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1 RiversideCA.gov
BUDGET TRANSFER OF $5,504,698 FOR SEVEN OAKS DAM ENHANCED RECHARGE PROJECTCity CouncilJanuary 23, 2024Riverside Public UtilitiesBACKGROUND1. The Seven Oaks Dam New Conservation projects (Initial and EnhancedRecharge Project (ER)) have received budget approval of approximately$18 million. Since 1994, Riverside has invested about $16.15 million in theseprojects.2. The ER project was divided into three phases due to the lengthy multi-yearenvironmental permitting process to allow participating agencies to startthe project and budget for each project phase.3. The ER project aims to increase the diversion and capture up to 500 cfs ( upto 80,000 AF in a single year) of stormwater by improving existing anddeveloping new recharge facilities that divert Santa Ana River flows fromthe Seven Oaks Dam. 1 2
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2 BACKGROUND CONT.
BACKGROUND CONT.4. Stormwater recharge supports Riverside's primary drinking water supply inthe Bunker Hill basin and aligns with the regional watermanagement strategies in the Upper Santa Ana River Watershed.5. On October 27, 2023, RPU Board approved the increasedcapital expenditure for WO # 1329385 in the amount of $4,344,625 withremaining costs of $5,504,698 pending approval as part of the biennialbudget process to pay for remaining costs of ER Phase 1B.6. The construction of the ER project 1B began in May 2023, with projectcompletion expected in 2026. However, the project contractor hasoutperformed their schedule and has advanced the project completiondate to January 2025. 3 4
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DISCUSSION1. Riverside's portion of the total costs of constructing the Seven Oaks DamInitial Conservation Project and ER project phases 1A and 1B areestimated at $23,513,694. A budget approval of $18 million has alreadybeen received.2. The remaining project cost of $5,504,698 to be covered under the recentlyapproved water rate plan and to be included in the fiscal years 2024/25 -2025/26 biennial budget process will not cover the expedited scheduledpayment before the Fiscal Year 2024/25.3. The accelerated project schedule requires payment of contractorinvoices faster than initially planned. 5 6
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4 DISCUSSION CONT.4. Approval of the budget transfer will ensure RPU’s continuous commitment to participate in all phases of the ER project and allow the payment of the project invoices on schedule.5. Phase 1C of the ER project and future projects to maximize storm water capture will be brought to the RPU Board and Council for consideration through the budgeting process. 6. The ER project will secure the additional water right entitlement estimated at 2,431 AFY and could start capturing and recharging some of this water as early as February 2025. Strategic Priority 4- Environmental StewardshipGoal 4.2 - Sustainably manage local water resources to maximize reliability and advance water reuse to ensure safe, reliable, and affordable water to our community.Strategic Priority 6 - Infrastructure, Mobility & ConnectivityGoal 6.3 -Identify and pursue new and unique funding opportunities to develop, operate, maintain, and renew infrastructure and programs that meet the community’s needs. Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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5 Recommend that the City Council authorize a budgettransfer in the amount of $5,504,698 from the PublicUtilities/Water Transmission Mains Account No. 6230100-470735 to the Seven Oaks Dam Account No. 6230000-470813.RECOMMENDATIONS9