REPORT TO THE CITY COUNCIL June 12, 2014 FROM: MARTIN A. QUERIN, PE, Assistant Director Department of Public Utilities - Water Division BROCK D. BUCHE, PE, PLS, Supervising Professional Engineer Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to the Metropolitan Water Resources Management Plan Update and Associated Environmental Documents 1. Adopt a resolution certifying Final Environmental Impact Report dated May 2014 (State Clearinghouse No. 2013091021) 2. Adopt Findings of Fact as required by Public Resources Code Section 21081 (a) and CEQA Guidelines, Section 10591 3. Approve the Mitigation Monitoring and Reporting Program as required by Public Resources Code Section 21081.6 and CEQA Guidelines Section 15097 4. Adopt the Statement of Overriding Considerations as required by Public Resources Code, Section 21081(b) and CEQA Guidelines Section 10593 5 Adopt the Metropolitan Water Resources Management Plan Update ..Body RECOMMENDATIONS Staff recommends that City Council: 1. Adopt a resolution certifying the Final Environmental Impact Report (Final EIR) dated May 2014 (State Clearinghouse No. 2013091021) (Exhibit C). 2. Adopt Findings of Fact as required by Public Resources Code Section 21081 (a) and CEQA guidelines, Section 10591 (Exhibit D). 3. Approve the Mitigation Monitoring and Reporting Program (MMRP) as required by Public Resources Code Section 21081.6 and CEQA guidelines Section 15097 (Appendix A of the FEIR, Exhibit C). 4. Adopt the Statement of Overriding Considerations (SOC) as required by Public Resources Code Section 21081 (b) and CEQA Guidelines Section 10593 (Exhibit D). 5. Adopt the Metropolitan Water Resources Management Plan Update (Metro Plan Update) (Exhibit A). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) Water Division is seeking the adoption of the Metropolitan Water Resources Management Plan Update (Metro Plan Update), the associated Environmental Impact Report (EIR), Mitigation Monitoring and Reporting Program (MMRP) and Statement of Overriding Considerations (SOC). The overall objective of the City's Metro Plan Update is to provide sustainable and reliable water supplies to meet the demand of existing and future customers through 2025. The overall goals are to: * Optimize the conjunctive use of the City's available surface water, groundwater, and recycled water supplies for direct treatment and use, and intentional groundwater recharge; * Balance the City's groundwater operations by 2025; * Replenish groundwater basin storage; * Continue to implement and expand demand management/water conservation measures in compliance with the City's USBR contract and to achieve specific water conservation goals; and * Utilize recycled water to meet in-City non-potable demands in new development areas and existing parts of the City. The Metro Plan Update EIR is both a Project and a Program EIR. As a Project EIR it evaluates the environmental impacts of proposed near-term project elements consistent with CEQA Guidelines section 15161. Future project elements are evaluated at a program level. Implementation of specific future project elements will be examined in the light of this EIR to determine whether additional subsequent environmental review is required (CEQA Guidelines section 15168). BACKGROUND Water is an essential resource and the City must secure an adequate supply and provide adequate water system facilities to ensure the health and continued growth of the community. The Metro Plan Update provides a comprehensive and integrated water supply plan to better manage the City's diverse water supplies, address groundwater level declines beneath the City's service area and groundwater quality concerns, and further balance and optimize the City's conjunctive use of its diversified water supply portfolio which would ultimately enhance overall water supply reliability. Key components of the proposed Metro Plan Update include: * Expand Demand Management and Water Conservation Measures. Complete implementation of the on-going residential water metering program by 2013 and implementation of additional water conservation measures (the metering program was completed in early 2013). * Expand Use of Treated Surface Water Supplies. Increase surface water treatment capacity by constructing and operating a new Southeast (SE) Surface Water Treatment Facility (SWTF), an expanded Northeast (NE) SWTF and potentially a new Southwest (SW) SWTF. * Balance In-City Groundwater Operations by 2025. Reduce City's groundwater pumping and increase intentional groundwater recharge with a goal of balancing the City's groundwater operations within the City's service area (e.g., pumping equal to recharge) by 2025. * Use Recycled Water Supplies for Non-Potable Water Demands. Maximize the direct use of recycled water for in-City non-potable water uses and thereby reduce potable water demands. * Assess Need and Availability of Future New Supply. Assess the need for and timing of future new water supplies once future growth plans beyond buildout of the 2025 General Plan is determined. The Metro Plan Update also includes: * Objectives, Goals and Policies. Metro Plan Update objectives, goals and policies target conjunctive use of available groundwater and surface water supplies to optimize use of available surface water supplies; and the use of the local groundwater basin in a sustainable manner, which minimizes or eliminates localized groundwater depressions and groundwater quality degradation. * Operational Principles. The operational principals would guide conjunctive use and development of water supply operations throughout the Plan area. Specific operational principles have been developed to: (1) maximize the use of treated surface water from the City's existing and planned SWTFs in conjunction with the City's groundwater supplies; and (2) use existing and proposed groundwater recharge facilities to ensure balanced City groundwater operations by 2025. * Water Supply Components. How the City intends to develop and use treated surface water, groundwater, demand management /water conservation measures, recycled water and any potential new water supplies to meet existing and future water demands. * Proposed Facilities. New water supply facilities are needed to support implementation of the Metro Plan Update water supply plan and provide sufficient supplies for 2025 General Plan buildout. Facility improvements are proposed for all of the water supply components - treated surface water facilities, water transmission mains and distribution pipelines, groundwater wells, groundwater recharge basins, recycled water facilities, plus facilities to implement demand management measures such as modification of landscapes to conserve water. Facility construction would be phased based upon what is needed in the near-term and what is to be completed for 2025 General Plan buildout. * Proposed Near-term Projects. Development and operation of three near-term projects would be evaluated at a project-level. Near-term projects include upgrades to the existing NE SWTF; construction of a new SE SWTF, with 80 million gallons per day (mgd) total design capacity; and regional water transmission mains and distribution pipelines located throughout the project area. Near-term and future projects are described in more detail in Chapter 3, Project Description of the Draft EIR. ENVIRONMENTAL FINDINGS The Final Environmental Impact Report, Mitigation Monitoring and Reporting Program, and Statement of Overriding Considerations are all included and being submitted for adoption. FISCAL IMPACT The adoption of these items will have no financial impact on the General Fund. The proposed near-term projects identified in the Metro Plan Update have been included in the water rate model used to create the four-year utility rate plan (FY2014 through FY 2017) and subsequently adopted by City Council on August 15, 2013 (Resolution 2013-143). Attachments: * Resolution o Exhibit A - Metropolitan Water Resources Management Plan Update o Exhibit B - Draft Environmental Impact Report o Exhibit C - Final Environmental Impact Report o Exhibit D - Findings of Fact and Overriding Considerations Attachments are also available for review at the City Clerk's Office.