City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0359
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 05/04/2022
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Western Riverside County Regional Wastewater Authority Conveyance Capacity Transfer Agreement between the City of Corona and Western Municipal Water District.
EXECUTIVE SUMMARY:
The City of Corona and Western Municipal Water District are member agencies to the Western Riverside County Regional Wastewater Authority. The City owns 2.62 million gallons per day of capacity in the Western Riverside County Regional Wastewater Authority’s treatment plant and does not currently own capacity in the conveyance system. Western Municipal Water District owns excess capacity in the conveyance system and has agreed to sell 2.62 million gallons per day of excess capacity to the City. Staff is requesting approval of the agreement and an appropriation for the onetime purchase cost and the associated fixed and variable costs.
RECOMMENDED ACTION:
That the:
a. City Council approve the Western Riverside County Regional Wastewater Authority Conveyance Capacity Transfer Agreement between the City of Corona and Western Municipal Water District.
b. City Council authorize the City Manager, or his designee, to execute the Western Riverside County Regional Wastewater Authority Conveyance Capacity Transfer Agreement. c. City Council authorize the appropriation of $2,735,230.80 from the Water Reclamation Utility Fund 572 to the Utilities Department Operating Budget.
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File #: 22-0359
d. Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
BACKGROUND & HISTORY:
The City of Corona and Western Municipal Water District (Western) are both members of the Western Riverside County Regional Wastewater Authority (WRCRWA) Joint Powers Authority (JPA) that owns the WRCRWA treatment plant and conveyance system. The City owns 2.62 million gallons per day (MGD) of capacity in the 14 MGD treatment plant. The City does not currently own any capacity in the conveyance system that moves wastewater from the member agencies’ systems to the treatment plant. The conveyance system includes the South Regional Pump station (including pumps, motors, and control systems), a 30-inch force main from the South Regional Pump Station to the treatment plant and piping downstream of agency discharge meters. Western currently owns excess capacity in the conveyance system and the City would like to purchase some of this capacity from Western.
ANALYSIS:
Western has proposed to sell 2.62 MGD of conveyance capacity to the City for a one-time cost of $2,707,938 which considers the costs Western has contributed for the 2.62 MGD of capacity since Western’s acquisition of the capacity. Western provided a full accounting of how this price was calculated based on their historical cost of owning this conveyance. This capacity from Western is the only current available capacity in the conveyance system to purchase from WRCRWA.
In addition to the one-time cost, the City will assume the ongoing fixed and variable charges for conveyance to the treatment plant. The Western Board of Directors approved the agreement at the April 6, 2022 Board Meeting. The City’s capacity in the WRCRWA Treatment Plant is an important piece in the City’s wastewater treatment portfolio particularly as the City works toward decommissioning Water Reclamation Facility No. 3 in Dos Lagos. This purchase allows the City to continue sending flow to the WRCRWA Treatment Plant.
Staff is recommending approval of the WRCRWA Conveyance Capacity Transfer Agreement with an effective date of April 1, 2022. For operational flexibility to manage solids at Water Reclamation Facility No. 1, the City has been sending 0.75 MGD of wastewater flows to WRCRWA since February 8, 2022.
FINANCIAL IMPACT:
Staff is requesting an appropriation of $2,735,230.80 from the Water Reclamation Utility Fund 572 to the Utilities Department Operating Budget. This covers the one-time cost, and fixed and variable costs per month for the remainder of Fiscal Year 2022 based on estimated flows to the treatment plant.
Description Unit Price Total Price
Purchase Price $2,707,938 $2,707,938
Fixed Costs $2,605/MGD/Month for 2.62 MGD for 3 Months $20,475.30 Variable Costs $101/MGD for 0.75 MGD for 90 days $6,817.50 City of Corona Total Page 2 of 3 $2,735,230.80 Printed on 4/27/2022 powered by Legistar™
File #: 22-0359
Description Unit Price Total Price
Purchase Price $2,707,938 $2,707,938
Fixed Costs $2,605/MGD/Month for 2.62 MGD for 3 Months $20,475.30 Variable Costs $101/MGD for 0.75 MGD for 90 days $6,817.50 Total $2,735,230.80
Fund 07/01/21 Est.
Working Capital
Budgeted
Revenues/
Sources
Budgeted
Expenditures/
Uses
Working
Capital
Impacts
06/30/22 Est.
Working Capital
Water
Reclamation
Utility Fund 572
$38,460,751 $32,893,509 ($44,578,123) Appropriation
($2,735,231)
$24,040,906
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination is exempt from CEQA. This action merely approves a transfer agreement for wastewater conveyance capacity. Therefore, no environmental review is required.
PREPARED BY: KATIE HOCKETT, ASSISTANT DIRECTOR OF UTILITIES REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - WRCRWA Conveyance Capacity Transfer Agreement City of Corona Page 3 of 3 Printed on 4/27/2022
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