2003 AGN JUL 01 I21 - Laserfiche WebLink

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CITY OF COLTON Item #21 AGENDA REPORT For the Colton Utility Authority Meeting of July 1, 2003 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE COLTON UTILITY AUTHORITY FROM: ERIC FRASER, DIRECTOR OF WATER AND WASTEWATER OPERATIONS SUBJECT: APPROVAL OF A SHORT-TERM LEASE OF WATER PUMPING RIGHTS IN THE COLTON-RIALTO BASIN TO THE CITY OF RIALTO DATE: June 23, 2003 BACKGROUND The northerly portion of the Colton -Rialto Basin operates in accordance with the San Bernardino County Superior Court Decree No. 81264 that limits the amount of water that can be extracted from the basin during certain conditions. The basin is currently in a low ground water cycle, and pumping restrictions are currently in place. DISCUSSION/ANALYSIS The City has three wells in the Colton -Rialto Basin. All three wells have been impacted by perchlorate contamination and have not been used this year. As such, the City has not fully utilized its 3900 acre-feet of pumping rights in the basin Even with the perchlorate treatment systems that are due to be online later this month, the City will not utilize the full allocation this water year. The City of Rialto is currently approaching their full entitlement. In order for Rialto to have adequate water this summer, the City of Rialto must continue to use their wells in the Rialto Basin. If they extract more than their allocated share from the basin they must purchase replenishment water at a cost of $111 per acre-foot. The City of Colton may enter into a short-term lease agreement with the City of Rialto and temporarily allocate a portion of its rights to the City of Rialto. ALTERNATIVES Not enter into the agreement with the City of Rialto and lose approximately $165,000 in revenue. FINANCIAL IMPACT Through the agreement, the water fund would receive $110 per acre-foot of water extracted from the basin. The City of Rialto estimates that they will use approximately 1500 acre-feet of water during the lease period. This would result in approximately $165,000 in revenue. ENVIRONMENTAL IMPACT There are no environmental impacts associated with this contract. RECOMMENDATION Staff recommends that the Colton Utility Authority authorize the City Manager to negotiate and execute a short term lease with the City of Rialto of up to 1500 acre feet of water production rights in the Rialto Basin for the current water year at a price of $110 per acre-foot. Report prepared by: Eric R. Fraser, Director of Water and Wastewater Operations REVIEW TEAM ONLY City Attorne Ni6 p mance Director: City Manager: OTHER: