04-24-2017 BPU RPT 09 - Laserfiche WebLink

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Wni =H t v t Ri,v i i PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: APRIL 24, 2017 ITEM NO: 9 SUBJECT: 2017 COOPERATIVE AGREEMENT FOR LONG-TERM WHEELING AND SURPLUS WATER SALES WITH WESTERN MUNICIPAL WATER DISTRICT THROUGH JUNE 30, 2037 FOR PRODUCTION, TREATMENT AND CONVERYANCE OF WESTERN WATER AND THROUGH JUNE 30, 2027 FOR RIVERSIDE WATER ISSUE: Consider and recommend that City Council approve the 2017 Cooperative Agreement for Long -Term Wheeling and Surplus Water Sales between the City of Riverside and Western Municipal Water District to lease and monetize anticipated unused production and conveyance capacity within Riverside's water system through June 30, 2037; and, to lease and monetize anticipated unused water export rights in the Bunker Hill Basin through June 30, 2027. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the 2017 Cooperative Agreement for Long -Term Wheeling and Surplus Water Sales between the City of Riverside and Western Municipal Water District; and 2. Authorize the City Manager, or his designee, to execute the agreement. BACKGROUND: In late 2008, the Board of Public Utilities approved the Cooperative Agreement for Water Production and Conveyance with Western Municipal Water District (WMWD) wherein the City of Riverside Public Utilities (RPU) operates its excess production, transmission, and distribution facilities to deliver potable and non - potable water that WMWD owns, leases, or controls in the Bunker Hill, Rialto/Colton, Riverside North, and/or Riverside South groundwater basins to WMWD's service area (i.e. wheeled water). "Wheeling" means that RPU allows WMWD to transport WMWD water through the RPU transmission system. The Agreement was subsequently approved by the City Council and the Agreement executed on March 30, 2009. Between 2009 and 2016 RPU has wheeled, on average, about 4,800 Acre Foot per Year (AFY) to WMWD. In October 2015, the Board of Public Utilities approved the First Amendment to the Agreement to allow RPU to lease and monetize its unused water export rights in the Bunker Hill Basin to WMWD for the balance of calendar year 2015 (i.e. Surplus Water). The First Amendment was subsequently approved by the City Council and was executed on November 13, 2015. Under the First Amendment, RPU produced and conveyed 1,442 acre feet (AF) or 470,000,000 gallons of Surplus Water. In calendar year 2015, RPU also produced and conveyed about 5,708 acre feet (AF) or 1.86 billion gallons of wheeled water to WMWD. In August 2016, the Board of Public Utilities approved the Second Amendment to the Agreement to allow RPU to lease and monetize its unused water export rights in the Bunker Hill Basin to WMWD for the balance of calendar year 2016 through February 2017. The Second Amendment was subsequently approved by the City Council and was executed on September 13, 2016. Under the Second Amendment, RPU produced and conveyed 3,197 acre feet (AF) or 1.04 billion gallons of Surplus Water. In calendar year 2016, RPU also produced and conveyed about 5,508 acre feet (AF) or 1.79 billion gallons of wheeled water to WMWD.