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HomeMy WebLinkAbout _ 9.11(i)--Update on the Bella Vista Water District and City of Redding Development � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: August 20, 2024 FROM: Michael Webb, Public Works ITEIVI NO. 9.11(i) Director ***APPROVED BY*** �� � � �,.�� � Ry:���E��i��v,,� ' :zsit I��rcct�rr t�[' ubls`c 'ark� �1'7,?ti?�B �> �p�tt�,C�i ��t t�, $,'13,{'2{}? mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 9.11(i)--Oral update regarding the Bella Vista Water District and new develo ment in the Cit of Reddin . Recommendation Infor�nation only. Backg�ound/Analysis On July 1'7, 2018, the Council authorized the Mayor to send a letter to the Board Chair af the Bella Vista Water District (District) regarding water supply needs for new developments within the City limits and situated within the District's water service area. At the same meeting, the City Council (Council) directed staff to work with the District to explore water supply solutions during water shortage years in which the U.S. Bureau of Reclamation (Reclamation) may curtail water supply allocations. The letter was sent and staff subsequently met with the District and negotiated the Water Supply Augmentation Agreement (Agreement), Contract No. C-7970, dated March 18, 2019, The intent was to facilitate new development while ensuring the City of Redding's (City) Water Utility is not impacted financially and still maintaining the ability to meet all existing and future customer demand requirements. On May 1, 2023, the City received a letter from the District terminating the agreement. During the severe drought of 2021-22, the Reclamation implemented a historical zero percent water allocation to the District. This allocation demonstrated the agreement did not provide the water supply shortage benefits to the District as expected. At issue are supply curtailments imposed by Reclamation during water shortage years. Most of the District's water supply comes from Central Va11ey Project (CVP) water through a water service contract with Reclamation. Although the District has sufficient contractual water entitlements to supply new developments, Reclamation may implement its municipal and industrial (M&I) shortage policy and severely curtail water supply allocations to CVP contracts during shortage years. These curtailments force the District to impose drought management measures on existing customers, incl�uding the more than 3,000 existing M&I customers within the City limits. Because of this potential for impact on existing customers, the District must be Report to Redding City Council August 14,2024 Re: 9.12(i)--Update on the Bella Vista Water District and City of Reda'ing Development Page 2 prudent in allowing new development within its service area and place conditions on service to new projects accordingly. The District's Will Serve Policy conditions new developments of more than four units within its service area to augment the District's water supply as mitigation for California Environmental Quality Act (CEQA) identified impacts until the new water supply demand becomes part of the District's base supply. Previous knowledge was new customers are included in the base supply after three unconstrained water years as determined by Reclamation. However, during the drought of 2022-23 with a zero percent allocation, this philosophy proved irrelevant for future water needs, hence the District's termination of the Agreement. This Will Serve Policy forces developers to seek and secure adequate water supply or not move forward with the project. Water supply rights are very limited, extremely complex, and can be very expensive. This may prove difficult for local developers to secure. Several current and proposed developments within the City, including the Bethel Campus on Collyer Drive, Oasis North Subdivision and the Reserve Subdivision on Oasis Road, and Phoenix Charter School on Shasta View Drive near Simpson University are facing this condition. The City is in a better position to supply existing customers during shortage years due to concerted investment in a variety of water supply sources, including Reclamation contracts, groundwater we11 development, and agreements with other agencies. Sources of water include 31,000 acre-feet of surface water and the ability to produce approximately 11,000 acre-feet of groundwater annually. The City's demand in 2023 was just under 22,000 acre-feet. The City and the District have met on several occasions to discuss potential solutions and ideas for future water allocations to help facilitate development and economic vitality in the City. Possible solutions include a new water augmentation agreement, detachment/attachment of water service areas, and capital improvement needs. A detachment/attachment process through Reclamation would trade portions of our respective water service areas. The City would enlarge its current service boundary in the overlap area within the City limits that is currently served by the District. A feasibility analysis needs to be completed to determine which parcels could be served by the City and which cannot due to complexities with existing infrastructure and varying pressure zones. Undeveloped parcels near the current boundaries would be more likely candidates for attaehment/detachment than those further from the City's existing water infrastructure. Council P�io�ity/City Manage� Goals • Communication and Transparency - "Improve the auality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." • Government of the 21St Century - `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • Economic Development - "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Report to Redding City Council August 14,2024 Re: 9.12(i)--Update on the Bella Vista Water District and City of Reda'ing Development Page 3 Attachments 2018 Letter to BVWD-Nash C-7970-Agreement - 2019 - Bella Vista Water District Bella Vista Water- C7970 Termination Previous Staff Report � � ����� {� �������° � .: ���� �� �����a� �a�, , "��� �v�t���s ��e:�au�. 3��sscr€r�c�, �t� ��C�c7d � � �, _ � ��,i° ��. E3�� =a��;Q"7�, f��t�r�sr�t>, C,� "��i��!� ��i7 t FCRi�TEi+t��F[R��ER, 1�Y`�!� 5�0.225:�44� 530.225:4�€6�F:�IX �tl�� �Q� ���� VJ-��itl-7�(1-p2g ��°. t��}f�T��i�S�l �(}�TC� P��S2C��II� I�e11a �lista �V�ter�istri�t 13�E� �as��till�rater��y �ed�zr�g, C.� 9�C�03 R�: ���v I��v��c�p����t withir� the(�it� �f Reddi�� ��ar 1V1r, Nasl�; The intez�t c�f t1�is 1et�er is tc� inf�r�ri yc�u t�f t�e �it�'s deszr� tci:partr�er�itl� th� ���1a �is�a��ter Distriet {Il;�istrict} tes �n��r� adeq�at� �a�er s��ply i� ���i��1�I� tt� f�cilitate r�e�v develc�p�r�ent witk�i� th� t�ity e�f R�ddin�. I� p�i�ti��l�r, tt� �� � City �f T��ddi�g residents le�c�ted ��thia� �i�tri�t s�idvic� a�e�: As y�u ay k�aac�w, t��� �i�tri�trts �'i1t �eru� F'c��i�y �F'c�licy} rcqtzires ��v�Ic�per� te� mitigat� p�at�ntia� irr�p��ts t� e�is�i�g custt�m�rs by ���rr�en�in� L����riet wat�r ��p�a1y t�y ��e�ing �nd s��uri�� �vater s+��ar�e ri��t� u�til t�i� develc�����a� is e�tablished �� th� Distr�ct"�'bas�wate�s�p�l�as ��te �i���c�b�t��L�.S. B�re�� c�f I�:ec1� �tzc�n. T1�is r�c��ir� �rii m�y prc��e ea�tr��rzely �i�fic�lt ft�r��� c��v�l�rpme�t cc�r��ur�ity �u� t� t�1� 1�r�it�d au�il�bilit��r�t� cc� p1�� n�tur�c►f w�t�r right�: To ��Ip �tig�te these issues ar�d fa�ilitate �ew dev�Iop ��t ar�d ����t� ic vitality i� t��r �e� u�ity, the �ity c�� Rec�di�g Coun�i� �ta� c�ire�tec� c��r �taff 't�s wor� �vith th� L��strict i� dev�l�pi�� wa�er s��ply aug�nent��ic�r� s�lut�c�a�s �c� c�e�relc�pzaaent may ���tin�e. �� is `th� I�istri�t, ��e �ity �s a�s� affect�� 1�y rec�uc�d water al1c����ic��n� ir�7�at���c� �y th� ure�� ���;c�rdir�g tcs th�ir �n�nici��1 �rzci inda�strial �hc�rt��e pesli�y: T��r��e�re �ur���� water sc��c�tic��� ar� �1�aS�e�gir�g. �c��ever; iher� ay be �rcrunclv�ater s�1:i�tiar�s t���t prt�v� v��b1� �a�cl b��efici�l �s� th� �i��, th�I�i�fir�c� ���1 ��e �arr�r��nity. T�� �ity c�rtaiiily t�nder�t����l� �1�� pr�ss�s�� ���€� c����z���iart ���� �is�rict ��� �c� i�� ����ti��� c���c��a�rs cl��°i�� �rat�r s�c�r���� y�ar�. �V1��y vf t��s� ���t�rz���-� �r� Ciiy c�f I��c�c�i��r��zde�ts, B�t we alsc� ��ust l�a�a��ee �h��e�b�a���ic�r� ���� �h� 1��rde� pl�ced �� tandc��vr�er�wl�c� ar��vv�rkir��; t��ti�iz�t��ir ir�uest ent tc� serv� th� h�usi�g ai��t�usi�ess ne�d� c�f tl�e cc�r� u��ty�s a w�at�le; I � ccr�ficte�t that c��ir ag�ricies c�� w�rk tc�ge�her �c�c1���i�p �r��ti�� scil�ti��z� that ac��q��te�y �n�et �h� �vater s��ply �eeds o�€��� �c� s�u�ity ��d re�pe��f�11�� req���t yc�u d�re�t y�ur s�a�f' tc� wark wi�h t�a��i�y tt� ��}�i�v�th�se t�F�j�ctiv�s, I lc�€�� fc� �rcl tc� ���r r���t�r���w �ine�r��y, �.�� .�" "� r�st�r� ac r�d�r Ivlayc�r;�ity ci�I�.�dc�ira� SHORTAGE YEAR WATER SLJPPLY AUGMENTATION AGREEMENT BETWEEN THE CITY OF REDDING AND BELLA VISTA WATER DISTRICT THIS AGREEMENT is made at Redding, California, by and between THE C[TY OF REDDING, a Municipal Corporation ("CITY"), whose address is 777 Cypress Avenue, Redding, Ca. 96001 and BELLA VISTA 'WATER D[STRICT, ("DISTRICT"), a California Water District, whose address is 11368 East Stillwater Way, Redding, CA 96003, for Shortage Year Water Supply Augt�entation Agreement�"Agreement"). PURPOSE: To augment the Bella Vista Water District's water supply in shortage years in order to mitigate water supp.ly in�pacts assaciated with new developments occurrin� within the CITY and served by the Di�STRICT �s a result of the implementation of the U.S. Bureau of Reclamation's Central Valley Project Municipal and Industrial Water Shortage Policy (WSP), Guidelines and Procedures. BACKGROUND: The DISTR[CT was created as the Cow'Creek Unit ofthe Trinity Division of the Central Valley Project (CVP) and is highly reliant upon �uater supply fram the CVP to meet the water needs of its customers within t�e District's 6c�undary,, The U.S. Bureau of Reclamation (USBR) announced its final :C�P Municipal and Industrial (M&I) Water Shortage (�y Policy (WSP) with a signed Record of' Decision c�n Nc�vember 2�, 2015 and issued WSP � Guidelines and Procedures effective February l, 2017, hereby inct�rporated by reference. New � growth and development within both the CITY and DISTRICT service area results in newly � created demands for water. With the implementation of the W�P, new water demands are not � reflected in the District's Historical Use that results in,st�pply �hc�rtage impacts to the District's existing customers until the new demands are fully reflected into the DISTRICT's Historical Use following three years unconstrained by supply shortage from the date of connection to DISTRICT's public water system. The CITY has sufficient groundwater resources in the short term to augment the DISTRICT supply for growth within the CfTY until Historical Use is established for each development. RECITALS �i,��r'..�;�C',c� � -� � ► � A. The DISTRICT's Will Serve Policy requires certain residential and commercial development to augment DISTRICT water supply for their development prior to meter placement as mitigation for California Environmental Quality Act identified impacts until the new demands are fully reflected into the DISTRICT's Historical Use. B. To meet this requirement, an alternative supply of water must be secured by the development entity. C. Water supply rights are very limited, complex and can be excessively expensive. D. The CITY has developed groundwater wells to provide for current and future CITY demands. A limited amount of groundwater supply may be available to augment new development within the CIT�and s�rved by the DISTRICT during water shortage years. E. The CI�'Y�maintains dist�ibution system interties with the DISTRICT that allows the transfer of groundwater between CITY and DISTRICT infrastructure. F. It is in the best interest af the CITY to encourage new development that provides a benefit to and meets the needs of the community. G. The parties her�tc�have det�rmined that it would be in their best interests to allow the DISTRICT to purchase groundwater from the CITY and receive metered delivery through an existing intertie during CVP short�ge allocation years as defined in the WSP until the new connection is fully reflected in th� DISTRICT's Historical Use as defined in the WSP. This agreement will allow the DISTRICT to purcha�e groundw�ter in CVP shortage allocation years to offset impacts to the DISTRICT's e�isCing customers����, H. The parties hereto further determin�that it would be in their mutual best interests to set forth their respective rights, duties, costs �nd obligations concerning shortage water year purchases from the CITY in a written agreement.' NOW, THEREFORE, IT [S AGREED AS FOLLOWS: 1. Definitions: For purposes of the Agreement the following deftnitions apply:, "Historical Use" is the average quantity of CVP municipal and industrial water put to beneficial use pursuant to the U.S. Bureau of Reclamation's CVP M&[ WSP and WSP Guidelines and Procedures. "Supply shortage" is limited to CVP supply allocation shortage years and shall have the same meaning as Condition of Shortage pursuant to the U.S. Bureau of Reclamation's CVP M&I WSP and WSP Guidelines and Procedures. "New Development" is any development in which entitlements are granted by the City after the effective date of this Agreement or any development that received entitlements prior to this Agreement but has not yet made a request for connection to the District System. This includes residential developments of four units or more and any commercial development 2. Development: The DISTRICT will issue Will Serve letters for new development within CITY limits and served by the DISTRICT pursuant to this Agreement. The letters will reference that the development is contingent upon the provisions in this Agreement. The DISTRICT will maintain an accounting of the developments subject to this Agreement noting the location, property owner, developer, date of development, number of unconstrained years and dates since development, and the allocation of augmented water supply in Acre-Ft per year. The DISTRICT will provide this accounting to the CITY annually prior t�a each n�w water year as defined by USBR. Through separate agreement, the I?ISTRICT 'will secure a deposit from each development sufficient to secure payrnent for the quantit� of water supply as defined in Section 4 of this Agreement. 3. Notice: f�ric�r to delivery of any groundwater pursuant to this Agreement, the District shall notify the CITY that a supply shortage exists and that groundwater delivery is desired; the projected duration and deli�ery rate of water and the anticipated quantity of water to be delivered. Upo� receipt of the request, the C[TY's Director of Public Works or designee, shall make a determinatit�n as to whether such delivery can be accommodated as requested or revised t� better accommodate their system constraints and shall inform the DISTI�ICT within 14 business days of its decision. The DISTRICT will confirm with the CITY, in writi�g, the specifi� �onditions concerning the water delivery schedule at least 24-hours in advance. 4. uantit : The supply mitigation quantity in any given water year shall be calculated as the average historical annual water use��(Hi�tori�al Us�e} multi,�lted by the CVP allocation (e.g. average historical use x percent USBR water year allocatrc�n). For a single family detached dwelling on less than tw� acres (residential unit), the average annual unconstrained Historical Use of 0.5 acre-f�etlyear will be assumed. For developments other than residential units, empirical �lata for similar commercial, residential or public institutional service will be utilized to determine average annual unconstrained Historical Use. The maximum amount of water provided to any new development during a supply shortage year is 75% of their historical use. For example, to prevent impacting existing customers during CVP shortage years, DISTRICT will need to supply up to 0.375 Acre- Ft of water per supply shortage year for each single family detached dwelling on less than two acres (0.5 Acre-Ft*75% CVP Allocation). Conservatively it is assumed that each new development will become part of DISTRICT's Historical Use within 10 years. Under a worst case, it is assumed that seven (7) of these years would be constrained water years and the remaining three (3) would be unconstrained. Using the example above, this results in a total water volume per residential unit of up to 2.625 Acre-Ft. (0.375 Acre-Ft x 7 years constrained years) over the 10-year period. An example calculation is provided as Exhibit A. The DISTRICT will enter into a separate agreement with each new development to secure a deposit in an amount equal to the estimated 10-year water supply at the cost of water to be purchased from the CITY noted in Section 7 of this Agreement. The C[TY will supply a maximum of 500 Acre-Ft per year under this Agreement. Only parcels located within the CITY limits are eligible for water supply allocations. 5. Duration of Delivery: Water deliveries pursuant to this Agreement are limited to the quantity required to offset supply shortage impacts from new development during the supply shortage and d�livered at a mutually agreeable delivery rate and duration until the new development tlemands'are met for the supply shortage year and shall be continued annually until such time as the new connection is reflected in the DISTRICT's Historical Use following three years unconstrained by supply shortage. 6. lntertie Poin#; Existing Intertie points between the parties to this Agreement already exist at 700 Canby Road, 1431 Edgewood Drive, and at the intersection of Old Alturas Road and Abernathy Lane �s shown €�n E�hibit B. The intertie location utilized for this agreement will be at the Canby Road locatian due to the pressure differential and existing pressure reducing valve unless system conditions require the use of an alternative intertie. This Agreement in no way modifies, alters or otherwise has any bearing on the Intertie Agreement between the C[TY and the I)I�TRICT� ° 7. Costs: The CITY, pursuant to the delivery of water under this Agreement shall be entitled to compensation for actual water supplied pursuant to this Agreement, which shall be billed at the then current �ppli��ble retail �c�lumetric.rate (e.g. commercial, residential). 8. Indemnification: The D[STRICT receiving water pursuant to this A�reement hereby agrees to indemnify, defend and hold harmless the CITY, its directtars, officials, officers, employees, agents and volunteers, and each and every one c�f them, from any and all claims of any nature whatsoever arising frorn c�r relating to, directly or indirectly, negligent performance of this Agreement by the CITY, or relating to the quality of water delivered pursuant to this Agreement. 9. Termination: This Agreement shall commence on the date of signing hereto and shall continue until such time as either party determines in its sole and absolute discretion that the delivery of water contemplated herein would not be in its best interests. Either party can, at any time, provide written notice to the other party that this Agreement is to be terminated on the date and time provided in the written notice. Once terminated, no additional service connections will be added to this agreement prospectively from the date of termination. However, the CITY will continue to provide mitigation supply water for connections previously agreed to, until such time as they are considered part of the DISTRICTs Historical Use following three years unconstrained by supply shortage. This Agreement shall terminate on the date and time provided in the written notice; however, that any unpaid financial obligations owing to either party shall survive termination of this Agreement and be payable in accordance with their terms. In consideration of the water supply shortages experienced by the DISTRICT, it is the intent of both parties that this Agreement is a short term solution and the D[STRICT will pursue alternative reliable water supply sources to serve its customers through negotiated means or development of new supplies through Master Planning and Capital Improvement Plan efforts. 10. Disputes: If any actic�n or arbitration is commenced to enforce any of the terms or conditions herein, or tt� enf�rce collection of monies due pursuant to this Agreement, the prevailing pa�ty shall be entitled to reasonable attorneys' fees and costs. 1 l. Date of A�,reement: The date c�f this agreement shall be the date it is signed by the second pariy,to sign. IN WITNESS WHEREOF, the City of Redding and the Bella Vista Water District have executed this Agreement on the days and year set forth below. CITY OF DING A Municip I C rporation l Date: 'j—���, 2019 By: Julie Winter - Mayor Attest: Approve as to Form: Barry E. DeWalt,City Attorney �� S _ C� � '7 y' , Pamela Mize-Ci� y Clerk. ity A rney ; BELLA VISTA WATER DISTRICT A Calif�rnia Comrnunity ater District Date:�//��� l� ,2019 By: � r Te�Bambino President, Board ctf Directors Attest . /✓ ` �� , David Coxey, eneral Manage ecretary-Treasurer Exhibit A Sample Calculation �3 � v � aA � C v L � Y N � 0 N � � � f�6 � c`� ` N c6 +� C N 3 � � � +� � a, � i� N T � � � O � C a--� � � i1 � U o u � � ,� c� m � � ia O O � O O O � � � � Z Z Z � � � I , N � � /�� L � W v � L i � � L \ W LL i � — �J � U C,�X � � fB ,} co — � � �' � L. a, � 3 u v a � � + ` Q Q [L 5 L C v �J o rn � n � � m o +-� Q1 �-i o +� c rn � �o � 'ct d� t� m m m 3 E z (a � �n tn �, '_ � �n ci� �.t m m kn cv N N N co L � �- '� �N O'.. lb ���D N N M 00 00 00 � +-�' � Q � � 00 I"�'��� L.I) iJ"1 � Ct M N N N � � _ L� �/� 0 41 iJ� V};i/} i/? t/1� i/? 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May 1, 2023 City of Redding Attn: Mayor Michael Dacquisto 777 Cypress Avenue, Redding, CA 96049-6071 SUBJECT: Shortage Year Water Supply Augmentation Agreement, Contract No. C-7970 Dear Mr. Dacquisto: As you may know, the Bella Vista Water District provides water service to a 53-square-mile service area and a population of just under 20,000. Over half of the District's 6300+ connections serve customers within the City of Redding. The subject agreement was intended to address shortage year water supply while facilitating the growth and development being planned by the City. The recent drought demonstrated the subject Agreement does not provide the expected water supply shortage benefits. As such and according to the termination provision, I am hereby providing written notice to terminate the subject agreement. It is the District's sincere hope that continued collaboration and cooperation with the City will result in a successor agreement and projects to provide water for the City's planned developments within the common boundary without impacting the current customers of the District. If you have any questions regarding this matter, or if we can be of assistance, please contact the General Manager at(530) 241-1085. Sincerely, :� � ��� ����a �..�. � James Smith President, Board of Directors cc: Barry Tippin, City Manager We are an equal opportunity employer and provider. m �µ; � �q�����.� CITY OF REDDING ` � y '` REPORT TO THE CITY COUNCIL MEETING DATE: Ju1y l'7, 2018 FROM: Chuck Aukland,Public ITEM NO. 4.11(i) Works Director [W-030-700-020] ***APPROVED BY*** .. �t � ,4t �,.«, ,M .�„�..�.. t.t t�t � >� .� n ii} ;v r r};� 3 n.etts �� �r� c�kl�nci �ab������7„��ir��t s � ��x 7{9l��IR zppin.Ci �tn�'e 'TI�1��]R i}l{ f j y caukland(�a ci red�� $`t,�a.us # 4�f btippin@cityofredding.arg J { .. 1 ;( i � t�Fs.tt;>3 stti��,tiaf,: SUBJECT: ` E,��11(j)--Authorize th�}ss,���yor to sign and send letter to the Board Chair af the Bella Vista V�����District regarding w��er supply for new development S 7 i jt{t �S ( t f Sr}tY£J��t}r � t�it ��f tt �'��r r� r Re�ommendation '4'}f r�t{rz,,�t��t'� ;�� r,,� ����z�;,l t s�r;�, 'f'��"���l.f�.,�.,i 1�fj7�t��t��`}1� � f ''`�fti. �rf� � z ;��{� '�yr�. 'tl�' � Authorize the Mayar to sign an�i�€�'�d a letter to��4�{Board Chair of the Bel1a Vista Water District (District)�regarding District w�,�`��`supply for n�,��;r�evelo�ment�ithin the City of Redding; and �direct staff ta work with the '`���trlct to ������e w��� �upply sol�utions thati �facilitate �new �development in the City. �� '�`' '� �`�`�� ��� ' i���G ';� t i ' �sz{j S#4 �t.ist � jttr�t� t {ix�� � { s t 7f }fi,�y,j s $�b„`,57.:£t IY t k�U 41:�" 4 y tj�1 Fiscttllmpact ;f'tK`j '{ �`';`#� ,� s�r�,,� �t�, ,1 �t,�,,t,,� �f;�,fr 1tICl�, tY1��; t�$ t ki There is no fiscal impact in sending tl��J,���r���ed letter �,���vevez�i��me staff time will be requ�red to develop feasible solutions, ���'`�om���r��l��,���'�lt�gine�'� may be required. The , s �, �total cost is expected to be less than $2�;'`�00 and ����� ��'�� curre�,����;ar budgeted resources in the Water Utility. '��,��� ,,> ���{�i 5 ��}�r j �,t{�sr�i:r... 31��� 1 7r} �ti, ., AZternative Action �'` �,' f'� ��_ ' Cj{$ Ft tj�tt J,. �k 7a=� : i t it t�.�����.,r2�1=s�£a. The City Council (Council)could choo�e to not send t��t���',=�Y�d require development to secure �the necessary water entitlements. �The Council may also provide staff with alternative direction. Background/Analysis Land development projects within the City of Redding (City) and located within the Bella Vista Water District (District) service area are ex�periencing challenges�related to water supply. Most� of the District's water supply comes from Central Va11ey Project (CVP) water through a water �service contract with �the U.S, Bureau of Reclamatian (Bureau��.� Although the District has �sufficient contractual water entitlements to supply new developments, the Bureau �may implement its municipal and industrial (M&I) shortage policy and severely curtail water supply allocations to CVP contracts during shortage years. Report to Redding City Council July 21, 2018 Re: 4.11(j)--Letter to Board Chair of the BVWD Page 2 These curtailments may force the District to impose drought management measures on existing customers including the more th�n 2900 M&I customers within the City of Redding limits. Because of this potenti�l for impact on �xisting customers, the Dist�ict must be prudent in allowing new development within their service area and place conditions on service to new projects accor�ingly. The City's Municipal Code Section 17.60.080 requires a "Will Serve" letter be secured by the subdivider prior to approval of a tentative map for subdivisions lacated within a water district �outside the City's�water �service �area. B�cause of the risk of reductions noted above and �he� related potentially significa�t im�a�ts to existing Dist�ict cu�tomers as id�ntified by the required California Environmental Quality Act (CEQA) analysis, �the District adopted a new� Will Serve� Policy (Policy) in Octob� �r�l� The Policy conditions new developments of more�than four� units �within its ser����,����`�u`��``��`��ent the District's water �supply as mitigation for CEQA �identified impac��`i������� the� deve�����ent becomes part of the District's base supply. New� ' t �t#r i i r t �customers are ������ed in�the base st����� after three�unconstrained water qears (March through � r£ � February) as t���'�rmined by �the Bu����i This Policy forces developer� to seek and secure� �adequate wa���'`r�upply or not mov�,�;'��vard wit�i the project. Water supply rights are very� limited, extr���y complex, and can"�e� very expensive. This� may prove difficult for lacal de�elopers to ����re Several current developments within the Citq including the Bethel Campus off Collyer, Se����; '��idges p�Oasis Ro�d and Ritlgewood Estates off Ho11ow Lane are facing� t i t.r � � �� �lti��i�r 1� �this condition. 5��,�`;����`t,����� lar���; ;'����`������nts lncluding Bethel have b�en s'ucc�essful in �securing sufficient supp��y'���fromf,' �����i�Yes with ���used water entrtlements like the McConnell Foundation; however, the small���+�velopments `�ii���have�diff'iculty. t�� 1(li , To help facilitate development ��l economlc �``�}}'' �it w {�n the Cit it ma be rudent for the �`t ��,�r 6`� Y �t��� Y� Y � p �City to engage in discussions wi��%��j�J���"�����`bou�,���������tial for augmenting the District's� ��.'yt t tit 1� �t t � s 4 �t (1 �supply for new� �developments m� �����,;,,���� unt�a�,���i�ioi�� t��istorical use entitlements� are� t r 5 �established. The City is in a somewhat bett��s,'�``s�ition to s�,��ly existing customers du�ing� �shortage years due �to the concerted� inves����"�in many d���ent sources of �water sup�ly �mcluding�Bureau contracts, groundwater ���,�,���elopment a����,�reer����ts�with other agencies�. Many of�these sources are much less,,�����raii�`�'�� b� St��������`"�Fede�`������gencies than the CVP� J 1,,�� t t �l i�j � 7 s �t¢: 1 . �water. During �shortage �ears, the Cltyi���s not in �,r� ���'�ztlon �,c�,4�t�ake available its limited ��t,.. ,�,� CVP water because of Bureau curtailments to the Buckeye Servlcer�,��£�ntract The�City mitigates �these reductions by� transferring as much proj�ct water from ,��� Sacr��a���������iver to the� $ Bu�keye Water Treatment Plant as possible�. With�ut these,�,�''�n�����„t,����'City's abflity to �provide� water to the entire City �is at rlsk. Howeve�� there �;�,� ���'�roundwater alternatives� �where the City could partner with tihe�� District to i�'������;�����atively and a11ow��transfers of �treated� groundwater �through system interties, new dis��i�ution lines or creative contractual �agreements, To explore this potential it is� appropriate for staff to seek direction and permission from the Council to affer City grou�dwater resources to the District for new developments within the City limits. Report to Redding City Council July 21, 2018 Re: 4.11(j)--Letter to Board Chair of the BVWD Page 3 Council P�io�^ity/City Manager Goals • Econornic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses��and attract new ones, and encourage investment in�he community." • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust�." c: Larry Vaupel �Ryan Bailey ,,,{ {�,���{�s� Josh Watki � x�t t �� � ;i� �r,=��Y��� . ���1}f�;�z��51st,�( a tf'�l�srist Paul Hell���`' `'`� '��'� � � t 4 t { v, }}tt7tF (��11{t. t l�{) {f t )�l�„ {i�t Attachments 7�s'�j:.,t'`� � "� � � t �,�,�� ���t t r� r+�:' �t tt�� Location Ma�' '' �� t'"��� �,�t'; Mayar's Lette��t�=�he Bella Vista Water District Board of Directors Chair 1 t,;,f, { s IYt�'4�34 �' rrj t rt) t Yt tJt�iftj 4t� t }jlr��?4�+t�t fz j i#�(�r� ��}� ,i�tt 4��titft '��;,7i,aFaF,{ l7 1{r�l, i ,,: t �j I����� ��'�� t'`+�t�t r t s r r.st� �,t4t t�t } f}ts.��� j;}ta t)t��. 7 i�. ?�t t tj�"s 4 5�f(it } 4tj t �.txtt ti s�sci�trl }>3stti ;' t# �}t.� ��13tii >rti.s��t t74� �i�sl��. yC�>t�s� 2{11z ��� } �tt��3i '3�� it3 ar�#si�.ts}J� � t.�;tt�t;t;i �;��� t�}�tr4tt �Et`2. 1 -{`����� 1 j tt i�� }1 g� i� �. £�3 t�f} ��� jY 4 3�i�� ;7#�S t� t�'�Sti,,t� ,t� I� 2`fl.. �}I 1 t4r� ils� � }� : 1t�,��� a'� I�y�s� t�� ���'c I�; i3 a{i�rru� ,% Jtc4 t��{)�Tar`' } r�,�,`'t�j � i���t�'{t t �t sl i k�.ti„t 41�t� , r4i}ti,�.;t)�r�rt{ t`�� iG���,. i t 1 ���1� t��;t! y 1 t«t � t�lj$�tt' �j sti . � {t}x 4:r,�� . i}; �1 7 I3�' tSt t£ t 1 � t 17 ' t Ij��.,�„y- rt i i i 4�i d{t t�i`,s3�= , t�;7f � rl }��{,s �1>r t�it't;}.i�r�tl.�' 1 i�t lif 7 r t7'yt�5 t rl jy,li 4.. 4}�* ��t�� �.{1 ",'7t xb.. t �f,l�;st=,..,d.. ,, `,,f, �� � f f� ��� � . r' r'F'`j' j�� f��{ Fi ,�✓�r' `�/"'` ' ` fi''.��1,� �f �/` ,r'i �,r'f�f ,� ,% �;�f'; .� f� /,, , ,'' /i' ,J��,''f// f /` / / /'/ �'i,`` !�%� r" � �, �'��,,'f �,' �,F � l , f,/'�} �fA' `� ,r��� �'f�,/�• � /� j' F �` � ,� > f,',�,`f,� �' l!,� ''f ,,�'f` �,% F,�' F/` '/ r�l/'`!f j''�'''i�''f'�/"��/r/ �/''f r�//' ,'�j � �� ^�' �..o e. � ,�, ',�,� './ ,✓���, � , r ;,%'�'f i'�!� 1 f�,�! �'�f,r� �''� ,'�,,''�%%�., ,.� ,��rf'�� � � �''�� f�j ,,� '.,' > � ,� /;�" r`i`�,r f �,� � ;/F� ' �--, r, ,� ,�,� �'%- ' r i`��j ,�.� , � / � �s;s��� � �''�' 'i;;'�'i/ r' ,�ft' �',j � , F , �/ i' .. � ,��. f`f j-'`f ,r, , ,l ,,,�% �,/,�, ,.,/;/ ,✓,��', ' �.''�i�.:j,,,'�,/ t � r+r /�1 f/` } "'`/f"/ ,f� '!f�,"F s ;w {� rsr � '� ,�/ ,,� `� /��l r'i y'`r`��i �''�..r' ��� �! f/�,�`£�,�.. �~ ` � { i"��'f{�� � ''�������r�r✓``4��� � ���,,',.� � � F�''� .,.�'f,/A r'� /`�>�/'� �� / r„�,„':''�.;" ,'�`f��:�`'� �/� � ,� /,' ' 1 ,�//,� / �^, ,�'�/ � 'f /'�/;''/ � � !'''�� � r � /!'� "�''�r'!' �`�'`�� ,' �' r'�,/>T`,r�''�,�'� r' � r ,����W`� �'`,- �`��`,�"/ � �i'r,}` ,/, ''� 1� � � ����� / �i ,'�� � � ��P x / ,w�� .�'�Ll. ,`� � ��� ��'� �'"�/� '� f`� � �� `� k "�� �,' ' ��� r '�� � �a1,'t2, ,) �� 1������k§s"� �t�a x t��t y'9 "��" l -f � �/''`� ,-''�'� ;,,'/'���'`f,�'j' � rr� �� � � i'{ ,r"�,%�` ,�� �� �` ��'����� � ;, '',.',' /�s� � �',�'/. , ' ,r' (—� ��� �4�� � { ,/,� ,�,, ���� ' f , , ' �,/','���� � ;� ,� ,� ,� � � � , �r y cn rn .��r' ✓`; . r' �� c /� /j� / �'�"'"'Q' ��C. ������ � �/ ,� 'r ��r^ / iF ��� /.�� �,�si �f f�•• r a �����.s, �'�. ����`���� �. �/ �,l%..,�'���� .`��i�'�� �� �/' � F/`��i''I �� .' / f�'�� �`��: �� �'"� :S3.a f i � /✓/.r !� 1+..' �^ � j�j'..'. � .i.: r'`/` ../ ! /:..., / �''f ,.' ��' �' p�� / ,� .,,� ..� 1�,,�',,,.�/'� �J �� / /� r � �a�� �,� `�°a���� r' ,� ,�(�} � f r,/� f+` /f /���/�t�'f.j "�,'.�r � � ��k�,4� . �<f� /{,r'f},'tZr � '�i✓ !,,��,�'//�`,'/j� / ,, �,�`,�'��,1` ��'`" t�r�'���i � i7� ' i'�/`�f� ,,��;�` /'�1,f,�'y,./� f' ,''/,?'� ,/ ��./r,/J,/ .�'r,:' lj�.''��: � � ' / f r ,/�' �,f7¢�� "s ,/�,p;d,,!f%' �'>>'r ?�` ,,`' �� _t1' y��� �y�, '� It�ld A�tu��'�`;�';ji''� ,��;=",�`,�,�';'�'`�,!���' �E ' � `�� � � ,' ,,'` '�^,,' ,� ,� �'""""`ef�� � �` �l" .i�„�. 1,4� ' +�itt �� SSfrY �''� ' ,'���'� � �l:P`r'��/��,r'��,,/f� /� . �,,. ��������� S '��C,!�r:�� �.��� '�'.�{x ��s?��� ro ,,. � .� l �i'`'� ✓ l /f � ����. L55� F �t�1ja � �/'' � r''/ /� /�/F � /w t��� � �� w ��% ,�','''',,�/ ,f`�,�,'',�'�;' /' ' � � �+ry� ((� t• �� ���ss��� �'J� �� �h3� � :��:ji�^'f � :/ .� f� .r,�r � .� ,/�. y{ h C�� � ����,}• C} � � ,�j� ��,r',�,�'# / � /�,,' f�� 1 �Ge �.�r; �� a� �;��� � �{ �' f;�,�'{`��`;'i'��` ';� %'% �`�� � �� ; � C� "�'' °`�� ��`''' ,� f`';}�''` ` / i�,�'�,r/,''� l' �� 4`p , `¢ `5l 4�"���` �fir . , /l� , /''•/�'�/' / J/� `�r 1,,,,� ,,,��,�'`:' .� ����� € � R`� '�,{���� Y���t+ f� f � , / r�,��.f ��� �,� .,�r!i'� y,��/ �. r+ �� ' � ����A�/8 / � ' t,� H � ,, � f ,�,; � � � �'� `��`� `�;�� �� ' � ��?���;��'��� � s �'� /� � ' '"� � ��"� r,�s� � ��e���$�fr� � � ��� f,,�,r,F`f/`.»rc,.= F f�� � �� ' �'1�r` ���������'� G ��� �� �� �,r;,''r'�, �''f� � � a , � ' � � ���Q� `� ���t �, � � �������r . �� >�� ������ �• :� a,{.�������� ���d��.r �� : ���s� � ��� � ����, ���� E� � �� , � ;$ '�'����.�',' <j,`����� ����������� {� a���� --J � J;,e��' ����� ;����3 ��' x� '`1� � ,,,,. � �y r � �� ,,_ � � ...:....,...r"''r "'�'l, : �S�'Or �: �� `' � � ,������� �'„ ,4���¢���'���.t���k��x �.� � " r■ .uG,�� 3 � � � § �1 .� r��i,���fr�rrl�������������`"� ..' � i � ,�� ���� � �.�..r� � � j:t������ � �������G ,r��'� � .�-,.�-�•�'.�°'�y�.^ �, �������������������� �Q f r� ' / ��,.., 1 � GCe�k..Rd ,,,4�, j hton F2d � Kn�g � � Cie�r .-, � � �' � �-�l�"''��`� �-�'� �, MeadowZV.iew Dr �J � f �..... ��o� rv � .�� 0, , _J�'�t� ��r 1.4 N GIS DIVISION LOCATION MAP MTG.DATE: INFORMATION TECHNOLOGY DEPARTMENT W E DATE PRODUCED: ITEM: JULY5,2018 gE��A.�VISTA WATER DISTRICT(BVWD) S o 0.5 7Miles CITY OF REDDING ar-racHMeNT: � P:\Water\Ma Document\BVWD Location Ma .MXD Mr. Robert Nash Board President Bella Vista Water District 13368 East Stillwater Way Redding, CA 96003 RE: New Develapment within the City af Redding Dear Mr. Nash, �� }�'t ' Y{'J jj� � of the City's desire to partner with the Bella Vista Water District The�intenf of this�letter ������i�'���'► � � � t�7 r ,� t �'Ix{ss�7 ." i Itit��S,��i (Distriet)tr�ensure,�����4ii��te water sfi�����is�available�to facilitate new development�withir�the�City of Redding: In part����;��';to serve City of I����ing residents�loeated withir� Districtservice area. As you ,� ��{�1.�,�', ,, �, may know,the,�t���-ict's Will Serve Polic}z{�f`�licy) requires develapers ta mitigate potential impacts to existing custor�i}�'� by augmenting Distr����iater supply by seeking and securing water source rights until the developm�`���;5��established in the District's base wate�supply�as�determined bythe U.S. Bureau of � ,���� Reclamation TF�t��`�` quirement may prove extremely difficult for the development community due to � f �the�fimited availab���t��3�������x natu�^�������'���rights. �ti���tF j�7itsf t.titr{t �rk jrjir .lttr#t 3t J: Yl;tt�,�i,'f,? �' 1��t� x�4 � �itt f`ti i � �, ��4{{\y,l {�E�,1� To help mitigate these issues and f�����tate new deve����ment and economicvitality in our community, y , y,t j the City of Redding Council has�di�,`���ed our staff to "#��,�`k with the District in developing water supply� } augmentation solutions so develo���nt may cor���fi��� As i���,�District,the City is also affected by r � � � t t reduced water allocations imposed �t���1�������t�'��cordk��j��������r�municipal and industrial shortage �.,tJ t;,�� �rr t'�S�r f.:', � i � �,�s„ r,..rs t'�t a policy. Therefore surface water solutions�`t����iallen��t����'�fioweve�,{{��ere may be groundwater ,,� �,t;z 4 } solutions that prove viable and beneficial to the C�t����h�� District and��#�community. ,s{' r{<< r 5�r,r i�y t itiyt �s iy�tf �y�f�}ri 5 �{ , c t}�4 t � t}f� fihe City certainly understands the pressure,�t��t�ibl����i�ion the DG������has tt�,}����texisting customers �during water shortage years, Many ofthe�����'ustome��'���t,�`�;�������eddin�fl�i���`idents. But we also must� ke;<b42yt>dtt�„y� balance that obligation with the burden placed on landowners who are v��t�;�ing to ut�l�ze,the�r � x� t f �investm�nt to serve��re housing and busine�s needs of�the corr`imunity���}�whol�,,{, `�{;�#{; '�'"'° 7�r� r,s i�fr{� u t?i {�si�s4�,��zc.` x�ti}} y #tii4JJ�t�,. I am confident that our agencies can work together to dev�;��cre���'��`��i,l�i��ons that adequately meet the water su I needs of our communit and res ectfull 'rr�'�j�`��������`u direct aur staffto work with the p�pY Y p Y� �� , Y City to achieve these abjectives. I look forward to your response. Sincerely, Kristen Schreder Mayor, City of Redding �4�� "���°�i �a� � ��. � � ,,m�rrr ���"�" C?F" ������ ��,��'m� f'� 7:�:� Cv���.ss A,v�;r�u�, ��ci��rvc;, �A ��it3{}i �� ���" �� � ,�/ 3��. �c�� ���c�7 t, F��c�r�s�sc, C:A �3e(7�i�-�t77 i �{�tlSTE��GH��S'JE�� A°fOR 53�:225.4447 530:225:4463 FAX �U����� ���U W-t�3t}-7(l(7-t72Q ls�C}�J�T$��5�1 �t7c�1C� �3'�S1C��ZI� �ella Vi�ta�later II:)i�trict 233�8 Eas��tiil�a�er ����f' '�{ ; 3�G , ,t'��,i �,{7,, t �edding C1� ��fl0� `� � } � t IISYY}�` �i 3{IL'y4 q ;t4s ����i s°��� ��r}ty��t I��: N�w I�ev����'�ent within the ��t�}�!��Reddir�� r �� � �t,,, , 7�} x� 7{� �7 �Y4��S z%� z I;ti;� ��."�:�'lYl�a 1..VC`�..���kf�aJ� �4ts4s{,�;- t�+r.S f�,� ��t , Th� interz�af t�i�`I{����r is tc� �nf�r �u crf th� �it � d�si�e �c� artr��r witl�the ���1a V�sta��ter ��,� �` �'� �I� L)istriet �I��stttct� �� ��;������ �c�ua�e,�a�,��+��{���p�� i� av�i�ab1� �t���faczlit�t� r�e�v c1ev���� ���ent � � t } s rii ��`��ts� . t {ril�f t F a w�t1��� �he�C�ty r��' ��������t��r,�� t t���'��� ��t;�'��'ve ��ty c�f� �t�rrldr�g r���er�ts�� �c�cafi�cl ����n� I�is�ri�t �ervice area. As yc�� ���£"'�c�w, the �J���',��tr�ct's �i11 Serve Pc�licy {Pc��ic�� rec�uires deve�c�pers tc� rnitagate pc�t�r�t��=4��i�acts tc� ex��`�� custe�zners 1ay augrraentir�g I�is�rict v�at�r supply by:�seeking and���secur�n�`,���tex sc�urce r�� `"�` �nt�1 �he�deve�ap��nt is es�ablis�ed �����the� �istriet's�ase-�vat�r su�ply as d����������ct b���� S �� c�fl�e��ama�ion. �'his requi��er�ent� 1tit1� f �?73�k irt it �tt��$ � ma���arc��e�e�trer�el�cliffic�lt��e�r���,�����������rzt c��'��'������,t��e tc� �he 1�r�itecl�availability and��� , {� ',:...�b7;,�rr:. , �y.,�.� ,r, �m�1�� nat�re cf�ater r�ghts� t��' ��t � � , � �17 �i�i;����} f y i. 'Tc� h�Ip �nitigate the�e iss�c�s �nd faci�itat�=�;�� deve�oprr�e��t,�`��d e�tonc�mic vitality i� c��r cQ unity, the �ity c�f Ret�di�g �c�u� 74r��#rt#���{' �;�ected c��r,:�� , tt� ;,���� witt� the Di�tri�t ir� develc��ing �vater sup�ly a��nner�tat�a��,i��'�utic�t�`i'z�i�;�Yt{��;'�� ;, ent ,:,���� �c��tinue. As is the I�is�rict, th� City��is als� a.ffect�c3 �y��reduc�d water a`�����`�`��s x p�� `�ay�the �3ure�u ac�are�i��� tt� their ��ur�ici��� an� i�dustri�l ���shc�rta�� pt�licy. Therefc�re � ��r��a�e� �va��E,������tic�n� ��are�� c1��Ile��i�g. �-�oweve�;� fl�ere���may !ae groundu���er sc�I��ic�����th�t,�z����ve;������;��j����"��eneficia� to� tl�e �it t13e L�i�trict a��c� t1�e cc�zn��n�nit " � � 1 �. f�,l, �g �. �+F;t�a 3,r ';� ,s�,,,�., . . � � � ij�t�4 !�t �{ Y4i.{ , t�7��I} x t jzs{r�k��r,� t "�l�e �ity �ertai�ly ��derstanc�� the pre�s�r� ar�d '��`�J����j;'��ie Il;�is�rict �as tca it� ex�s�in� c�sto��ers d�rin�water stz€�rt��e ye�rs. N�any c�f�f�ese custcr �rs are �ity c�f k�eddin�resid�z�ts� �ut �ve �lsc���us�����nee that c������atic�r�ivit� the burcl�n p]aced c�n �andt�v�n�r�wht� �r�wcar�in� �c�uti�aze their inv��trr�ent t� serve the ht�using�nd busin�s� rteed� c�f�1�e c�rr� �nity a� ��ah�le; I a ` �c��fide�t t��t c��r a�;en�ies ��rt w€�r1�tc�g��her t� develap cr�ative �c�lutior�s that adeq�ate�y me�t the �v��er supp�y r��ecls�f t��r com�n��ity and r�sp�c�f�a��y req��st y�u d�rect yc��r s��ff to �vo��k wit� �he �ity tc� ���i�ve t�ese t���e�t�ves. I 1€�c�k fca�°�uarc��cs yc�iir respc�ns�: �i�zcerelY; �w� � � i��en �c red�r �I�yc�r, �ity c�f Redc�i�g