HomeMy WebLinkAbout11-26-1990 Item #F3c•
November 26, 1990
NOV 2 61990
CITY COUNCIL AGENDA
ED I ITEM NO. )C-3 (C)
TO: CITY COUNCIL
FROM: Utilities Department C _ 2A-q2-
SUBJECT: GREEN ACRES RECLAIMED WATER PROJECT (OCWD)
NEWPORT BEACH PROJECT EXPANSION AGREEMENT
RECOMMENDATIONS:
Approve the revised "Retailer Agreement for Sale and
Distribution of Green Acres Project Water" with the
Orange County Water District.
DISCUSSION:
On May 29, 1990 the City Council adopted resolution
number 90 -49 supporting the City's participation in the project. At that
meeting the Council also authorized staff to negotiate and finalize an
agreement governing the City's participation in the Orange County Water
District's, (OCWD's), aggressive program to conserve water and maximize
the beneficial use of the groundwater basin.
OCWD and its respective members have adopted a program
to manage the county's groundwater resources efficiently and to conserve
water wherever possible. One of the principal components of the
conservation effort has been the development of a reclaimed wastewater
irrigation system named the "Green Acres Project ", hereinafter, "GAP"
project. The project is operational in parts of Fountain Valley, Santa Ana
and Costa Mesa. Expansion of the project is planned for the Cities of
Huntington Beach and Newport Beach.
The project concept is to take treated wastewater effluent
from the Orange County Sanitation District's treatment plants and provide
additional treatment to higher (tertiary) standards for delivery through
the "Green Acres Project" pipelines for irrigation of parks, green -belts
and golf courses. This will reduce the demand on the City's potable water
supply system.
Newport Beach participation in the "GAP "project will
potentially save the City approximately 1500 acre -feet (487 million gallons)
of water annually. This amount equates to about 11% of the City's demand.
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Green Acres Project' Particie
November 26. 1990
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The Agreement under consideration provides for City of
Newport Beach participation with the substantial majority of costs for
expansion of the "GAP" project to be borne by OCWD. The key points of
the Agreement are summarized as follows:
1. OCWD buys secondary treated wastewater effluent from
the Orange County Sanitation District and transports it from the
Sanitation District treatment plant to an OCWD treatment facility.
2. OCWD constructs (expands) and operates a treatment
facility, Water Factory 21, to treat the secondary effluent to
tertiary standards and will deliver high quality wastewater effluent
to the "Green Acres Project" pipelines.
3. OCWD designs & installs all "Green Acres Project"
water transmission pipelines from the treatment plant to the
Newport Beach delivery points. All installations in accord with
City standards.
4. OCWD funds and installs all customer meters in
accord with City standards. Additionally, OCWD funds all meter
and backflow device retrofits to the potable water connections of
customers who connect to the "Green Acres Project" system.
5. City agrees to maintain the portion of the "Green Acres"
delivery pipeline including meters and service connections within
the boundary of its sphere of influence. OCWD will reimburse the
City for maintenance and replacement costs.
6. City agrees to purchase the reclaimed water at a rate
equal to 80% (eighty percent) of the local cost of producing
groundwater. Approximately $125 per acre -foot.
7. City agrees to sell reclaimed water to Newport Beach
customers at a rate equal to 80% (eighty percent) of the current
City retail rate for potable water service. Newport Beach keeps
the excess over costs as payment for administration, billing,
enforcement and monitoring of the project system and deliveries.
8. City agrees to read all meters, bills customers and
collects funds for reclaimed water deliveries.
9. City agrees to adopt a standard set of "Rules &
Regulations" for the use of "GAP" project water. City to establish
an ordinance which shall include enforcement guidelines and
penalties for violating the "GAP" project regulations.
10. Term of the agreement is 25 years with a clause for an
additional 25 year renewal.
Z
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Green Acres Project" Partici
November 26, 1990
In accord with item #9., above, OCWD has prepared a set of
standard "rules & regulations for the use of reclaimed water' a form of
which must be adopted by the agencies receiving reclaimed wastewater
from OCWD. In accord with the Council's previous recommendation and
the terms of the Agreement under consideration, staff is reviewing these
documents and is in the process of tailoring them to Newport Beach and
is drafting an ordinance for your consideration. The ordinance will set
forth enforcement.of the "rules & regulations" of administering the "GAP"
project.
The tentative schedule for implementation of the "GAP"
project, phase II, into Newport Beach has been changed by OCWD due
to state grant funding considerations for the construction of the project.
The revised schedule calls for OCWD to enter into contracts for
construction by January 1, 1993 with completion committed prior to
June 1, 1995. This new schedule represents a slip in the schedule of
about 30 months. A detailed explanation for this has not been provided.
It is possible, however, to accelerate the schedule should other funding
mechanisms become available to the District.
The project concept and its benefits to the City have been
reviewed and recommended by the Utilities Committee.
Utilities Director
JS: Sai
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