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HomeMy WebLinkAbout07 - Agreement with IRWD regarding the Emergency Diversion of Recycled Water into the San Diego Creek WatershedQ PoRT CITY OF NEWPORT BEACH <,FORNP City Council Staff Report February 27, 2018 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Mark Vukojevic, Deputy Public Works Director/City Engineer, mvukoievic(c)-newportbeachca.gov PHONE: 949-644-3319 TITLE: Agreement with Irvine Ranch Water District regarding the Emergency Diversion of Recycled Water into the San Diego Creek Watershed ABSTRACT: Irvine Ranch Water District (IRWD) is requesting the City's support for their permit application to the Regional Water Quality Control Board for the emergency diversion of recycled water into the San Diego Creek Watershed. The request along with conditions was reviewed and concurred with by the City's Water Quality Coastal Tideland Committee. Staff has prepared this attachment to memorialize the understanding and proposed work efforts by IRWD. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; IRWD is processing a CEQA review and approval for their planned emergency diversion under Section 15164 of the State CEQA Guidelines which provides for the preparation of an addendum to a previously certified Environmental Impact Report by a lead agency or a responsible agency if some changes or additions to the project are necessary; however, none of the conditions described in CEQA calling for preparation of a subsequent EIR have occurred; and b) Approve the agreement regarding the Emergency Diversions of Recycled Water into the San Diego Creek Watershed between the City of Newport Beach and the Irvine Ranch Water District, and authorize the City Manager to sign the agreement and attached letter of support. 7-1 Agreement with Irvine Ranch Water District regarding the Emergency Diversion of Recycled Water into the San Diego Creek Watershed February 27, 2018 Page 2 FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: On November 2, 2017, Irvine Ranch Water District (IRWD) presented to the City's Water Quality Coastal Tideland Committee a request for support for their emergency need to possibly divert recycled water into San Diego Creek. As explained by IRWD, during a heavy rain year, and during certain storm conditions, IRWD storage facilities of recycled water can fill up, users of recycled water cease and diversions to Orange County Sanitation District are no longer accepted, leaving IRWD in a vulnerable position. IRWD, is requesting an amendment to their current permit with the Regional Water Quality Board to allow emergency and temporary diversions of recycled water into San Diego Creek which drains into upper Newport Bay. IRWD manages its supply of recycled water with the overarching goal of maximizing the use of recycled water. In the winter months when demands are reduced, IRWD can store recycled water in local reservoirs. It can also send excess recycled water to the Orange County Sanitation District (OCSD) or the Orange County Water District (OCWD). Under more extreme weather conditions, as witnessed in the winter of 2016 — 2017, these storage and diversion options can become unavailable. With no other options available, IRWD's only final option is to divert recycled water produced by the Michaelson Plant into the San Diego Creek. The City and IRWD have had a long partnership with regards to water quality improvements to the Bay and the use and development of recycled water. To ensure that any emergency diversions of recycled water into San Diego Creek watershed are done in compliance with the IRWD's Regional Board Permit, IRWD is seeking an amendment to this permit. While this permit amendment is currently under development in cooperation with the Santa Ana Regional Water Quality Control Board, the conditions of the emergency diversion have been vetted and presented at workshops and to the Water Quality Coastal Tideland Committee (November 2, 2017, December 7, 2017 and February 1, 2018). The Committee, with the assistance of staff and in cooperation with IRWD, worked closely to develop several conditions and work efforts to be undertaken by IRWD to mitigate and minimize the diversions. The conditions include several operational efforts by IRWD and provide regular updates to the City. It also includes future capital construction projects including a future connection between the Green Acres Pipeline and the Santa Ana River, and constructing/providing additional feasible recycled water storage by expanding the District's Syphon Reservoir. Considering that this emergency discharged water is already high quality recycled water, the added work efforts to be undertaken by IRWD, and that any diversions would occur during storm conditions (with heighten creek flow rates) and infrequently, staff recommends support of their permit amendment. 7-2 Agreement with Irvine Ranch Water District regarding the Emergency Diversion of Recycled Water into the San Diego Creek Watershed February 27, 2018 Page 3 The City has requested that IRWD and the City execute an agreement to memorialize the understanding between the City and IRWD. This agreement, along with a "side letter" that is referenced in the agreement, is included in Attachment A. Staff recommends that the City Manager also sign the attached letter to the Regional Water Quality Control Board in support of IRWD's permit application. Orange County Coastkeeper has also submitted a letter of support for their permit. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action (the agreement) 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. IRWD is processing a CEQA review and approval under Section 15164 of the State CEQA Guidelines which provides for the preparation of an addendum to a previously certified Environmental Impact Report by a lead agency or a responsible agency if some changes or additions to the project are necessary: however, none of the conditions described in CEQA calling for preparation of a subsequent EIR have occurred. Based on the information and analyses to be presented in the Irvine Ranch Water District (IRWD) proposed Addendum No. 4 to the Michelson Water Reclamation Plant Phase 2 and 3 Capacity Expansion Project Final Environmental Impact Report, the concluding section of the Addendum will set forth the proposed determinations by IRWD that none of such conditions have occurred. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A - Agreement with IRWD Attachment B - Draft Letter of Support 7-3 ATTACHMENT A AGREEMENT REGARDING EMERGENCY DIVERSIONS OF RECYCLED WATER TO THE SAN DIEGO CREEK WATERSHED This AGREEMENT REGARDING EMERGENCY DIVERSIONS OF RECYCLED WATER TO THE SAN DIEGO CREEK WATERSHED ("Agreement") is made and entered into as of this 27th day of February, 2018 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City") and the IRVINE RANCH WATER DISTRICT, a California water district organized and existing pursuant to the California Water District Law, California Water Code Section 34000 et seg. ("IRWD"), and is made with reference to the following: RECITALS A. City and IRWD are parties to an agreement dated December 21, 2011 ("2011 Intertie Agreement"), regarding the construction and operation of an intertie to convey recycled water from IRWD's Michelson Water Recycling Plant ("MWRP") to Orange County Water District's Green Acres Phase II pipeline and the establishment of operating conditions for use of the ocean outfall at the Orange County Sanitation District's Plant No. 2 in the City of Huntington Beach. B. IRWD seeks an amendment to its National Pollutant Discharge Elimination System permit ("Permit") for the MWRP from the Santa Ana Regional Water Quality Control Board ("Board") to allow for, among other things, the emergency diversion of recycled water to the San Diego Creek Watershed during emergency conditions. C. The purpose of this Agreement is to memorialize the understanding of City and IRWD regarding the emergency conditions when IRWD may divert recycled water to the San Diego Creek Watershed. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. CITY ACKNOWLEDGMENT AND AGREEMENT City hereby acknowledges and agrees to IRWD's ability to divert recycled water to the San Diego Creek Watershed in emergency conditions provided that any such diversion satisfies all of the conditions set forth in that certain "Side Letter Regarding Emergency Diversions of Recycled Water to the San Diego Creek Watershed" ("Side Letter") attached hereto as Exhibit A and incorporated herein by this reference. 2. IRWD ACKNOWLEDGMENT AND AGREEMENT IRWD hereby acknowledges and agrees that it will abide the conditions of the Side Letter and the Permit, as amended, prior to any diversion of recycled water into the San Diego Creek Watershed in emergency conditions. [SIGNATURES ON NEXT PAGE] r IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: Aaron C. Harp City Attorney ATTEST: Date: By: Leilani Brown City Clerk APPROVED AS TO FORM: Date: By: Alfred E. Smith, II General Counsel CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Dave Kiff City Manager IRVINE RANCH WATER DISTRICT Date: in Paul Cook General Manager [END OF SIGNATURES] Irvine Ranch Water District 2 7-5 rn La Irvine Ranch WATER DISTAi CT EXHIBIT A Side Letter Regarding Emergency Diversions of Recycled Water to the San Diego Creek Watershed This Side Letter memorializes the understanding of the City of Newport Beach ("City") and the Irvine Ranch Water District ("IRWD") regarding the emergency conditions when IRWD may divert recycled water to the San Diego Creek Watershed. City and IRWD's understanding is that IRWD will not undertake emergency diversions of recycled water to the San Diego Creek Watershed without first doing all of the following: 1. Stop importing water purchased from the Metropolitan Water District to augment the IRWD recycled water system; 2. Shutoff all irrigation water wells providing water to the recycled water system; 3. Stop producing recycled water at the Los Allsos Water Recycling Plant; 4. Send recycled water without charge to the Orange County Water District through the Green Acres Project consistent with the intertie agreement dated December 21, 2011; 5, If possible, shutoff all Department of Justice wells that deliver water into the recycled water system, while still complying with the Record of Decision with the Department of the Navy pertaining to the operation of these wells; 6. Send all allowable recycled water (subject to physical conveyance capacities) to South Orange County Wastewater Authority outfall; 7. IRWD to confirm and document that Orange County Water District and Orange County Sanitation District cannot take additional recycled water flow; 8. Continue working diligently towards the completion of the following: a. Constructing, funding, and implementing a feasible connection between the Green Acres Pipeline and the Santa Ana River on or before the expiration of IRWD's NPDES Permit on June 30, 2020 and providing regular updates to the City on IRWD's progress; b. Constructing and providing additional feasible recycled water storage by expanding the Syphon Reservoir as soon as possible, including performing all environmental review, design, permitting, and construction activities necessary for such storage and providing regular updates to the City on IRWD's progress; and c. Conducting workshops and stakeholders meetings with City and other stakeholders to obtain input on the terms and conditions of IRWD's renewal of the NPDES Permit. In the event all of the above items have been satisfied and there still exists an emergency situation where IRWD must divert recycled water into the San Diego Creek Watershed, IRWD must use its best efforts to notify the City at least 48 hours prior to an emergency discharge. Date: Paul Cook General Manager Irvine Ranch Water District Irvine Ranch Water District -15600 Sand Canyon Ave., Irvine, CA 92616 • Mailing Address: P.O. Box 57000. Irvine, CA 92519-7000 . 949-453-5300 . www.lrwd.corn A-1 7-6 .SwPb February 21, 2018 Paul Cook, General Manager Irvine Ranch Water District P.O. Box 57000 Irvine, CA 92619-7000 CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3001 1 949 644-3020 FAX hewportbeachca.gov Re: City's Conditional Support of Amendment to IRWD's Michelson Water Recycling Plant's NPDES Permit Dear Mr. Cook, The City of Newport Beach appreciates the efforts of Irvine Ranch Water District (IRWD) to include the City's Water Quality & Coastal Tidelands Committee, staff, and the public in the discussions regarding IRVVD's efforts to amend the National Pollution Discharge Elimination System (NP DES) permit for its Michelson Water Recycling Plant. Presentations at the Water Quality & Coastal Tidelands Committee meetings and the presentations from IRWD, Orange County Sanitation District, and Orange County Water District at the October'26, 2017 Workshop were very useful in understanding IRWD's challenges and ort*4ng corriffmentto improving the water quality in the Newport Bay. The City and IRWD she mtrtual concern for the environment and water quality of the Bay and the ocean. 19WUs operation of the San Joaquin Marsh and other facilities implemented to remove pollutants before they enter the Upper Newport Bay benefit the entire community. We too have invested many years in preserving and improving water quality for the enjoyment of our residents, visitors and future users of the Bay and ocean. Further, the City appreciates IRWD's commitment that it will continue to move forward with implementation of systems to treat or divert to the IRWD sewer low -flow runoff from Bonita Canyon, Sand Canyon and the UCI culvert, further improving the quality of the water entering the Bay. City's Conditional Support of Amendment to IRWD's Michelson Water Recycling Plant's NPDES Permit February 27, 2018 Page 2 The City conditionally supports IRWD's amendment to its Michelson Water Recycling Plant's NPDES permit to allow for "emergency diversions" of recycled water into San Diego Creek. The City's support is conditioned on IRWD fof their efforts, and we look forward to regular updates regarding your progress. Should you have any questions, please contact Mark Vukojevic, Deputy Public Works Director at (949) 644-3319. Sincerely, David Kiff, City Manager City of Newport Beach Cc: Hope Smythe, Executive Director, Santa Ana Regional Water Quality Control Board Dave Webb, Director of Public Works, City of Newport Beach