55B - RESO - CIVIC CENTER WATER SUPPLY

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CITY OF SANTA ANA CIVIC CENTER FACILITIES STRATEGIC PLAN WATER SUPPLY ASSESSMENT The OC Basin is managed by OCWD under the Act, which functions as a statutorily- imposed physical solution. Groundwater levels are managed within a safe basin operating range to protect the long -term sustainability of the OC Basin and to protect against land subsidence. OCWD regulates groundwater levels in the OC Basin by regulating the annual amount of pumping. This is summarized in Orange County Water District Groundwater Management Plan 2015 Update. The OC Basin is not adjudicated and as such, pumping from the OC Basin is managed through a process that uses financial incentives to encourage groundwater producers to pump a sustainable amount of water. The framework for the financial incentives is based on establishing the basin production percentage (BPP), the percentage of each Producer's total water supply that comes from groundwater pumped from the OC Basin. Groundwater production at or below the BPP is assessed a Replenishment Assessment (RA). While there is no legal limit as to how much an agency pumps from the OC Basin, there is a financial disincentive to pump above the BPP. Agencies that pump above the BPP ure charged the RA plus the Basin Equity Assessment (BEA), which is calculated so that the cost of groundwater production is greater than MWDOC's full service rate. The BEA can be increased to discourage production above the BPP. The BPP is set uniformly for all Producers by OCWD on an annual basis. The BPP is set based on groundwater conditions, availability of imported water supplies, and basin management objectives. The supplies available for recharge must be estimated for a given year. The supplies of recharge water that are estimated are: 1) Santa Ana River stortnflow, 2) Natural incidental recharge, 3) Santa Ana River baserlow, 4) GWRS supplies, and 5) other supplies such as imported water and recycled water purchased for the Alamitos Barrier. The BPP is it major factor in determining the cost of groundwater production from the OC Basin for that year. In some cases, OCWD encourages treating and pumping groundwater that does not meet drinking water standards in order to protect water quality. This is achieved by using a financial incentive called the BEA Exemption. A BEA Exemption is used to clean up and contain the spread of poor quality water. OCWD uses a partial or total exemption of the BEA to compensate a qualified participating agency or Producer for the costs of treating poor quality groundwater. When OCWD authorizes a BEA exemption for a project, it is obligated to provide the replenishment water for the production above the BPP and forgoes the BEA revenue that OCWD would otherwise receive from the producer. As previously mentioned, the BPP is the primary mechanism used by OCWD to manage pumping in the OC Basin. In 2013, OCWD's Board of Directors adopted a policy to establish a stable BPP with the intention to work toward achieving and maintaining a 75 percent BPP by FY 2015 -16. Although BPP is set at 75 percent, based on discussions with OCWD a conservative BPP of 70 percent is assumed through 2040. Principles of this policy include: • OCWD's goal is to achieve u stable 75 percent BPP, while maintaining the same process of setting the BPP on an annual basis, with the BPP set in April of each year after a public hearing has been held and based upon the public hearing testimony, presented data, and reports provided at that time. • OCWD would endeavor to transition to the 75 percent BPP between 2013 and 2015 as construction of the GWRS Initial Expansion Project is completed. This expansion will provide an additional 31,000 AFY of water for recharging the groundwater basin. • OCWD must manage the OC Basin in a sustainable manner for future generations. The BPP will be reduced if future conditions warrant the change. • Each project and program to achieve the 75 percent BPP goal will be reviewed individually and assessed for their economic viability. 12