REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Sean Crumby, Director of Public Works
PREPARED BY: Chris Davis, Senior Management Analyst
Subject:
title
Approve and authorize execution of Amendment #2 to the Limited Partial Basin Equity Assessment Exemption Agreement between the Orange County Water District (OCWD) and City of Huntington Beach (Huntington Beach Well No. 9)
body
Statement of Issue:
On October 4, 2017, the Orange County Water District (OCWD) Board approved an agreement to allow the City to obtain full cost recovery for the City's Well No. 9 Treatment Project. On November 5, 2018, Amendment #1 was approved to add an additional $720,000 to the original project cost. Amendment #2 extends the expiration date of the original agreement.
Financial Impact:
This Agreement facilitates savings to Water Fund 506 by allowing the City to pump groundwater at a lower cost than purchasing imported water. These savings are dependent upon the amount of water extracted from Well No. 9. Through the end of Calendar Year 2022, the City has saved $1,852,509 out of a total project cost of $4,320,000.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute "Amendment #2 to the Limited Term Partial Basin Equity Assessment Exemption Agreement between the Orange County Water District and City of Huntington Beach (Huntington Beach Well No. 9).
end
Alternative Action(s):
Do not approve Amendment #2 and direct staff accordingly. Failure to approve Amendment #2 will limit groundwater pumping up to the Basin Pumping Percentage (BPP) and will force the City to purchase import water for the remaining demand. Import water costs $1,209 per acre-foot compared to a Replenishment Assessment (RA) cost of $558 per acre-foot plus $95 in utility costs.
Analysis:
The City reduced water production from Well No. 9 in the 2010s due to the detection o...
Click here for full text