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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE <br />JANUARY 20, 2015 <br />TITLE; <br />AGREEMENT WITH ORANGE COUNTY <br />WATER DISTRICT FOR A LIMITED -TERM <br />PARTIAL BASIN EQUITY ASSESSMENT <br />(BEA) EXEMPTION <br />{"ATEGIC-P AN NO. 6 A C) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />29K R <br />0 As Recommended <br />❑ As Amended <br />Ordinance on 1" Reading <br />L Ordinance on 2ntl Reading <br />❑ Implementing Resolutlon <br />❑ Set Public Hearing For. <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with the Orange <br />County Water District, subject to nonsubstantive changes approved by the City Manager and City <br />Attorney, for a limited -term partial basin equity assessment exemption on water produced by Well <br />32 above the Basin Pumping Percentage. <br />Well 32, located in Morrison Park, is a City asset currently valued at $3.5 million. However, this <br />groundwater well was taken offline seven years ago due to water nitrate levels that exceeded the <br />California Department of Public Health established maximum level of 45 mg /L. Approval of this <br />recommended action will allow the City to complete the necessary capital improvements and <br />bring the well back into service. <br />The Public Works Agency operates a system of groundwater wells that produce high - quality, <br />potable water from the Orange County groundwater basin. The primary responsibility of the <br />Orange County Water District (OCWD) is to manage conjunctive use of this vast groundwater <br />basin under northern and central Orange County, which supplies water to more than 20 cities and <br />water agencies and serves more than 2.3 million Orange County residents. In accordance with <br />OCWD pumping limits, roughly 70 percent of the water supplied to Santa Ana residents and <br />businesses comes from this groundwater pumping. All agencies that produce water from the <br />groundwater basin pay a Replenishment Assessment (RA) fee to OCWD based on the quantity <br />of water produced. If an agency pumps beyond the limits established by OCWD, a Basin Equity <br />Assessment (BEA) fee is added. The BEA is much higher than the RA and is meant to penalize <br />an agency for over- pumping. Although water produced from groundwater pumping is more cost <br />effective than imported sources, OCWD imposes pumping limits in order to manage the limited <br />supply of potable groundwater. <br />251 -1 <br />