-foot, if purchased before January 1, 2025. Pre- purchasing 3,322.16 acre-feet of additional imported supplemental water will save the City approximately $332,000.
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, 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.
FISCAL IMPACT
Sufficient funds have been budgeted in the Fiscal Year 2024-25 Water Operations Budget for the purchase of Imported Cyclic Storage Water. No General Funds are necessary for this purchase and pre-purchasing this water at the reduced rate will save the City approximately $332,000.
Cyclic Water Purchase from the Main San Gabriel Basin Watermaster September 17, 2024
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 3,322.16 acre-feet of Imported Cyclic Storage Water from the Main San Gabriel Basin Watermaster in the amount of $3,342,092.96.