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***
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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
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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
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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
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DIRECTORS
TED BAMBINO BOB NASH
JIM SMITH GUY WALTERS
FRANK SCHABARUM
DAVID 1.COXEY
Secretary/Treasurer/Generei Manager
� .: ' LL
BELLA VISTA WATER DISTRICT
11368 E.STILLWATER WAY•REDDING,CRLIFORNIA 96003-9510
TELEPHONE(530)241-1085•FAX(530)241-8354 �,;,�
����;�'�:;;�
b;., �.,,.
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***
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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
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Re�ommendation '4'}f r�t{rz,,�t��t'� ;�� r,,� ����z�;,l t s�r;�,
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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. �� '�`' '� �`�`�� ��� '
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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...
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AZternative Action �'` �,' f'� ��_ '
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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���`' `'`� '��'� �
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Attachments 7�s'�j:.,t'`� � "�
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Location Ma�' '' �� t'"���
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Mayar's Lette��t�=�he Bella Vista Water District Board of Directors Chair
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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:
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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�'���'► �
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�'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
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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
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Reclamation TF�t��`�` quirement may prove extremely difficult for the development community due to
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�the�fimited availab���t��3�������x natu�^�������'���rights.
�ti���tF j�7itsf t.titr{t �rk jrjir .lttr#t 3t J:
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To help mitigate these issues and f�����tate new deve����ment and economicvitality in our community,
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the City of Redding Council has�di�,`���ed our staff to "#��,�`k with the District in developing water supply�
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augmentation solutions so develo���nt may cor���fi��� As i���,�District,the City is also affected by
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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
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solutions that prove viable and beneficial to the C�t����h�� District and��#�community.
,s{' r{<< r 5�r,r
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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�
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balance that obligation with the burden placed on landowners who are v��t�;�ing to ut�l�ze,the�r
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�investm�nt to serve��re housing and busine�s needs of�the corr`imunity���}�whol�,,{, `�{;�#{; '�'"'°
7�r� r,s i�fr{�
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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
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City to achieve these abjectives. I look forward to your response.
Sincerely,
Kristen Schreder
Mayor, City of Redding
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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
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L)istriet �I��stttct� �� ��;������ �c�ua�e,�a�,��+��{���p�� i� av�i�ab1� �t���faczlit�t� r�e�v c1ev���� ���ent
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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�
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ma���arc��e�e�trer�el�cliffic�lt��e�r���,�����������rzt c��'��'������,t��e tc� �he 1�r�itecl�availability and���
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�m�1�� nat�re cf�ater r�ghts� t��' ��t
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'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 "
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"�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;
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