02-10-2020 BPU RPT 07 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES • ' Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 10, 2020 ITEM NO: 7 SUBJECT: AGREEMENT FOR THE SALE OF SURPLUS POTABLE WATER AND EMERGENCY POTABLE WATER WITH THE CITY OF NORCO FOR A FIVE-YEAR TERM ISSUE: Recommend that the City Council approve the agreement for the Sale of Surplus Potable Water and Emergency Potable Water with the City of Norco for a five-year term. RECOMMENDATIONS: That the Board of Public Utilities recommend that City Council: 1. Approve the agreement for the Sale of Surplus Potable Water and Emergency Potable Water with the City of Norco for a five-year term; and 2. Authorize the City Manager, or designee, to execute the Agreement including the ability to make minor non -substantive changes. BACKGROUND: On November 14, 2016, the Board of Public Utilities (Board) approved the construction of the Arlington Avenue 16 -inch Water Main Extension Project. This pipeline allowed Riverside Public Utilities (RPU) to serve customers within RPU's service area who were previously being served by the City of Norco and provides for an interconnection with the City of Norco (Norco) for Surplus Potable Water and Emergency Potable Water sales. On February 12, 2019, City Council approved an agreement for the sale of Emergency Potable Water between the Cities of Norco and Riverside. DISCUSSION: Water Management Principles The Board adopted, and the City Council subsequently approved on October 28, 2014, the Policy Principles for Water Portfolio Management (Attachment 2). The principles recognize, first and foremost, the City's role as stewards of a limited natural resource for the benefit of our customer -owners. Within that role, and recognizing the adjudicated nature of the City's groundwater rights, the policy principles frame potential actions for the acquisition and use of the City's water resources. To that end, included in the