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PFAS litigation in federal court in South Carolina and California. Settlement agreements with defendants Dupont,
<br />3M and Tyco/ChemGuard have been granted final approval. At this time, the specific amount of the award to the
<br />City, if any, has not yet been determined in any of the settlements.
<br />Sustainable Groundwater Management Act. On September 16, 2014, the California Governor signed
<br />Assembly Bill No. 1739 and Senate Bill Nos. 1168 and 1319 (collectively, the "Sustainable Groundwater
<br />Management Act," or "SGMA") into law. The SGMA constitutes a legislative effort to regulate groundwater on
<br />a Statewide basis. Pursuant to the SGMA, the California Department of Water Resources ("DWR") has designated
<br />the Orange County Groundwater Basin as a medium priority basin for purposes of groundwater management. By
<br />January 31, 2017, local Groundwater Producers were required to establish or designate an entity (referred to as a
<br />groundwater sustainability agency, or "GSA"), subject to DWR's approval, to manage each high and medium
<br />priority groundwater basin. Each GSA is tasked with submitting a groundwater sustainability plan for DWR's
<br />approval by January 31, 2020. Alternatively, an existing groundwater management agency can submit a
<br />groundwater management plan under Part 2.75 of the California Water Code or an analysis for DWR's review
<br />demonstrating that a groundwater basin has operated within its sustainable yield for at least 10 years. Such
<br />alternative plans were required to be submitted by January 1, 2017 and updated every five years thereafter.
<br />The SGMA specifically allows the OCWD to develop an alternative plan under the California Water Code
<br />to manage those portions of the basin that are within the OCWD's boundaries. In order for the OCWD to submit
<br />an alternative plan, the entire groundwater basin (as mapped by DWR) must be included. Areas adjoining and
<br />adjacent to the Orange County Groundwater Basin include the La Habra/Brea Management Area ("MA"), the
<br />Santa Ana River Canyon MA and the Southeast Basin MA. On May 4, 2016, the OCWD sent letters to thirteen
<br />agencies located in the La Habra/Brea, Santa Ana River Canyon and Southeast Basin MAs requesting that such
<br />agencies participate in the development of an alternative plan. The Southeast MA and Santa Ana River Canyon
<br />MA are directly adjacent to the OCWD and little to no management or additional monitoring is expected to be
<br />required. The La Habra/Brea MA may seek to form a separate GSA, which requires the development of a
<br />groundwater sustainability plan and the execution of a coordination agreement with the OCWD. The OCWD
<br />submitted its alternative plan to DWR on December 22, 2016, and the alternative plan has been approved by
<br />DWR.
<br />Purchased Water. The City is a charter member of MWD Water District of Southern California
<br />("MWD"). As such, it has rights to the water supply of MWD on a parity basis with other member agencies of
<br />MWD. The City relies on MWD for approximately 15% of its water supply at the present time. In Fiscal Year
<br />2023, the City purchased 7,894 acre feet of water imported from the Colorado River and northern California by
<br />MWD. MWD supplies water through its member agencies. The cost of treated and untreated imported water
<br />from MWD as of June 30, 2023 is $1,209 per acre foot and $855 per acre foot, respectively, rising to $1,256 per
<br />acre foot and $903 per acre foot, respectively, on January 1, 2024. The City currently pays a fixed charge to
<br />MWD in the form of readiness to serve, capacity reservation and service connection charges. In Fiscal Year 2023,
<br />the readiness to serve and capacity reservation charges were paid in October 2022 in the amount of $372,557 and
<br />in April 2023 in the amount of $382,188.
<br />Composition of MWD. MWD was created in 1928 by vote of the electorates of a number of Southern
<br />California cities to provide a supplemental supply of water for domestic and municipal uses at wholesale to its
<br />member agencies. The MWD service area comprises approximately 5,200 square miles and includes portions of
<br />the six counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura. There are 26
<br />member agencies of MWD, consisting of 14 cities, 11 municipal water districts (including the District) and one
<br />county water authority (SDCWA). MWD is governed by a Board of Directors, currently numbering 38 members.
<br />Each member agency has at least one representative on the MWD Board. Representation and voting rights are
<br />based upon each member agency's assessed valuation. The City has one representative on the MWD Board. The
<br />total population of the MWD service area is approximately 19 million.
<br />MWD Scheduling. a�perations. MWD member agencies request water from MWD at various delivery
<br />points within MWD's service area and pay for such water at uniform rates established by the MWD Board for
<br />each class of service. For planning purposes, each MWD member agency advises MWD annually in December
<br />MA
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