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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 15, 2017 <br />TITLE: <br />APPROVE AGREEMENT WITH <br />METROPOLITAN WATER DISTRICT AND <br />THE MUNICIPAL WATER DISTRICT OF <br />ORANGE COUNTY FOR IN -LIEU <br />TREATED WATER DELIVERIES <br />(NON GENERAL FUND) <br />{STRA GIC PLAN NO. 5, 2 <br />CI A AGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15t Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <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 <br />Metropolitan Water District and the Municipal Water District of Orange County for in -lieu treated <br />water deliveries, subject to nonsubstantive changes approved by the City Manager and City <br />Attorney. <br />DISCUSSION <br />The Metropolitan Water District (MWD) is a wholesale water provider to its 26 member agencies; <br />the City of Santa Ana and the Municipal Water District of Orange County (MWDOC) are member <br />agencies of MWD. MWD provides imported surface water to the Southern California region from <br />both the Sacramento Bay Delta to the north, and the Colorado River to the east. A significant <br />amount (approximately 25 percent) of water supplied by the City of Santa Ana to its residents and <br />businesses is purchased from MWD. The balance of water supplied by the City is pumped <br />groundwater from the Orange County Basin, and the city footprint lies over the Basin. <br />The heavy rains and snowfall experienced across the State during the winter season of 2016-2017 <br />has resulted in an abundance of surface water runoff into the Sacramento Bay Delta. This surface <br />water must be stored, consumed, or allowed to flow into the ocean. As a result, MWD has filled its <br />reservoirs and must find additional storage space and use for the surface water, or risk losing this <br />precious resource to the ocean. <br />One strategy available to MWD is to ask groundwater producers, such as Santa Ana, to increase <br />the amount of MWD surface water they use, and decrease groundwater pumping. This "in -lieu <br />pumping" (water banking) strategy will allow Santa Ana to save its basin groundwater. In future <br />years, when surface water supply conditions are less abundant, the City will do the opposite: <br />pump more groundwater out of the basin and save surface water. <br />251-1 <br />