HomeMy WebLinkAbout1995-11-07 - AGENDA REPORTS - WATER AGMT CLWA (2)CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO Mayor Darcy and Members of the City Council
FROM: George A. Caravalho, City Manager
DATE: November 7, 1995
SUBJECT: RECLAIMED WATER AGREEMENT BETWEEN CLWA AND SANITATION
DISTRICT NOS. 26 & 32 -- SUBSEQUENT NEED
At their regularly scheduled Sanitation District Board meeting on November 7, 1995,
Boardmembers for District Nos. 26 & 32 have been asked to review and approve a reclaimed
water agreement between the Sanitation Districts and the Castaic Lake Water Agency
("CLWA"). This agreement allows the Sanitation Districts to sell `outfall" water from District
treatment facilities to the CLWA at a reduced rate for a set price for a term of twenty-five years..
A summary of the background of this item, issues from the Sanitation Districts'. staff
perspective, and the major deal points of the agreement are attached for your reference..
City staff has had several meetings and telephone conversations with Sanitation Districts staff
(primarily Jim Stahl), CLWA representatives, and other interested parties, including General
Manager Gene DiAngelous of the Newhall County Water District. At this time, there is no
general consensus among all the parties as to the approach which should be undertaken. In City
staffs opinion, it important to ascertain the thoughts of the City Council on this matter, so
that the Boardmembers for District Nos. 26 & 32 will have the benefit of the Council's
discussion and consideration prior to the Board meeting on November 8, 1995.
I am prepared to make a brief presentation outlining several of the outstanding issues
pertaining to the proposed lease agreement, with a short period for questions and answers
following that presentation.
Staff recommends that the Council receive this information for the purpose of discussion and
deliberation, with the intent to reach a consensus and provide the City's Sanitation District
Boardmembers with a recommendation for action on the proposed lease agreement reflecting
the Council's consideration.
GAC:AJN:dmw
County Sanitation Districts of
Los Angeles Countv
Background on Santa Clarita Valley Water Reuse Programs
Since 1989, the Sanitation Districts have been working with the Castaic Lake Water Agency (CLWA)
to contract for reclaimed water from the Saugus and Valencia Water Reclamation Plants, and develop a regional
water reuse program in the Santa Clarita Valley. The process has involved several meetings which have included
representatives from local water purveyors, potential users, developers, the County of Los Angeles and the City
of Santa Clarita.
The CLWA is currently in the final planning and design phase of a project that will distribute 1.5 MGD
of reclaimed water from the Valencia WRP. The CLWA had originally planned to use this reclaimed water to
serve the Magic Mountain Amusement Park, the Windmill Tree Fame and the Westridge Master Planned
Community on the West side of Interstate 5. Because of inherent delays in the Westridge development, the
CLWA is modifying their project to serve existing and new users east of the freeway.
41020M. The Plan recommended that a regional distribution system be developed in nine phases of
construction, with the first seven phases being completed by the year 2010. The early phases would be initiated
at the Valencia Water Reclamation Plant and develop the system to the south, east and north. The middle phases
would incorporate effluent from the Saugus Water Reclamation Plant and continue to expand the system to the
east through the City of Santa Clarity The latter phases would develop the system furthest east and furthest north
from the reclamation plants. Other phases considered beyond the 2010 planning horizon could include an
expansion of the system beyond the current CLWA service area.
Although about 9 MGD of demand for reclaimed water has been identified, environmental documentation
currently only allows for diversion of 1.5 MGD from the Santa Clara River. Since the river downstream of the
Santa Clarita Valley WRPs has been identified as a critical habitat for the endangered Unarmored Threespine
Stickleback (UTS) and least Bell's vireo, potential impacts to these habitats from reduced effluent flows must
be addressed in project EIRs. CLWA's 1988 Capital Program and Water Plan EIR stated that diversion of 1.5
MGD for reuse, which is 5-15 percent of stream flow, would not impact the UTS habitat. hi order to distribute
¢tete than 1,1MGD ofreclaumdastev, CLWA will be evdu=g the impact from further stream now reductions
in ft ReuselOW& Plan EUL
CLV4Lk YMY1$1P9.their design of the initial iS MGD Phase 1 project to accommodate the users
they now atnIgmi ng civime on the east side of the fteeway, Estimated completion of the 1.5 MGD design
project is in 1996. Construction of this project is expected to be completed by mid 1997. The study of the Santa
Clara River for the Reuse Master Plan EIR also should be completed in 1996.' Design and construction of reuse
projects beyond the initial 1.5 MGD will depend on the amount of additional flow that can be diverted from the
Santa Clara River as determined by the EIR,
One of the future reuse projects that has been identified may be developed separately from the CLWA
projects:: The NorWaka Development, which includes construction of future residential and commercial areas
and a golf come, has proposed a rase project to provide reclaimed water for irrigation and recharge of the local
aquifer. Aquifer recharge would be accomplished by pumping reclaimed water from the Valencia WRP to the
Castaic Lake ARerbay. A schedule for the Northlake project has not been developed, but its feasibility may not
be known until the Santa Clara River study has been completed in 1996. t,
County Sanitation Districts of
A Summary of the Issues and Recommendation Relating to the
Sale of Reclaimed Water to the Castaic Lake Water Agency
The Sanitation Districts have always supported a coordinated regional approach to water reuse in the
feasible, a reuse project trade
to be less expensive than the marginal
Sarna Clarita Vary,. To be economically
lies Because a reuse project requires the development of an entirely new infrastructure,
cost of alternative supe almost Wpn}y on the ability to convey and use the greatest quantity
the cost effectiveness of that protect dependsprojects that have taken this ' `
of reclaimed water for the minimal amount of irrGasWcture investment.�e are thtricts a%pence, the protects
with the best chance of success and the best opportunity to maximize t of a regional system*
regional approach. The Sanitation Districts could a the lead agency in the development
do not have a designated wane service
area, a� therefore would be at a disadvantage
noth the Districts into competition with the existing Potable water PtweYoK=The'
However, the financially
tem through a
Districts
�� � puttingwith a number of differau water entities tc develop a r lanneal Sys
tern
alto could contract recogrriang that there aro two projects curtendy being Pl�� for the Valley; one
series of stand alone � A and one by the Newhall County Water District for the Nortlrlrs h ving the
lege .
by the Castaic Lake Water work these water purveyors• as well as others having the legal
The Sanitation Distracts staff to establish a coordinated regional approach that works
right to serve reclaimed water in the Santa Clarity Valley,
best for the Valley and its constituency. Castaic Lake Water Agency outlino"
The Reclaimed Water System Master Plan prepared by
the
regional andsystematic aPProachto the development of a water reuse distribution system the y the Santa Clarity
A summary of the s attached. The
proposed in
an plan
a So in
for creel 'suned water, This
Valley. t lower than-
reclaimed
han
reclaimed water rate policy Proposed aimed water to S35 per acre-foot, which is 40 perces
rebate would reduce the wholesale cost of T favorably to the wholesale rates of $20Detdo $m2t60
he
the aurartwlmtesaleraate for potable watC
per acre-foot that are being charged in the Los Angles favereclaimed reetatil rates to � and user. Actual
Master Plan could also result in a 20•tp. 25 percent and the arrangements that arc
diseormts.would depend on thG ia�- a8 policies of the mdivtdu�aL�AP cod .difficult for smaller stand
m brttveerrtlwsePurveY anH$ieirenduses"- ftDistztris' plan. However, the Districts also
eloanprojeets to ca 1pfe with the COMMies of scale ptoposod in the Masts
aloncy ze that the Master plan a working Plan that allows for flexibility in Program development. if new uses
c projects are brought to light they can be added or Phased into the Master Plan as the Pro- proceeds.
Agency
Copies of the proposed Agreement for the sale of reclaimed water to the Lake � o 1,600
a and
C ift to the Castaic Lala Water Agency: wWch is approximately 9Allows •/. of the
have been sent to the Bold and City staff on previous occasions- �`A This initial project could
acre-faR�t and Valencia Water Red atnation Plants
rcclaimcd coarct ifs
-Wit b SaAgUS _ the Water Agency or it could
serve as the first of several phases in the development of a regional does not preclude the development of
operate as a stand alone project., Since �rerP�aPesedt1g�e �e - _--
re a_ r nme[ldint>_ thaiSl�
subsequent reclaimed water systems b by
32
the trait cost of
sewed by the
• In no event shall the price steed the trait cost of operation and maintenance of the Water
Reclamation Plants.
• Castaic will pay all of the pumping env and O & M caw associated with distribution facilities
operated and maintained by Districts on behalf of Castaic.
rk
• Term. of ftwomm a-JkZ y4sm s
Castaic.Con Draft 01/18/95
WITH CASTAIC
Facilities
for Delivery and Distribution
•
Point of Connection designated by Chief Engineer.
•
Castaic Shall construct all facilities for distribution.
•
Castaic may locate some facilities on Districts' property with approval of Chief Engineer.
•
Castaic agrees to install dual distribution systems in its future developments.
Quantity
of Water to be Prrebared'"
•
Districts agree to make aysiLble .1.600 AFY, !iniad to 1.4 MOD from Valeocia WRP. Entitlement
will be adjusted 'every five yeert alter" tO yam bawd on 100% of umattimum AFY used in any of
the three pnevioits y eaft rap to 1.600 An.
•
Higher rates of withdrawal subject to Chief Engineer approval.
Limitation
of Contractural Commitment
•
Districts can operate Valencia WRP as it sees fit. regardless of Castaic needs.
•
Districts can suspend any portion of Castaic entitlement that is not put to beneficial use.
•
Circumstances causing reduction in flow from plant will result in a decrease in water supply to Castaic.
Proportion of the decrease will beat the discretion of the Chief Engineer.
Quality
of water to be Purchased
•
Districts agree to provide water which will conform to the RWQCB requirements for discharge to the
Santa Clara River.
•
Factor beyond control of Districts may result in temporary low of reclaimed water production. In
such we. Chief Engineer may suspend water service.
•
Districts not liable for damages if effluent meets Regional Bond standards.
Pg
of Ran innad- water
•
For the 3 yens ifter osasnsoce do trek pdce daBGb• tYr,gteaosr of (a) 1/1/AF or (b) one
hdfoffhaieiiw diitt:tad.,.YY�o6h a t'asYd4'i'tt tbe%o irp Fetlait d`vaae'fiomthan.
wwr Raa peoriti"1tr�"`idleks;mgCbt�.glte#tti'bvir'hlc�'Iisft fiend year. Mo wear Rao is
detiaul as t.,-�twar=aflM Ams, tlrt,Cear.ic elae�se. ewloe ls. dor poable vaunt multiplied by
the trait cost of
sewed by the
• In no event shall the price steed the trait cost of operation and maintenance of the Water
Reclamation Plants.
• Castaic will pay all of the pumping env and O & M caw associated with distribution facilities
operated and maintained by Districts on behalf of Castaic.
rk
• Term. of ftwomm a-JkZ y4sm s
Castaic.Con Draft 01/18/95