REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Kristen Schroeder, Water Quality Supervisor
Subject:
title
Approve and authorize the execution of a Cooperative Agreement with the Mesa Water District in the amount of $75,000 for a Feasibility Study for an Interagency Water Transfer
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Statement of Issue:
The City operates nine wells, six of which are about 50 years old and nearing the end of their useful life. In the event of a complete well failure, the City would need to purchase imported water to replace the lost groundwater production, which could cost approximately $7 million over three years. To mitigate the potential cost impact of a well failure, staff has approached the Mesa Water District (Mesa Water) to explore the possibility of an interagency water transfer. Approval of this Cooperative Agreement will allow staff to work with Mesa Water District to conduct a Feasibility Study for Interagency Water Transfer.
Financial Impact:
Funding in the amount of $75,000 is included in the approved Fiscal Year 2024/25 budget in Water Fund Account 50685801.69365.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute the Cooperative Agreement with the Mesa Water District in the amount of $75,000 for a Feasibility Study for an Interagency Water Transfer.
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
Our current water supply is composed of approximately 85% groundwater and 15% imported water. The cost to pump groundwater is $688 per acre-foot, which is roughly half the cost of imported water at $1,256 per acre-foot. The City operates nine wells, six of which are about 50 years old and nearing the end of their useful life. In the event of a complete well failure, the City would need to purchase imported water to replace the lost groundwater production. Staff estimates that this could cost an additional $2.3 million per year for three years, totaling approximately $7 million.
To mitigate the potential cost impact of a well failure, staff has approached the Mesa Water District (Mesa Water) to explore the possibility of an interagency water transfer. An interagency water transfer involves transferring water from one agency to another, helping address water supply imbalances, improve infrastructure efficiency, and respond to emergencies such as drought conditions. If we experience a well failure, an interagency water transfer agreement with Mesa Water could allow us to access our groundwater allocations through their infrastructure, avoiding the need to purchase more expensive imported water and potentially saving the City millions in water purchase costs.
In their 2014 Master Plan, Mesa Water’s Board of Directors adopted a policy to maintain local water supply reliability at least 115% of water demand. This provides the potential to serve water to the City of Huntington Beach while still meeting their customers' needs. In March 2024, Mesa Water completed the construction of two new wells, each pumping approximately 4,000 gallons per minute, adding more than 50% to their community’s water supply. For Mesa Water, the partnership would allow them to fully utilize their new wells and generate revenue from their infrastructure investments.
Interagency water transfer agreements are complex and require thorough investigation. Key aspects include legal agreements, regulatory and environmental approvals, and financial considerations. Therefore, a feasibility study is highly recommended before proceeding with an interagency water transfer agreement. The estimated cost of this study is $150,000.
On March 19, 2024, the Mesa Water District Board of Directors approved funding of up to 50% of the $150,000 cost for the feasibility study. Upon completion of the study, staff will present the findings and recommendations for next steps to the City Council.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy D - Undertake major planning efforts including Fleet Capital Replacement Plan, Mobility Master Plan and Infrastructure Report Card to adequately anticipate and prepare for future infrastructure needs.
Attachment(s):
1. Cooperative Agreement
2. PowerPoint Presentation