TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Jim Arndt, Public Works Director
Raul Saenz, Utilities Manager
SUBJECT: Title
Three-Year Lease Agreement of Groundwater Rights from Chevron U.S.A. Inc.
APPROVE
Body
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RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to execute a three year agreement with Chevron U.S.A, Inc. to lease 950 acre feet of water for each of the Water Years 2012/2013, 2013/2014 and 2014/2015.
FISCAL IMPLICATIONS:
The first year’s cost to the City will be $107 per acre foot, plus a proportional share of Chevron’s annual Water Master Service fee budget, amounting to approximately $3 per acre foot of leased water. The total combined cost of the first year’s lease agreement is $104,500. The subsequent two year’s increase will be adjusted according to the United States Department of Labor Bureau of Economic Statistics Consumer Price Index (CPI).
BACKGROUND:
The City's water system currently consists of four pump stations, two storage reservoirs, one elevated storage tank, two water supply wells and approximately 112 miles of water distribution pipelines. There are currently three available water supply sources: (1) Metropolitan Water District-treated surface water provided by the West Basin Municipal Water District; (2) groundwater provided by a City-owned and operated well, and (3) reclaimed water supplied for landscaping irrigation from West Basin MWD. The City obtains approximately 80 percent of its water supply from MWD surface water, 17 percent from groundwater, and three percent from recycled water. These three water sources have been, and continue to be, adequate to meet the total water demands of the City.
Staff has taken action to offset the cost of water by purchasing available groundwater rights leases within the West Coast Basin (WCB) in lieu of more costly Metropolitan ...
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