10.a. Ballot Measure to Purchase State WaterMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
SUBJECT: CONSIDERATION OF ONE-YEAR DELAY IN CONSIDERATION OF
PLACING A MEASURE ON 'THE BALLOT TO AUTHORIZE
PURCHASE OF STATE WATER
DATE: MARCH 13,2012
RECOMMENDATION:
It is recommended the Council approve a one-year delay in considering placing a
measure on the ballot to authorize purchase of State water.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There will be no financial impact from the one-year delay. The delay will assist staff
resources by providing more time to meet the City Council's request for updated
projections of City water need and supply.
I
BACKGROUND:
In June 2010, staff presented a water analysis and strategies to the City Council,
which identified a projected need of approximately 400 additional acre feet of water
to meet the community's needs when it reaches its buildout population under the
current General Plan. It was agreed to address these needs by expanding water
conservation efforts, seeking purchase of State water, and to continue working on the
potential for a water recycling project in the future. The City Council directed staff to
prepare a ballot measure for the June 2012 election to enable purchase of State
water.
Staff presented a recommended measure to the City Council for consideration at the
January 24, 2012 meeting. The item was continued and considered at the February
14, 2012 meeting after additional information was provided. The City Council
directed staff to return by June with the cost comparison data on other alternatives
and updated projections of the City's water needs and supply.
Agenda Item 10.a.
Page 1
CITY COUNCIL
CONSIDERATION OF ONE-YEAR DELAY IN CONSIDERATION OF PLACING A
MEASURE ON THE BALLOT TO AUTHORIZE PURCHASE OF STATE WATER
MARCH 13,2012
PAGE 2
ANALYSIS OF ISSUES:
Staff recommends that the item be delayed for the following reasons:
Given other priorities, it will be difficult for staff to complete the level of analysis
needed to accurately update water demand and supply projections during the
requested time frame.
The ability to utilize 2012 rather than 201 1 as a base year in preparing the
projections will result in much more accurate figures. Since 201 1 was a very
wet year, it is difficult to accurately determine how much of the drop in water
usage was due to conservation efforts versus the amount of rainfall that was
received. It appears that 2012 is going to be a dry year, which provides data on
the type of conditions the City needs to plan for in its supply strategies.
Given the level of concerns and questions regarding costs and revenues, it will
be preferable to first determine the terms of a potential purchase so those
questions and concerns can be responded to more accurately.
Additional time will allow for completion of the study on raising the spillway at
the Lopez dam and additional efforts underway to develop potential strategies to
increase the cost effectiveness of a recycled water project.
Please note that the earliest opportunity to place the measure on the ballot unless a
costly independent special election is pursued will be 2014. Therefore, a one-year
delay in considering the ballot measure will result in a two-year delay in the measure
being placed on the ballot.
ALTERNATIVES:
The following alternatives have been identified for City Council consideration:
1. Approve staffs recommendation for a one-year delay in considering a State
water ballot measure;
2. Direct staff to move forward with prior direction for consideration of a measure
on the November ballot;
3. Direct staff to eliminate State water as an alternative and take no further action
regarding a ballot measure allowing a purchase of State water; or
4. Provide other direction.
ADVANTAGES:
The delay will provide staff the time and information necessary to provide more
accurate projections regarding the need, costs and funding for a potential purchase
of State water. This will help address stated concerns that need to be resolved for a
successful ballot measure.
Agenda Item 10.a.
Page 2
CITY COUNCIL
CONSIDERATION OF ONE-YEAR DELAY IN CONSIDERATION OF PLACING A
MEASURE ON THE BALLOT TO AUTHORIZE PURCHASE OF STATE WATER
MARCH 13,2012
PAGE 3
DISADVANTAGES:
The lack of authority to purchase any amount of State water places the City in a poor
negotiation position for acquisition of any future potential water supply and increases
the risk of missing an opportunity for a cost effective purchase if it becomes available.
ENVIRONMENTAL REVIEW:
No enviror~mental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, March 8, 2012 and on the
City's website on Friday, March 9, 2012. No comments were received.
Agenda Item 10.a.
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Agenda Item 10.a.
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