Report Prepared by: Stephanie R. Dietz, City Manager
Title
SUBJECT: Approval of a Water Transfer Agreement Between the Merced Irrigation District and the City of Merced for an Annual One-to-One Exchange at No Cost for up to 10,000 Acre Feet for a 50-Year Term
REPORT IN BRIEF
Considers approving the Water Transfer Agreement between the Merced Irrigation District and the City of Merced for an annual one-to-one exchange at no cost up to 10,000 acre-feet for a 50-year term.
RECOMMENDATION
City Council - Adopt a motion approving the Water Transfer Agreement between Merced Irrigation District and the City of Merced for an annual one-to-one exchange at no cost for up to 10,000 acre-feet over a 50-year term.
Body
ALTERNATIVES
1. Approve, as recommended; or
2. Refer matter back to staff for changes; or
3. Deny.
CITY COUNCIL PRIORITIES
As provided for in the FY 2022/23 Council Goals & Priorities, Water Sustainability
DISCUSSION
The City of Merced and Merced Irrigation District (MID) have enjoyed a long-standing relationship in the development and management of groundwater locally through the Merced Streams Group, Merced Integrated Regional Water Management Agency (MIRWMA) and more recently the Merced Irrigated-Urban Groundwater Sustainability Agency (MIUGSA).
The City Council remains committed to policy decisions that further the sustainable use of existing water resources for the community. These decisions include the adoption of the 2015 Urban Water Management Plan with a proposed surface water treatment plant, the implementation of water meters throughout the entire Water System, and the approval of the Water Conservation Ordinance in 2017 to limit watering in years where the region is experiencing prolonged drought conditions.
On May 19, 2023, the City Council authorized the approval of a Memorandum of Understanding between the City of Merced and Merced Irrigation to negotiate the purchase of transfer water.
With the understanding that a water services system completely dependent on groundwater would face challenges in the future, Council directed staff to explore the possibility of entering into an agreement with MID. On May 19, 2023, the City Council authorized the approval of a Memorandum of Understanding (MOU) that outlines framework mutually agreed upon by City and MID staff to negotiate a water transaction.
Staff are returning to the City Council with the result of these efforts. This item requests that City Council approve a Water Exchange Agreement, providing for a one-to-one exchange of City tertiary treated water for groundwater made available by MID at no cost for up to 10,000-acre feet. It also outlines opportunities for the use of surface water to replace groundwater for irrigation of city parks, and for the ability to partner on future facilities south of the City for a 50-year term. The Agreement include this potential surface water transfer under the same terms as the exchange for ground water.
IMPACT ON CITY RESOURCES
There is no impact City resources at this time.
ATTACHMENTS
1. Water Exchange Agreement