CITY OF POMONA
COUNCIL REPORT
September 9, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Chris Diggs, Water Resources Director
SUBJECT: APPROVE AN AGREEMENT FOR PURCHASE OF RECYCLED WATER WITH LOS ANGELES COUNTY SANITATION DISTRICT RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve an Agreement for Purchase and Sale of Recycled Water between County Sanitation District No. 2 of Los Angeles County and City of Pomona (Agreement) to renew and continue the purchase of recycled water for a term of 25 year; and, Authorize the City Manager to execute the Agreement (Attachment No.1) with the Los Angeles County Sanitation District for purchase of recycled water and any subsequent amendments contingent on City Attorneys review.
EXECUTIVE SUMMARY:
Staff is seeking City Council approval to renew a new Agreement with Los Angeles County Sanitation District No. 2 of Los Angeles County (District) for the sale of recycled water (Attachment No. 1) for a 25-year term. This Agreement will be used for the recycled water program implementation, project execution, operations, maintenance, and administration of recycled water use.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made: 1) by any person or entity who is identified in the agenda report as the applicant or proposer; or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity; or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The Agreement defines the “Annual Reconciliation Invoice” which determines the compilation of all costs for recycled water purchased from the Pomona Water Reclamation Plant (Plant). The cost of purchasing recycled water varies each year depending on how much recycled water is available, how much the City purchased, and the actual cost to produce the recycled water were during the year. On average cost has ranged from $200,000 to $360,000 per fiscal year. For FY 2022-2023 the actual cost of recycled water was $358,230, utilizing the Water Recycled Fund account number 574-8140-53641-00000. The bill to the City is calculated by the District after the recycled water has been delivered each fiscal year. As such, staff will continue to estimate a budget amount based on historical and projected usage using the new agreement cost modeling methodology. It is anticipated that the sales of recycled water to customers will be provide sufficient revenue to cover all operational expenses.
PREVIOUS RELATED ACTION:
The agreement for the use and sale of recycled water has been in place since 1966 (District’s Contract No. 1691). The original agreement was amended in 1973 (District’s Control No. 1691A), 1974 (District’s Control No. 1691B), and updated and superseded in 1991 (District’s Control No. 3142). More recently the Parties previously entered into the Agreement for the Purchase and Sale of Reclaimed Water and Related Facilities dated April 14, 2004 (District’s Contract No. 4025) (“2004 Contract”) and its amendment First Amendment to Agreement for Purchase and Sale of Reclaimed Water and Related Facilities, City of Pomona dated July 26, 2023 (District’s Contract No. 4025A).
DISCUSSION:
The Agreement is dated July 24, 2024 and expires on July 23, 2049. This contract replaces the 2004 contract and amendment. The Agreement defines the terms through which the City receives and pays for recycled water. Additionally, the Agreement delineates the City’s recycled water infrastructure at the Plant including City owned and maintained pumps, telemetry, pipeline, and appurtenances. The Plant is located at 295 Humane Way, Pomona, CA 91766 is the source facility for all recycled water to the City. Within the Agreement the City will receive an annual amount not exceed ten million gallons per day (MGD). However, this amount is not an amount the Plant is currently capable of producing, and therefor provision for recycled water within this Agreement specify the City shall receive no more than 2/3 of the recycled water produced, less recycled water first sent to the Spadra landfill.
Prepared by:
Nichole Horton
Principal Water Engineer
ATTACHMENT:
Attachment No. 1 – Agreement for Purchase and Sale of Recycled Water between County Sanitation District No. 2 of Los Angeles County and City of Pomona Agreement with Los Angeles County Sanitation District No. 2