Item 8 - Status Report on Purchase of Reclaimed Water from City of Escondido
~ iGENDA REPORT
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council and
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Dir~
INITIATED BY: Mark S. Weston, Director of Engineering Services -IJ}
, . ,
DATE: April 28, 1992
SUBJECT: Status Report on Purchase of Reclaimed Water I
From the City of Escondido
ABSTRACT
On December 10, 1991, staff presented a status report of the City of Escondido
reclaimed water project. Council directed staff to initiate discussions and develop
draft agreements with the City of Escondido. The City contracted with the
consultants of Greeley and Hansen Engineers to prepare a Preliminary Master Plan for
the Distribution of Reclaimed Water, Phase III (North Poway). The results of the
Preliminary Master Plan suggest that purchasing reclaimed water from the City of
Escondido for the North Poway area is cost-competitive with potable water.
Staff recommends that Council direct staff to finalize the Master Plan; initiate an
EIR for the distribution system; develop draft agreements with the City of
Escondido, the City of San Diego, and the County Water Authority for the purchase
and transmission of reclaimed water; investigate low interest loans through the
State Revolving Fund; submit permit applications to the Regional Water Quality
Control Board; authorize the use of $120,000 of budgeted funds for the water
reclamation to complete this work; and approve two benefit resolutions.
BACKGROUND
On December 10, 1991, staff submitted a status report for the construction of a
reclaimed water facility by the City of Escondido. The City of Escondido is fast-
tracking the upgrade of the Hale Avenue Wastewater Treatment Plant to full Title 22
standards. The reclaimed water produced from this facility will be marketed to the
greater Escondido area. Escondido is targeting Olivenhain Municipal Water District,
Rincon Water District, City of San Diego, and the City of Poway as potential
purchasers of reclaimed water. Staff has conducted several meetings with the City
of Escondido to discuss the possible purchase of reclaimed water from their new
system. City staff contracted with Greeley and Hansen Engineers to prepare a
ACTION:
II
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Status Report on Purchase of Reclaimed Water From the City of Escondido
Apri 1 28, 1992
Page 2
Preliminary Reclaimed Water Distribution System Master Plan Report for North Poway
to determine the cost-effectiveness of delivering reclaimed water from Escondido to
the North Poway area. . In addition, the Prel iminary Master Plan determined preferred
alignments and the increased sizes in the Escondido distribution pipeline system to
accommodate deliveries of reclaimed water to both the City of Poway and the City of
San Diego, south of Lake Hodges. The City's consultants identified reclaimed water
demands in the North Poway area and have identified a potential average demand of
1.44 million gallons per day (MGD) equaling 1,620 acre feet per year, with a peak
month demand of 3.11 MGD.
On March 3, 1992, the City Council approved the submittal of a Letter of Intent to
purchase reclaimed water from the City of Escondido. This Letter of Intent was
included in their low interest loan application submitted to the State Revolving
Fund. Escondido has requested that we contact each one of the intended users in
Poway to develop agreements for the delivery and use of the reclaimed water.
FINDINGS
The Preliminary Reclaimed Water Distribution Master Plan, Phase III Report for North
Poway has identified a market of 1,620 acre feet per year with an average daily
demand of 1.44 MGD and a peak month demand of 3.11 MGD. (See Exhibit 1.) This
volume of reclaimed water equates to approximately 12% of our annual water
production in 1992. The City's consultant identified six alternative pipeline
alignments to deliver water from the Escondido system to the North Poway area. In
addition, the consultants analyzed the North Poway distribution system with and
without the City of San Diego joining the City of Poway in connecting to Escondido.
The Master Plan also identifies a significant market of reclaimed water in the North
San Diego area which could be supplied by the City of Escondido. If the City of San
Diego and Poway construct a mutually beneficial distribution system, the unit costs
for reclaimed water significantly decrease for the City of Poway.
The City of Escondido is proposing to sell reclaimed water from their distribution
system to the City of Poway at 90% of the San Diego County Water Authority
uninterruptable, untreated water rate. The City of Poway would pay for the
oversizing of pipelines within the Escondido system and would construct the
distribution system from the City of Escondido to the City of Poway. Currently the
County Water Authority and the Metropolitan Water District have incentives totaling
$254 per acre foot for the construction of reclaimed water facilities which replace
a demand on the potable water system. A summary of the projected costs of reclaimed
water for the North Poway area are shown in Exhibit 2 for the least costly
alignments. The least costly alignment uses the County Water Authority easement
across San Pasqual Valley and follows Sycamore Creek into Poway through the Old
Coach Project.
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- Status Report on Purchase of Reclaimed Water From the City of Escondido
April 28, 1992
Page 3
In summary, the retail cost of reclaimed water with the maximum CWA/MWD incentives
suggest that the reclaimed water could be delivered to Poway for $514-649 per acre
foot in 1992, while the potable water rate is anticipated to be $573. In 1998 the
costs of reclaimed water will be between $754 to $898 per acre foot, while the cost
of potable water is $832 an acre foot. The retail cost of reclaimed water can be
significantly decreased by the participation by the Redevelopment Agency,
developers, and/or the Water Expansion Fund in the capital costs of the reclaimed
water distribution system. Approximately one-half of the retail costs of reclaimed
water is attributed to the annual capital costs for distribution system.
The County Water Authority is projecting significant increases to the raw water
costs. In 1993, raw water is expected to cost about $330 per acre foot and, by the
year 2000, it will increase to about $67D per acre foot. These increases make
reclaimed water financially cost effective.
The purchase of reclaimed water from the City of Escondido appears to be cost
competitive with potable water delivery in the North Poway area. This project would
reduce the demand on Poway's potable water system, thus, deferring and possibly
avoiding expansion of our existing water treatment plant at a significant savings to
the water customers. Contributions to the cost of the reclaimed water distribution
system may be justified from the Redevelopment Agency or the Water Expansion Fund.
These issues will be further investigated by staff.
As a result of the findings in the preliminary study for reclaimed water in the
North Poway area, staff recommends the following: finalize Master Plan; initiate
EIR for the distribution system; develop draft agreements with the City of
Escondido, the City of San Diego, and the County Water Authority; prepare a low
interest loan application; submit a permit application with the Regional Water
Quality Control Board; fund these work tasks; and, approve two benefit resolutions.
FISCAL IMPACT
The preliminary report for the reclaimed water distribution system costs $17,000.
The estimated costs to complete the Master Plan is $70,DOO. An EIR is anticipated
to cost $50,000. The estimated total construction costs for the distribution system
for North Poway, including pipelines, reservoirs, and pump stations is $9,700,000
with an annual capital cost of $845,300 and an annual O&M cost of $139,900 for a
Poway only distribution system. If the City of Poway joins the City of San Diego,
the total capital costs to the City of Poway would be $7,890,000 with an annual
capital cost of $682,ODO and an annual O&M cost of $85,100. Costs are based on
1992-93 cost estimates.
ENVIRONMENTAL REVIEW
The Preliminary Master Plan is a ministerial action and is exempt from C.E.Q.A.
review. If the City proceeds with the development of a reclaimed water distribution
3 of 11 !\Dq. 2 8 1992 -.......'1I1't 8
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Status Report on Purchase of Reclaimed Water From the City of Escondido
April 28, 1992
Page 4
system project in the North Poway area, the City will prepare an EIR to meet
C.E.Q.A. requirements.
PUBLIC NOTIFICATION AND COMMUNICATION
Standard distribution, City of Escondido, the City of San Diego Clean Water Program,
and Mr. Ted Reynolds.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency adopt benefit
resolutions and direct staff to complete the following tasks relative to purchasing
reclaimed water from the City of Escondido.
1. Finalize the Reclaimed Water Distribution Master Plan, Phase III for
the North Poway area.
2. Initiate an EIR for the construction of a reclaimed water
distribution system in the North Poway area.
3. Prepare draft agreements with the City of Escondido, the City of San
Diego, and the County Water Authority to implement the purchase of
reclaimed water and the use of easements across these jurisdictions.
4. Prepare a low interest loan package for submittal to the State
Revolving Fund and to the Office of Water Recycling for low interest
loans offered through the State.
5. Submit a permit application for use of reclaimed water use with the
Regional Water Quality Control Board.
6. Authorize the use of $120,000 of money previously budgeted for the
City of Poway's water reclamation project (5801) to prepare a Master
Plan and the EIR for this project.
7. Prepare a Letter of Intent with users in the North Poway area.
JLB:MSW:dew
Attachments: Exhibit 1 - Identified Reclaimed Water Demands -
Northern Poway
Exhibit 2 - Projected Cost of Reclaimed Water for the
North Poway Area
Exhibit 3 - MWD/CWA Water Rates
Exhibit 4 - City Benefit Resolution
Exhibit 5 - Redevelopment Agency Benefit Resolution
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CITY OF POWAY
I RECLAIMED WATER DISTRIBUTION SYSTEM
MASTER PLAN PHASE III (North poway)
-..
I Table iA ,
. Identified Reclaimed Water Demands - Northern Powav
I Assumed Assumed
Approx. Irrigation Average Peak Month Irrigation Peak Hour
Potential User Irrigated Rate Demand Demand 3 Period Demand
I Acrest (Ac-PIIAdYr) (Iw:-PlIYr) (MOO) (MOD) (HnlDaJ) (MOD)
I Old Coach Golf Course 300 2.i 4 6392 0.572 i.232 20 1.48
Stoneridge Golf Course 120 3.64 4372 0.392 0.672 8 2.0i
I Valle Verde Park 4 2.5 10 0.01 0.02 8 0.07
I Poway High School 12 2.5 30 0.03 0.07 8 0.20
Espola Roadway 4 2.5 10 0.01 0.02 8 0.07
I Painted Rock School 5.4 2.5 13.5 0.01 0.03 8 0.09
I _ Lake poway Park 60 2.5 150 0.13 0.33 8 1.00
Malone Ranch 240 i.251 300 0.27 0.67 20 0.80
I Chaparral School &
Panorama Hills Park 11 2.5 27.5 0.02 0.06 8 0.18
I Totals 756 1,617 1.44 3.11 5.90
I 1 Eltimatel provided by the City of Pow.y.
1 Demand estimate provided by lIscr.
I 3 Peat mODth demand is assumed to be 2.5 timcslbc average dcmud.
.. Calculated bued on given acreage and demand.
I
I
I
I
I Greeley and Hansen/HYA EXHIBIT 1 March 1992
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PROJECTED COST OF RECLAIMED WATER FOR THE NORTH POWAY AREA
Purchase Distribution CWA/MWD Reta i1 Potable
Cost from System Incentive Cost of Water
Escondido Cost Reclaimed Rate
Water
($/Ac-ft\' ($/Ac-Ft) ($/Ac-Ft\ ($/Ac-Ft\2 ($/ Ac- Ft \3
1993
Powav w/o San Dieao 294 609 (254\ 649 573
Poway w/ San Dieao 294 474 (254\ 514 573
1998
Poway w/o San Dieao 518 634 (254) 898 832
Powav w/ San Dieao 518 489 (254) 754 832
'Ninety (9D) percent of SDCWA noninterruptable, untreated water rate.
2Assumes current maximum rate of $254. (May be limited to amount which would make
reclaimed water equal to potable water rate.)
3Estimated based on 5 percent inglation and 3/5/92 SDCWA projections.
4128/92
lagenda/projected.tab
EXHIBIT 2
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7 of 11 EXHffiIT 3
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RESOLUTION NO. 92-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, STATE OF
CALIFORNIA DETERMINING THAT THE PLANNING AND ENVIRONMENTAL REVIEW
FOR A RECLAIMED WATER SYSTEM IN NORTH POWAY TO BE OF BENEFIT
TO THE PAGUAY REDEVELOPMENT AGENCY
WHEREAS, the Poway Redevelopment Agency will undertake the planning and
environmental review for a reclaimed water system in North Poway (5801); and
WHEREAS, the proposed projects are within the Paguay Redevelopment
Project and pursuant to the Redevelopment Plan for the project, which
Redevelopment Plan was adopted on December 13, 1983 by Ordinance No. 177 of
the City Council; and
WHEREAS, Section 33445 of the California Health and Safety Code requires
the Agency to determine the issue of benefit to the Paguay Redevelopment
Project prior to expenditure of funds and that no other reasonable means of
financing is available; and
WHEREAS, the proposed project would reduce the demand on Poway's potable
water system, thus, deferring and possibly avoiding expansion of our existing
w~ter treatment plant at a significant savings to the water customers; and,
WHEREAS, such savings would be of benefit to the entire project area.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Poway
as follows:
1. The Council finds that funding the planning and
environmental review for this project is of benefit in
that it provides the necessary funding to undertake
the planning and environmental review to complete the
preliminary study of the reclaimed water project.
2. The Council determines that pursuant to Health and
Safety Code 33445 (a) the reclaimed water project is
of benefit to the project area; and, (b) no other
reasonable means of financing the project is available
to the City of Poway.
Exhibit 4
8 of 11 "O~ 2 8 1902 ,..,,'--'\,.... 0
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Resolution No. 92-
Page 2
PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway,
California, at a regular meeting thereof this 28th day of April, 1992.
Jan Goldsmith, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
~_.- I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby
certify under penalty of perjury that the foregoing Resolution No. 92-
was duly adopted by the City Council at a meeting of said City Council held on
the 28th day of April, 1992, and that it was so adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Clerk
City of Poway
9 of 11 APR 2 8 1992 ITE1~ 0
(>
RESOLUTION NO. R-92-
A RESOLUTION OF THE POWAY REDEVELOPMENT AGENCY
DETERMINING THAT THE PLANNING AND ENVIRONMENTAL REVIEW
FOR A RECLAIMED WATER SYSTEM IN NORTH POWAY TO BE OF BENEFIT
TO THE PAGUAY REDEVELOPMENT AGENCY
WHEREAS, the Poway Redevelopment Agency will undertake the planning and
environmental review for a reclaimed water system in North Poway (5801); and
WHEREAS, the proposed projects are within the Paguay Redevelopment
Project and pursuant to the Redevelopment Plan for the project, which
Redevelopment Plan was adopted on December 13, 1983 by Ordinance No. 177 of
the City Council; and
WHEREAS, Section 33445 of the California Health and Safety Code requires
the Agency to determine the issue of benefit to the Paguay Redevelopment
Project prior to expenditure of funds and that no other reasonable means of
financing is available; and
WHEREAS, the proposed project would reduce the demand on Poway's potable
water system, thus, deferring and possibly avoiding expansion of our existing
water treatment plant at a significant savings to the water customers; and,
WHEREAS, such savings would be of benefit to the entire project area.
NOW, THEREFORE, THE POWAY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS
FOLLOWS:
1. The Agency finds that funding the planning and
environmental review for this project is of benefit in
that it provides the necessary funding to undertake
the planning and environmental review to complete the
preliminary study of the reclaimed water project.
2. The Agency determines that pursuant to Health and
Safety Code 33445 (a) the reclaimed water project is
of benefit to the project area; and, (b) no other
reasonable means of financing the project is available
to the City of Poway.
Exhi bit 5
10 of 11 APR 2 8 1992 ITEM 0
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- Resolution No. R-92-
Page 2
PASSED, ADOPTED AND APPROVED, by the Redevelopment Agency of the City of
Poway, California, at a regular meeting thereof this 28th day of April, 1992.
Jan Goldsmith, Chairman
ATTEST:
Marjorie K. Wahlsten, Secretary
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
-- I, Marjorie K. Wahlsten, Secretary of the Poway Redevelopment Agency, do
hereby certify under penalty of perjury that the foregoing Resolution
No. R-92- was duly adopted by the Redevelopment Agency at a meeting of
said Agency on the 28th day of April, 1992, and that it was so adopted by the
fo 11 owi ng vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, Secretary
Poway Redevelopment Agency
-
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