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HomeMy WebLinkAboutSS02 - Green Acres Project UpdateSeptember 13, 1999 CITY COUNCIL STUDY SESSION ITEM NO. 2 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: GREEN ACRES PROJECT UPDATE The Green Acres Project was developed by the Orange County Water District (OCWD) over the last 15 years to provide reclaimed water for irrigation to some areas in the County. In November 1990, Newport Beach agreed to join the Orange County Water District's (OCWD) Green Acres Project and committed to a program that utilized approximately 800 acre /feet of water per year. This is a status report to provide information on how much has been implemented and what needs to be done to complete the program. HISTORY: The OCWD is the groundwater basin manager for Northern and Central Orange County. Approximately 70% of the Northern and Central Orange County cities and water districts pump water from wells in this basin, including the City of Newport Beach. In an effort to conserve the water supply and protect the groundwater basin, OCWD initiated the Green Acres Reclaimed Water Project (GAP). OCWD is a national leader in reclamation and serves as a model agency for conservation efforts. In the mid 1980's, OCWD began discussions with the City to consider the extension of the Green Acres Reclaimed Water Project into Newport Beach. In November 1990 the City agreed to be a part of the project. There were 6 planned users of reclaimed water within the City of Newport Beach: • Newport Beach Country Club • Big Canyon Country Club • Corona del Mar (CDM) High School • Eastbluff Middle School • The Bluffs Homeowners Association • The City of Newport Beach The City sites include Bonita Creek Park, Eastbluff Park and the Jamboree Road medians. In the summer of 1995, the City completed the Bonita Creek Park Irrigation Improvement Project, in preparation for reclaimed water. Major modifications to the irrigation system and controls were completed at a cost of $60,000. The actual conversion will be done this next year at an estimated cost of $35,000. SUBJECT: Green Acres Project Update. September 13, 1999 Page 2 Due to the County's bankruptcy in December 1995, GAP expansion into Newport Beach was put on hold. OCWD reconsidered the costs and benefits of the expansion project and deemed it "low priority." In 1996 the Irvine Ranch Water District (IRWD) proposed to discharge their excess reclaimed water into Upper Newport Bay during the winter months. This led to an agreement between 3 agencies (OCWD, IIRWD, and City of Newport Beach) to implement the " Intertie Project." The Intertie Project linked IRWD's reclaimed water system with OCWD's GAP and allows the surplus IRWD water planned for discharge to the Upper Bay to be used as part of the Green Acres system. The OCWD constructed the GAP extension into Newport Beach at a cost of approximately $4,000,000. IRWD spent a little over $2,000,000 to make the intertie connection at University Drive and Jamboree Road (see attached exhibit). Through the cooperative efforts of the City, IRWD and OCWD, direct discharges of reclaimed water into the bay have been eliminated and a backbone reclaimed water transmission system has been completed to provide reclaimed water service to the City. WHY USE RECLAIMED WATER? Any conservation effort, like reclaimed water use, will help reduce the demand on the potable water supplies. The cost of providing reclaimed water is actually higher than what the City can produce domestic water for from its wells in Fountain Valley. However, being a member of OCWD and realizing water is a valuable resource, the City, the Bluffs, NMUSD, Big Canyon and Newport Beach Country Clubs agreed to do their parts. As long as water is being used and wastewater is produced, the ability to produce reclaimed water will be available in a drought situation. This issue may not seem important with last year's record El Nino storms. Even in this years La Nina event, the Northern California mountains still got a significant snow pack which will allow adequate supply from the California Aqueduct. Orange County receives half its imported water supply from Northern California through the California Aqueduct system and the other half from the Colorado River through MWD's Aqueduct system. The imported water supply, which the City is 25% dependent upon, has its limitations. For example, this past June, the California Aqueduct reached its environmental limit in the amount of Delta Smelt (a tiny little fish) that got through the main pumping plant at the start of the system. The State was forced to shut down the aqueduct and effectively cut the MWD supply in half for the month of June. If that scenario continued, MWD would be forced into an administrative drought resulting in water rationing for all of Southern California. During drought times, parks and golf courses will be the first to be restricted for domestic water use. The Newport Beach and Big Canyon Country Clubs realize how important a green golf course is. No water, no grass. The same would be true for the City parks. Reclaimed water is a source that can be relied on for these uses at all times. REVIEW OF CITY ACTIVITIES: The conversion from potable water to reclaimed water for an existing irrigation system is a complex process. The main concern is that no "cross- connection" exists between the existing irrigation system and any adjacent domestic system. A clear and defined separation must exist between the domestic irrigation and the planned irrigation system \\mis_t\sys \userslpbw\ shared\ council \ry99- 00\september- 13\green acres.doc SUBJECT: Green Acres Project Update. September 13, 1999 Page 3 that will utilize reclaimed water. For example on the Big Canyon Country Club course, each part of the irrigation system was tested to prove that no connection existed between the homeowners' irrigation system and the proposed reclaimed system. The same efforts have taken place for the Bluffs Homeowners Association this past summer. During the course of the Bluffs' investigation, over 40 actual and potential cross connections were discovered. Each of these connections had to be corrected before the site could be approved for reclaimed water use. The first City site to receive Green Acres reclaimed water was the City's Jamboree Road medians, which came on line this past spring. The Big Canyon Country Club also came on line in May. The Newport Beach Country Club will begin receiving reclaimed water in October. The end user agreements provided for the City to be responsible for the construction of the pump stations at each of the golf courses. The City is obligated to construct, operate and maintain the pump stations. The City also agreed to pay for the first 10 years of energy costs estimated to be $10,000 per year. After the 10t' year, each golf course will pay for its own power. The total construction cost of the pump stations was approximately $750,000. The Eastbluff Middle School fields also began irrigating with reclaimed water this past spring. CDM High School was scheduled this year, but after extensive investigation of the on -site irrigation system, it was apparent that a simple conversion and retrofit would not be feasible. The 30 -year old system is in need of replacement and the Newport Mesa Unified School District (NMUSD) does not have the funds to spend on the new system at this time. Improvements to the 2 City sites, Eastbluff Park and the final connections for the Bonita Creek Park, will be completed in mid -2000. Because the irrigation system at Eastbluff Park is also 30 years old, it is recommended that the entire irrigation system be replaced as part of the retrofit project and that some park funds be utilized. The total cost for both locations is estimated to be $250,000 ($215,000 at Eastbluff, $35,000 at Bonita Creek). The attached table compares the estimated costs that were expected in 1995 to the actual expenditures to date along with estimated costs of work yet to be completed. The future Arroyo and Bonita Canyon Park sites will have reclaimed irrigation water when the parks are developed. These areas will be served by the IRWD. THE BLUFFS HOMEOWNERS ASSOCIATION: The Bluffs Homeowners Association (Bluffs) was one of the first to sign the required "End - User Agreement" in September 1996, as a requirement of OCWD to proceed with the Green Acres Extension and Intertie Project, but they have not converted to reclaimed water yet. During the time when the End -User Agreement was being executed, the Association had requested that funding assistance be provided to allow them to construct the improvements necessary to convert the irrigation system to reclaimed water. The City Council agreed to loan the money at an interest rate of 6.4 %, to be paid back with the savings on the water \Mis_1\sys\users\pbw\ shared\ coundl \ty99.00\september- 13\green acres.doc SUBJECT: Green Acres Project Update. September 13, 1999 Page 4 bill. The reclaimed water rate is 80% of domestic water rate and the loan could be paid back with the savings they receive from the use of reclaimed water. The 6.4% interest rate was developed by IRWD, who agreed to loan the City up to $500,000, if the City needed to assist the End -Users in the retrofit costs. In a letter dated March 18, 1999, the Association requested $145,000 in funding for their necessary retrofit efforts. This money will be used for the materials and added staff efforts to construct the retrofit improvements. The Association's retrofit efforts were originally estimated to be $232,000 in 1996. In addition, City assistance for contract administration was also envisioned. There are 2 options for funding this loan. The first and recommended alternative would be for the City to loan the $145,000 out of the Water Enterprise Fund Reserves to be paid back over a 10 year period in annual installments, at an interest rate consistent with the return the City earns on its investments (6% to 6.5 %). The second alternative would be for the City to borrow the $145,000 from IRWD, as established in the Intertie: Agreement. The City would subsequently loan the same money to the Association. Through the agreement, IRWD agreed to loan the money to the City at an annual 6.4% interest rate. In 1996 the City agreed to loan the money received from IRWD to the Association with no administrative mark -up. In 1996 the reason the City considered borrowing the money from IRWD was because the City experienced a low Water Enterprise Fund Reserve due to the Groundwater Development Project expenditures in 1995 and 1996. Since that time, reserves have been reestablished and there are adequate funds available to absorb the $145,000 loan. In addition, the added administrative burden of borrowing money from IRWD would not prove cost effective. Based on information provided by the City Council at the Study Session, an item will be placed on the September 27th agenda to provide a loan to the Bluffs Association. Respectfully subm'tted, 0 PUBLIC WORKS DEPARTMENT Don Webb, Director Michael J. Sina rl, P.E. r° Utilities Engine Attachments: Location of OCWD /IRWD Reclaimed Water Intertie Facilities, November 1997. Financial Summary of Estimated Retrofit Costs verses Actual Expenditures. \\mis_l\sys \userslpbw\ shared\ council \ty99-00\september- 13\gmen acres.doc ORANGE COUNTY WATER DISTRICT GREEN ACRES RECLAIMED WATER PROJECT SUMMARY OF ESTIMATED CITY COST VERSUS ACTUAL EXPENDITURES AND 1999 COST ESTIMATES September 13, 1999 (1) Direct City costs relating to the retrofits. (2) Big Canyon Country Club embarked on an extensive remodeling, including a complete new irrigation system. As part of their End -User Agreement, OCW D contributed $500,000 toward the project and the City provided a $108,000 grant. (3) Newport Beach Country Club committed =at of their course in the early 19905. OCW D contributed $200,000 to their final conversion costs. The City provided a $91,000 grant. (4) Cost increases for both pump stations sites were mused from the adding of a block building at each site to extend the Iffe of the pump stations. The costs for the pump units themselves also were much higher that anticipated, $246,000 at BCCC and $150,000 at NBCC. (5) Retrofit Costs are unknown at this time. However, NMUSD will fund this site without assistance from the City. (6) Retrofit Costs were paid by NMUSD (7) Actual Engineers estimate is NOT complete at this time. This project will include a complete replacement of the 30 year rid irrigation system. This will insure proper irrigation coverage and no reclaimed water ponding. (8) In addition to the retrofit costs, this project included modifications to better prepare for the reclaimed water as well as overall system improvements, (9) Majority of the effort was completed with the Citys on -going landscape maintenance contractor. (10) Originally the City expenditures were only expected to be $750,ODO including the City Grants to the two golf courses. ESTIMATED ESTIMATED ESTIMATED 1999 WATER RETROFIT SAVINGS PAYBACK ESTIMATE & USAGE COSTS TO USER TO USER RETROFIT USER (AF/YR) ($) (Per Year) (Years) COSTS (1) Big Canyon Country Club 410 $640,000 $61,000 3.9 $108,000 (2) City Pump Station Costs $100,000 - - $416,639 (4) Newport Beach Country Club 300 $105,000 $53,000 2 $91,000 (3) City Pump Station Costs $70,000 - - $251,379 (4) Bluffs Homeowners Association 110 $232,000 $19,600 11.8 $145,000 CDM High School (athletic fields) 60 $41,000 $10,700 3.8 (5) Eastbluff Elementary School 18 $12,000 $3,200 3.8 $12,000 (6) (soccer field only) Eastbluff Park 25 $25,000 $3,300 5.6 215,000 (7) Bonita Creek Park 28 $29,000 $5,000 6 $95,000 (a) Medians on Jamboree Road 9 $20,000 $1,600 12.5 $5,000 (9) (7 meters) TOTAL $1,274,000 $1,339,218 (10) (1) Direct City costs relating to the retrofits. (2) Big Canyon Country Club embarked on an extensive remodeling, including a complete new irrigation system. As part of their End -User Agreement, OCW D contributed $500,000 toward the project and the City provided a $108,000 grant. (3) Newport Beach Country Club committed =at of their course in the early 19905. OCW D contributed $200,000 to their final conversion costs. The City provided a $91,000 grant. (4) Cost increases for both pump stations sites were mused from the adding of a block building at each site to extend the Iffe of the pump stations. The costs for the pump units themselves also were much higher that anticipated, $246,000 at BCCC and $150,000 at NBCC. (5) Retrofit Costs are unknown at this time. However, NMUSD will fund this site without assistance from the City. (6) Retrofit Costs were paid by NMUSD (7) Actual Engineers estimate is NOT complete at this time. This project will include a complete replacement of the 30 year rid irrigation system. This will insure proper irrigation coverage and no reclaimed water ponding. (8) In addition to the retrofit costs, this project included modifications to better prepare for the reclaimed water as well as overall system improvements, (9) Majority of the effort was completed with the Citys on -going landscape maintenance contractor. (10) Originally the City expenditures were only expected to be $750,ODO including the City Grants to the two golf courses.