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Home My WebLink AboutAgenda Report - December 20, 2006 K-01-WO@A A101 LI 1�. IRS mv,�q'Pa'441 IF AGNL TME: Adkap �� the Timid and lit Utifzaf►n of the Sutfa : from Ifft 0u ll r Iia Ila c�a Allot and Maine S� of i ropvsale for Teohnicai Studies cad Imple ' nig this OpBon or Direct ftff in the Alternative MEETOO GATIE. Decenoer 20, 206 PREPANEDBY Public Norks 1XrecWr RECOROEMM AC'T'ION: Adopt a resolution initiating direct use of the Woodbridge Irrigation District (WID) annual 6,000 acre-feet contractual allotment by authorizing the solicitation of proposals for technical studies as described below or direct staff in the alternative. BACKGOKNOD ORMATOON: On several past occasions, the City Council has received information regarding the usage of the City's contracted 6,000 acre-feet per yesr of Mokelumne River water from WID. At the JL*e 21, 2006 meetingi Council deferred making a decision whether to proceed with technical studies lading toward impler4entation of a surface water treatment facility and, instead, directed staff to investig possible financing Otematives. At the shirtsleeve meeting of November 14, 2006, Council received; information regardinS a financial model to create a community facility district to finance the required *ater infrastructure. The model showed that the debt service (principal and interest) could reasonaNy be assigned to neer development projects and that current rate payers could be insulated from rate increases associated with construction of surface water treatment facilities. u The reaWs behind the staff r0commendation for direct use of the WID water are many. Briefly, they are: • DiVersification of Super — Use of multiple supply sources is the preferred model for urban water providers. In particular, conjunctive use of surface water and groundwater is a key element in the California Water Plan. Key to this strategy is using surface water when it is available (in -lieu recharge) and using groundwater in dry years. This strategy is being embraced by many Central Valley cities. • S stainable Use — Thet groundwater basin in which Lodi draws its water is being overused to the point the area is seeiro water quality being adversely affected. This is not a sustainable practice. The United States Gedogical Survey has issued a report on groundwater use in the Western Sates that states: "Pr(udent management would give serious consideration to strategies that rely om surface water and gold groundwater in reserve." • Irrovement in Wastewater Quality — Mokelumne River water is substantially lower in total dissolved solids (TDS)'than our groundwater. Using this source will reduce the TDS of our APPROVED: J:\WaWClmpomentSurfaceWaterProgram_ 11ID6. doc Z:�;� Blair King, Manager 12/14/2006 Adopt F%soilation Impliementiog the Treatment and Direct Utilization of the Surface Water Supply from the Woodbridge Irrigation District Contractual Allotment and Authorizing Solicitation of Proposals for Technical Studies of Implementing this Option or Direct Staff in the Alternative Decemb*r 20, 2006 Page 2 wliastewaier by 14% tO 28% depending on a variety of fackws. Since our ellflueilnt is very near the crrlyt goal for Delta #ischargeets, a reduction could help forestall more expensive treatment. • Recommendations from Others — Staff routinely meets with other water providers in the area and h6s sought out their p inions on this question. A large majority of those opinions recommend sect use. We have roceived formal support for direct use from WID and North San Joaquin Water Conservation District Boards. • 40gai Support — Whileilegally either option can be done, staff sought the legal opinion of an evert in water rights. 'Dan O'Hanlon, of Kronick, Moscovitz, Tiedeman & Gerard has been assisting the City in the PCE/TCE issue and other matters. He is also legal counsel for a number of water districts outs* San Joaquin County. The City Attorney has provided the Council a confidential memo on the subject. The Summary of Conclusions states: "You have askOd me to review the potential legal implications of alternative approaches to use of the surface water supply that the City of Lodi has acquired through a contract with Woodbridge Irrigation District. The City is considering two basic options: (1) use the surface supply to recharge the groundwater aquifer, and continue to rely on groundwater as its sole source of supply; or (2) treat and use the surface supply directly, and thereby reduce its use of groundwater. In our view, the second caption, treating and directly using the surface supply, offers the most protection for the City's rights to its water supply. Likewise, we believe that treating and directly usilMg the surface supply puts the City in the strongest position to satisfy its obligations to plan for and provide reliable water supplies. The reasons for these conclusions are discussed below. Our review is Arhited to the potential legal implications of the two alternative courses of action. We have not addressed and express no view regarding the relative costs of the two courses of fiction, or any other relevant factors that may influence the City's ultimate view of the best course of action." Staff is r _: ung City Counc# approval to initiate implementation of the direct use option to utilize the WID 6,00 acre -flet contractu*l allotment. The first steps will be to solicit proposals from three water consulting firms: HDR, RMC, fond West Yost & Associates, all of whom were previously pre -qualified for Lodi water studies. The time fame from proposal solicitation to final deliverables is 12 months and the estimatecost is expected to range from $250,000 to $500,000. The studies are all interrelated and will include: • Process Evaluation/Pil#p Study — This study will evaluate various technologies for direct use of the weer, with emphasis In meeting the latest and anticipated regulatory requirements and n*imizing taste and odor issues. • Vfttershed Sanitary Suirvey — One regulatory requirement for use of surface water is a study of the source waters to idintify potential contaminants and other issues that could affect the design of the system. • Assessments -- As noted, there are at least two potential sites for the necessary facilities. These need to be evalgated in light of the two previous studies. J:IW aterlClmplime rriSturf"W aterProgram_ 1106. doc 12/1412006 Adopt I solution ImplernenOtlg the Treatment and Direct Utilization of the Surface Water Supply from the Woodbi" Irrigation Districts(' Contractual Allotment and Authorizing Solicitation of Proposals for Technic l Studies of Implen-*nting this Option or Direct Staff in the Alternative Decem*r 20, 2006 Page 3 • Qost EstWnates - The$e will pull together the information from the three previous stuffs and *aluste alternatives 0 a cost basis. Included in this will be consideration of possible arrangernents with o*r water providers and potential for phased construction. • Anancing Plan - This will refine arrangements to finance the facilities and impacts to dbveloprnent fees. • I rtvironmental/Regul ory Actions - The project will need an environmental impact report and a I rrt*t from the State epadment of Health Services. • General Plan - While llmis is a separate endeavor, staff will work with the General Plan t*nsuliants to incorpctate appropriate policies and implementation} measures. Given that 213 of the City's water suppilt will still come from groundwater, staff will recommend that the City pursue groundwater recharger using storm water and any other intermittent water supply that may become available. FISCAL*~T. No fiscal impact at this time. Staff will return to Council requesting authorization to execute a professional services agreement with the sucoessfui firm. Note that the City is paying WID $100,000 per month fpr this water. The banking provisions of the agreement provide for our future use of plost paid -for water at ,% later dale. WID has agreed to a four-year extension of the banking provisioro and staff will be returning to Council for formal approval when the actual wording of the agreematrt amendment is finalized. FUND100 ANAKABLE: Water Fund (Water Impact Fees) Richard C. Prima, Jr. Public Works Director prepared byf. Why Sandetin. City EngioeerlDeputy Put#c Worcs Director RCPIFWS/Wf cc: .Stev1.ncWin, vY�uet, Ctty Attorney Wally Clay Eftglfeer/Dep Public Works Director Rondehri;, wovridpe I tion Distt'h:tMel i5i0n Joruin Cunry W liesources Division Markism. CUt of Stookton M I Lmlitift Ed Sni, ice► San Jo*quin W Conservation District DannNM, KNlA"G J:IWaMrlClmornentSurfamWaterProgram_1106.doc 1211412QD6 RESOLUTION NO. 2006-233 A RESOLi-TION OF THE LODI CITY COUNCIL IMPLEMENTING THE TREATMENT AND DIRECT UTILIZATION OF THE SURFACE WATER SUPPLY FROM THE WOODBRIDGE IRRIGATION DISTRICT CONTRACTUAL ALLOTMENT AND FURTHER AUTHORIZING SOLICITATION OF PROPOSALS FOR TECHIVICAL STUDIES OF IMPLEMENTING THIS OPTION NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby approves implementinig the treatment and direct utilization of the surface water supply from the Woodbridge krigation District contractual allotment; and BE IT FURTHER RESOLVED that the Lodi City Council further authorizes solicitation of proposals for technical studies of implementing the above option. Dated: December 20, 2006 I hereby certify that Resolution No. 2006-233 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 20, 2006, by the following vote: AYES: COUNCIL MEMBERS - Hansen, Katzakian, Mounce, and Mayor Johnson NOES: COUNCIL MEMBERS - Hitchcock ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None i RANDIJOHL City Cleric 2006-233 CITY COUNCIL BOB JOHNSON, Mayor JOANNEL.MourCE CITY OF LODI Mayor Pro Tempore PUBLIC WORKS DEPARTMENT LARRY D. HANSEN SUSAN HITCHCOCK CITY HALL, 221 WEST PINE STREET PHIL KATZAKIAN P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6706 FAX (209) 333-6710 EMAIL pwdeptQlodi.gov http:kkwww.lodi.gov December 15, 2006 Adders Christensen Mel Lytle W"dbridge Irrigation District San Joaquin County 18777 N. Lower Sacramento Road Water Resources Division Woodbridge, CA 9525$ 1810 E. Hazelton Avenue Stockton, CA 95201 Ed Steffani Dan O'Hanlon N8JWCD KMTG P.O. Box 3006 404 Capitol Mall, 27"' Floor Lodi, CA 95240 Sacramento, CA 95814-4416 BLAIR KING City Manager RANDI JOHL City Clerk D. STEVEN SCHWASAUER City Attorney RICHARD C. PRIMA, JR. Public Works Director Mark Madison City of Stockton Municipal Utilities 2500 Navy Drive Stockton, CA 95206 SUBJECT: Adopt Resolution Implementing the Treatment and Direct Utilization of the Surface Water Supply from the Woodbridge Irrigation District Contractual Allotment and Authorizing the Solicitation of Proposals for Technical Studies of Implementing this Option or Direct Staff in the Alternative Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, December 20, 2006. The meeting will be held at 7 p.m. in the City Council Chamber, Camegie Forum, 305 West Pine Street. This item is on the regular calendar for Council discussion. You are welcome to attend. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Camegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Randi Johl, City Clerk, at (209) 333-6702. If you have any questions about the item itself, please call. Wally Sandelin, City Engineer, at (209) 333-6709. Rkshard C. Prima, Jr. r ' Pdblic Works Director RCPlprnf Enclosure cc:CAty Cleric NCAWLEMENTSURFACEW ATERPIIOGRAM_1106.00C m..,iirmlol'ililviourmawnrc *Supply diversification, best use (conjunctive use) +Sustainable practices *Reduction in drinking water hardness *Reduction in wastewater salinity *Recommendations from other experts *Legal Support, issues with recharge Duestions/Answe Election? — one new Council member Measure H? — failed Ratepayer impact? — presented land-based financing method Pxt Stens — Pursue Direct Use Formal Studies: Process Evaluation/Pilot Study Watershed Sanitary Survey Site Assessments Cost Estimates Financing Plan Environmental/Regulatory Actions Other: General Plan - Recharge with Storm Water, other intermittent water Continue to pay WID $100,000 per month • RM :1901 - Recharge vs. Direct Use Capital Costs Low Range Recharge: $ 6,013,000 Recharge $11,013,000 w/Recovery: Direct Use: $29,500,000 leased land @ $350/acre for 40 years above plus transmission system latest estimate Note: All estimates are very preliminary )irP High Range $ 30,301,000 $ 35,301,000 $ 36,700,000 purchased land @ $300,000/acre above plus transmission system 2004 estimate