DATE: December 6, 2022
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Supporting East Bay Municipal Utility District’s (EBMUD) Grant Funding Application for the Implementation of Management Actions and Projects in the City/EBMUD Jointly Prepared East Bay Plain Subbasin Groundwater Sustainability Plan
RECOMMENDATION
That the Council adopts a resolution (Attachment II) supporting EBMUD Grant Funding Application to the California Department of Water Resources (DWR) for Sustainable Groundwater Management Grant Program - Implementation Round 2 funds to assist with implementation of management actions and projects in the City/EBMUD jointly Prepared East Bay Plain Subbasin Groundwater Sustainability Plan (GSP).
SUMMARY
In June 2017, the State formally designated Hayward as the Groundwater Sustainability Agency (GSA) for the portion of the East Bay Plain Groundwater Subbasin (EBP Subbasin) that underlies the City. EBMUD is the GSA for the remaining portion of the Subbasin that underlies the agency’s service area. As a GSA, Hayward is responsible for developing and implementing a GSP to manage groundwater within its management area. Hayward and EBMUD worked together to prepare a single GSP for the EBP Subbasin, under the terms of a Cooperating Agreement.
The governing bodies of each entity approved the GSP in December 2021, and it was submitted to the State in January 2022. In addition, in September 2022, Hayward’s City Council approved entering into an Implementation Agreement to work cooperatively with EBMUD to implement the GSP management actions necessary to ensure groundwater sustainability. EBMUD staff intends to submit a grant application to DWR for the Sustainable Groundwater Management Grant Program - Implementation Round 2 on behalf of EBMUD and Hayward for funding assistance to implement actions to fill groundwater basin data gaps, advance sustainable groundwater basin management, and support implementation of the GSP.
BACKGROUND
Extreme drought conditions and unprecedented low-groundwater levels in California have highlighted the importance of groundwater and the need to protect this resource against unsustainable pumping and irreversible environmental impacts, such as land subsidence. These concerns prompted the development of the Sustainable Groundwater management Act (SGMA) legislation in 2014, creating a statewide framework for sustainable, local-groundwater management in the state.
As part of SGMA, local agencies in medium- and high-priority basins are required to form GSAs with authority and responsibility for developing and implementing GSPs. The EBP Subbasin, which in part underlies Hayward, was deemed a medium-priority basin and subject to SGMA requirements.
In June 2017, the State formally designated Hayward as the GSA for the portion of the EBP Subbasin that underlies the City. A primary responsibility of a GSA is to develop and implement a GSP to demonstrate the Subbasin will be sustainably managed within 20 years of Plan implementation without adverse impacts. The remainder of the EBP Subbasin underlies EBMUD’s service area, and EBMUD is the GSA for that portion of the Subbasin.
The City and EBMUD entered into a Cooperating Agreement in June 2018 (subsequently amended three times) to work together to develop a single GSP for the entirety of the EBP Subbasin. This collaboration reduced duplication of technical work, improved communication with stakeholders across the entire EBP Subbasin, and resulted in a robust and effective GSP. Council and the EBMUD Board of Directors adopted the GSP for the EBP Subbasin on December 7 and December 14, 2021 respectively, and it was submitted to the State Department of Water Resources (DWR) on January 26, 2022.
The Cooperating Agreement anticipated the possibility of grant funding from DWR to expand on the original scope of work set forth in the Agreement. EBMUD and DWR have since entered into agreements for Proposition 1 and Proposition 68 grant funds totaling $1,680,000 for additional monitoring and analysis, as well as developing a publicly accessible data management system. Some of this work is in progress and has not yet been completed.
Staff from both agencies developed an Implementation Agreement that was executed in November 2022 that allows for coordinated management of the EBP Subbasin and addresses the governance structure, decision-making procedures, and allocation of costs and responsibilities relative to implementing the GSP to ensure coordinated management and compliance with SGMA.
As indicated in the GSP, the GSAs are required to implement management actions to fill data gaps and advance sustainable management of the EBP Subbasin. To provide financial assistance for GSP implementation, DWR is administering the Sustainable Groundwater Management Grant Program - Implementation Round 2, using funds authorized by the California Budget Acts of 2021 and 2022.
DISCUSSION
As required by SGMA, Council adopted a GSP for the Subbasin on December 7, 2021. The City and EBMUD, through a Cooperating Agreement and subsequent amendments, completed and submitted the GSP to DWR on January 26, 2022. The GSP was developed in accordance with SGMA and shows the EBP Subbasin is sustainable.
The GSP commits the City and EBMUD to implement management actions within the portions of the EBP Subbasin underlying their respective service areas to maintain sustainability within the Subbasin. The management actions will fill data gaps and advance sustainable management of the Subbasin. In addition, the GSP identified proposed projects that may be pursued during implementation. The City and EBMUD executed a GSP Implementation Agreement in November 2022, that defines the responsibilities and cost-sharing for the GSAs during implementation.
Implementing monitoring actions allows for effective groundwater basin management necessary to meet GSP/SGMA requirements while significantly improving the understanding of groundwater basin conditions - including water levels, quality, and stream-aquifer interaction. The existing and potential future projects reflect the GSAs’ desire to fill data gaps and let science-based decision-making drive the feasibility of future groundwater pumping.
After sufficient data collection, future projects under consideration by EBMUD may include additional phases of Bayside, irrigation with groundwater, and the use of groundwater to supplement flows into San Leandro Creek that EBMUD voluntarily releases from Chabot Dam to approximate historic leakage flows. Potential future Hayward projects may include a well conversion study and a conjunctive use study.
DWR is administering the Sustainable Groundwater Management Grant Program - Implementation Round 2 solicitation and will award a total of approximately $230 million for applicants located within groundwater basins designated as medium-priority, high-priority, and critically overdrafted basins, for planning and implementation projects to help comply with SGMA.
As a medium-priority basin, the EBP Subbasin is an eligible basin for this grant, and grant funds could assist with implementation activities. Grant funding applications are due on December 16, 2022, and only one grant application per subbasin will be accepted. DWR has indicated awards are expected to range from $1 million to $20 million. The amount of the grant submission has not been determined, but it is anticipated to be an amount of up to $3 million. EBMUD will lead the application process and serve as the grant administrator with Hayward as a supporting agency.
ECONOMIC IMPACT
SGMA provides mechanisms for GSAs to recover costs for groundwater management through water rates, pump and extraction fees, and grants. However, based on the anticipated actions, implementation of the GSP is not expected to have significant economic impacts on the City’s water customers.
FISCAL IMPACT
The Water Improvement Fund in the Capital Improvement Program (CIP) includes funds for groundwater-related activities - including preparation and implementation of the GSP. The existing allocation is sufficient to support near-term actions, such as groundwater water monitoring and preparing the annual report. Costs to implement management actions and projects included in the GSP are expected to be offset by cost sharing with EBMUD, as well as any grants that are received. There will be no impact on the General Fund.
STRATEGIC ROADMAP
This agenda item does not relate to one of the Council’s six Strategic Priorities.
SUSTAINABILITY FEATURES
The City’s emergency wells are currently equipped to deliver water in the event of an earthquake or other disruptions to the City’s imported surface-water supplies. Implementation of the GSP ensures the groundwater beneath the City is protected and sustainably managed to increase overall water supply reliability, maximize local sources, and diversify Hayward’s water supply to help the City respond to future uncertainties and the effects of climate change. This grant, if awarded, would help facilitate long-term protection of the EBP Subbasin by partially funding GSP implementation activities.
PUBLIC CONTACT
SGMA requires active stakeholder participation in GSP development and implementation to ensure common understanding and transparency. Key stakeholders in Hayward include large groundwater users and neighboring agencies, such as the Hayward Area Parks and Recreation District, Chabot College, Alameda County, and the Alameda County Water District.
The City and EBMUD developed a Stakeholder Communication and Engagement Plan that guides stakeholder outreach and incorporates a broad variety of communication methods.
Regular meetings have been conducted with stakeholders and interested parties throughout development of the GSP. Active stakeholder engagement during GSP implementation will continue, and include a Technical Advisory Committee and an Inter-Basin Working Group to share information and coordinate management actions.
NEXT STEPS
If Council concurs with the recommendation, staff will provide support for EBMUD’s grant application submission for the implementation of management actions and projects in the City/EBMUD jointly prepared EBP Subbasin GSP.
Prepared by: Cheryl Muñoz, Water Resources Manager
Recommended by: Alex Ameri, Director of Public Works Approved by:
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Kelly McAdoo, City Manager
https://hayward.legistar.com/LegislationDetail.aspx?ID=5347830&GUID=2C82ACB9-EBCF-4AA1-B45C-65F1C3F2434B&Options=&Search= https://www.ebmud.com/water/about-your-water/water-supply/groundwater-sustainability-agencies