Item 21 First Amendment to Interagency Agreement with the Orange County Water District and Moulton Niguel Water District

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Agreements for Water Interconnection Study May 17, 2022 Page 2 four pressure regulating stations, and seven connection points to Metropolitan Water District of Southern California (MET) water supplies. The City pumps approximately 75 percent of its potable water from the Orange County Groundwater Basin, which is managed by Orange County Water District (OCWD). While the remainder of the City's potable water needs come from imported water sources via the seven MET connections located within the City. It is important to note that as a result of the City's investment in water supply capacity, the City's 2017 Water Master Plan identified that the City's water system has adequate capacity to supply the City's maximum daily demands for existing, near -term, and buildout scenarios using only groundwater wells. Moulton Niguel Water District (MNWD), which serves more than 170,000 customers in Laguna Niguel, Aliso Viejo, Mission Viejo, Laguna Hills, Dana Point, and San Juan Capistrano, relies solely on imported MET water to meet its customers' potable water needs. MNWD is not able to draw from the Orange County Groundwater Basin, as the City of Santa Ana does, because the groundwater basin is only accessible to agencies in northern Orange County, which fall within its boundaries. Due to MNWD's sole reliance on imported water, the district is more vulnerable to natural disasters or infrastructure failure that cause outages in the MET system. As a result, OCWD and MNWD approached the City to conduct a preliminary design study and environmental analysis (Exhibit 1) to identify the needed environmental mitigations and the necessary infrastructure modifications to Santa Ana's water facilities and distribution system to enable Santa Ana to convey water from the Orange County Groundwater Basin to the water transmission pipeline that supplies south Orange County water agencies. This information will be used by OCWD and MNWD to develop estimated construction costs and scope of work for a potential program to convey groundwater to MNWD in the event an emergency renders the MET's water delivery infrastructure incapable of making deliveries. Stantec Consulting Services, Inc. has been selected to assist in the development and review of the preliminary design study (Exhibit 2) due to their familiarity with the City of Santa Ana's water system. MNWD will fund all work conducted as a result of this agreement on a reimbursement basis. The final design and construction of any facilities recommended as a result of the study and environmental analysis will first require approval by the governing boards of all parties and the development of a subsequent agreement for the construction, operation, and funding of the proposed interconnection. The City, MNWD and OCWD reserve the right not to enter into any subsequent agreement after the completion of the study and analysis. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. City Council 30 — 2 5/17/2022