HomeMy WebLinkAboutSS03 - San Joaquin Reservoir Capacity Transfer0
•
April 11, 2000
STUDY SESSION AGENDA
ITEM NO. OS3
TO: Mayor and Members of the City Council
FROM: Public Works Department SS _1
SUBJECT: SAN JOAQUIN RESERVOIR CAPACITY TRANSFER
RECOMMENDATION:
Direct Staff to work with IRWD to establish conditions for the transfer to IRWD of the
City's rights in the San Joaquin Reservoir.
DISCUSSION:
The Irvine Ranch Water District (IRWD) is interested in . acquiring 100% capacity
ownership in San Joaquin Reservoir. Their purpose in being the sole owner of this
reservoir is to convert its use to reclaimed water storage. Attached is a letter from
IRWD, which presents an offer to buy the City's capacity of 36 acre -feet at $360.00 per
acre -foot with an estimated additional payment of $260.00 per acre -foot from reserves
distribution. The City of Newport Beach only owns 1.18% of the reservoir capacity
rights. This offer was also made to the other owners: the City of Huntington Beach,
Mesa Consolidated Water District, Laguna Beach County Water District, South Coast
Water District, The Irvine Company and Metropolitan Water District of Southern
California (MWD). All of the owners except Newport Beach and Huntington Beach
have agreed to accept the IRWD offer.
For information purposes, San Joaquin Reservoir was constructed by IRWD in 1965.
This reservoir was operated as a domestic reservoir by MWD until 1995. There are
currently eight owners of capacity rights. Because of water quality problems associated
with open finished water reservoirs, the State Health Department issued a requirement
for the owners to cover the reservoir. Prior to 1995 the owners developed a plan to
cover the reservoir at a cost of 17 million dollars. As more detailed plans were
prepared the estimated costs to cover climbed to over 40 million dollars. At that price
MWD would not participate in the funding. San Joaquin Reservoir has been empty for.
five years and MWD has determined that they no longer need the reservoir in their
system. The other owners have decided that they cannot justify the cost of the cover
and that it is no longer economical to keep the reservoir for domestic water uses.
As the principal owner of capacity in San Joaquin Reservoir, IRWD has investigated
•other uses for the facility. IRWD has a surplus of reclaimed water in the winter and a
shortage in the summer. With some expansion of their reclaimed water distribution
system, this reservoir could provide needed capacity for seasonal reclaimed water
uses.
SUBJECT: San Joaquin Reservoir Capacity Transfer
April 11, 2000
Page 2
Some concerns that need to be resolved before a transfer of City rights occur are: 0
1. Assurances and guarantees from IRWD that a reclaimed water reservoir would not
have any negative impact to adjacent residents in terms of odors and stagnant water
2. Newport's rights could be repurchased if the reservoir ceases to be used to store
reclaimed water
3. Favorable wholesale reclaimed water rates from IRWD be granted to Newport
Beach for areas in the City that can be served with IRWD's reclaimed water
It is recommended that staff be directed to work with IRWD to establish conditions for
the transfer to IRWD of the City s 36 acre -foot capacity rights in San Joaquin Reservoir.
Members of the IRWD staff will make a presentation at the Study Session on the
history of the San Joaquin Reservoir and their plans for its redevelopment. They will be
available to answer questions concerning their proposal for the transfer of rights.
Respectfully submitted,/�
PUBLIC WORKS DEPARTMENT
Don Webb, Director
By: (flc�ax,
Eldon Davidson
Utilities Services Manager
Attachment: March 20, 2000 IRWD Letter
f: lusers\ pbvAshared \councillfygg-00\april- 11\san joaquin reservoir agmt.doc
do
11
IUl I \f. It 1 \I'll
u Qf N UIS0817
1RHAE R:1.IC1111:1'rH lIST11ICT 15600 Sand Canyon Ave. -P.O. Box 57000. Irvine, CA 92619- 7000.(714)45? -5300
March 20, 2000 '
Mr. Don Webb MAR 2 3
Public Works Director
City of Newport Beach
P.O. Box 1768 tl
Newport Beach, CA 92658 -8915
Subject: San Joaquin Reservoir Capacity Value
Dear Mr. Webb: .
As you know, Irvine Ranch Water District (IRWD) is interested in acquiring the remainder of
capacity in San Joaquin Reservoir we do not already own with the intention of performing repairs
and modifications to convert it to seasonal storage of reclaimed water. IRWD is prepared to
purchase the 36 acre -feet of reservoir capacity owned by the City of Newport Beach (CNB) for
$360.00 per acre -foot for a total of $12,960. The offer of $360 per acre -foot is based on our estimate
. of the value of the reservoir, less the costs of modifications and repairs necessary to make it
serviceable as a reclaimed water reservoir. The value of the reservoir to IRWD is in the increased
yield of reclaimed water, which could be used to replace untreated water we currently purchase from
MAID. In addition, we understand that up to $800,000 in reserve funds are being held by
Metropolitan Water District of Southern California (MWD) for current and future reservoir
maintenance. We are awaiting confirmation from MWD on the exact balance in the reserve account.
Upon sale of the reservoir to IRWD, we propose that any remaining reserve funds be distributed by
MWD to each of the former owners in proportion to their respective ownership interest. If there is
$800,000 remaining in the MWD account, this would result in an additional payment to CNB of
approximately $260.00 per acre -foot, or $9,400, bringing the total payment for the CNB capacity to
approximately $22,360. If this offer is satisfactory to the city, please respond as soon as possible so
we may make arrangements to transfer the capacity before both of our agencies incur additional
maintenance charges against our share of the MWD reserve account.
If you have any questions regarding this matter, please do not hesitate to contact me
Paul D.
General
cc: Gregory P. Heiertz
Eldon Davidson
• Mike Sinacori
F: /gmVwrd/gph/webnewport.doc
•
11
IUl I \f. It 1 \I'll
u Qf N UIS0817
1RHAE R:1.IC1111:1'rH lIST11ICT 15600 Sand Canyon Ave. -P.O. Box 57000. Irvine, CA 92619- 7000.(714)45? -5300
March 20, 2000 '
Mr. Don Webb MAR 2 3
Public Works Director
City of Newport Beach
P.O. Box 1768 tl
Newport Beach, CA 92658 -8915
Subject: San Joaquin Reservoir Capacity Value
Dear Mr. Webb: .
As you know, Irvine Ranch Water District (IRWD) is interested in acquiring the remainder of
capacity in San Joaquin Reservoir we do not already own with the intention of performing repairs
and modifications to convert it to seasonal storage of reclaimed water. IRWD is prepared to
purchase the 36 acre -feet of reservoir capacity owned by the City of Newport Beach (CNB) for
$360.00 per acre -foot for a total of $12,960. The offer of $360 per acre -foot is based on our estimate
. of the value of the reservoir, less the costs of modifications and repairs necessary to make it
serviceable as a reclaimed water reservoir. The value of the reservoir to IRWD is in the increased
yield of reclaimed water, which could be used to replace untreated water we currently purchase from
MAID. In addition, we understand that up to $800,000 in reserve funds are being held by
Metropolitan Water District of Southern California (MWD) for current and future reservoir
maintenance. We are awaiting confirmation from MWD on the exact balance in the reserve account.
Upon sale of the reservoir to IRWD, we propose that any remaining reserve funds be distributed by
MWD to each of the former owners in proportion to their respective ownership interest. If there is
$800,000 remaining in the MWD account, this would result in an additional payment to CNB of
approximately $260.00 per acre -foot, or $9,400, bringing the total payment for the CNB capacity to
approximately $22,360. If this offer is satisfactory to the city, please respond as soon as possible so
we may make arrangements to transfer the capacity before both of our agencies incur additional
maintenance charges against our share of the MWD reserve account.
If you have any questions regarding this matter, please do not hesitate to contact me
Paul D.
General
cc: Gregory P. Heiertz
Eldon Davidson
• Mike Sinacori
F: /gmVwrd/gph/webnewport.doc
cn
WE
O
U
O
a�
H
70
Q
N
Cr
4)
cc
U)
LM
m
i
O
Z
0
0
N
Q
Q
a
•
•
•
•
0 lam
.� N
LM
CO
O cr)
O
LL
a
Och
O�
um E
M �
Q �
O Ma
O cn
M �
O
am
Q. E
� O
U .0
■
0
E
O
i
c�
H
■
N �
LL
6
Lm
Q
O
c�
O
c
O
O
■
066 L `6 L aagweldaS
jo buipueis,iopun jo wnpuaaowaw ■
086 L ` L AInr io ivawaaabd
abaaolS jsnal alonaasaU umbaor uas ■
sluauaaaa6d juaaano
O
E
O
L i
L U)
O .-
C/) ca
V�
L Q�
o 0
0
0) pC
r ■
0
4.d
cu♦•.+
E cL
0 O
0 0
cn 0
cu 0
N
to
i
T �r
c
. — (�
O
to
■
Elmo
E
O
cn
cn
c
Q
i
O
cc
cn .— Cc
p� U
E
LM
a
O
co
r
^L
W
rm
D
i
i
0
nJ
(Q
0--
�
0
0
0
\
0
\�
0
0 \
0
\
0
p
C i
Q
T
T
N
O
-,I-
co
O
^, a)
r-_
0) /rte
T
00
T/�
T
CD
T
O
L
�}
V
T
T
V 11
V J
N
T
T
O
T
a0
0
'
�
O
CO
O
O
c0
"ZIM
O
(D
LO
> Q
oo
LO
O
d
O
M
LO
T
c0
LO
CO
U
r
M
Q
U
(�
C)
U
U
_
N
c-)
j
J
Q
cz
O
O
CO
U
O
F-
cC
U
G)
S
U
Q
O
c
M
�,
H
C15
o
a�
0
U
z
O
•-
0 ca
LM
2%
O
13
■
O
i
c�
O
LM
V
L
a
0
0
V
O
rm
.O
■
m
. _
Q
E
LM
a�
>
O _ � N
O
— C O Q
r E
G1 � '-
O O
m •� cn
m CU
cn O0
O `+— O cc
O cu •� O
Lm
� J � U o
O
r
Ch
—
cu
m
rur
O
O
CL
■
a
O
-
-
V
0
V
O
Q.
ME
Q.
m
U
F1
O
U)
V
E
._
ow
O
v
O
H-
Q
a
.O
.E
r
to
Q
i
O
um
O
Noma
0
to
CL
O
■
O
cn
O
O
F2
E
O
us
CL
0.
cu
O
cu
CL
m
V
0
E
V
IMM
■
cc
cu
O
V
a
O
v
i
cn
O
0
e6eaols aalenn 6u!)lu!ap se aaolsai
of uo!1!w Z£$ e pajeu!lsa nou Isoo ■
aa!naaS jo Ino a!onaasaa
auj Moot 966L u! ap!lspuel ao(eW ■
jsoa peloid paseenu! leul saippel
lel!dea leuoil!ppe aol peau pa! j!luapl ■
A41BUal
ICaan Senn uo!jejuawnaop d033 ■
W 066L 10 uo,4eluauaaeduaj
>
Em
a
O
O
O o
.-
O
■
c.i
i
O
O
aD
c�
.�..+ O
O O O
♦'' .- Q
O
m > 'O
mind
�� —
o 0 >, n o m
0 Cc Cc
CC am CL r �
..CL
E ..�a
N .O V
O i O i
'- G1 •-
> V)
O 0 = 0 .S
z aD L.
Uoomaw.. .N O MEME
.—
p i; -
O
>+•- O MEMEM
�•.+ — = i
MENEM O
.E m
LEE
v L
O O Q)- Z O
CIE U
V
CL 'o O
r
E co cL *=I o
r i O V�
o r v O
cu
•
V Cl)
M v � O O
•-
.� m O_ O Z O
iL *w i
we 0
L ■ .
r O N O M O
O
� O � � O
ON
.2 O L .2 .— CU
O� w 0 0 0
c�
M
O
>
cc
•— a) ca
CL O
O (1)
cn
m _O
O � �
CL c�
O O
LM a
■
O
.N
.E
■
L
E
E
c�
Ja
■
m
o Z
U
4md -�
a�
a� E
O
v 4=0 U
i
O Q.
M E ?�
O Z
cn
O �-
E ,o i
Jam
M40'
m0k
r
K
1'
e'
Y.
MAW
xvv
� 5y
�q 1
a - a� u in =
� w \ � ASS �
.' `
\ .s
. =uln ;
b�o�, .,
�_ ; ,> ;
O
CL
0
cim
O
m
a
.®
CL
LJ
Im
W
v
i
E
W
4�
c�
Vol
O
V/
L
O
CL-
CL IM
=Z
cn V
E41
G
.E
c�
O
L
V
i
■
cn
m
O
U
i
CL
O
Z
^,n
W
i
I Ira
i
Elmo
_O
O
v
W
■
0
E
ccs
WEE
O
0
cm
'i^
V/
L
_O
L
cn
cc
O
cn
N
O
m
Z
U
■
CD
O
O
r
.N
UL
a
O
M
to
i
OL O
aIMMOMM
V) O
MENNEN
Q> >
Z 1.
CL
CL
cu
i
0
i
MINION
E
O
Q
a
■
i
E
i
cn
i
CL
E
O
U
■
E
m
low CD
ONIMME L
�-+
i cn
cn 0
ow
U V
L L
cn cn
O cn O
V � V
O
� 0 cn
■MINE
cn
i
.0
LM
O
i
0 NONE
m
■
A�
W
V
N
O
CL
Q
om
O
Im
am
Q
cc
E
L
'r
ii
E
O
.I=
W
O
p
�
O
O
O
N
N
%
E
O
�
�
V
■ ■
E
O
0
a
O
O
N
a
c�
■
c
.O
Elmo
V
O
N
E
■
0
Elmo
O.
E
O
0
L
.a
m
O
O
N
a
LM
ca
■
MEMO
0
cc
■