HomeMy WebLinkAboutMesa Water Distric - 2024-10-02 011 L 2000 Main Street,
;;;;Mzz. cam% Huntington Beach,CA
92648
City of Huntington Beach
APPROVED 7-0
�,�UNIy
File#: 24-640 MEETING DATE: 10/1/2024
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Kristen Schroeder, Water Quality Supervisor
Subject:
Approve and authorize the execution of a Cooperative Agreement with the Mesa Water District
in the amount of$75,000 for a Feasibility Study for an Interagency Water Transfer
Statement of Issue:
The City operates nine wells, six of which are about 50 years old and nearing the end of their useful
life. In the event of a complete well failure, the City would need to purchase imported water to replace
the lost groundwater production, which could cost approximately $7 million over three years. To
mitigate the potential cost impact of a well failure, staff has approached the Mesa Water District
(Mesa Water) to explore the possibility of an interagency water transfer. Approval of this Cooperative
Agreement will allow staff to work with Mesa Water District to conduct a Feasibility Study for
Interagency Water Transfer.
Financial Impact:
Funding in the amount of$75,000 is included in the approved Fiscal Year 2024/25 budget in Water
Fund Account 50685801.69365.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the Cooperative Agreement with the
Mesa Water District in the amount of$75,000 for a Feasibility Study for an Interagency Water
Transfer.
Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
Our current water supply is composed of approximately 85% groundwater and 15% imported water.
The cost to pump groundwater is $688 per acre-foot, which is roughly half the cost of imported water
at $1,256 per acre-foot. The City operates nine wells, six of which are about 50 years old and nearing
City of Huntington Beach Page 1 of 2 Printed on 9/25/2024
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File#: 24-640 MEETING DATE: 10/1/2024
the end of their useful life. In the event of a complete well failure, the City would need to purchase
imported water to replace the lost groundwater production. Staff estimates that this could cost an
additional $2.3 million per year for three years, totaling approximately $7 million.
To mitigate the potential cost impact of a well failure, staff has approached the Mesa Water District
(Mesa Water) to explore the possibility of an interagency water transfer. An interagency water transfer
involves transferring water from one agency to another, helping address water supply imbalances,
improve infrastructure efficiency, and respond to emergencies such as drought conditions. If we
experience a well failure, an interagency water transfer agreement with Mesa Water could allow us to
access our groundwater allocations through their infrastructure, avoiding the need to purchase more
expensive imported water and potentially saving the City millions in water purchase costs.
In their 2014 Master Plan, Mesa Water's Board of Directors adopted a policy to maintain local water
supply reliability at least 115% of water demand. This provides the potential to serve water to the City
of Huntington Beach while still meeting their customers' needs. In March 2024, Mesa Water
completed the construction of two new wells, each pumping approximately 4,000 gallons per minute,
adding more than 50% to their community's water supply. For Mesa Water, the partnership would
allow them to fully utilize their new wells and generate revenue from their infrastructure investments.
Interagency water transfer agreements are complex and require thorough investigation. Key aspects -
include legal agreements, regulatory and environmental approvals, and financial considerations..
Therefore, a feasibility study is highly recommended before proceeding with an interagency water
transfer agreement. The estimated cost of this study is $150,000.
On March 19, 2024, the Mesa Water District Board of Directors approved funding of up to 50% of the
$150,000 cost for the feasibility study: Upon completion of the study, staff will present the findings
and recommendations for next steps to the City Council. _
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the
CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for..
resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy D - Undertake major planning efforts including Fleet
Capital Replacement Plan, Mobility Master Plan and Infrastructure Report Card to adequately _
anticipate and prepare for future infrastructure needs.
Attachment(s):
1. Cooperative Agreement
2. PowerPoint Presentation
•
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Docusign Envelope ID:FEAAD6E1-B33B-460D-B1FA-63C5B6FBA8B5
COOPERATIVE AGREEMENT
This Coopeoli. je2oAy4reement("Agreement") is made and entered into this
day of 2024, by and between the MESA WATER DISTRICT
("DISTRICT"), a California water district formed pursuant to Section 34000 et seq. of the
California Water Code ("MESA WATER"), and the CITY OF HUNTINGTON BEACH
("CITY"), a municipal corporation in the State of California. MESA WATER and CITY
shall sometimes be referred to separately as a "PARTY" and collectively as the
"PARTIES".
RECITALS
A. WHEREAS, on January 16, 2024, and April 16, 2024, CITY staff conducted a
Study Session and Proposition 218 Public Hearing, respectively, related to water
infrastructure needs and the need for a rate adjustment. During the
presentations, staff emphasized that six of the CITY's nine wells are near 50
years old and at the end of their useful design life. In the event of a well failure, it
would take approximately 3 years to design and build a new well at a cost of
approximately$6 million. Furthermore, staff estimates the well failure would also
result in $2.3 million in additional import water costs annually until the new well
was fully complete and placed into operation; and
B. WHEREAS, on March 19, 2024, MESA WATER's Board of Directors discussed
the potential for an interagency water transfer between the PARTIES.After the
discussion, MESA WATER's Board approved funding a study and authorized up
to 50% of$150,000 to further investigate providing the CITY with groundwater;
and
C, WHEREAS, on April 1, 2024, MESA WATER completed the construction of two
new potable (drinking)water wells, Croddy Well No. 14, and Chandler Well No.
12. Both which are now MESA WATER's largest producing wells, each pumping
approximately 4,000 gallons per minute, and adding more than 50% to their
community's water supply; and
D. WHEREAS, two of the CITY's wells are currently out of service, and one
additional well may be impacted soon because of a new Per-and polyfluoroaikyl
substances (PFAS) final National Primary Drinking Water Regulation (NPDWR)
set by the United States Environmental Protection Agency (EPA); and
E. WHEREAS, the CITY desires to secure an alternative, cost-efficient water supply
in the event of a well failure by partnering with MESA WATER via an Interagency
Water Transfer Agreement;
NOW, THEREFORE, in consideration of the Agreement contained hereinbelow, the
PARTIES agree as follows:
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AGREEMENT
1. Scope of Work
The PARTIES agree to conduct a feasibility study to determine if MESA WATER
can reliably serve water to the CITY.The scope of work for the feasibility study
will include, but not be limited to, the following:
A. Project Initiation and Planning
a Define project goals and objectives.
• Identify key stakeholders and establish communication protocols.
• Develop a detailed project plan, including timelines and milestones.
B. Data Collection and Analysis
• Gather and review existing data on water supply, demand,and
infrastructure from both MESA WATER and the CITY.
• Conduct field assessments and site visits to understand the current
conditions and capacities of MESA WATER's water facilities and the
CITY's water distribution system.
C. Water Demand and Supply Analysis
• Analyze current and projected water demand in the CITY.
• Assess the available water supply from MESA WATER's wells and other
sources.
• Evaluate the reliability and sustainability of MESA WATER's water supply
to meet the CITY's needs.
D. Infrastructure Assessment
• Examine the capacity and condition of MESA WATER's water production
and distribution infrastructure.
• Identify any necessary upgrades or modifications to MESA WATER's
system to support the additional demand from the CITY.
• Assess the compatibility of interconnection points between MESA WATER
and the CITY's water systems.
E. Regulatory and Environmental Considerations
• Identify and evaluate regulatory requirements and compliance issues.
• Assess potential environmental impacts and necessary mitigation
measures.
• Review any relevant permits and approvals required for the interagency
water transfer, including, but not limited to, the Orange County Water
District.
F. Cost Analysis
• Estimate the costs associated with any required infrastructure upgrades or
modifications.
2
Docusign Envelope ID:FEAAD6E1-B33B-460D-B1FA-63C5B6FBA8B5
• Calculate the operational and maintenance costs for the increased water
supply.
• Develop a financial model to project costs and benefits over the long term.
G. Risk Assessment
• Identify potential risks and uncertainties associated with the water transfer,
• Develop risk mitigation strategies and contingency plans.
H. Feasibility Evaluation
• integrate findings from the demand, supply, infrastructure, regulatory,
environmental, and cost analyses.
• Evaluate the technical, economic, and operational feasibility of the
proposed water transfer.
• Provide recommendations on the viability of the project and potential next
steps.
1. Reporting and Presentation
• Prepare a comprehensive final report summarizing the study's findings,
analyses, and recommendations.
• Present the findings to the key stakeholders, including the Boards of
MESA WATER and the CITY.
• Address any questions and incorporate feedback into the final report.
J. Project Management and Coordination
• Regularly update both MESA WATER and the CITY on the progress of the
study.
• Coordinate meetings and communications between all parties involved.
• Ensure that the project stays on schedule and within budget.
• 2. Cost Sharing •
The total cost of the feasibility study is estimated to be $150,000.The PARTIES
agree to share the cost equally,with each PARTY contributing $75,000.
3. Lead Agency
MESA WATER will take the lead on the feasibility study, overseeing the selection
of consultants, coordination of the study, and overall project management.
However, the CITY shall have equal rights in the selection of consultants and
shall actively participate in the study, Both PARTIES will collaboratively develop
the study's scope, review interim findings,and make joint decisions to ensure the
study meets the objectives of both MESA WATER and the CITY.
4. Duration
The feasibility study is expected to take 3-4 months to complete from the date of
commencement.
3
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5. Payment Terms
Each PARTY will be invoiced for their share of the study costs by MESA WATER
and shall make payment within 30 days of receiving the invoice.
6. Reporting and Communication
MESA WATER will provide regular updates to the CITY on the progress of the
study and will furnish a final report upon completion.
7. Effective Date and Termination
This Agreement shall become effective on the date it is executed by both
PARTIES and shall terminate upon the completion of the feasibility study and full
payment by both PARTIES. Both PARTIES may terminate this agreement at any
time by giving the other party written notice thereof. Upon termination, each party
will pay for the portion of the work completed prior to termination.
8. Miscellaneous
This Agreement constitutes the entire agreement between the PARTIES
regarding the subject matter hereof and supersedes all prior negotiations,
representations, or agreements, either written or oral.Any amendments or
modifications to this Agreement must be in writing and signed by both PARTIES,
If any provision of this Agreement is found to be invalid or unenforceable, the
remaining provisions shall continue in full force and effect.
Notices. Any notice, request, demand, consent or approval, or other
communication required or permitted hereunder by law, shall be validly given and
made only if in writing and delivered in person to an officer or duly authorized
representative of the party, or deposited in the United States mail, first class
postage prepaid, and addressed to the party for whom intended as follows:
To Mesa Water®: Mesa Water District
Attention:Andrew D.Wiesner, P.E.
1965 Placentia Avenue
Costa Mesa,CA 92627
City of Huntington City of Huntington Beach
Beach:
Attention:Alvin Papa, P.E.
2000 Main Street
Huntington Beach, CA 92648
•
Docusign Envelope ID:FEAAD6E1-B33B-460D-B1FA-63C5B6FBA8B5
IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date
first above written.
MESA WATER DISTRICT
Signed by:
By. L Yale, 'E. �(k.at-tAilt,rour
Name. 72258B30885B434...
Title:
9/19/2024
Date:
CITY OF HUNTINGTON BEACH
By:
Name:
Title:
Date:
APPROVED AS TO FORM
By:
[`a,,MICHAEL E.GATES
" CITY ATTORNEY
CITY OF HUNTINGTON BEACH
COUNTERPART
IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date
first above written.
MESA WATER DISTRICT
By:
Name:
Title:
Date:
CITY 11 IN `TON BEACH
Cam.
By: •, t, By /2/'
Name: Gracey Van Der Mark Name: Robin Estanislau
Title: Mayor Title: City Clerk
Date: October 2, 2024 Date: October 2, 2024
APPROVED AS TO FORM
By:
C,MICHAEL E. GATES
CITY ATTORNEY
CITY OF HUNTINGTON BEACH
COUNTERPART 5
DocuSign
Certificate Of Completion
Envelope Id:FEAAD6E1B33B460DB1FA63C5B6FBA8B5 Status:Completed
Subject:Complete with Docusign:Mesa Water and City of Huntington Beach Cooperative Agreement.pdf
Source Envelope:
Document Pages:5 Signatures: 1 Envelope Originator:
Certificate Pages:5 Initials:0 Greg Pentoney
AutoNav:Enabled gregp@mesawater.org
Envelopeld Stamping:Enabled IP Address: 135.84.126.20
Time Zone:(UTC-08:00)Pacific Time(US&Canada)
Record Tracking
Status:Original Holder:Greg Pentoney Location:DocuSign
9/19/2024 3:22:40 PM gregp@mesawater.org
Signer Events Signature Timestamp
Paul E.Shoenberger Signed by Sent:9/19/2024 3:24:49 PM
pauls@mesawater.org I Yu ' . SLtukkry..r Viewed:9/19/2024 3:36:17 PM
General Manager nzseesoaeseeaa Signed:9/19/2024 3:36:38 PM
Security Level:Email,Account Authentication
(None) Signature Adoption:Pre-selected Style
Using IP Address: 108.147.175.62
Signed using mobile
Electronic Record and Signature Disclosure:
Accepted:9/19/2024 3:36:16 PM
ID: 1 b3e4ffd-005c-4f6f-8d58-aa31 a633a245
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Andrew Wiesner COPIED Sent:9/19/2024 3:36:39 PM
andreww@mesawater.org Viewed:9/19/2024 3:37:26 PM
District Engineer
Security Level:Email,Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Mark Pelka COPIED
9/19/2024 3:36:40 PM
markp@mesawater.org
Security Level:Email,Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted:10/20/2021 5:20:43 PM
ID:2f93d61c-2b45-4407-ab49-9b0789578565
Carbon Copy Events Status Timestamp
Wendy Kovacevic COPIED Sent:9/19/2024 3:36:41 PM
wendyd@mesawater.org
Records Management Specialist
Mesa Water District
Security Level:Email,Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/19/2024 3:24:49 PM
Certified Delivered Security Checked 9/19/2024 3:36:17 PM
Signing Complete Security Checked 9/19/2024 3:36:38 PM
Completed Security Checked 9/19/2024 3:36:41 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
Electronic Record and Signature Disclosure created on:8/11/2020 11:52:33 AM
Parties agreed to:Paul E.Shoenberger,Mark Pelka
ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time,Mesa Water District(we, us or Company)may be required by law to provide
to you certain written notices or disclosures.Described below are the terms and conditions for
providing to you such notices and disclosures electronically through the DocuSign system.
Please read the information below carefully and thoroughly, and if you can access this
information electronically to your satisfaction and agree to this Electronic Record and Signature
Disclosure(ERSD),please confirm your agreement by selecting the check-box next to `I agree to
use electronic records and signatures' before clicking `CONTINUE' within the DocuSign
system.
Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available
electronically to you by us. You will have the ability to download and print documents we send
to you through the DocuSign system during and immediately after the signing session and, if you
elect to create a DocuSign account, you may access the documents for a limited period of time
(usually 30 days)after such documents are first sent to you.After such time, if you wish for us to
send you paper copies of any such documents from our office to you, you will be charged a
$0.00 per-page fee. You may request delivery of such paper copies from us by following the
procedure described below.
Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time
change your mind and tell us that thereafter you want to receive required notices and disclosures
only in paper format. How you must inform us of your decision to receive future notices and
disclosure in paper format and withdraw your consent to receive notices and disclosures
electronically is described below.
Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the
speed at which we can complete certain steps in transactions with you and delivering services to
you because we will need first to send the required notices or disclosures to you in paper format,
and then wait until we receive back from you your acknowledgment of your receipt of such
paper notices or disclosures.Further,you will no longer be able to use the DocuSign system to
receive required notices and consents electronically from us or to sign electronically documents
from us.
All notices and disclosures will be sent to you electronically
Unless you tell us otherwise in accordance with the procedures described herein, we will provide
electronically to you through the DocuSign system all required notices, disclosures,
authorizations, acknowledgements, and other documents that are required to be provided or made
available to you during the course of our relationship with you. To reduce the chance of you
inadvertently not receiving any notice or disclosure,we prefer to provide all of the required
notices and disclosures to you by the same method and to the same address that you have given
us. Thus,you can receive all the disclosures and notices electronically or in paper format through
the paper mail delivery system. If you do not agree with this process,please let us know as
described below.Please also see the paragraph immediately above that describes the
consequences of your electing not to receive delivery of the notices and disclosures
electronically from us.
How to contact Mesa Water District:
You may contact us to let us know of your changes as to how we may contact you electronically,
to request paper copies of certain information from us, and to withdraw your prior consent to
receive notices and disclosures electronically as follows:
To contact us by email send messages to: marwank@mesawater.org
To advise Mesa Water District of your new email address
To let us know of a change in your email address where we should send notices and disclosures
electronically to you,you must send an email message to us at marwank@mesawater.org and in
the body of such request you must state: your previous email address, your new email
address. We do not require any other information from you to change your email address.
If you created a DocuSign account, you may update it with your new email address through your
account preferences.
To request paper copies from Mesa Water District
To request delivery from us of paper copies of the notices and disclosures previously provided
by us to you electronically, you must send us an email to marwank@mesawater.org and in the
body of such request you must state your email address, full name, mailing address, and
telephone number. We will bill you for any fees at that time, if any.
To withdraw your consent with Mesa Water District
To inform us that you no longer wish to receive future notices and disclosures in electronic
format you may:
i.decline to sign a document from within your signing session, and on the subsequent page,
select the check-box indicating you wish to withdraw your consent,or you may;
ii. send us an email to marwank@mesawater.org and in the body of such request you must state
your email,full name, mailing address,and telephone number. We do not need any other
information from you to withdraw consent.. The consequences of your withdrawing consent for
online documents will be that transactions may take a longer time to process..
Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The
current system requirements are found here:https://support.docusign.com/guides/signer-guide-
signing-system-requirements.
Acknowledging your access and consent to receive and sign documents electronically
To confirm to us that you can access this information electronically,which will be similar to
other electronic notices and disclosures that we will provide to you,please confirm that you have
read this ERSD,and(i)that you are able to print on paper or electronically save this ERSD for
your future reference and access; or(ii)that you are able to email this ERSD to an email address
where you will be able to print on paper or save it for your future reference and access. Further,
if you consent to receiving notices and disclosures exclusively in electronic format as described
herein,then select the check-box next to `I agree to use electronic records and signatures' before
clicking `CONTINUE' within the DocuSign system.
By selecting the check-box next to `I agree to use electronic records and signatures',you confirm
that:
• You can access and read this Electronic Record and Signature Disclosure; and
• You can print on paper this Electronic Record and Signature Disclosure, or save or send
this Electronic Record and Disclosure to a location where you can print it, for future
reference and access; and
• Until or unless you notify Mesa Water District as described above,you consent to receive
exclusively through electronic means all notices,disclosures,authorizations,
acknowledgements, and other documents that are required to be provided or made
available to you by Mesa Water District during the course of your relationship with Mesa
Water District.
•
/I/ Authorize funding for a
► &., '�; FeasibilityStudyon an
- = Interagency Water Transfer
"� ` ``, Partnershipwith the Mesa Water
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District
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® October 1 2024
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385
Water Supply Overview
• Huntington Beach Current Water Supply
• 85% of our water comes from groundwater
• 15% from imported water
• Pumping groundwater costs $688 per acre-foot
• Imported water costs $1,256 per acre-foot—almost double
• City operates 9 wells, 6 of which are nearly 50 years old
• Well Failure Risks
• If a well fails, we will need to buy imported water to replace the lost
groundwater production.
• This could cost an extra $2.3 million per year for 3 years (about $7 million A���� WCINGTQ
total) until a new well is constructed + vkkro41,�
' f .• Oil.
386
Exploring Transfers
• Benefits of Partnership
• Allow Huntington Beach to use Mesa Water District's infrastructure to access
groundwater
• Could save millions by avoiding expensive imported water
• Improve infrastructure efficiency
• Aid in response to emergencies such as drought conditions
• Mesa Water Districts Supply Overview
• In 2024, built two new high production wells, increasing their water supply by
50%
• Operates on 100% groundwater and has a policy to maintain 115% of water T» ro
O$ caNP°44
demand
• Has the potential to serve water to the City of Huntington Beach while still N� 7
meeting their customers' needst I
,`
c��IVTY.0Pf`
387
Feasibility S
• Interagency water transfer agreements are complex
• Study needed to explore legal, environmental,
regulatory and financial aspects
• Estimated study cost: $150,000
• Mesa Water agreed to cover 50% of the study
• ' Funding in the amount of $75,000 is included in the
approved Fiscal Year r2024/25 budget in Water � T
Account
,70
4V001-
388
•
Recommended
•
• Authorize funds in the amount of $75,000 for a
Feasibility Study for an Interagency Water Transfer
with the Mesa Water District
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gOe\\NTINGT0 City of Huntington Beach
g Off.• kvrFGaa,t
� 2000 Main Street ♦ Huntington Beach, CA 92648
A - tti o (714) 536-5227 ♦ www.huntingtonbeachca.gov
�GF, . .........- c�`� g0 Office of the City Clerk
c0UNTY ���®� Robin Estanislau, City Clerk
October 3, 2024
Mesa Water District
Attn: Andrew D. Wiesner. P.E.
1965 Placentia Avenue
Costa Mesa, CA 92647
Dear Mr. Wiesner:
Enclosed is a fully executed copy of the Cooperative Agreement between the Mesa
Water District and the City of Huntington Beach for a Feasibility Study for an
Interagency Water Transfer Study, approved by the Huntington Beach City Council on
October 1, 2024.
Sincerely,
9"6714-alidAtu)
Robin Estanislau, CMC
City Clerk
RE:ds
Enclosure
Sister City: Anjo, Japan