To: Board of Directors, Sonoma County Water Agency
Department or Agency Name(s): Sonoma County Water Agency
Staff Name and Phone Number: Grant Davis 707-547-1911, Todd Schram 707-524-1173
Vote Requirement: Majority
Supervisorial District(s): Fourth
Title:
Title
City of Healdsburg Water Supply Agreement
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Recommended Action:
Recommended action
Authorize Sonoma County Water Agency’s General Manager to execute the Extension to the First Amended Agreement for Sale of Water Between the Sonoma County Water Agency and the City of Healdsburg, in substantially the form presented to this Board, term end January 1, 2027.
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Executive Summary:
This item would authorize Sonoma County Water Agency’s (Sonoma Water) General Manager to execute a one-year time extension to the First Amended Agreement for Sale of Water Between the Sonoma County Water Agency and the City of Healdsburg (City) for a new term end date of January 1, 2027. This extension will provide additional time for negotiations and preparation of supporting documents related to changes proposed by the City for a future amended water supply agreement.
Discussion:
HISTORY OF ITEM/BACKGROUND
On November 17, 1992, Sonoma Water entered into a water supply agreement with the City that authorized the City to divert water under Sonoma Water's water rights. The water supply agreement only allows the City to make diversions under Sonoma Water's water rights when the City’s own water rights do not authorize diversions. The City does not take any water from Sonoma Water's transmission system. The City’s water supply agreement, which was originally set to expire on June 30, 2014, was renewed in December 2015 for ten years, following the execution of two short-term extension amendments.
In 2014, the City expressed an interest in extending its agreement for one year but indicated that it was not interested in seeking a long-term agreement. Sonoma Water signed a one-year extension with the City extending the term until June 30, 2015. However, in May 2014, the State Water Resources Control Board, in response to a multi-year drought that started in 2013, issued an immediate curtailment of appropriative water rights with a priority date of February 19, 1954, or later in the Russian River watershed upstream of the confluence with Dry Creek. This curtailment order included the City's principal water right (Permit 11309) and, as a result, the City reassessed its long-term water supply strategy. The City contacted Sonoma Water and indicated that the City was again interested in a long-term renewal of its water supply agreement. Negotiations were not completed prior to the agreement extension expiration date of June 30, 2015, so an additional six-month extension was approved and signed in June 2015.
The Restructured Agreement for Water Supply dated June 2006 (Restructured Agreement) requires Sonoma Water to seek specific new provisions and charges in renewed agreements with entities that divert water from the Russian River under Sonoma Water's water rights using those entities’ own facilities. These changes were implemented in December 2015 when the First Amended Agreement for Sale of Water Between the Sonoma County Water Agency and the City of Healdsburg (First Amended Agreement) was signed. The First Amended Agreement established a 10-year term for the amended agreement; reduced the maximum annual diversion amount from 4,440 acre-feet to 425 acre-feet; and replaced the $1 annual fee with terms that applied administrative fees and program charges for water conservation, watershed planning and restoration, and recycled water and local supply. The First Amended Agreement also added a new provision that constrains the authority to divert under Sonoma Water's water rights if payments are not current.
The First Amended Agreement expires January 1, 2026.
PROPOSED EXTENSION OF FIRST AMENDED AGREEMENT
Sonoma Water and the City wish to extend the term of the Agreement for one year, up to and including January 1, 2027. This extension will provide additional time for negotiations and preparation of supporting documents related to changes proposed by the City for a future amended water supply agreement.
California Environmental Quality Act
The General Manager has determined that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301(b), Existing Facilities, as it will amend a current water supply agreement for an extension of time and future levels of diversion will not be significantly different from present levels of diversion and involve no expansion of existing use.
County of Sonoma Strategic Plan Alignment:
N/A
Sonoma Water Strategic Plan Alignment
Goal: Planning and Infrastructure
Strategy: Conduct planning that integrates and balances operational, maintenance, and infrastructure priorities.
Action: Continue to engage in planning efforts and partnerships to protect and enhance our water supply.
Ensuring a reliable water supply for residents in Sonoma County is a core function of Sonoma Water.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
12/15/2015: Approve and authorize the Chair to execute a 10-year renewal agreement to the Water Agency's existing water supply agreement with the City of Healdsburg.
06/16/2015: 1) Approve and authorize the Chair to execute 10-year renewal agreements to the Water Agency's existing water supply agreements with the Marin Municipal Water District, and 2) Authorize the General Manager to execute extensions of the Water Agency’s water supply agreements with Camp Meeker Recreation and Park District of up to one year and with City of Healdsburg of up to six months. (Districts 4 and 5)
06/17/2014: a) Authorize the General Manager to execute a 10-year renewal agreement to the Water Agency’s water supply agreement with the Windsor Water District and the Town of Windsor, and b) Authorize the General Manager to approve and execute extensions of up to one year to the Water Agency's water supply agreements with Camp Meeker Recreation and Park District, City of Healdsburg, and Marin Municipal Water District.
06/18/1990: Board Action to authorize General Manager of Sonoma County Water Agency to negotiate water supply agreements with Windsor Water District and other public water suppliers to divert Russian River water under Water Agency's water right permits
Fiscal Summary
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FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
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Narrative Explanation of Fiscal Impacts:
There are no fiscal impacts related to this item.
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Extension to First Amended Agreement for Sale of Water Between the Sonoma County Water Agency and the City of Healdsburg
Related Items “On File” with the Clerk of the Board:
None.