12-10-2018 BPU RPT 06 - Laserfiche WebLink

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W A E E R ENERGY I LIFE 'i X RIVERSIDE PUBLIC UTILITIES =�J P U B L I C U T I L I T I F 5 Board Memorandum BOARD OF PUBLIC UTILITIES DATE: DECEMBER 10, 2018 ITEM NO: 6 SUBJECT: AGREEMENT FOR THE SALE OF EMERGENCY POTABLE WATER BETWEEN THE CITIES OF NORCO AND RIVERSIDE FOR A FIVE-YEAR TERM ISSUE: Recommend that City Council approve the Agreement for the Sale of Emergency Potable Water between the City of Riverside and the City of Norco for a five-year term with an additional and automatic five-year renewal unless either party terminates the Agreement in writing; and authorize the City Manager or his designee, to execute the Agreement. RECOMMENDATIONS: That the Board of Public Utilities: 1. Recommend that the City Council approve the Agreement for the Sale of Emergency Potable Water between the City of Riverside and the City of Norco for a five-year term with an additional and automatic five-year renewal unless either party terminates the agreement in writing; and 2. Recommend that the City Council authorize the City Manager, or his designee, to execute the Agreement. BACKGROUND: On November 14, 2016, the Board of Public Utilities approved the construction of the Arlington Avenue 16 -inch Water Main Extension Project to construct approximately 6,900 linear feet (LF) of 16 -inch water main to extend service to the Riverside City Limits immediately east of the City Limits of Norco. The project allows Riverside Public Utilities (RPU) to serve customers within RPU's service area who were currently being served by the City of Norco, and provides for an interconnection with the City of Norco for emergency potable water, as well as, provides an opportunity for future water sales. RPU completed construction of the pipeline in September 2017 and has been working with the City of Norco to develop an agreement for the sale of emergency potable water. Both agencies wish to construct an interconnection, or intertie, between the potable water systems operated by RPU and Norco. The interconnection will be located southwest of the intersection of Arlington Avenue and Crestview Drive. The interconnection will have the ability to convey water in either direction to either city. DISCUSSION: Under the Terms of the Agreement for the Sale of Emergency Potable Water (Agreement), the amount of emergency water delivered from one agency to the other will not exceed 200 acre-feet per year unless the agencies agree otherwise. This agreement will help improve the reliability to both agencies in the event