AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO C. LUNA
PUBLIC WORKS DIRECTOR
SUBJECT:
title
PROPOSED WATER DELIVERY AGREEMENT WITH LONG BEACH UTILITIES DEPARTMENT
summary
Summary:
The City of Signal Hill currently maintains a six-inch emergency interconnection that can deliver Long Beach Utilities Department (LBUD) potable water directly into Gundry Reservoir. Staff recommends converting this interconnection into an active permanent interconnection to provide flexibility and redundancy in water resource delivery. This approach would enable the City to meet supply demands during peak summer months and allow the City to save on water supply costs by reducing the use of Central Basin Municipal Water District Connection No. 19 (CB-19). If approved, City Staff would proceed with the commissioning process which includes studies, chemical calculations, permitting, testing, and a rigorous sampling process following the execution of a potable water services delivery agreement. Staff would work expeditiously with LBUD to complete the commissioning process by the Spring of 2027 and estimates the cost to be approximately $30,000.
Strategic Plan Goal(s):
Goal No. 1: Financial Stability: Ensure the City’s long-term financial stability and resilience
Goal No. 4: Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendation:
Staff recommends the City Council authorize the City Manager to execute the proposed agreement with Long Beach Utilities Department for the delivery of potable water utilizing an existing interconnection at the 3300 block of Brayton and Wardlow.
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Fiscal Impact:
As noted in the proposed potable water delivery agreement, the City would realize a 19% savings on a per-acre foot basis for imported water supply costs when using the Long Beach Utilities Department (LBUD) interconnection compared to imported water from the Central Basin Metropolitan District (CBMWD), which would represent a positive fiscal impact estimated at $147,721 in annual savings. The potential annual savings is based on the City’s expected need for imported water. The process of commissioning and testing the existing interconnection is estimated to cost $30,000 and would be absorbed through the Water Fund’s operating budget.
Background:
The City’s Water operations has two (2) standby interconnections with Long Beach Utilities and City of Lakewood. These interconnections serve as contingency interties used during a water-shortage emergency or when an incident occurs that impairs the City’s ability to deliver water. Historically, the City has met its baseline annual potable water demand through a supply split averaging approximately 78% local groundwater and 22% imported water purchased through Central Basin Municipal Water District Connection No. 19 (CB-19). The active standby sources were established years ago with the most recent emergency interconnection established in August 2017.
As established in the City’s Water Master Plan and Urban Water Management Plan (UWMP), standby interconnections are classified as temporary supply augmentation measures. Specifically, Submittal Table 8-2 (Supply Augmentation and Other Actions) of the City's Water Shortage Contingency Plan designates emergency interties with neighboring purveyors, including LBUD, as Shortage Level 3 through Level 6 actions. Under this framework, emergency intertie deliveries are reserved for shortages or acute infrastructure failures exceeding a 20% supply deficit.
Analysis:
The proposed agreement with the Long Beach Utilities Department would enable the City to purchase potable water when needed to supplement the City’s water supply. As noted earlier in this report, the emergency intertie currently provides necessary disaster redundancy; however, keeping the existing six-inch connection at the 3300 block of Brayton Avenue and East Wardlow Road restricted to emergency-only status limits the City's operational and fiscal flexibility. For example, during peak summer demand windows or planned groundwater well offline maintenance, the City must rely on CB-19 at full Metropolitan Water District imported tariff rates.
Converting the existing Brayton/Wardlow interconnection into an active, permanent delivery point directly feeding Gundry Reservoir allows the City to introduce a more cost effective, drought-resilient supply source. By utilizing the negotiated price floor and ceiling methodology outlined in Table 1 below, the City would utilize its own groundwater rights to receive treated potable water from LBUD at an expected 19.4% discount compared to CB-19 imported water rates ($1,369/AF versus $1,698/AF), generating a net savings of approximately $329 per acre-foot while providing vital operational redundancy. Staff’s calculations are based on current costs; the agreement contemplates an annual adjustment based on the consumer-price index for the region.
Table 1 -
Price Floor Price Ceiling & LBUD Operations, Maintenance, Repair, Rehabilitation, and Replacement (OMRRR) costs
Next Steps
Execution of the potable water delivery services agreement establishes the terms and conditions for import, the use of an interconnection on the other hand, requires a domestic water permit amendment. The amendment process requires completing engineering evaluations, water quality validations, control integrations, and regulatory approvals administered by the California State Water Resources Control Board - Division of Drinking Water (DDW). Staff has established an eight-step implementation plan to transition the Brayton/Wardlow facility into permanent operation as outlined below which is expected to be completed by Spring of 2027:
1. Water Quality Sampling and Blending Compatibility: The City would conduct baseline water quality profiling conducted to evaluate the physical and chemical characteristics of LBUD potable water in comparison with its potable water and CB-19 imported water. Testing parameters include general minerals, physical parameters, pH, alkalinity, total dissolved solids (TDS), hardness, and disinfection residuals. In addition, corrosion indices (such as the Langelier Saturation Index (LSI) would be evaluated to verify that continuous introduction of LBUD supply would not destabilize protective pipe scales or create compliance issues under the Lead and Copper Rule.
2. Chemical Calculations and Technical Memorandum: An engineering Technical Memorandum (TM) would be prepared to evaluate chemical compatibility, secondary disinfection dosing, and reservoir hydraulics. Because LBUD water would discharge directly into Gundry Reservoir, the TM would establish detailed disinfection residual calculations (monitoring chlorine residual stability and chloramine/free chlorine dynamics), reservoir turnover rates, contact time (CT), and water age modeling within the distribution pressure zone to ensure water quality stability, prevent nitrification, and avoid aesthetic or taste-and-odor issues.
3. DDW Permit Amendment Application: Transitioning an interconnection from emergency standby to an active, routine supply source constitutes a system operational change under the California Health and Safety Code. Public Works staff would prepare and submit a formal Domestic Water Supply Permit Amendment application package to DDW. The application would include engineering design drawings, California Environmental Quality Act (CEQA) determination, piping schematics, backflow prevention assemblies, the chemical compatibility Technical Memorandum, and the proposed water quality monitoring plan.
4. Permit Issuance and OMMP Update: Following DDW engineering review and site inspection, DDW would issue an amended Domestic Water Supply Permit incorporating specific operating rules, monitoring schedules, and flow limitations. Concurrently, staff would update the City's Operations, Maintenance, and Monitoring Plan (OMMP) and Standard Operating Procedures (SOPs). The updated OMMP would define routine operational protocols, including daily Supervisory Control and Data Acquisition (SCADA) verification, routine water quality sampling schedules, annual backflow assembly testing, meter calibration procedures, and regular valve exercise routines.
5. SCADA Controls and Vault Instrumentation: To integrate the intertie into the City's automated distribution system, the meter vault at Brayton Avenue and Wardlow Road would be connected to the City’s Supervisory Control and Data Acquisition (SCADA) network. Instrumentation upgrades would include a remote-controlled modulating rate-of-flow/pressure-reducing control valve, an electronic flow meter/totalizer, line pressure transducers, and online water quality analyzers (including continuous chlorine residual and turbidity). Automated fail-safe logic and reservoir level setpoints would be programmed into SCADA to modulate or cease incoming flow based on real-time Gundry Reservoir storage levels and system hydraulic demands.
6. System Commissioning, Disinfection, and Activation: The final phase would involve comprehensive commissioning of the Brayton/Wardlow delivery station in coordination with LBUD and DDW field representatives. The interconnection assembly, piping, and meter apparatus would undergo hydrostatic pressure testing, pipeline flushing, and chemical disinfection pursuant to AWWA C651 standards. Following certified bacteriological clearance (negative total coliform and E. coli test results), SCADA end-to-end loop checks, and valve flow tuning, the intertie would be formally commissioned and placed into active service.
7. Initial Sampling, Routine Sampling, and Testing: After the interconnect is put into service, the Water Division would conduct any applicable initial sampling for a period as determined under the newly amended permit. The City would meet its sampling requirements as required under the California Health and Safety Code and upload onto the California Laboratory Intake Portal (CLIP). Lastly, testing & inspections would be incorporated in the OMMP to ensure all mechanical and electrical components are in good operating order.
8. Meter Recording, Pumper Activities, and Calibration: Throughout the course of use, the City of Signal Hill and Long Beach Utilities Department would record reads, invoice the City for its use on a monthly basis, and report pumping activities to Water Replenishment District via the pumpers portal. The City of Signal Hill and Long Beach Utilities Department would, on an annual basis, inspect the interconnection and calibrate/service equipment.
Conclusion
Staff recommends the City Council authorize the City Manager to execute the agreement with Long Beach Utilities Department for the delivery of potable water utilizing an existing interconnection at the 3300 block of Brayton and Wardlow. If approved, staff would proceed with engaging with the California State Water Resources Control Board and initiate the permit amendment process.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. Signal Hill Water Delivery Agreement