TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Sale of City of Chino’s ownership of Plant 33 to the Monte Vista Water District.
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RECOMMENDATION
Approve the sale of the City’s ownership interest in Plant 33 to the Monte Vista Water District for $1,015,000.00; and authorize the City Manager to execute all necessary documents to complete the transfer on behalf of the City.
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FISCAL IMPACT
The proceeds from the sale will be added to the Fiscal Year 2024-25 Water Fund Revenue
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
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Revenue: 5207310 - 59335-WA041 |
Expenditure: |
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BACKGROUND
In November 2004, the City of Chino (City) and the Monte Vista Water District (District) entered into an agreement to jointly construct, operate, and maintain Plant 33. This facility, located at the corner of Palo Verde Street and Benson Avenue in the City of Montclair, includes Well 33 and an ion exchange treatment system. The purpose of Plant 33 was to produce, treat, and deliver groundwater to both the City and the District. Additionally, the facility was intended to inject treated imported water into the Chino Basin for storage and later recovery. However, this plan never materialized. The City was not able to take any water from Plant 33.
Following construction, testing confirmed that Well 33, located at Plant 33, exceeded the maximum contaminant level (MCL) for 1,2-Dibromo-3-Chloropropane (DBCP), necessitating the installation of additional treatment technologies to meet drinking water standards. Due to this exceedance and the lack of viable options to treat or blend groundwater, the City has been unable to utilize any water from Plant 33. Through piping connections, the District connected Well 33 to a nearby facility and blending was used to reduce DBCP levels below the maximum contaminant level (MCL), allowing the well to be safely integrated into their water system.
ISSUES/ANALYSIS
While the City has not utilized water from the jointly funded Plant 33 project to date, it does not currently have treatment infrastructure in place to address the supply’s water quality challenges. To recover part of its original investment, staff recommends that the City Council approve the sale of the City’s portion of Plant 33 to the Monte Vista Water District for the negotiated price of $1,015,000.
Upon completion of the sale, the City will also terminate the 2004 Agreement (2004-225) with the Monte Vista Water District in accordance with Section 1.01 of that Agreement. The termination will formally conclude all shared responsibilities and agreements in the contract, ensuring that both parties have no further obligations related to Plant 33.
Attachment: Exhibit A - Agreement to Purchase Plant 33