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HomeMy WebLinkAbout2010-01-26 - YLWD-MWDOC-OCWD Ad Hoc Committee Meeting Agenda Packet Yrba Linda Water District AGENDA YORBA LINDA WATER DISTRICT MWDOC AND OCWD AD HOC COMMITTEE MEETING Tuesday, January 26, 2010, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 YLWD COMMITTEE MEMBERS YLWD STAFF Director William R. Mills, Chair Ken Vecchiarelli, General Manager Director Michael J. Beverage Pat Grady, Asst General Manager MWDOC COMMITTEE MEMBER MWDOC STAFF Director Brett Barbre Kevin Hunt, General Manager OCWD COMMITTEE MEMBER OCWD STAFF Director Roger Yoh Mike Markus, General Manager 1. PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 2. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 2.1. OCWD Annexation 2.2. Discussions with 6 South County Agencies 2.3. Water Supply Situation 2.4. Upcoming MET Rate Discussions 2.5. Future Agenda Items and Staff Tasks 3. ADJOURNMENT 3.1. The next regular meeting of the YLWD/MWDOC/OCWD Ad Hoc Committee will be held March 23, 2010 at 4:00 p.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 2.1 AGENDA REPORT Meeting Date: January 26, 2010 Subject: OCWD Annexation ATTACHMENTS: Name: Description: Type: Correspondence. pdf Correspondence Backup Material ~--ity of Anaheim a~ PUBLIC UTILITIES DEPARTMENT i ~ I.lnai.lfl 1~, 'tilfl 9 - r- 11r \11"1t.lcl \I'Atr, c'feneraal Manager ( )ramie Gomm Wafer i)istnc-t I`f! l;~t `~+1f1 7. ,t Mr. Markus. 1r he rc'tltnsl uf'thc Orange Cuunt% titer Disi net (CV\%'Di. please accept this letter as the c ',is t►f Anaheim's ( Anaheim) ft)rrttat) request tea restart the a nnexatim process to add ,i'iv,txinlaatel% 2.355 acres in the eastern ptor wn A Anaheim intc► the oCWD. A map depicting 0C.111twl of the prtipt►sed anneuttitin area is enclosed Im Ntlur reference 1l:xhihit Ai I 'Ilt)3, Anaheim requesic(l Thad (X'%%1) mili ale annevatton t►f this area intl.) U('VaT)'s semice i ritttry A copy t tf the ( k-wix r 16. 2111113 letter is attached hereto as F xhihit B lnaheirn has ne►er pre►eided tatter service w the 2.355 acre, Htme%er, when dereltipment +tgins ill the future in the anne\attlttn area. that area Hill t►htain waler set\ice Imm an exteilsit►n 1I' Anahe inn's Witter syktein Appromri : icly 850acres tot the itolatl 2.355 acre annexation area A III require %%ater serr ice. Nil the rernatining acreage is designated as open space prest.r%c. The tnnc\a1wit area is pri~lected Ill, hacc• as totail Mama to \ater demand ttf 2.470wie-feet per year \naheuti plans it, t1wo this prolec ted ultimate deniand by incicasing the lt►aad factors ti e , run i nice ton tun extsitng girt►undu.atei pr(Kltctitgt "ells at Anahctin Lake and replacing twt)old diallovc wells at Anahciin Lake ccith tone new high-capac•itti deep atyuifff prtiductit.rn well 1i is Anaheim',, understanding than it %%ill errntltulls enter int(, ai \lenx►randulu 4 I nderstanding i\1()1 1 and an Annexataon Agreenxnt acs pan Of the anne\ation pRx:etis The \1()t N ill Idienii!) c°ac h agent y's rrslxin.ibihties related it) the Caalifiorrlia 1°:ris irtorti1t,enial ii o I(TQA i, ctimpliance chile the Annc•vown Aereeanrnt will define the terror and onduuom A annevown Please prepare a draft h1(?l' for Analieiin's ct)nsideration to restart ;Ale annexation prltkesx lot 1he :.355 .tares in cast Anaheim. I'leaase conlart [Non Catlkiw., 1 ssislatnt General Managcr Water Serttt:t°s, at 171.11 7fi5-4268. it "►u require am .iddiu mal inttirni:atitm it) restart the annexation process '~incefl'11 t r `Eire ie 1.. Fbl.-- aids I'riblic Utilities General \lanail n C Al ins 'shiniAli EAST ANAHEIM ANNEXATION TO ORANGE COUNTY WATER DISTRICT APPROXIMATE ANNEXATION AREA = 2,355 AC. RN~81pt 4'`.~ ~J i I i r' i w ~ j t• t t• r ~ t ~ LEGEND CETY umrr AREA 7,0 BE AksEXEO NORTH M7 SF I 1 ASST GEi4 MGR - sPta Phiw7R5EfitrtCfs CITY OF ANAREV CALIFORNIA ELM p(f Public Ut•il Departmw$t q [M October 15, 2003 WF FILE Ms. Virginia Gsebbie n General Manages OMnge CcAmty Water District P.O. Box 8300 Fountain Valley, California 9?7?.8.8300 Subject: Request to Initiate Annexatinu lxw Mss. ~&A As authorized by the AnaheLm Catty Council ai itS Ocru:a 14, 1t}(13 anectuag, we: arre rcquc~*,ing to initiate the annexation proms to add approxim*tecly 2,355 acres in the eastern portion a, ArAhesm into the Oituige Cousity Water District (OCWD). We unclentand ftiz th u prrxc-:,, will be conduced conmrr+ently with yow Docent strategic planning proms Up to the present time, the City of Anaheim (City) has not provided water zic--v ;er to th s atffa However, when duvelopr t begins in the tem fumm, the area will obtain water serv L.c tic;. an extension of the City's wateTByStam A map dep:ving the location of ~he prmpoosr-' ara=atiou any is eniclosed for referem-e It is our understanding that the City %"il . vrrltua>1. €-ti :(s :°:,c :r't. s `~1rY:cuanr! ,n cr Undershn6ng (MOU) sand an Atui mason Agreement as a par: of the annexation procezs. MOU will id=tify each agency's respotuibilitiea related to California Fasvimngnen,41 Qu.,L" Act (CEQA) covViianoo whsle the Aramation Agreement will define (,e of anncxation, including ctrl annual anaexation ch"ge awxmed by OCR 1, Plcase contact Mr. George Mania, W&W Eugirecring Manager, at f71= • c~: ruquir+e any additional information to commence the anrtc tAtion Sincerely, `LM&rcie L. &1wao,-A Public U-flitit, .senor:.~ ry ITEM NO. 2.3 AGENDA REPORT Meeting Date: January 26, 2010 Subject: Water Supply Situation ATTACHMENTS: Name: Description: Type: MWDOC BPP.pdf Backup Material Backup Material • AGENDA ITEM SUBMITTAL Meeting Date: January 20, 2010 Budgeted: NIA Budgeted Amount: NIA To: Board of Directors Funding Source: NIA Cost Estimate: NIA Program/Line Item No: NIA From: Mike Markus General Counsel Approval: NIA Engineers/Feasibility Report: NIA Staff Contact: J. Kennedy CEQA Compliance: NIA Subject: BASIN PRODUCTION PERCENTAGE AND REPLENISHMENT ASSESSMENT ESTIMATES FOR FISCAL YEAR 2010-11 SUMMARY District staff annually provides an estimate of the Basin Production Percentage (BPP) and the Replenishment Assessment (RA) for the following fiscal year to assist the groundwater producers (Producers) in the preparation of their annual budgets Per the District Act the RA and BPP must be set by the Board in the month of April. Policy issues need to be decided by the District over the next few months which will have an . impact on the setting of the FY 2010-11 RA and BPP. Additionally the type of winter the area experiences with respect to precipitation will impact the BPP setting. At this time staff recommends providing the following ranges for next years RA and BPP. Scenario _ Current Estimated FY 2010-11 Replenishment Assessment $249/af $249/af to $266/af Basin Production Percentage 62% 62% to 57% RECOMMENDATION Provide the FY 2010-11 Replenishment Assessment and Basin Production Percentage estimates to the Groundwater Producers along with any additional Board comments. BACKGROUND/ANALYSIS Basin Production Percentage BPP Protection The groundwater basin's accumulated overdraft, under average hydrological conditions and with the current 62% BPP, is expected to increase from 347,000 acre-feet to around 365,000 acre-feet by June 30, 2010 as shown on Figure 1. This increase to the accumulated overdraft is primarily due to the extraction of the remaining 423,000 acre-feet of water from the Metropolitan Water District (MWD) storage account. The accumulated overdraft estimate also accounts for reduced Santa Ana River base flows and reduced total 1 water demands due to conservation efforts, which reduces expected basin pumping at the current 62% BPP Figure 1 Groundwater Basin Accumulated Overdraft 0 -100 a ° -200 X -300 co \-NJ i5 -400 0 -500 6!30110 -600 Projection E -700 a -800 g~so(;b~~Og~°rL~~~~O~~.~O1Ag~gt0~~~D os~~ Ogg`Z.gp~DOp~~o~q~Qb~40G~OS J5 F Several factors need to be considered and will impact the setting of next years BPP. They include- Continuation of the MWD imported water allocation? Amount of precipitation that occurs this winter. - Budgeting to purchase additional amounts of MWD untreated full service water to recharge the basin to support a higher BPP The District may have an opportunity to purchase additional amounts of MWD untreated full service water during the current fiscal year in May and June. -4 Seawater intrusion concerns in the Bolsa, Sunset and Alamitos Gaps Expected source waters to recharge the groundwater basin are shown on the following Table 1 Assuming average hydrological conditions for FY2010-11 and a continued 62 percent BPP, the groundwater basin's accumulated overdraft would range from remaining about the same to experience a minor decrease of around 5,000 acre-feet However if relatively dry conditions continue this winter and the accumulated overdraft becomes significantly greater than the 365,000 acre-foot projection, the District may want to lower the BPP by about 5% down to 57%. This would reduce expected groundwater pumping by approximately 22,000 acre-feet and help ensure no further increase to the accumulate overdraft would occur except under very dry conditions. Staff recommends that a range of 62% to 57% be established at this time for the FY2010-11 BPP 40 2 Table 1 Expected FY10-11 Groundwater Basin Recharge Supplies (Average Hydrology) Source Amount (af Captured Santa Ana River Base Flows 110,000 Captured Santa Ana River Storm Flows 50,000 Natural Incidental Recharge 60,000 MWD untreated full service water 10,500 GWR System 68,000 Alamitos Barrier 2,000 Arlington Desalter 1,000 Total 301,500 Estimated Groundwater Basin Pumping at 62% BPP. Total water demands = 455,000 afy Minus Title 22 reclaimed supplies = 15,000 afy Net total water demands = 440,000 afy 62% x 440,000 = 273,000 afy of basin pumping Add - 23,000 afy of pumping above BPP for water quality projects Total expected pumping at 62% BPP = 296,000 afy For reference the Historical BPP for the past ten years is shown below. Figure 2 Historical Basin Production Percentage 90% - - - - - 80% 70% 60% - - 50% - 40% - 2 30% 64 4° 9° 9° 20%- 20% - - 10% 0% E6E 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 S Fiscal year ending 3 Replenishment Assessment (RA) Projection The RA is determined by taking total expected operating costs which primarily consist of the general fund, debt service, water purchases and the Refurbishment & Replacement transfer, subtracting non-RA operating revenues, and dividing this net amount by expected groundwater basin pumping. The District's departments are beginning the preparation of their budgets which will be presented to the Board on March 3, 2010 At this time, the major expected changes to the FY 2010-11 operating costs appear to be the following: (1) Recent MWD water supply cost increases are causing increases to the water budget of approximately $3 0 million; (2) Annual debt service will be higher due to the Miraloma (Lasso) Property purchase using the Commercial Paper Debt Program. Additionally the District refinanced $119 7 million of variable rate debt with higher cost fixed rate debt These two changes are creating $4 7 million in additional expenses, (3) Due to ©CSD night time wastewater availability issues, the GWR System is only able to create about 65,000 to 58,000 acre-feet per year of new water supplies. For FY2009-10, the chemical and power expenses necessary to create 72,000 acre-feet per year were budgeted. For FY2010-11 these expenses can be slightly reduced Additionally, after operating the GWR system for two years, staff expects to be less conservative with the budget Budget savings in the area of $2 5 million may occur The net additional cost of these three items is $5.2 million ($3.0 + $4.7 - $2.5). This amount divided by 300,000 acre-feet per year of groundwater basin pumping a 62% BPP) would create the need to increase the RA by about $17/acre-feet to $266/acre-feet. Admittedly other issues could impact the setting of the RA. If the BPP is eventually set at a percentage other than 62%, the RA would be impacted. Additionally the District needs to determine if it will continue the policy of budgeting for 20,000 afy of MWD replenishment water purchases given that this water continues to not be available The District could also decide to purchase additional amounts of MWD untreated full service water which is generally available to raise the BPP. These issues will need to be addressed over the next few months. At this time staff recommends providing a range from $249Jaf to $266faf for the FY10-11 RA It would be staff's goal to minimize any RA increase Although the District's revenue base and financial health is strong, many other public agencies are being forced to make very difficult decisions and reduce services due to declining revenues from the economic recession. This generally poor economic climate and the plight of other member agencies . will be factored into the draft budget staff will present to the Board on March 3, 2010. 4 Basin Equity Assessment (BEA For FY09-10 the District set the BPP at 62%. Any pumping above 62% pays the Basin Equity Assessment (BEA) which averages $496/acre-foot. Additionally the District set a Production Limitation of 64%. Any pumping above this amount pays an additional surcharge of $2,400/acre-foot. This system provides flexibility for the Groundwater Producers to pump slightly above the 62% BPP if necessary (and pay the BEA) depending upon possible penalties they could incur by exceeding their MWD/MWDOC imported water allocation. This same type of system would be recommended for FY10-11 if MWD continues with their imported water allocation plan. Figure 3 FY09-10 BPP and Production Limitation Recommendation a 100% c E 90% i O 80% 70% ❑ Pay RA, $496/af BEA and 1547o rodUctic}n Lim a ion $2,400/af sucharge 60% 50% 62%. BPP 0 ■ Pay RA and $496/af BEA V) 40% 30% ■ Pay RA 0 20%- a 10% 0% D 5