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Resolution No. 9258L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9258 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON SUPPORTING STATE LEGISLATION TO AMEND THE STATE WATER CODE TO REQUIRE THAT GROUNDWATER REPLENISHMENT ASSESSMENTS ARE BASED ON ACTUAL COST OF SERVICE TO REPLENISH A GROUNDWATER BASIN WHEREAS, in June 1955, Governor Knight signed into law, AB 2908, the Water Replenishment District Act, to provide a means to provide for the replenishment and protection of groundwater basins; and WHEREAS, on November 17, 1959, voters in Southern Los Angeles County overwhelmingly approved the formation of the Water Replenishment District of Southern California in order to ensure the replenishment and protection of the Central Basin and West Coast Basin; and WHEREAS, rights for the extraction of water within the West Coast Basin were established on August 18, 1961, through the Los Angeles County Superior Court and rights for the extraction of water within the Central Basin was established on October 11, 1965 through the Los Angeles County Superior Court ("Judgments"); and WHEREAS, Division 18 of the State Water Code addresses Water Replenishment District formation, rules and regulations; and WHEREAS, Part 6 of Division 18 of the State Water Code addresses the Water Replenishment Assessment; and WHEREAS, the City of Vernon overlies a portion of the Central Basin in Los Angeles County; and WHEREAS, the City of Vernon obtains a large majority of its potable water supply from the Central Basin; and WHEREAS, the replenishment assessment set by the Water Replenishment District of Southern California is a uniform rate for 0. 1 2 31 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 MA 23 24 25 26 27 (their service area (Central Basin and West Coast Basin) and does not (set a separate basin specific replenishment assessment rate for each lbasin based on the actual costs and services provided to each basin; land WHEREAS, the City wishes to ensure that a fair and equitable replenishment assessment based on basin specific costs and services provided by the Water Replenishment District of Southern California is established; and WHEREAS, in authorizing the actions described below, the City exercises the full extent of its authority and jurisdiction over local groundwater resources, to protect the health, safety and welfare of City residents and businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby finds that it has present and future interest in the groundwater supply within the Central Basin, including maximizing the reasonable and beneficial use of these water resources in service of the City residents and businesses, to meet local needs, growth and development. SECTION 3: The City Council of the City of Vernon hereby finds that it has present and future interest in the establishment of a fair and equitable replenishment assessment for the Central Basin. SECTION 4: The City Council of the City of Vernon hereby supports State legislation to amend the State Water Code to establish a separate groundwater replenishment assessment rate for the Central - 2 - i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Basin and the West Coast Basin based on the cost of providing services to the respective Basins. SECTION 5: The City Council of the City of Vernon hereby directs the Acting City Clerk, or her designee, to send a copy of this Resolution to the following: Assemblymember Hector De La Torre District Office 8724 Garfield Avenue, Suite 104 South Gate, CA 90280 Senator Alan S. Lowenthal District Office 16401 Paramount Blvd. Paramount, CA 90723 SECTION 6: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 5th day of March, 2007. AT ST: MA UELA GIRON, A ting City Clerk E� HI ARIO GONZA ES, Mayor Pro-Tem - 3 - 1 STATE OF CALIFORNIA ) ss 2 COUNTY OF LOS ANGELES ) 3 I, MANUELA GIRON, Acting City Clerk of the City of Vernon, do 4 5 hereby certify that the foregoing Resolution, being Resolution No. 6 9258, was duly adopted by the City Council of the City of Vernon at a 7 regular meeting of the City Council duly held on Monday, March 5, 2007, 8 and thereafter was duly signed by the Mayor Pro-Tem of the City of 9 Vernon. 10 11 XANUELA GIRON; Acting City Clerk 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 - SUPPORTING DO,CUMENTS � s y 3 �8 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 12, 2007 Assemblymember Hector De La Torre District Office 8724 Garfield Avenue, Suite 104 South Gate, CA 90280 Re: Support for Groundwater Recharge Assessment Reform Legislation Dear Mr. De La Torre: Transmitted herewith is a copy of Resolution No. 9258 that was approved by City Council on March 5, 2007. If you have any questions regarding this matter, please call Mr. Kevin Wilson at (323) 583-8811 ext. 245. Very truly yours, Ne mlyirou� Acting City Clerk NG:dr c: Hilario Gonzales S. Kevin Wilson Resolution No. 9258 I o e 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 12, 2007 Senator Alan S. Lowenthal District Office 16401 Paramount Blvd. Paramount, CA 90723 Re: Support for Groundwater Recharge Assessment Reform Legislation Dear Mr. Lowenthal: Transmitted herewith is a copy of Resolution No. 9258 that was approved by City Council on March 5, 2007. If you have any questions regarding this matter, please call Mr. Kevin Wilson at (323) 583-8811 ext. 245. Very truly yours, Nelly Giro Acting City Clerk NG:dr c: Hilario Gonzales S. Kevin Wilson Resolution No. 9258 gfs. 92s9 Page 1 of 2 Giron, Nelly From: Sent: To: Cc: Ralph H. Webb [rwebb@socal.rr.com] M�o� Wednesday, February 21, 2007 8:58 AM \A; Adrian Diaz; Adriana Figueroa; Bob Zarrilli; Brian Ragland.; Christopher S. Cash; David Mochizuki; avid ���� Torres; Desi Alverez; dkarraker@calwater.com; Don Jensen; Erika Lewis; Fernando Mendoza; Greg Wang; Ingrid Holly; Jim Glancy; Joe Holdren; Wilson, Kevin; Leon Yehuda; Mark Stuart; Martha Gomez; Patrick Pooler; Patrick R. Scanlon; Ralph Webb; Robert T. Dickey; Rigg, Scott; Steve Myrter; Ted Spaseff; Vickie Knight; Vince_Brar; Art Gullucci; Malkenhorst, Bruce Jr; Charles P. Fuentes; Ernie Garcia; Fred Latham; Gary Milliman; Gerald Caton; Greg Korduner; Howard Chambers; Linda Benedetti -Leal; Steve Helvey; Thomas Sykes Giron, Nelly; spena@pico-rivera.org; Adria Jimenez; Alma Varela; Barbara E. Earl; Barbara Hruden; E Chun; L Chikami; Linda Hodnett; Lisa Sanchez; M Kuegler; Nancy Jalomo; Pam Mendoza; Rebecca Kuhn; Ring, Lisa; Shirley Conte; Susan Johnson; Veronica Galvez-Morales; Yvonne Robles Subject: CRITICAL -Letters and Resolutions of Support For Groundwater Recharge Assessment Reform Legislation Importance: High Ladies and Gentlemen: Given the results of the SEWC sponsored Hilton, Farnkopf, and Hopkins study of the groundwater recharge pumping assessment and the clear inequity of the pumping assessment for pumpers in the Central Groundwater Basin, the Southeast Water Coalition is pursuing reform legislation to correct the inequity. The current postage stamp assessment bears no relationship to the relative costs of maintaining the West and the Central Groundwater Basins. Central Basin pumpers, including all members of SEWC, are significantly subsidizing the maintenance of the West Groundwater Basin to the tune of over $10 million per year; millions of dollars taken from Central Basin pumpers that could be used to make water system improves and maintain or reduce water rates. Per the direction of the SEWC Board of Directors, SEWC is pursuing proposed legislation to correct the inequity. SEWC has approached Assembly members De La Torre and Senator Lowenthal to sponsor the legislation. Demonstrations of support from Central Basin cities are critical securing support for the reform legislation. SEWC is recommending that SEWC members forward letters of support initially to Assemblyman De La Torre and Senator Lowenthal. Furthermore, it is recommended that SEWC members adopt resolutions in support of the legislation as soon as possible. Attached are the staff report and resolution drafted by the City of Downey. Downey has adopted this resolution and is actively advocating the legislation on SEWC's behalf. It is recommended that SEWC members use the Downey staff report and resolution as models for taking this issue to your city council for consideration. Feel free to contact me should you have any questions or recommendations regarding this matter Thank you 2/21/2007 Page 2 of 2 Ralph H. Webb Southeast Water Coalition The Ferguson Group 5981 Midiron Circle Huntington Beach, CA 92649 (714) 840-5338 (714) 333-5898 (cell) (866) 220-4649 (facsimile) rwebb@socal.rr.com rwebb@tfgnet.com 1130 Connecticut Avenue, NW, Suite 300 Washington, D.C. 20036 (202) 331-8500 (202) 331-1598 (facsimile) website: www.fergusongioup.us Confidentiality Notice: This electronic mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. 2/21/2007 AGENDA MEMO DATE: February 13, 2007 TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Desi Alvarez, Director of Public Works SUBJECT: WATER REPLENISHMENT ASSESSMENT RECOMMENDATION: That the City Council adopt: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY SUPPORTING STATE LEGISLATION TO AMEND THE STATE WATER CODE TO REQUIRE THAT GROUNDWATER REPLENISHMENT ASSESSMENTS ARE BASED ON THE ACTUAL COST OF SERVICE TO REPLENISH A GROUNDWATER BASIN. DISCUSSION: The City of Downey uses approximately 17,500 acre-feet of water annually to meet the potable water needs of the City's residents and businesses. The City has historically utilized groundwater to meet potable water demands. By eliminating the use of the more expensive Metropolitan Water District of Southern California imported water, the City continues to have the lowest water rate in the Los Angeles area. The groundwater aquifers that underlie the southern portion of Los Angeles County are known as the Central Basin and West Coast Basin (Basins) (see Attachment 1). Due to overpumping of the basins by businesses, farming interests, water purveyors and municipalities, groundwater levels dropped to levels that caused many wells to run dry. To address the overpumping situation, the Los Angeles County Superior Court adjudicated the West Coast Basin in 1961, and the Central Basin in 1965, establishing limits for the annual extraction of groundwater from each Basin, and determining those with water rights in each Basin and their specific yearly pumping allocations. In 1955 Governor Knight signed into law AB 2908, the Water Replenishment District Act. In 1959, the Water Replenishment District of Southern California (WRD) was established by the voters in Southern Los Angeles County. The WRD service area includes the Central and West Coast Basins, encompasses 43 cities, and covers an area of 420 square miles. WRD was formed to finance the purchase of water needed to replenish the Basins. CITY OF DOWNEY, CALIFORNIA _ Mayor and Members of the City Council Support Amendment to the Water Code February 13, 2007 Page 2of3 To support WRD's activities, a Replenishment Assessment (RA) is established by WRD each year. This RA charges those extracting groundwater a fixed fee for each acre-foot of groundwater pumped each year. To establish the RA, WRD determines the total cost of their upcoming fiscal year's budget and divides this by the projected number of acre- feet to be pumped from the two Basins. This year the RA is $138.00 per acre-foot. The wording in the Water Code does not allow for the setting of a different RA for each Basin. The physical characteristics of the two Basins are very different with regard to water replenishment resources and replenishment activities. The Central Basin is replenished through the utilization of the Whittier Narrows Spreading Grounds, which is north of the City along the west side of the San Gabriel River. Storm water, recycled water, and MWD imported water are utilized in the Spreading Grounds to replenish the Central Basin aquifers that come to the surface in this area. The five year pumping average for this Basin is 194,900 acre-feet per year. The West Coast Basin has no spreading grounds and the surface characteristics of the area does not allow for substantial replenishment of the Basin. Groundwater replenishment and seawater intrusion protection are both accomplished through the use of injection wells that utilize imported MWD water and recycled water. The five year pumping average for this Basin is 49,000 acre-feet per year. The cost to replenish the West Basin is substantially higher than the cost to replenish the Central Basin. However, since the replenishment assessment charged to West Coast Basin and Central Basin pumpers is the same, Central Basin pumpers pay for the majority of WRD's expenses. To determine whether the Central Basin pumpers were subsidizing the West Coast Basin pumpers, the South East Water Coalition (SEWC) Board hired a consultant to conduct a cost allocation study to determine the actual costs incurred to replenish each Basin. The firm of HF&H Consultants, LLC of Walnut Creek, California, was retained to conduct the cost allocation study. They utilized WRD's adopted FY 2006/2007 Budget, the June 21, 2006 WRD Engineering Survey and Report, and other WRD documents as the source material for their analysis. HF&H reviewed the materials in an effort to establish those costs that are attributable to either of the Basins, and where there were shared costs, they would establish what percentage of the cost could be assigned to each Basin. The total costs established for each Basin would be divided by the average yearly pumping for that Basin to determine a basin specific RA. Mayor and Members of the City Council Support Amendment to the Water Code February 13, 2007 Page 3 of 3 The findings of the analysis indicates that: • The basin specific RA for the Central Basin should be $83 per acre-foot. • The basin specific RA for the West Coast Basin should be $366 per acre-foot. • Central Basin pumpers are currently subsidizing the West Coast Basin Pumpers by $10.7 million per year In the case of the City of Downey, a reduction in the RA from $138 per acre-foot to $83 per acre-foot would result in an annual savings of over $950,000. The results of the analysis were presented to the SEWC Board on January 4, 2007. The Board directed staff to pursue state legislation to amend the Water Code to require that the replenishment assessment be based on the actual cost of services instead of the average cost currently called for in the Water Code. The attached resolution supports amending the State Water Code to establish a fair and equitable replenishment assessment based on the actual cost of services for both the Central Basin and the West Coast Basin. Attachments: • Resolution • WRD Service Area Map S:/Agendas & MemosCC 2007/agda021307/Replenishment Assessment Legislation.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY SUPPORTING STATE LEGISLATION TO AMEND THE STATE WATER CODE TO REQUIRE THAT GROUNDWATER REPLENISHMENT ASSESSMENTS ARE BASED ON THE ACTUAL COST OF SERVICE TO REPLENISH A GROUNDWATER BASIN WHEREAS, in June 1955 Governor Knight signed into law, AB 2908, the Water Replenishment District Act to provide a means to provide for the replenishment and protection of groundwater basins; and WHEREAS, on November 17, 1959, voters in Southern Los Angeles County overwhelmingly approved the formation of the Water Replenishment District of Southern California in order to ensure the replenishment and protection of the Central Basin and West Coast Basin; and WHEREAS, rights for the extraction of water within the West Coast Basin were established on August 18, 1961 through the Los Angeles County Superior Court and Rights for the extraction of water within the Central Basin was established on October 11, 1965 through the Los Angeles County Superior Court ("Judgments"); and WHEREAS, Division 18 of the State Water Code addresses Water Replenishment District formation, rules and regulations; and WHEREAS, Part 6 of Division 18 of the State Water Code addresses the Water Replenishment Assessment; and WHEREAS, the City of Downey overlies a portion of the Central Basin in Los Angeles County; and WHEREAS, the City of Downey obtains one hundred percent of its potable water supply from the Central Basin; and WHEREAS, the replenishment assessment set by the Water Replenishment District of Southern California is a uniform rate for their service area (Central Basin and West Coast Basin) and does not set a separate basin specific replenishment assessment rate for each basin based on the actual costs and services provided to each basin; and WHEREAS, the City wishes to ensure that a fair and equitable replenishment assessment based on basin specific costs and services provided by the Water Replenishment District of Southern California is established; and WHEREAS, in authorizing the actions described below, the City exercises the full extent of its authority and jurisdiction over local groundwater resources, to protect the health, safety and welfare of City residents and businesses. RESOLUTION. PAGE TWO NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City finds that it has present and future interest in the groundwater supply within the Central Basin, including maximizing the reasonable and beneficial use of these water resources in service of the city residents and businesses, to meet local needs, growth and development. SECTION 2. That the City finds that it has present and future interest in the establishment of a fair and equitable replenishment assessment for the Central Basin. SECTION 3. That the City supports State legislation to amend the State Water Code to establish a separate groundwater replenishment assessment rate for the Central Basin and the West Coast Basin based on the cost of providing services to the respective Basins. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this day of , 2007. RICK TREJO, Mayor ATTEST: KATHLEEN L. MIDSTOKKE, City Clerk HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the day of , 2007, by the following vote, to wit: AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: KATHLEEN L. MIDSTOKKE, City Clerk