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W A 'C k R E N f k 4ri 'Y 1_ S S f( RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L .I C U I :I: L .I.. .I I E S BOARD OF PUBLIC UTILITIES DATE: APRIL 17, 2015 ITEM NO: 8 SUBJECT: AGREEMENT BETWEEN THE CITY OF RIVERSIDE PUBLIC UTILITIES AND RIVERSIDE HIGHLAND WATER COMPANY FOR THE TRANSFER OF EMERGENCY WATER ISSUE: The item for Board of Public Utilities consideration is an agreement between the City of Riverside Public Utilities (City) and Riverside Highland Water Company for emergency water supplies to be made available to the City. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve the agreement between the City of Riverside and the Riverside Highland Water Company for the transfer of emergency water. BACKGROUND: On January 15, 1992, the City and Riverside Highland Water Company (Riverside Highland) entered into an agreement to define and set the service area to be served by each entity. Under the agreement, Riverside Highland agreed to deliver potable water to the City's transmission system at the same cost as water delivered to its other shareholders. Currently there is one system interconnection between the two water systems through which water supplies can be conveyed from Riverside Highland to the City. Riverside Highland Water Company (Riverside Highland) is a mutual water company, and has certain water rights in the Bunker Hill Basin, Rialto/Colton Basin, Riverside North Basin and Riverside South Basin under the judgment in Western Municipal Water District v. East San Bernardino County Water District(Riverside County Superior Court No. 78426) (the 1969 Judgment"). The City is a shareholder in Riverside Highland and has the right, as a shareholder, to the delivery of water. The City currently has a need for emergency water to serve two customers near Center Street and Michigan Avenue in the Highgrove area. These two developments were constructed in the past five years within a previously undeveloped corner of the City's service area that lacked water system improvements to adequately provide water service. In order to meet fire flow requirements for building construction and development, emergency water was supplied from the Riverside Highland system to these two customers and the adjacent fire hydrant. The agreement for City Council approval between the City and Riverside Highland would formalize the delivery of this emergency water until the City is able to build the necessary water system improvements to improve water service within this portion of the City's service area and eliminate reliance on Riverside Highland. FISCAL IMPACT: There is no significant fiscal impact associated with this agreement. Under the terms of the agreement, the City will be charged consumption rates only for water usage with no fixed charges levied. Riverside