For City Council Meeting and Rialto Utility Authority [April 23, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Approve the Acceptance of $6 Million Dollars in Water Replenishment Credits for the Settlement of Rialto-Colton Basin Litigation.
(ACTION)
Body
BACKGROUND:
As part of the settlement of the Rialto-Colton Basin (Basin) lawsuit, the City is to receive "replenishment credits" for Basin management projects and water purchases. There are two options to choose from. Those options are:
* Option 1 = Receive a $6 million deposit in to an escrow account upon San Bernardino Valley Municipal Water District's (Valley District's) completion of replenishing the Basin with 61,000 acre feet of water. Replenished will happen in an estimated 15-20 years.
* Option 2 = Receive a $2.25 million deposit in to an escrow account by June 1, 2019.
ANALYSIS/DISCUSSION:
Option 1
Under Option 1, Valley District will deposit $6 million into a Rialto specific escrow account to be used by Rialto for purchase of water or other Basin management projects. Projects that qualify for this money area determined by the Rialto-Colton Basin Groundwater Council which is comprised of the Cities of Rialto and Colton, West Valley Water District and Fontana Union Water District. It should be noted that Valley District does not have any authority over how the replenishment credits are spent.
Valley District will deposit the $6 million upon completion of replenishing the Basin with 61,000 acre feet of water that will be purchased or otherwise procured with funds from Fontana Union. Valley District's obligation to replenish the Basin is independent of Fontana Union paying for it, and such obligation is enforceable by Rialto. The source of the $6 million is anticipated to be revenue received from Fontana Union from the sale of water from...
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