Staff Report - Agreements 2022 Temporary Groundwater Substitution Water Transfer — Sacramento City Council, May 31, 2022 (part 1 of 2)

City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org

File ID: 2022-00999 May 31, 2022

Title: Agreements: 2022 Temporary Groundwater Substitution Water Transfer

Location: Citywide

Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) execute agreements with the State Department of Water Resources (DWR), the State Water Contractors, Santa Clara Valley Water, Sacramento Suburban Water District (SSWD), Sacramento County Water Agency (SCWA), Carmichael Water District, San Juan Water District, Regional Water Authority, and any other potential agreements necessary to implement the 2022 Temporary Groundwater Substitution Water Transfer (Transfer); 2) enter into minor amendments to the aforementioned agreements subject to approval as to form by the City Attorney or her designee; 3) take such other administrative actions as may be necessary to effectuate the transfer and sale of this water; 4) ratify the petition previously filed with the State Water Resources Control Board (SWRCB) for temporary transfer of surface water in 2022; 5) adjust the Department of Utilities (DOU) Fiscal Year 2022/2023 operating budgets in the Water Fund (Fund 6005) for the actual revenues received and actual expenses for administering the program; and 6) transfer the net revenue received (revenue minus City expenses) for the 2022 Groundwater Transfer Program from the Water Fund Available Fund Balance (Fund 6005) to the Well Rehabilitation Program (Z14110100, Fund 6005), and the Water Conservation Program (I14120400, Fund 6005).

Contact: Brett Ewart, Supervising Engineer (916) 808-1725, [email protected] ;
Tony Bertrand, Engineering & Water Resources Division Manager, (916) 808-1461, [email protected]; Department of Utilities

Presenter: None

[SEE NEXT PAGE FOR LIST OF ATTACHMENTS]

Attachments:
1-Description/Analysis
2-Resolution
3-Technical Support Agreement with RWA
4-Regional MOU for Cost Share of Administrative Expenses 5-Agreement with SSWD
6-Agreement with SCWA
7-Agreement with DWR -2020 example
8-Agreement for Water Transfer between Seller and Buyers-SWC 9-Agreement for Water Transfer between Seller and Buyers-Valley Water 10-Petition for Change Involving Water Transfers
11-Example Monitoring Program 2020

Description/Analysis

Issue Detail: The Department of Utilities (DOU) uses mostly surface water and some groundwater to serve its customers. Staff proposes to temporarily increase the use of previously stored groundwater which would allow some surface water to be made available for sale to other water users in the State for up to a five-month period. This would be accomplished by 1) utilizing existing City groundwater wells; and 2) taking groundwater produced by SSWD and SCWA.

Surface water that is normally stored in Folsom Reservoir by the United States Bureau of Reclamation would be released from July 1, 2022, to November 30, 2022 and allowed to flow through the Delta, where it would then be pumped out of the South Delta by the State Department of Water Resources (DWR) and conveyed to members of the State Water Contractors (Buyers).

Several water agencies within the region are participating in the Transfer, including Carmichael Water District, San Juan Water District, Citrus Heights Water District, Fair Oaks Water District, SSWD, SCWA, and the Regional Water Authority.

Funding that is generated from the Transfer will be used to improve the City’s groundwater program with the objective of improving water supply security. Additionally, funding will be made available to increase access to water conservation programs for disadvantaged portions of the community.

Policy Considerations: Groundwater transfers require approval of City Council.

Economic Impacts: Not applicable.

Environmental Considerations: To accomplish this Transfer, on May 4, 2022, the City requested that the State Water Resources Control Board (SWRCB) approve the following temporary changes to the City’s Water Right Permit No(s). 11358-11361:

1. Authorize additional points of rediversion for the Transfer Water at the State Water Project’s Harvey O. Banks Pumping Plant via Clifton Court Forebay and San Luis Reservoir;

2. Authorize an additional place of use for the Transfer Water within the service areas of the Buyers, which are all contained within the existing authorized State Water Project service area; and

3. Authorize an additional purpose of use for irrigation.

The existing point of diversion and rediversion at the EA Fairbairn Water Treatment Plant, place of use and purpose of use, in the City’s Permit No(s). 11358-11360, would continue to be valid and utilized.

Only existing facilities will be utilized to accomplish this temporary water transfer. It does not involve construction or modification of any facilities.

Provided this temporary transfer is approved by the SWRCB, the approval of temporary water transfers is exempt from CEQA pursuant to Section 1729 of the California Water Code and Section 15282(u) of the CEQA Guidelines.

Approval of this Agreement, and the other actions recommended in this report, does not present any possibility of causing any significant effects on the environment, other than potential environmental effects associated with approval of the temporary water transfer itself, which is exempt from CEQA review as noted above.

Sustainability: The Transfer is consistent with General Plan Policy 2.1.2 “Increase water supply sustainability”, whereby the City will use more surface water when it is available and more groundwater when surface water is limited.

The City has sufficient water to meet its needs this year and in future years. DOU and partnering agencies have been pumping less groundwater for several years and the amount of water in the groundwater basin has increased. The City’s surface water rights and entitlements place it in a position senior to other surface water users, and the City does not expect surface water shortages.

Conservation and water use efficiency measures by the City and its customers are not the source of the water for the proposed transfer, rather, these conservation programs are designed to prevent water waste as required by the California constitution.

The water received from neighboring agencies pursuant to this transfer will be returned to those agencies in the form of surface water when wetter hydrologic conditions prevail, thereby facilitating groundwater recharge when the wells used as part of this transfer are turned off.

Commission/Committee Action: The Water Committee was briefed on the potential development of a 2022 water transfer at the May 24
th, 2022 Water Committee meeting, and
directed staff to bring the item to City Council.

Rationale for Recommendation: In order to increase the City’s water supply security, DOU is beginning to implement a conjunctive use program, which would decrease the use of groundwater during wet and normal years, to make more groundwater available during dry years. In order to better implement this program, the City’s well program requires reinvestment. This funding source will aid in that program while reducing pressure on the City’s existing Capital Investment Programs. The purchasers of the water will pay $800 per acre-foot which could result in up to $5.2 million in revenue for the City. DOU proposes using up to 90 percent of the revenue for its groundwater programs and infrastructure, with the remainder dedicated to water conservation and water use efficiency programs within disadvantaged areas of the City.

The proposed Transfer allows the City to participate in a Statewide solution to provide all water users with a reliable water supply. The purchasers are State Water Project contractors that have received notice of reduced water allocations from the State of California and are seeking additional water.

The Buyers will use the water for urban and agricultural operations, which benefits the state economy and food supply. This action does not impact the City’s water rights nor does it impair the City’s ability to use surface water in the future.

The purchasers of the water utilize modern urban and agricultural water conservation measures and maintain urban and agricultural water management plans. The groundwater levels will be monitored throughout, and after the Transfer to ensure sustainable groundwater management.

Both the Sacramento Groundwater Authority (SGA), and the Sacramento Central Groundwater Authority (SCGA), which are local agencies responsible for ensuring groundwater is utilized in a sustainable fashion, have been notified of the Transfer effort pursuant to DWR requirements. SGA has responded to the notification with a letter of concurrence that the transfer is consistent with an existing water accounting program. Both SGA and SCGA have issued letters that the proposed action is consistent with recently adopted Groundwater Sustainability Plans that effectively conclude that the groundwater basin(s) are in a healthy state.

The Regional Water Authority is supporting and coordinating the effort to monitor the basin and report results to DWR.

Financial Considerations: As discussed above, the City could receive up to $5.2 Million. The Fiscal Year 2022/2023 DOU operating revenue and expenditure budgets will be adjusted based on the actual revenue received and the actual expenses for administering the program.

Staff is recommending that the net revenue (revenue received minus City expenses) be transferred to the Well Rehabilitation Program (Z14110100, Fund 6005) at 90% of net revenue for groundwater planning and infrastructure improvements to be determined by DOU and to the Water Conservation Program (I14120400, Fund 6005) at 10% of net revenue for disadvantage communities from the Water Available Fund Balance (Fund 6005).

There are no General Funds allocated or planned for this project.

Local Business Enterprise (LBE): Not applicable.

Background: This proposed effort closely mirrors previous Council approved Groundwater Substitution Transfers in 2018 and 2020 whereby the City respectively generated $1.8 Million and 2.1 Million in revenue as part of a regional transfer to the State Water Contractors. City Council also approved participation in a similar effort in 2021 although ultimately that request was not approved by the SWRCB. The foundational basis was broad statewide hydrologic concerns and the SWRCB’s uncertainty of the effects of curtailments on water rights involved in the transaction.

The City partnered with SSWD in 2018 and 2020 years to receive additional groundwater. The water from 2018 was successfully returned in 2019 to allow recharge to occur when groundwater extractions were reduced. The 2020 and 2022 water will be returned when wetter hydrologic conditions prevail.

In 2020, a similar arrangement with SCWA was entered into and the delivery of groundwater from SCWA allowed the City to leave an equivalent amount of surface water in the river with the intent of returning the water in wetter hydrologic conditions. That water was returned in late 2020 and early 2021. As with SSWD, the 2022 water from SCWA will be returned when wetter hydrologic conditions prevail.

SSWD, SCWA, and the City will also share in the effort to increase the returning surface water to the groundwater basin by deliver an additional increment of water pumped by SSWD and SCWA as treated surface water, up to 25% of the volume transferred. The actual increment of treated surface water returned is to mitigate for streamflow depletions and to enhance existing conjunctive use benefits and will be determined based on the streamflow depletion factor assigned by the State Water Board to the 2022 water transfer and other technical considerations. The incremental cost to deliver the additional water is a shared expense between partnering agencies. The intent is to provide a benefit to the groundwater basin and is consistent with water banking practices in other locations as the City evolves in its groundwater management practices.

Prior Transfers required that a monitoring plan be produced and delivered to the State of California to demonstrate that groundwater levels remain at a sustainable level. A similar report has been created for the 2022 Transfer.

Activities in 2022 will essentially replicate those of the successful 2018, 2020, and the proposed 2021 Groundwater Substitution Transfers as approved by City Council.

RESOLUTION NO. 2022-XXXX

Adopted by the Sacramento City Council

May 31, 2022

Approving the Agreements for the 2022 Temporary Groundwater Substitution Water Transfer and Related Budget Transfers

BACKGROUND

A. The Department of Water Resources (DWR) and the U.S. Bureau of Reclamation are supporting Water Transfers between sellers and buyers. Notice of reduced surface water allocations have been sent to various parties in the State of California (State). The purpose of the 2022 Water Transfer Program is to facilitate the transfer of water throughout the State between willing sellers and buyers that are at risk of experiencing water shortages in 2022.

B. Under the proposal, a temporary one-year banked groundwater substitution transfer will take place. This will be a regional effort that will transfer up to approximately 16,000 Acre-feet (AF) from July 1, 2022, to November 30, 2022 from the Sacramento region to buyers downstream. Local agencies (Sellers), including the City of Sacramento, Carmichael Water District, Citrus Heights Water District, Fair Oaks Water District, San Juan Water District, Sacramento Suburban Water District (SSWD), and Sacramento County Water Agency (SCWA) will collaborate to reduce surface water diversions in lieu of utilizing locally banked groundwater supplies. The “Buyers” include members of the State Water Contractors.

C. This surface water will then be conveyed through the State Water Project (SWP) by DWR under a “Conveyance Agreement,” which includes rediversion of the transfer water at the SWP’s Harvey O. Banks Pumping Plant via Clifton Court Forebay and the Barker Slough Pumping Plant. DWR will also determine and verify actual transfer volumes. DWR will apply a stream depletion factor for water being conveyed from this region to the Buyers.

D. Buyers, under the “Purchase Agreement Between Sellers and Buyers,” will reimburse Sellers at $800 per AF of water received. Additionally, Buyers will reimburse Sellers for administrative costs at a rate of $75,000 for transfer volumes above 10,000 AF, or $37,500 for volume between 5,000 and 10,000 AF.

E. The City of Sacramento (City), SSWD, and SCWA will negotiate a separate agreement, whereby the City will receive groundwater from SSWD and SCWA during the transfer window, through existing interties, to allow for additional transfer of surface water.

Under this proposed agreement, the revenue generated by this volume of transferred water will be split on an equal basis. Both SSWD and SCWA will provide a volume credit for the water received by the City rather than financial reimbursement. At a future date, the same volume of water will be returned to SSWD and SCWA so that those agencies can reduce groundwater pumping to allow for aquifer recharge.

F. To demonstrate a benefit to the groundwater basin in addition to the benefits to the basin provided by SSWD’s and SCWA existing conjunctive use program operations, and to mitigate for any depletions of American River surface water that might result from the 2022 water transfer; the City will also deliver an additional increment of water to SSWD and SCWA for up to 25% of the volume transferred. The actual increment of treated surface water returned is to mitigate for streamflow depletions and to enhance existing conjunctive use benefits and will be determined based on the streamflow depletion factor assigned by the State Water Board to the 2022 water transfer and other technical considerations. The parties will jointly share the expense of this additional increment of water based on City’s marginal cost to produce an acre-foot of water at the time of return delivery. The City’s current FY22 marginal cost for an acre-foot of water is valued at $111 per acre-foot.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Manager or the City Manager’s designee is authorized to execute Agreements for the 2022 Water Transfer Program between: 1) the City of Sacramento and the Buyers (State Water Contractors and Valley Water) of the transferred water; 2) the City of Sacramento and DWR for the conveyance of the water; 3) the City of Sacramento and the Regional Water Authority for technical support, 4) the City of Sacramento and the other Sellers for allocating administrative expenses, 5) the City of Sacramento and SSWD to coordinate the groundwater substitution; and 6) the City of Sacramento and SCWA to coordinate the groundwater substitution.

Section 2. The City Manager or the City Manager’s designee is authorized to enter into minor amendments to the aforementioned agreements subject to approval as to form by the City Attorney or her designee.

Section 3. The petition previously filed with the State Water Resources Control Board for temporary transfer of surface water in 2022 is ratified, and the City Manager or the City Manager’s designee is authorized to take such other administrative actions as may be necessary to effectuate the transfer and sale of this water.

This includes any minor administrative actions necessary to provide fair allocation of the reimbursable administrative expenses amongst the Sellers.

Section 4. The City Manager is authorized to accept the revenue from the sale of the water into the Water Fund (Fund 6005).

Section 5. The City Manager or the City Manager’s designee is authorized to adjust the Fiscal Year 2022/23 Department of Utilities operating revenue and expenditure budgets in the Water Fund (Fund 6005) based on actual revenues received and actual City expenses for administering the program with an adjustment to the Water Fund (Fund 6005) available fund balance to record the difference.

Section 6. The City Manager or the City Manager’s designee is authorized to transfer the net revenue (revenue received minus City expenses) from the 2022 Groundwater Transfer Program to the Well Rehabilitation Program (Z14110100, Fund 6005) at 90% of net revenue for groundwater planning and infrastructure improvements and the Water Conservation Program (I14120400, Fund 6005) to promote equitable access to water conservation programs for disadvantaged communities from the Water Fund (Fund 6005) available fund balance.

Adopted by the City of Sacramento City Council on May 31, 2022, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:
_____________________________________
Mindy Cuppy, City Clerk

The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.

Page 1 of 2 ends

2022 Regional Groundwater Substitution Transfer Program Staffing Support Agreement

THIS AGREEMENT is made and entered as of March 1, 2022, by and between the Regional Water Authority (“RWA”) and City of Sacramento (“City”).

Under RWA’s October 8, 2013 Amended and Restated Joint Exercise of Powers Agreement (“JPA Agreement”). RWA’s goals include to “[f]acilitate . . . action on matters of regional priority and interest” and its powers including “[m]aking and enter[ing] into contracts” and “[e]xercising jointly the common powers of its Members in . . . planning and implementing ways and means to provide reasonable and financially-feasible projects, programs and cooperative operations activities for Members.” In addition, the JPA Agreement’s section 7.a.12 states that RWA can exercise the powers of a community services district if not in conflict with the JPA Agreement under the Community Services District Law (Government Code § 61000 et seq.) That law states, in pertinent part, “A district may contract with any local agency . . . for the provision by or to the district of any facilities, services, or programs authorized by this division, within or without the district . . .” (Government Code § 61070.)

In 2022, a number of RWA member agencies and contracting entities (the “Partners”) desire to participate in a regionally- coordinated groundwater substitution transfer (the “Transfer”). The City of Sacramento is serving as the manager of funds received as a result of the Transfer on behalf of the Partners and as the Partners’ manager of contractors and consultants hired to support the Transfer. The Partners have requested assistance from RWA to assist with completing certain technical components of the Transfer. In support of this effort, RWA and the City of Sacramento agree as follows:

1. Scope of Work. RWA will provide technical support in support of the Transfer, including:

A. Provide general support to Partners, including facilitation of Transfer-related coordination meetings.

B. Update baseline groundwater usage for each of the Partners.

C. Ensure that all Partner wells and associated information have been added to the Department of Water Resources’ (“DWR”) Water Transfer Information Management System as required for Transfers.

D. Develop a Regional Monitoring and Mitigation Plan for the Partners as required for transfers.

E. Conduct monthly groundwater level monitoring in the Partners’ relevant wells before and after the Transfer and weekly groundwater level monitoring during the Transfer.

F. Develop, maintain, and submit required reporting spreadsheets for the duration of the Transfer.

G. Assist in preparing the final reports on the Transfer required by DWR and the State Water Resources Control Board.

2. Budget. The City of Sacramento shall pay RWA for its services based on the time RWA’s employees expend in working on the Transfer, and RWA’s associated costs, up to a not-to-exceed amount of $30,000 for a three-month (July 1 through September 30) Transfer window. If a five-month (July 1 through November 30) Transfer window is necessary, the not-to-exceed amount will be $45,000. RWA’s detailed budget estimate is included as Exhibit 1 to this Agreement.

Exhibit 1 is an estimate and not a binding statement of RWA’s work or charges. RWA will not exceed the stated not-to- exceed amounts without prior consultation with and approval by the City.

3. Invoices and Payment. RWA shall invoice the City for actual time worked, and costs incurred, in working on the Transfer no more frequently than on a monthly basis. The City shall pay RWA’s charges on a net-30 day basis, unless the City disputes some or all of those charges. The City’s obligation to pay those charges is not dependent on the success of the Transfer or the receipt of payment for the Transfer by the City or any of the other Partners. If the City disputes a portion of RWA’s charges, the City will pay the undisputed portion as indicated above. In relation to any disputed portion of RWA’s charges, RWA and the City will consult one another as rapidly as possible to attempt to resolve the dispute. If the dispute cannot be resolved with 90 days, RWA and the City will submit the matter to binding arbitration before a mutually acceptable arbitrator, who need not be an attorney. If RWA and the City cannot agree on an arbitrator, either may petition the Sacramento County Superior Court to appoint an arbitrator under Code of Civil Procedure section 1281.6.

Page 2 of 2 ends

4. Term. This Agreement will remain in effect until the later of the date that all obligations under this Agreement have been satisfied or the date that all obligations associated with the Transfer have been satisfied.

5. Withdrawal. The City of Sacramento may withdraw from this Agreement effective upon 10 days’ notice to RWA, provided that, the City will pay RWA for all services RWA rendered, and all costs RWA incurred, under this Agreement prior to the effective date of the City’s withdrawal.

6. General Terms

6.1. Information and Expertise. RWA can rely on information provided by the City or one of the other Partners in working on the Transfer. The City will provide to RWA, as promptly as possible, any information that RWA reasonably requests to suppor t RWA’s work on the Transfer. RWA will reasonably exercise its professional expertise and judgment in performing work on the Transfer.

6.2. RWA’s Role in Transfer. RWA’s role in the Transfer is to provide professional support for the City’s and the other Partners’ planning and implementation of the Transfer. RWA makes no guarantees about the success of the Transfer or the acceptance of its work by DWR, the Bureau of Reclamation or any other third party who may consider that work. For itself and the other Partners, the City acknowledges that: (A) they will make their own decisions concerning the planning and implementation of the Transfer; and (B) they will obtain or assure compliance with all regulatory requirements for the Transfer, including without limitation obtaining any necessary coverage under the California Environmental Quality Act (Public Resources Code § 21000 et seq.) , and any necessary approvals from the State Water Resources Control Board.

6.3. Applicable Law. All work and activities under this Agreement will comply with the applicable state, federal and other laws. RWA and the City, for itself and the other Partners, acknowledge that: (A) RWA and the City are both public agencies that are subject to California laws concerning the open nature of their operations, including without limitation the Public Records Act (Government Code § 6250 et seq.); and (B) as a result of these laws’ application, documents prepared or exchanged under this Agreement may be subject to disclosure to members of the public.

6.4. Complete Agreement and Amendments. This Agreement is the sole, complete and exclusive statement of RWA’s and the City’s terms of agreement concerning this Agreement’s subject matter. This Agreement may be amended from time to time only with the written agreement of both the City and RWA.

RWA and the City of Sacramento execute this Agreement as of the date first written above.

Regional Water Authority

City of Sacramento
By By
James Peifer
Executive Director

[Name]
[Title]
Date Date

MEMORANDUM OF AGREEMENT

DISTRIBUTION OF ADMINISTRATIVE EXPENSES AND WATER TRANSFER REVENUE

REIMBURSEMENT
2022 AMERICAN RIVER REGIONAL WATER TRANSFER

The signatories below (“PARTIES”) hereby enter into this Memorandum of Agreement (“AGREEMENT”) as of the date of the last signature made below.

RECITALS

WHEREAS, the PARTIES are members of the Regional Water Authority (RWA); and

WHEREAS, the PARTIES intend to collectively sell and transfer a cumulative amount of surface water to downstream water exporters (“BUYERS”); and

WHEREAS, this cumulative sale of water to BUYERS is known as the “2022 American River Regional Water Transfer” (“Transfer”); and

WHEREAS, a subset of the PARTIES, City of Sacramento, San Juan Water District, and Carmichael Water District, will be identified as (“SELLERS”) in the Transfer Agreement.

WHEREAS, the City of Sacramento (“COS”) will assume the role of implementing and administering the Transfer Agreement, as the “SELLERS’ AGENT”; and

WHEREAS, the Parties anticipate that, in furtherance of developing and implementing the Transfer, they will incur shared costs for retention of third-party consultants and legal services. For the purposes of this Agreement, such costs shall be known as “Eligible Administrative Costs”; and

WHEREAS, any one of the Parties may incur Eligible Administrative Costs that will ultimately be reimbursed by BUYERS or otherwise proportionately shared by the Parties; and

WHEREAS, the PARTIES anticipate that, as part of the Transfer, the BUYERS will contribute a total sum of up to $75,000 towards the PARTIES’ Eligible Administrative Costs; and

WHEREAS, the BUYERS’ $75,000 contribution to Eligible Administrative Costs will be credited proportionately to the PARTIES as set forth herein; and

WHEREAS, the BUYERS expect to receive invoices and submit payments through at most two SELLERS’ AGENTS; and

NOW, THEREFORE, THE PARTIES hereby agree as follows:

1. This AGREEMENT confirms the intention and acceptance by the PARTIES of a distribution of up to $75,000 administrative expense reimbursement (“Fee”) provided by the BUYERS pursuant to the applicable “Purchase Agreement for Water Transfer Between Sellers and Buyers” (“Transfer Agreement”) (approved and also signed by the PARTIES) as described below.

2. Attachment 1 to this Agreement reflects a template to account for those consultant and legal fee amounts, as reported by each PARTY; the calculated proportion of the total expenses for all PARTIES; and, the resulting allocation of the Fee to be paid to each PARTY by the SELLERS’ AGENT. Proportionality shall be determined by final transfer amounts by water volume. In the event a Party ends participation early the Parties will convene to establish fair share expenditures up the to date when participation ended. Each Party shall submit an accounting of any and all Eligible Administrative Costs to COS within 30 days of the final report prepared for DWR, which is typically 1 year after completion of the Transfer. The COS shall distribute the Fee to the PARTIES within 30 days of receipt of the Fee from the BUYERS.

3. In the event the Fee is not sufficient to cover the aggregate Eligible Administrative Costs, the PARTIES shall be proportionally responsible for sharing any such excess costs according to the formula set forth in Attachment 1. Prior to distribution of the final 10% of Transfer revenue, SELLERS’ AGENT will prepare a final accounting of each PARTY’S proportionate share of the aggregate third-party expenses expended for all PARTIES’ benefit and, based on that accounting, make adjustments from Transfer revenue in the amount sufficient to distribute reimbursements for all administrative expenses accounted for in Attachment 1. SELLERS’ AGENT shall distribute any remaining Transfer revenues in excess of the reimbursement amounts proportionately to the PARTIES.

4. Administrative expenses unique to any one PARTY of this AGREEMENT (i.e., expenses that do not advance or benefit the Parties’ collective purpose and intent in the Transfer Agreement) shall be borne exclusively, or reimbursed by that PARTY. This AGREEMENT applies solely to the reimbursement for third party expenses eligible for the Fee, such as development of necessary agreements, preparation of environmental review documents, preparation of State Water Board petitions, and production of mitigation and monitoring plans. Any separate agreements between the PARTIES related to other obligations related to the Transfer or the division of revenue shall control as between those PARTIES.

5. The SELLERS’ AGENT shall be responsible for invoicing BUYERS for the $75,000 administrative payment pursuant to the terms and within the time provided in the

Purchase Agreement for Water Transfer Between Sellers and Buyers executed by the PARTIES.

IN WITNESS WHEREOF, the PARTIES hereto have executed this AGREEMENT.

CARMICHAEL WATER DISTRICT

By ____________________________

Dated: _____________

CITRUS HEIGHTS WATER DISTRICT

By _____________________________

Dated: _____________

CITY OF SACRAMENTO

By _____________________________

Dated: _____________

FAIR OAKS WATER DISTRICT

By ______________________________

Dated: _____________

SACRAMENTO COUNTY WATER
AGENCY

By _____________________________

Dated: _____________

SACRAMENTO SUBUBAN WATER

DISTRICT

By ______________________________

Dated: _____________

SAN JUAN WATER DISTRICT

By _____________________________

Dated: _____________

ATTACHMENT 1
AMERICAN RIVER REGIONAL WATER TRANSFER AGENCIES ’ ASSOCIATED

CONSULTING AND LEGAL FEES

Agency Zanjero
($)
Legal
Expen
se ($)
RWA
Expens
e ($)
Total
Expens
e ($)
Gross
Transf
er
(ACF
T)
% of
Region
al
Total
(ACF
T)
Share
of
Total
Expens
e ($)
Admin
Credit
Receive
d from
Buyer
($)
Remaini
ng Share
($)
Final Cost
Share/Invo
ice ($)
City of
Sacrame
nto

16,000

50,000

66,000

9,300 48% $
68,072 $
(75,000)
$
32,119
$
41,118.56
Carmich
ael WD

-
-

1,200 6% $
8,784 0
$
4,144
$
4,144.33
Sacrame
nto
Suburban
WD

60,000

16,000
76,000

4,000 21% $
29,278
0 $
13,814
$
(62,185.57)
Sacrame
nto
County
Water
District
(TBD)

-
-

1,400 7% $
10,247
0 $
4,835
$
4,835.05
San Juan
Water
District

-
-

1,750 9% $
12,809 0
$
6,044
$
6,043.81
Citrus
Heights
Water
District

875 5% $
6,405
0 $
3,022
$
3,021.91
Fair
Oaks
Water
District

-
-

875 5% $
6,405
0 $
3,022
$
3,021.91
Total

$60,000.
00 $
32,000.
00 $
50,000.
00 $
142,000.
00 19,400
$

1.00 $
142,000.
00 $
(75,000.0
0)
$
67,000.0
0 $

0.00 {00273230.1} 1

AGREEMENT BETWEEN

THE CITY OF SACRAMENTO
AND

SACRAMENTO SUBURBAN WATER DISTRICT

FOR A JOINT GROUNDWATER SUBSTITUTION TRANSFER

This Agreement for a Joint Groundwater Substitution Transfer (“Agreement”) is made effective this June ____, 2022 between the Sacramento Suburban Water District, a public agency formed under the County Water District Law, Government Code sections 30000 et seq. (“SSWD”) , and the City of Sacramento, a charter city (“City”) . For purposes of this Agreement the SSWD and the City also will each be called a “Party” and collectively the “Parties.”

Recitals

A. City owns and operates a public water system for the provision of retail treated water service to its residents, including facilities on the lower American River for diverting and treating surface water known as the E.A. Fairbairn Water Treatment Plant (“Fairbairn WTP”). City diverts untreated surface water from the Lower Ame rican River into the Fairbairn WTP pursuant to water rights permits 11358 through 11361 issued by the California State Water Resources Control Board. City’s permitted appropriative water rights are supplemented by a water rights settlement contract (the “ City Settlement Contract”) between City and the United States Bureau of Reclamation (“Reclamation”) dated June 28, 1957.

B. On January 20, 2004, City and SSWD entered into a Wholesale Water Supply Agreement (“2004 Wholesale Agreement”), which provides SSWD with a firm treated water supply of up to 20 million gallons per day subject to restrictions based on certain hydrologic conditions set forth in the Water Forum Agreement to which City and SSWD are signatories.

C. SSWD is operating a conjunctive use program, which has permitted SSWD to bank amounts of groundwater sufficient to induce stable -to-increasing groundwater levels in the aquifer it utilizes as a source of supply for its customers. Since 2007, SSWD has taken treated surface water from City under the 2004 Wholesale Agreement to increase its existing conjunctive use groundwater banking efforts.

D. As part of its conjunctive use program and for purposes of obtaining and using City treated surface water, SSWD constructed the Enterprise Water Storage and Pumping Plant (“Enterprise Plant”). SSWD also participated in City’s construction of the Howe Avenue Pipeline Project that conveys treated surface water from the Fairbairn WTP to the Enterprise Plant for distribution into SSWD’s South Service Area. The above-described facilities include

{00273230.1} 2

an intertie and metering station between SSWD’s and City’s water systems that permits potable water supplies to be conveyed in either direction between the two agencies.

E. The State Water Contractors (“SWC”) is a non-profit association of 27 public agencies, including Santa Clara Valley Water District, from Northern, Central and Southern California that purchas e water under contract from the California State Water Project (“SWP”) and deliver that water to mor e than 25 million residents throughout the state and more than 750,000 acres of agricultural lands. SWC as a group, and Santa Valle y Clara Water District independent of SW C (the “Buyers”), have offered to purchase water from willing sellers upstream of the Sacramento -San Joaquin Delta, including City, in order to supplement the Buyers’ contractual entitlements from the SWP that have been reduced as a result of lower than average precipitation in the 2021-2022 water year.

F. In order to provide water supplies for the above purpose, City will forgo the use of a portion of its surface water supplies available under City’s Water Right Permits 11358-11361, which City would otherwise divert, treat, and provide to SSWD and City water customers.

To make this surface water available, SSWD is willing to pump banked groundwater for its own internal use as well as deliver it through the Enterprise intertie for distribution to City customers in lieu of delivering City treated surface water from Fairbairn WTP . This substitution of groundwater for surface water will enable City to sell its forgone surface water supplies to the Buyers for use in their respective service areas to mitigate for the impacts of dry conditions during July through November of 2022.

Agreement

Based on the foregoing Recitals, the Parties agree as follows:

1. Transfer Using SSWD Groundwater. City shall make Transfer Water available to Buyers by one or both of the following two methods: (1) SSWD shall reduce its purchase and use of treated surface water otherwise available for delivery from City under the 2004 Wholesale Agreement during the 2022 calendar year and make up for this reduction with a corresponding increase in the amount of groundwater used by SSWD during the 20 22 calendar year; and (2) SSWD shall pump and deliver groundwater supplies to the City that is either histor ically used or banked by SSWD under its conjunctive use program and accounted for in annual reports filed with the California State Water Resources Control Board (“SWRCB”) and through the Sacramento Groundwater Authority’s (“SGA”) Groundwater Accounting Framework. The groundwater will be delivered to City through the Enterprise intertie in order to permit City to forego use of surface water that it would otherwise treat and deliver to its customers under Permit s 11358-11360. By using one or both methods o f making surface water available, City will make available to Buyers such increment of surface water (hereafter referred to as the “Transfer Water”) that is not diverted from the American River by City for treatment and delivery to SSWD and City customers

{00273230.1} 3

during the 2022 calendar year as a result of such reduced use of treated surface water, and corresponding increased pumping of groundwater by SSWD. The maximum amount of Transfer Water to be made in the joint transfer by SSWD and City shall be 11,000 acre-feet for the 2022 calendar year. Nothing in this Agreement affects City’s authority to conduct a separate water transfer to Buyers using surface water made available by substituting groundwater pumped from City’s wells to serve City customer demand.

2. Consideration for City Transfer of Surface Water in Reliance on SSWD’s Pumping of Banked Groundwater.

A. City and SSWD shall split on an equal basis all net revenues from the sale of the Transfer Water. The net amount of revenues shall be determined by deducting all third- party costs of the transfer, including engineering and technical expenses, attorneys’ fees, permits, and other expenses (“Third-Party Costs”) incurred by City and SSWD in the performance of this Agreement . City and SSWD shall track all costs of the transfer and retain all documentation supporting their incurring of those expenses. City and SSWD shall each provide the other party with an accounting of those expenses and, upon request, the supporting documentation for those expenses prior to distribution of the net revenues from sale of the Transfer Water in accordance with subsection 2.C., below. All Third-Party Costs associated with transferring the Transfer Water, other than the costs of the groundwater substitution supply provided by SSWD, shall be split in equal shares, and any cost reimbursements paid by Buyers to City under the Buyer-Seller Agreement’s administrative cost payment provision shall be distributed equally to City and SSWD.

B. City will not pay SSWD for the groundwater pumped to facilitate the Transfer.

For purposes of this Agreement only, the Parties agree that the cost of each acre -foot of groundwater provided by SSWD to enable City to make the Transfer Water Available is equivalent to the co st of each acre -foot of treated surface water that City would make available to SSWD under the 2004 Wholesale Agreement. As a result of the Parties’ sources of supply having an equivalent value, City will deliver an equal amount of treated surface water t o SSWD to reimburse SSWD’s costs of supplying the pumped groundwater when surface water is available to SSWD in the future under the 2004 Wholesale Agreement.

C. To demonstrate a benefit to the groundwater basin in addition to the benefits to the basin provided by SSWD’s existing conjunctive use program operations, and to mitigate for any depletions of American River surface water that might result from the 2022 water transfer; the City will also deliver an additional increment of water pumped by SSWD and returned later by City as treate d surface water , up to 25% of the volume transferr ed. The actual increment of treated surface water returned to SSWD to mitigate for streamflow depletions and to enhance existing conjunctive use benefits will be determined based on the streamflow depletion factor assigned by the State Water Board to the 2022 water transfer and other technical considerations. SSWD and the City consider this additional increment of water to be a program expense and therefore jointly share the expense of this additional

{00273230.1} 4

increment of water based on City’s marginal cost to produce an acre-foot of water at the time of return delivery. The City’s current FY22 marginal cost for an acre-foot of water is valued at $111 per acre-foot.

D. City, as seller of the Transfer Water, shall administer this Agreement on behalf of both Parties. City shall be responsible for submitting all invoices for Transfer Water sold and administrative expenses incurred that are subject to payment or reimbursement under the Buyer-Seller Agreement. City shall pay SSWD its share of net revenues within 30 days of receipt by City of each payment from the Buyers for the invoiced amount of Transfer Water.

City will provide SSWD a copy of the Buyers’ payment accounting and City’s accounting of costs for the Transfer Water at the time it makes each payment of net revenues to SSWD.

E. If the Buyers terminate the Buyer -Seller Agreement in accordance with its terms or DWR does not credit any portion of Transfer Water as sold by City, City shall not have any obligation to pay SSWD any net revenues or reimburse any costs attributable to unsold or uncredited Transfer Water. Notwithstanding the foregoing, City shall be obligated to pay SSWD for all sold, but unbilled Transfer Water delivered at the time of termination of the Buyer-Seller Agreement and to reimburse SSWD for its share of any costs to the extent any portion of the $75,000 administrative payment provided by Buyers remains available and is allocated to City for payment of costs for City’s and SSWD’s agreement to provide Transfer Water.

3. Term of Agreement. This Agreement is intended to apply only to City’s transfer of surface water to the Buyers and SSWD’s pumping of groundwater to make that supply available for transfer during the 2022 calendar year and will automatically terminate upon the earlier of: (a) completion of City’s sale of the Transfer Water to Buyers and satisfaction of all of its other obligations under this Agreement; (b) Buyer’s termination of the Buyer - Seller Agreement or the Transfer; or (c) SSWD’s receipt of City’s notice of withdrawal from pursuing State Water Resources Control Board (“State Water Board”) or any other governmental approval pursuant to Section 4(D) below and City’s payment of all sums due SSWD under Section 2 of this Agreement.

4. Cooperation; Approvals. City and SSWD will cooperate as ne cessary for City to secure the approvals necessary to implement City’s sale of Transfer Water to the Buyers for the 2022 calendar year, subject to the following conditions:

A. SSWD and City will be jointly responsible for all costs of obtaining any governmental approval(s) and compliance with applicable laws, including but not limited to obtaining the State Water Board approval required for the temporary transfer of the Transfer Water pursuant to Water Code sections 1725 through 1732 and any required approvals from DWR and Reclamation. The City will file a temporary change petition in its name, with SSWD as co -petitioner if necessa ry, to obtain the above -referenced State Water Board approval required for the sale of the Transfer Water.

{00273230.1} 5

B. City w ill be the lead agency for the purpose of compliance with CEQA for purposes of this Agreement. City represents, and SSWD’s acknowledges, that the transfer under this Agreement is a proposed temporary change under Article 1 of Chapter 10.5 of the Water Code, and therefore the City’s sale of Transfer Water to the Buyers is exempt from CEQA under the provisions of Water Code section 1729.

C. Except as otherwise provided in Section 2(A) for Third Party Costs, each Party will bear its own costs for staff time, engineering and technical expenses, attorneys’ fees, and other expenses related to performing their respective duties under this Agreement.

D. Notwithstanding any other provision of this Agreement, City may opt to withdraw from pursuing any governmental approval, including the State Water Board approval specified above, or from compliance with any law applicable to the proposed sale and transfer, if City determines in its sole discretion that the compliance or approval process, or the conditions of compliance or approval, are not acceptable. If City opts to withdraw, City shall promptly notify SSWD in writing of the withdrawal and this Agreement shall terminate as provided in Section 3 above.

5. Water Rights.

A. The only rights granted to the Parties as a result of this Agreement are those expressly set forth in this Agreement. City’s reduced diversions of surface water pursuant to this Agreement will not confer any appropriative, public trust or other right to water on any person or entity.

B. Nothing in this Agreement will be construed to act as a forfeiture, diminution or impairment of any water right or contractual entitlement of City or SSWD. Consistent with the provisions of California Water Code sections 109, 475, 1011, 1014 through 1017, 1244 and 11961, SSWD’s pumping of groundwater in lieu of taking delivery of treated surface water from the City under the 2004 Wholesale Agreement and its sale of Transfer Water to the Buyers pursuant to this Agreement, or this Agreement itself, will not be evidence of either the existence of surplus water after this Agreement expires, or of the lack of beneficial use of the water involved, and the Parties will not contend otherwise.

C. City and SSWD sha ll comply with Water Code Section 1732. In accordance with the provisions of Water Code section 1745.10, City and SSWD have each deter mined that the pumping of groundwater under this Agreement would not create nor contribute to conditions of long-term overdraft in the affected groundwater basin.

6. Indemnification. To the extent permitted by State law, each Party will indemnify, defend and hold harmless the other Party and its officers, agents, and employees from any and all claims, lawsuits (including but not limited to CEQA lawsuits), judgments, damages,

{00273230.1} 6

penalties, costs, liabilities and losses (including without limitation, sums paid in settlement of claims, actual attorneys' fees, paralegal fees, consultant fees, engineering fees, expert fees and any other professional fees) that arise from or are related in any way to City’s sale of the Transfer Water to the Buyers, SSWD’s pumping of groundwater to serve City demands that otherwise would have been served by the transferred surface water, and any other activities under this Agreement, including but not limited to obtaining all approvals necessary to sell the Transfer Water, determin ing and accounting for the amount of Transfer Water made available for sale and the groundwater pumped in support of that sale, and the collection and proper payment of funds due to each Party under this Agreement for Transfer Water actually sold. The provisions of this section shall survive any termination of this Agreement.

7. Agreement Not a Precedent. The Parties intend that the provisions of this Agreement will not bind the Parties as to the provisions of any future agreement between them. This Agreement was developed specifically to facilitate City’s sale of Transfer Water to the Buyers during the 2022 calendar year with the assistance of SSWD’s pumping of groundwater to satisfy City customer demands.

8. Entire Agreement. This Agreement represents the sole, final, complete, exclusive, and integrated expression and statement of the terms of agre ement between the Parties concerning the subject matter of this Agreement. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both Parties.

There are no written or oral agreements, conditions, representations, warranties, or promises with respect to the subject matter of this Agreement except those contained in or referred to in this document.

9. Severability. If any term or provision of this Agreement is deemed invalid or unenforceable by any court of final jurisdiction, it is intended by the Parties that all other provisions of this Agreement be construed to remain fully valid, enforceable and binding on the Parties.

10. Interpretation. City and SSWD each had a full and fair opportunity to consult independent counsel in the negotiation and execution of this Agreement. For the purposes of interpretation of this Agreement, neither Party will be deemed to have been its drafter.

11. Notices. Any notice, demand, or request ma de in connection with this Agreement will be in writing and will be deemed to have been duly given on the date of service, if (a) served personally on the person to whom notice is to be given, or (b) sent by electronic mail, and the recipient acknowledges receipt, or (c) on the third day after mailing, if mailed to the person to whom notice is to be given by first -class United States mail, postage-prepaid, and properly addressed to the following designated representatives of City and SSWD:

To City: City of Sacramento
Department of Utilities

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Attn: Brett Ewart
1395 35th Avenue
Sacramento, CA 95822
E-mail: [email protected]

To SSWD: Sacramento Suburban Water District
Attn: Dan York, General Manager
3701 Marconi Avenue, Suite 100
Sacramento, CA 95821
E-mail: [email protected]

12. Governing Law. This Agreement is governed by and will be interpreted in accordance with the laws of the State of California. This Agreement is deemed to have been executed in Sacramento County and therefore, the state or federal court where the Parties’ offices are located shall be venue for any litigation concerning the enforcement or construction of this Agreement.

13. Counterparts. This Agreement may be executed in original or electronic counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same Agreement.

The foregoing is hereby agreed to by the Parties on the date first written above.

CITY OF SACRAMENTO: SACRAMENTO SUBURBAN WATER DISTRICT:

By: _____________________________ By: _____________________________ Hector Barron Daniel R. York
Assistant City Manager General Manager

Attest:

________________________________
City Clerk

Approved as to form:

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_______________________________
City Attorney

1 AGREEMENT BETWEEN

THE CITY OF SACRAMENTO
AND

SACRAMENTO COUNTY WATER AGENCY

FOR A JOINT GROUNDWATER SUBSTITUTION TRANSFER

This Agreement for a Joint Groundwater Substitution Transfer (“Agreement”) is made effective this June ____, 2022 between the Sacramento County Water Agency (hereinafter referred to as “SCWA) , a statutorily created district operating under the authority of and pursuant to the provisions of the Sacramento County Water Agency Act (California Water Code-Appendix, chapter 66, commencing at section 66-1 et seq.), and the City of Sacramento, a charter city (“City”). For purposes of this Agreement, SCWA and the City also will each be called a “Party” and collectively the “Parties.”

Recitals

A. City owns and operates a public water system for the provision of retail treated water service to its residents, including facilities on the Sacramento River and lower American River for diverting and treating surface water known respectively as the Sacramento River Water Treatment Plant (“Sacramento River WTP”) and the E.A. Fairbairn Water Treatment Plant (“Fairbairn WTP”). Collectively , these two facilities are hereafter defined as “City Diversion Facilities.” City diverts untreated surface water from the Lower American River and Sacramento River into City Diversion Facilities pursuant to water rights permits 11358 through 11361 issued by the California State Water Resources Control Board. The City also diverts surface water at Sacramento WTP pursuant to water right permit 992 and Pre-1914 water entitlements. City’s permitted appropriative water rights are supplemented by a water rights settl ement contract (the “City Settlement Contract”) between City and the United States Bureau of Reclamation (“Reclamation”) dated June 28, 1957.

B. On April 4, 2000, City and SCWA entered into a Wheeling Agreement (“2000 Agreement”), and exercised subsequent actions within said Agreement, which provides firm wheeling capacity of 11 MGD of SCWA surface water to SCWA through SCWA’s Franklin Inter-tie located near the City and SCWA boundary on Franklin Boulevard.

C. SCWA operates a conjunctive use program, which allows SCWA to bank amounts of groundwater sufficient to induce stable -to-increasing groundwater levels in the aquifer it utilizes as a source of supply for its customers.

D. Between 1995 and 2000, SCWA had single year contracts to purchase surface water from Browns Valley Irrigation District. This surface water was diverted and treated at the City of Sacramento’s Sacramento River WTP and wheeled through City of Sacramento facilities and delivered to SCWA through the Franklin inter-tie.

2 E. SCWA has permanent surface water contracts with the USBR and a State Appropriative Water Right. Under the 2000 Agreement, SCWA has taken its surface water wheeled through the City ’s facilities to enhance its e xisting conjunctive use program , resulting in banked groundwater efforts.

F. As part of its conjunctive use program and for purposes of obtaining and using treated surface water, SCWA constructed the Franklin Inter-tie, located along Franklin Boulevard near the County/City boundary, capable of taking up to 11 MGD of surface water from the Sacramento River WTP. As groundwater banking and water transfers are becoming an important activity for regional reliability and helping meet SGMA goals, SCWA is modifying the Franklin inter-tie to allow for pumping water in either direction such that City surface water can be pumped to SCWA users and SCWA groundwater can be pumped to City users.

E. The State Water Contractors is a non- profit association of 27 public agencies from Northern, Central and Southern California that purchase water under contract from the California State Water Project (“SWP”) and deliver that water to more than 25 million residents throughout the state and more than 750,000 acres of agricultural lands. One or more members of the State Water Contractors (the “Buyers”) have offered to purchase water from willing sellers upstream of the Sacramento-San Joaquin Delta, including City, in order to supplement the Buyers’ contractual entitlements from the SWP that have been reduced as a result of lower than average precipitation in the 2022-2023 water year.

F. In order to provide water supplies for the above purpose, City will forgo the use of a portion of its surface water supplies available under City’s Water Right Per mit 11358 through 11360, which City would otherwise divert, treat and provide to City water customers.

To make this surface water available to Buyers , SCWA is willing to pump banked groundwater and deliver it through the Franklin Inter-tie for distribution to City customers in lieu of City delivering treated surface water from its Diversion Facilities. This substitution of groundwater for surface water will enable City to sell its forgone surface water supplies to the Buyers for use in their respective ser vice areas to mitigate for the impacts of dry conditions during July through November of 2022.

G. City and SCWA are signatories to the Sacramento Water Forum Agreement, and this Agreement is consistent with the Water Forum Agreement.

Agreement

Based on the foregoing Recitals, the Parties agree as follows:

1. Transfer Using SCWA groundwater. SCWA shall pump and deliver to City groundwater either historically used or banked by SCWA under its conjunctive use program and accounted for in annual reports filed with the California State Water Resources Control Board (“SWRCB”). SCWA will pump up to 2,800 acre-feet of groundwater to the City through the Franklin inter -tie in order to permit City to forego use of surface water that it would 3 otherwise treat and deliver to its customers under Permits 11358 -11360. By using this method of making surfac e water available, City will make available to Buyers a corresponding increment of surface water (hereafter referred to as the “Transfer Water”) that is not diverted from the American River by City for treatment and delivery to City customers during the 2022 calendar year as a result of such reduced use of treated surface water and corresponding increased pumping of groundwater by SCWA. The maximum amount of SCWA groundwater to be provided to the City under this joint transfer with SCWA shall be 2,800 acre-feet for the summer and fall months of the 2022 calendar year. Nothing in this Agreement affects City’s authority to conduct a separate water transfer to Buyers using surface water made available by substituting groundwater pumped from City’s wells to serve City customer demands that otherwise would be satisfied with surface water.

2. Consideration for SCWA’s Pumping of Banked Groundwater.

A. City and SCWA shall split on an equal basis all net revenues f rom the sale of the Transfer Water to Buyers. The net amount of revenues shall be determined by deducting all third- party costs of the transfer, including engineering and technical expenses, attorneys’ fees, and other expenses (“Third -Party Costs”) incurred by City and SCWA in the performance of this Agreement. City and SCWA sh all track all costs of the transfer and retain all documentation supporting their Third -Party Cost expenditures. City and SCWA shall each provide the other party with an accounting of those expenses and, upon request, the supporting documentation for thos e expenses prior to distribution of the net revenues from sale of the Transfer Water in accordance with subsection 2.C., below. All Third -Party costs associated with transferring the Transfer Water, other than the costs of the groundwater substitution su pply provided by SCWA, shall be shared equally by City and SCWA. Any cost reimbursements paid by Buyers to City under the Buyer-Seller Agreement’s administrative cost payment provision shall be distributed equally between City and SCWA.

B. City will not pay SCWA for the groundwater pumped into the City to facilitate the Transfer. For purposes of this Agreement only, the Parties agree that the cost of each acre-foot of groundwater provided by SCWA to enable City to make the Transfer Water Available is equivalent to the cost of each acre -foot of treated surface water that City will make available to SCWA under its Pre-1914 water entitlements or SCWA’s entitlements. As a result of the Parties’ sources of supply having an equivalent value, City will deliver an equal amount of treated surface water to SCWA to reimburse SCWA’s costs of supplying the pumped groundwater when surface water is available to SCWA in the future.

C. To demonstrate a benefit to the groundwater basin in addition to the benefits to the basin provided by SCWA’s existing conjunctive use program operations, and to mitigate for any depletions of American River surface water that might result from the 2022 water transfer; the City will also deliver an additional increment of water pumped by SCWA and returned later by City as treated surface water, up to 25% of the volume transferred. The actual increment of treated surface water returned to SCWA to mitigate for streamflow depletions and to enhance existing conjunctive use benefits will be determined based on the 4 streamflow depletion factor assigned by the State Water Board to the 2022 water transfer and other technical considerations. SCWA and the City consider this additional increment of water to be a program expense and therefore jointly share t he expense of this additional increment of water based on City’s marginal cost to produce an acre-foot of water at the time of return delivery. The City’s current FY22 marginal cost for an acre-foot of water is valued at $111 per acre-foot
.

D. City, as seller of the Transfer Water, shall administer this Agreement on behalf of both Parties. City shall be responsible for submitting all invoices for Transfer Water sold and administrative expenses incurred that are subject to payment or reimbursement under the Buyer-Seller Agreement. City shall pay SCWA its share of net revenues within 30 days of receipt by City of each payment from the Buyers for the invoiced amount of Transfer Water.

City will provide SCWA with copies of its Transfer Water invoices, Buyers’ payment accounting and City’s accounting of costs for the Transfer Water at the time it mak es each payment of net revenues to SCWA.

E. If the Buyers terminate the Buyer -Seller Agreement in accordance with its terms or California DWR does not credit any portion of Transfer Water as sold by City, City shall not have any obligation to pay SCWA any net revenues or reimburse any costs attributable to unsold Transfer Water. Notwithstanding the foregoing, City shall be obligated to pay SCWA for all Transfer Water delivered at the time of termination of the Buyer-Seller Agreement and to reimburse SCWA for its share of any costs to the extent any portion of the administrative costs provided by Buyers remains available and is allocated to City for payment of costs for City’s and SCWA’s agreement to provide Transfer Water.

3. Term of Agreement. This Agreement shall apply only to City’s transfer of surface water to the Buyers and SCWA’s pumping of groundwater to make that supply available for transfer during the 2022 calendar year and will automatically terminate upon the earlier of:
(a) completion of City’s sale of the Transfer Water to Buyers and satisfaction of all of its other obligations under this Agreement; (b) Buyer’s termination of the Buyer-Seller Agreement or the Transfer; or (c) SCWA’s receipt of City’s notice of withdrawal from pursuing State Water Resources Control Board (“State Water Board”) or any other governmental approval pursuant to Section 4(D) below and City’s payment of all sums due SCWA under Section 2 of this Agreement.

3.5 Termination. Either Party may terminate this Agreement immediately upon the material breach of any term by the other Party, within reasonable time to cure.

4. Cooperation; Approvals. City and SCWA will cooperate as ne cessary for City to secure the approvals necessary to implement City’s sale of Transfer Water to the Buyers for the 2022 calendar year, subject to the following conditions:

5 A. SCWA and City will be jointly responsible for all costs of obtaining any governmental approval(s) and compliance with applicable laws, including but not limited to obtaining the State Water Board approval required for the temporary transfer of the Transfer Water pursuant to Water Code sections 1725 through 1732 and any required approvals from DWR and Reclamation. The City will file a temporary change petition in its name, with SCWA as co -petitioner if necessary , to obtain the above -referenced State Water Board approval required for the sale of the Transfer Water.

B. City w ill be the lead agency for the purpose of compliance with CEQA for purposes of this Agreement. City represents that the transfer under this Agreement is a proposed temporary change under Article 1 of Chapter 10.5 of the Water Code, and therefore the City’s sale of Transfer Water to the Buyers is exempt from CEQA under the provisions of Water Code section 1729.

D. Notwithstanding any other provision of this Agreement, City may opt to withdraw from purs uing any governmental approval, including the State Water Board approval specified above, if City determines in its sole discretion that the approval process, or the conditions of compliance of the approval, are not acceptable. If City opts to withdraw, City shall promptly notify SCWA in writing of the withdrawal and this Agreement shall terminate as provided in Section 3 above.

5. Water Rights.

B. Nothing in this Agreement will be construed to act as a forfeiture, diminution or impairment of any water right or contractual entitlement of City or SCWA. Consistent with the provisions of California Water Code sections 109, 475, 1011, 1014 through 1017, 1244 and 11961, SCWA’s pumping of groundwater in lieu of City diverting surface water and its sale of Transfer Water to the Buyers pursuant to this Agreement, or this Agreement itself, will not be evidence of either the existence of surplus water after this Agreement expires, or of the lack of beneficial use of the water involved, and the Parties will not contend otherwise.

C. City and SCWA shall comply with Water Code Section 1732. In accordance with the provisions of Water Code section 1745.10, City and SCWA have each determined that the pumping of groundwater under this Agreement would neither create nor contribute to conditions of long-term overdraft in the affected groundwater basin. 6 6. Indemnification. To the extent permitted by State law, each Party will indemnify, defend and hold harmless the other Party and its officers, agents, and employees from any and all claims, lawsuits (including but not limited to CEQA lawsuits), judgments, damages, penalties, costs, liabilities and losses (including without limitation, sums paid in settlement of claims, actual attorneys' fees, paralegal fees, consultant fees, engineering fees, expert fees and any other professional fees) that arise from or are related in any way to City’s sale of the Transfer Water to the Buyers, SCWA’s pumping of groundwater to serve City demands that otherwise would have been served by the transferred surface water, and any other activities under this Agreement, including but not limited to obtaining all approvals necessary to sell the Transfer Water, determining and accounting for the amount of Transfer Water made available for sale and the groundwater pumped in support of that sale, and the collection and proper payment of funds due to each Party under this Agreement for Transfer Water actually sold. The provisions of this section shall survive any termination of this Agreement.

7. Agreement Not a Precedent. The Parties intend that the provisions of this Agreement will not bind the Parties as to the provisions of any future agreement between them. This Agreement was developed specifically to facilitate City’s sale of Transfer Water to the Buyers during the 2022 calendar year with the assistance of SCWA’s pumping of groundwater to satisfy City customer demands.

8. Entire Agreement. This Agreement , including all agreements expressly incorporated by reference herein, represents the sole, final, complete, exclusive, and integrated expression and statement of the terms of agreement between the Parties concerning the subject matter of this Agreement. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both Parties.

10. Interpretation. City and SCWA each had a full and fair opportunity to consult independent counsel in the negotiation and execution of this Agreement. For the purposes of interpretation of this Agreement, neither Party will be deemed to have been its drafter.

11. Notices. Any notice, demand, or request made in connection with this Agreement will be in writing and will be deemed to have been duly given on the date of service, if (a) served personally on the person to whom notice is to be given, or (b) sent by electronic mail, and the recipient acknowledges receipt, or (c) on the third day after mailing, if mailed to the person to whom notice is to be given by first -class United States mail, postage-prepaid, and 7 properly addressed to the following designated representatives of City and SCWA:

To City: City of Sacramento
Department of Utilities
Attn: Brett Ewart
1395 35th Avenue
Sacramento, CA 95822
E-mail: [email protected]

To SCWA: Sacramento County Water Agency
Attn: Scott Hutcheson, Principal Engineer
10151 Florin Road
Sacramento, CA 95829
E-mail: [email protected]

13. Counterparts. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same Agreement.

The foregoing is hereby agreed to by the Parties on the date first written above.

CITY OF SACRAMENTO: SACRAMENTO COUNTY WATER AGENCY:

By: _____________________________ By: _____________________________ Hector Barron Michael Peterson
Assistant City Manager Director of Water Resources

Attest: Approved as to form:

________________________________ _______________________________

City Clerk City Attorney

STATE OF CALIFORNIA

CALIFORNIA NATURAL RESOURCES AGENCY

DEPARTMENT OF WATER RESOURCES
__________________________________

AGREEMENT AMONG

THE DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA,

CITY OF SACRAMENTO
AND

ALAMEDA COUNTY WATER DISTRICT, DUDLEY RIDGE WATER DISTRICT,

COUNTY OF KINGS, AND KERN COUNTY WATER AGENCY
FOR
STORAGE AND CONVEYANCE OF 2020 TRANSFER WATER
__________________________________
SWPAO # 20-757
THIS AGREEMENT is made under the provisions of the California Water Resources Development Bond Act, and other applicable laws of the State of California, among the Department of Water Resources of the State of California, herein after called “DWR”, City of Sacramento, hereinafter called "Seller", and Alameda County Water District, County of Kings, Dudley Ridge Water District, and Kern County Water Agency, hereinafter called “Buyers”. Buyers are public agencies duly organized, existing and acting under the laws of the State of California. DWR, Buyers, or Seller may be referred to individually by name, as “Party” or collectively as “Parties”.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
2 AGREEMENT OUTLINE

RECITALS
ARTICLE 1. DEFINITIONS
ARTICLE 2. PURPOSE
ARTICLE 3. TERM
ARTICLE 4. COMPLIANCE WITH APPLICABLE LAWS AND OBTAINING

APPROVALS
ARTICLE 5. RISKS AND CONSEQUENCES
ARTICLE 6. DELIVERY CONDITONS FOR TRANSFER WATER
ARTICLE 7. VERIFICATION
ARTICLE 8. AVOIDING IMPACTS OF THE TRANSFER
ARTICLE 9. STORAGE
ARTICLE 10. CONVEYANCE
ARTICLE 11. SCHEDULING
ARTICLE 12. RECLASSIFICATION OF TRANSFER WATER DELIVERIES ARTICLE 13. CHARGES AND PAYMENTS
ARTICLE 14. LIABILITY
ARTICLE 15. WATER RIGHTS NOT AFFECTED
ARTICLE 16. OPINIONS AND DETERMINATIONS
ARTICLE 17. NO PRECEDENT
ARTICLE 18. NO THIRD-PARTY BENEFICIARY
ARTICLE 19. CONSTRUCTION AND INTERPRETATION
ARTICLE 20. WAIVER
ARTICLE 21. COOPERATION
ARTICLE 22. DISPUTE RESOLUTION
ARTICLE 23. NOTICES
ARTICLE 24. EXECUTION
ARTICLE 25. SIGNATURE CLAUSE AND AUTHORIZATION
EXHIBIT 1. GROUNDWATER PUMPING, MONITORING, MITIGATION, AND

REPORTING PLANS

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
3 RECITALS
A. Buyers desire to supplement their water supplies in 2020.

B. Seller, in exchange for compensation, is willing to temporarily reduce the amount of surface water diverted and put to beneficial use within the Seller’s service area during the 2020 Transfer Period in order to make this water available for transfer to Buyers.

C. Buyers entered into two separate water purchase agreements, hereinafter called Purchase Agreements, with Seller, executed on June 24, 2020 and September 25, 2020, respectively. The June 24, 2020 Purchase Agreement is between Seller, Alameda County Water District, County of Kings, Dudley Ridge Water District, and Kern County Water Agency for the purchase of July through September Transfer Water. The September 25, 2020 Purchase Agreement is between Seller, Dudley Ridge Water District, and Kern County Water Agency for purchase of October/November Transfer Water.

D. Buyers have long-term water supply contracts with DWR that permit Buyers to receive conveyance services from the State Water Project (hereinafter, “SWP”) subject to approval of DWR.

E. DWR has the capability at times to store and convey the water to Buyers’ service areas through SWP facilities.

F. Buyers have requested DWR’s services through SWP facilities to store and convey the water made available by Seller under this Agreement.

G. DWR is willing to assist in identifying water available for the transfer of water between Buyers and Seller.

H. Seller filed a Petition for Temporary Change (Application 12622) with the State Water Resources Control Board (SWRCB) on May 1, 2020. SWRCB Issued an order on July 6, 2020 to approve this petition with provisions.

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4 AGREEMENT

1. DEFINITIONS
When used in this Agreement, the following terms have the meanings set forth below.
a. “Balanced Conditions” means those periods when DWR and United States Bureau of Reclamation (Reclamation) agree that releases from upstream reservoirs plus unregulated flow approximately equals the water supply needed to meet Sacramento Valley in-basin uses plus exports, as defined in Article 3.b of the “Agreement Between The United States of America And The State of California For Coordinated Operations Of The Central Valley Project And The State Water Project” (COA) dated November 24, 1986, and as updated in the December 12, 2018 COA Addendum. b. “Buyers” means Alameda County Water District, County of Kings, Dudley Ridge Water District, and Kern County Water Agency, which have executed Purchase Agreement(s) with Seller and who will execute a storage and conveyance agreement with DWR.
c. “Buyers’ Turnouts” refers to the locations where DWR delivers the Transfer Water to the Buyers, as specified in Exhibit 1 to this Agreement. d. "Excess Conditions" means periods when releases from upstream reservoirs plus unregulated flow exceed the water supply needed to meet Sacramento Valley in-basin uses, Sacramento-San Joaquin Delta (Delta) water quality and outflow requirements and Delta exports, as defined in the COA.
e. “Maximum Transfer Amount” means the total maximum amount of Transfer Water provided for under this Agreement before any losses and as specified in Exhibit 1 to this Agreement.
f. “Point of Transfer” refers to the location where Seller delivers the Transfer Water to the Buyers, as specified in Exhibit 1 to this Agreement. g. “Proportionate Share” means the ratio of each Buyer’s Transfer Water purchase to the sum of all purchases by all Buyers as specified in Exhibit 1 to this Agreement.

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5 h. “Purchase Agreement” means the agreements signed by Seller and Buyers for the purchase of Transfer Water that DWR will convey under this Agreement entitled “Purchase Agreement for Water Transfer Between Sellers and Buyers” effective June 24, 2020 and “Purchase Agreement for October/November Water Transfer Between Sellers and Buyers” effective September 25, 2020.
i. “Reclamation” means the United States Department of the Interior Bureau of Reclamation.
j. “Seller” means City of Sacramento, which has executed two Purchase Agreements with Buyers and which will execute a storage and conveyance agreement with DWR and Buyers.
k. “Transfer Period” means July 1, 2020 through November 30, 2020 when Seller will make Transfer Water available to Buyers at the Point of Transfer.
l. "Transfer Water" means transfer water made available by Seller to the Buyers through temporary reduction in diversions of surface water that would have been used for municipal demands as specified in Article 6 (Delivery Conditions for Transfer Water) and Exhibit 1 to this Agreement. m. “Water Supply Contract” means the long-term water supply contract, as amended, of the type published in DWR Bulletin 141, between DWR and Buyers (see
https://www.water.ca.gov/Programs/State-Water-
Project/Management/SWP-Water-Contractors).
n. “Water Users” means individuals or entities that own or lease land within the Seller’s water service area and receive water service from the Seller. o. If not otherwise specified, the definitions in the Buyers’ Water Supply Contracts shall apply to this Agreement.

2. PURPOSE
The purpose of this Agreement is to set forth provisions governing the storage and conveyance of Transfer Water through SWP facilities to Buyers’ service areas.

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6 3. TERM
This Agreement shall be effective upon execution and shall terminate on May 31, 2021, or upon full performance by the Parties of their obligations under this Agreement, whichever occurs later. However, the liability, hold harmless, and indemnification obligations in this Agreement shall remain in effect until December 31, 2025, or until any claim or litigation concerning this Agreement asserted against DWR, any Buyer, or Seller as of December 31, 2025 is finally resolved, whichever occurs later.

4. COMPLIANCE WITH APPLICABLE LAWS AND OBTAINING APPROVALS a. Seller’s transfer requires the approval of a temporary change by the SWRCB. Therefore, consistent with Water Code Section 1725 et seq., the Seller’s transfer is statutorily exempt from the California Environmental Quality Act (CEQA).
b. DWR as a responsible agency for the purposes of CEQA shall file a Notice of Exemption for its role in support of the transfer. c. Buyers and Seller shall comply with all applicable laws and regulations including but not limited to the California Endangered Species Act (CESA), the Federal Endangered Species Act (ESA), and Water Code 1220 (which prohibits the transfer of groundwater unless specific conditions are met) and shall secure any required consents, permits, reports, and orders and shall provide DWR with copies of the same prior to transferring water under this Agreement.
d. DWR shall comply with all applicable laws and regulations related to its activities including but not limited to the CESA and ESA, and shall secure any required consents, permits, reports, and orders and upon request, shall provide Seller with copies of the same prior to conveying Transfer Water under this Agreement. DWR shall have no responsibility for Seller and Buyers compliance with applicable laws and regulations. e. Seller, in cooperation with Buyers, shall be responsible for obtaining any necessary approvals from any relevant government entities for transfer of the Transfer Water. Seller shall email to the DWR contact listed in Article 23.a (Notices) any submissions Seller makes to any government entity related to this Agreement. The rights, obligations and commitments set forth in this Agreement shall not be effective unless all necessary governmental approvals have been obtained.

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7 f. If a Party is required to pay a fine or civil penalty for any of its actions related to this Agreement, then that Party alone shall be responsible for paying the fine or penalty, except as otherwise specified between the Buyers and Seller under the Purchase Agreement.
g. DWR shall be responsible for making any findings required by Water Code sections 1810(d), 1812, and 1813, as applicable.

5. RISKS AND CONSEQUENCES
Each Buyer and Seller acknowledges that storage and conveyance of Transfer Water entails risks that the water made available by the Seller may not be diverted and delivered due to conflict with higher priority agreements, regulatory restrictions, operational constraints, or other circumstances beyond the control of DWR. The Parties acknowledge that risks have been apportioned between Buyers and Seller pursuant to the Purchase Agreement. DWR shall be solely responsible for determining if storage or export capacity exists for Transfer Water. Some of the risks that may impact export capacity for Transfer Water include:
a. An increase in delivery of SWP water during the Transfer Period may decrease the available export capacity at SWP Delta pumping facilities for Transfer Water such that all or a portion of the Transfer Water cannot be conveyed due to its lower priority under Article 12 of the Water Supply Contract.
b. Regulatory restrictions including, but not limited to, those contained in the 2019 biological opinions issued by the U.S Fish and Wildlife Service and the National Marine Fisheries Service on the coordinated operations of the Central Valley Project/SWP and the 2020 Incidental Take Permit (ITP) issued by the California Department of Fish and Wildlife for the continued long-term operations of the SWP, can substantially restrict available capacity at SWP Delta pumping facilities and may result in the inability to export all or a portion of the Transfer Water. Any revision to the existing biological opinions or ITP could result in additional restrictions on the conveyance of Transfer Water.
c. Limited export capacity at SWP facilities for Transfer Water could result in an inability to pump the Transfer Water resulting in a loss of all or a portion of the Transfer Water.

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8 d. DWR and Reclamation are responsible for complying with objectives contained in SWRCB Water Rights Decision 1641 (D1641). Compliance with specific water quality and flow objectives, including but not limited to south Delta salinity objectives, Export/Inflow ratio, Net Delta Outflow Index, and western Delta salinity may limit the ability of DWR to export Transfer Water.
e. An outage at SWP facilities may result in DWR’s inability to export or convey water and cause all or a portion of the Transfer Water to be lost. f. DWR shall be solely responsible for determining availability of storage capacity in any SWP conservation facility. Storage capacity required for any SWP purpose or for water with a higher priority than the Transfer Water may result in the spill of, or the inability to store, the Transfer Water.

This list is not exhaustive and other risks may apply. DWR shall make its best efforts to convey each Buyer’s Proportionate Share of the Transfer Water and to notify each Buyer and Seller as soon as reasonably possible if any Transfer Water cannot be delivered to each Buyer. DWR has no control over conveyance of water outside of SWP facilities. Each Buyer shall assume all risks for Transfer Water made available from the Point of Transfer to SWP export facilities.

6. DELIVERY CONDITIONS FOR TRANSFER WATER
a. Seller agrees to make Transfer Water available for delivery to Buyers, through DWR for storage and conveyance by groundwater substitution in 2020, subject to the conditions described in Exhibit 1 to this Agreement. b. DWR agrees to make available storage and conveyance of Transfer Water to Buyers, subject to conditions described herein. c. Each Buyer will receive its Proportionate Share of the Transfer Water provided by Seller and shall arrange for its designated representative to provide DWR a written description of its Proportionate Share at least 30 days prior to scheduling its water for delivery.
d. Each Buyer shall also provide DWR with a copy of the executed Purchase Agreement.
e. Transfer Water made available is subject to the risks in Article 5 (Risks and Consequences), adjustments in Article 7 (Verification), any limitations DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
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9 in Article 8 (Avoiding Impacts of Transfer), the losses specified in Articles

9.c and 9.d (Storage) and Article 10.c (Conveyance), Article 11 (Scheduling), and requirements and adjustments in Exhibit 1 to this Agreement.
f. If DWR is unable to export Transfer Water due to regulatory or operational constraints or when the Sacramento-San Joaquin Delta (Delta) is in excess conditions, or Seller is unable to supply Transfer Water during the Transfer Period, the Party with the constraint shall notify the other Parties as soon as practicable of the limitation or restriction. g. Seller shall make Transfer Water available to the Buyers at the Point of Transfer specified in Exhibit 1 to this Agreement.
h. The Seller shall comply with the monitoring and reporting requirements set forth in Exhibit 1 to this Agreement.

7. VERIFICATION
a. DWR will verify the total amount of Transfer Water made available by Seller for storage and conveyance to each Buyer’s service area. DWR will provide each Buyer and Seller a written determination of this total amount within 30 days of the receipt of all information requested by DWR necessary for it to make this determination. Each Buyer and Seller acknowledges that DWR is solely responsible for determining the amount of Transfer Water made available by Seller to Buyers.
b. Seller shall comply with the requirements specified in Exhibit 1 to this Agreement for any measuring devices required by DWR to determine the amount of Transfer Water made available by Seller.
c. DWR may also conduct site visits for purposes of verification. Seller shall use all reasonable efforts to make arrangements for DWR and its representatives to have access to lands, facilities and records to the extent necessary to verify the amount of Transfer Water made available by Seller, and for the implementation of any monitoring and reporting requirements specified in Exhibit 1 to this Agreement. If access is denied to DWR or its representatives, DWR may reduce the quantity of Transfer Water to account for the inability to verify the volume of Transfer Water.

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10 d. DWR may adjust the quantity of Transfer Water made available by Seller based on DWR’s review of information provided by Seller under the requirements specified in Exhibit 1 to this Agreement, any limitation on the availability of Transfer Water during the Transfer Period and actual field conditions during the Transfer Period.
e. Payment for Transfer Water that DWR determines under this Article the Seller did not make available to Buyers for storage, conveyance and delivery is separately addressed in the Purchase Agreement.

8. AVOIDING IMPACTS OF TRANSFER
a. The Parties agree that DWR shall be solely responsible for determining whether storage and conveyance of the Transfer Water adversely affects commitments for SWP water supply, deliveries, operations, and facilities.

Affected operations may include, but are not limited to, those operations that affect allocations of SWP water, water storage, deliveries, compliance with environmental regulations, water rights permits, flood control, or other SWP purposes. Unless otherwise agreed to by each Buyer and Seller in the Purchase Agreement, each Buyer shall be responsible, as determined by DWR, for any adverse impacts that may result from the storage, transfer and conveyance of Transfer Water.
b. Unless responsibility is otherwise apportioned between each Buyer and Seller under their Purchase Agreement, Seller shall be responsible for any unreasonable impacts affecting the overall economy or the environment of the county from which the water is being transferred that are a result of its operations in fulfilling its obligations under this Agreement. c. Each Buyer and Seller shall immediately notify the DWR Contracts Administrator in Article 23.a as soon as they become aware of any unreasonable adverse impacts to the environment or other legal water users due to the actions they take in fulfillment of this Agreement. After receiving notification of unreasonable adverse impacts, DWR shall be solely responsible for determining whether to continue or discontinue conveying the Transfer Water. DWR shall immediately notify each Buyer and Seller if it decides to discontinue storage and conveyance of the Transfer Water because of the unreasonable adverse impacts.

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11 9. STORAGE
a. DWR will manage stored Transfer Water for each Buyer, as authorized in Article 56 (c) of its Water Supply Contract.
b. Each Buyer acknowledges that storage of any Transfer Water is subject to DWR’s determination of available storage capacity during the term of this Agreement. If DWR determines that the storage of the Transfer Water will interfere with SWP operations, DWR will notify each Buyer of the risk of loss of the Transfer Water as soon as practicable.
c. Each Buyer acknowledges that stored Transfer Water is subject to spill, actual or theoretical, as determined by DWR at any time during the term of this Agreement, to avoid any actual or potential conflicts with SWP operations.

10. CONVEYANCE
a. DWR shall convey the Transfer Water to each Buyer’s service area in accordance with Articles 12(f), 13, and 55 of the Water Supply Contract.

DWR will consider this water to be non-project water when determining conveyance and delivery priority. DWR shall not be responsible for any impacts of the water after it passes through the Buyers’ Turnouts into each Buyer’s service area.
b. DWR will convey the Transfer Water only when the conditions described in Articles 6 (Delivery Conditions for Transfer Water), 8 (Avoiding Impacts of Transfer), 9 (Storage), and 11 (Scheduling) have been met. DWR shall notify each Buyer as soon as possible prior to the date when such conveyance opportunity arises.
c. Each Buyer shall be responsible for and shall bear all risks for all conveyance losses and other water losses, and DWR shall deduct any losses, as determined by DWR, from the amount of Transfer Water made available including:
(1) Those incurred by DWR’s compliance with orders from any regulatory agency,
(2) Those related to the inability of DWR to convey the Transfer Water to each Buyer,
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12 (3) Any carriage water and other water losses assessed by DWR against each Buyer to convey water to and through the Delta for the year in which the Transfer Water is conveyed, and
(4) Any applicable losses that are specified in Exhibit 1 to this Agreement.

11. SCHEDULING
a. Each Buyer shall be responsible for scheduling the delivery of Transfer Water with DWR.
b. The conveyance of Transfer Water under this Agreement to each Buyer shall be in accordance with schedules approved by DWR. The amount, timing, and rate of conveyance must be consistent with the terms of the Water Supply Contracts and DWR’s determination of available conveyance capacity including, but not limited to, any regulatory or water quality restrictions limiting SWP pumping or storage.
c. DWR shall not be obligated to convey Transfer Water in amounts in excess of each Buyer’s Proportionate Use-of-Facilities factors subject to Article 8 (Avoiding Impacts of the Transfer) unless DWR determines that such conveyance would not interfere with SWP project operations or adversely affect conveyance to any other SWP contractor. d. Each Buyer shall submit delivery schedules for the Transfer Water in accordance with Article 12 of its Water Supply Contract. Each Buyer shall submit weekly schedules to its appropriate DWR field division Water Operations Section showing deliveries to the Buyers, and these schedules shall be submitted by 10 a.m. Wednesday for the following week (Monday through Sunday) and shall be concurrently emailed to the following State Water Project Operations Control Offices:
(1) Water Management Branch
[email protected]

Attention: Chief, Water Management Branch
(2) Power Management and Optimization
[email protected]

Attention: Chief, Power Management and Optimization Branch DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
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13 (3) DWR Pre-Scheduling Section
[email protected]
Attention: Chief, Day-Ahead Scheduling Section
(4) DWR Deliveries Section
[email protected]
Attention: Chief, Water Deliveries Section
Reference SWPAO # 20-757

12. RECLASSIFICATION OF TRANSFER WATER DELIVERIES
In the event DWR determines that any Buyer or Seller has not met the conditions specified in Articles 4 (Compliance with Applicable Laws and Obtaining Approvals), 6 (Delivery Conditions for Transfer Water), 7 (Verification), 9 (Storage) and 10 (Conveyance), or Transfer Water is undeliverable to any Buyer under Article 5 (Risks and Consequences) then DWR shall not be obligated to store for or deliver the Transfer Water to that Buyer. If DWR determines after the fact that Transfer Water was not actually available for storage, conveyance and delivery, or if there is a conflict with any provision of this Agreement, after consulting with the Parties, DWR may reclassify the Transfer Water as that Buyer’s Table A water.

13. CHARGES AND PAYMENTS
a. Each Buyer shall pay to DWR all charges associated with the conveyance of its Proportionate Share of the Transfer Water from SWP Delta pumping facilities to the Buyers’ Turnouts within the SWP facilities, in accordance with Article 55 of its Water Supply Contract, including but not limited to:
(1) The Variable Operation, Maintenance, Power, and Replacement (OMP&R) components of the Transportation Charge in effect in the year that DWR conveys the Transfer Water to the Buyers’ points of delivery.
(2) All other transportation charges under the Buyers’ Water Supply Contracts with DWR, including the Off-Aqueduct Facilities Charges related to this conveyance.
b. Each Buyer shall pay to DWR its Proportionate Share of any identified demonstrable increase in non-power costs that would otherwise be borne by the SWP Contractors not signatory to this Agreement or by DWR due to activities pursuant to this Agreement.

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14 c. DWR will invoice each Buyer 30 days after execution of this Agreement.

Invoiced amounts are due and payable within 30 days of the invoice date.

DWR will charge interest for unpaid amounts at the rate of one percent (1%) per month from the invoice due date to the date of payment. d. DWR will not provide power credits to any Buyer for Transfer Water in conjunction with storage in or release from San Luis Reservoir.

14. LIABILITY
a. DWR is not responsible for the use, effects, or production of Transfer Water made available by the Seller under this Agreement. b. DWR is not responsible for the use, effects, or disposal of Transfer Water beyond each Buyer’s Turnouts in the SWP. Transfer Water conveyed under this Agreement shall remain subject to Article 13 of each Buyer’s Water Supply Contract with responsibilities under the terms of that article shifting between DWR and each Buyer when the water passes through each Buyer’s Turnouts.
c. Each Buyer and Seller agrees to defend and hold DWR, its officers, employees, and agents harmless from any direct or indirect loss, liability, lawsuit, cause of action, judgment or claim, and shall indemnify DWR, its officers, employees, and agents from all lawsuits, costs, damages, judgments, attorneys fees, and liabilities that DWR, its officers, employees, and agents incur as result of DWR providing services under this Agreement, except to the extent resulting from the negligence or willful misconduct of DWR, its officers, employees, and agents. d. If uncontrollable forces preclude DWR from storing or conveying Transfer Water, either partially or completely, then DWR is relieved from the obligation to deliver the Transfer Water to the affected Buyers to the extent that DWR is reasonably unable to complete the obligation due to uncontrollable forces. Uncontrollable forces shall include, but are not limited to earthquakes, fires, tornadoes, floods, and other natural or human caused disasters.
e. Buyers shall not be entitled to recover any administrative costs, including but not limited to verification costs, or costs paid for storage or conveyance of Transfer Water if uncontrollable forces preclude DWR from conveying the Transfer Water.

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15 f. Each Buyer acknowledges that the stored Transfer Water is subject to spill due to possible conflict with SWP project operations. DWR shall have no liability to any Buyer or Seller if DWR is forced to spill the Transfer Water due to conflict with SWP project operations as described in Article 5 (Risks and Consequences) and Article 6 (Delivery Conditions for Transfer Water).

15. WATER RIGHTS NOT AFFECTED
Consistent with the provisions of California Water Code sections 101, 109, 475, 1244, and 11961, the Parties agree that no transfer under this Agreement shall be evidence of the availability of surplus water beyond the term of the Agreement, shall be evidence of lack of beneficial use of the water involved in the transfer, or shall in any way prejudice any of Seller’s rights to water.

16. OPINIONS AND DETERMINATIONS
Where the terms of this Agreement provide for a Party’s action based upon opinion, judgment, approval, review, or determination, the Parties do not intend, and shall never construe such terms as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

17. NO PRECEDENT
The Parties’ approval of this Agreement is unique, and they shall not consider it as a precedent for future agreements or DWR activities.

18. NO THIRD-PARTY BENEFICIARY
The Parties to this Agreement do not intend to create any third-party beneficiaries to this Agreement, and expressly deny the creation of any third- party beneficiary rights hereunder toward any person or entity.

19. CONSTRUCTION AND INTERPRETATION
The Parties agree and acknowledge that they have arrived at this Agreement through negotiation, and that each Party has had a full and fair opportunity to revise the terms of this Agreement. Consequently, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in construing or interpreting this Agreement.

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16 20. WAIVER
The waiver or failure to declare a breach as a result of the violation of any term of this Agreement shall not constitute a waiver of that term or condition and shall not provide the basis for a claim of estoppel, forgiveness or waiver by any Party to that term or condition.

21. COOPERATION
DWR, Buyers, and Seller agree to make, execute, and deliver all documents and to join in any application or other action reasonably required to implement this Agreement.

22. DISPUTE RESOLUTION
In the event of dispute regarding interpretation or implementation of this Agreement, a DWR-designated representative and the designated Buyers’ and Seller’s representatives shall endeavor to resolve the dispute by meeting within 30 days after the request of any Party to this Agreement. If the dispute is unresolved, the designated Buyers’ and Seller’s representatives may meet with the Director of DWR or the Director’s designee within 30 days after the meeting with the DWR representative. If the dispute remains unresolved, the Parties shall use the services of a mutually acceptable consultant in an effort to resolve the dispute. The Parties shall share the fees and expenses of the consultant equally; however, Buyers and Seller may allocate their respective share of the fees and expenses amongst themselves in a separate agreement, including without limitation, the Purchase Agreement. If a consultant cannot be agreed upon, or if the consultant’s recommendations are not acceptable to all Parties, and unless the Parties otherwise agree, the matter may be resolved by litigation and any Party may at its option pursue any available legal remedy, including but not limited to, injunctive and other equitable relief.

23. NOTICES
All communications or notices in connection with this Agreement shall be in writing and either hand-delivered or sent by United States first class mail, postage prepaid, or electronic mail followed by written notice sent by U.S. mail and addressed as follows:
a. DWR – Contract Administration
Brian Heiland, State Water Project Analysis Office
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17 Post Office Box 942836
Sacramento, CA 94236-0001
(916) 653-4547
[email protected]
b. DWR – Groundwater Monitoring and Mitigation Records
Barrett Kaasa, Division of Regional Assistance
3500 Industrial Blvd
West Sacramento, CA 95691
(916) 376-9618
[email protected]

c. DWR – Operations Contact
Tracy Pettit-Polhemus, State Water Project Operations Control Office 3310 El Camino Avenue, Suite 300
Sacramento, California 95821-9000
(916) 574-2662
[email protected]

d. Buyer Contact – Alameda County Water District
Robert Shaver
43885 South Grimmer Boulevard
Fremont, CA 94537-5110
(510) 668-4202
[email protected]
e. Buyer Contact – County of Kings
Jacob Westra
1001 Chase Ave
Corcoran, CA 93212
(559) 992-4127
[email protected]
f. Buyer Contact – Dudley Ridge Water District
Rick Besecker
286 West Cromwell Avenue
Fresno, CA 93711-6162
(559) 449-2700
[email protected]
g. Buyer Contact – Kern County Water Agency
Lauren Bauer, Water Resources Planner
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18 3200 Rio Mirada Dr.

Bakersfield, CA 93308
(661) 634-1400
[email protected]
Seller Contact – City of Sacramento
Brett Ewart, City of Sacramento
1395 35th Ave
Sacramento, CA 95822
916-808-1725
[email protected]

24. EXECUTION
a. The Parties may execute this Agreement in counterpart. The Parties agree to accept facsimile, DocuSign digital signature, or PDF (Portable Document Format) signatures as original signatures.
b. Immediately after execution, Buyers and Seller shall transmit a copy of the executed Agreement to the contact listed in Article 23.a (Notices).

25. SIGNATURE CLAUSE AND AUTHORIZATION
a. The signatories represent that they have appropriate authorization to enter into this Agreement on behalf of the Party for whom they sign. b. If required by any Buyers’ or Seller’s internal governing rules, Buyers and/or Seller, as appropriate shall deliver to DWR a copy of the Board of Directors resolution and/or other documentation authorizing the Buyers and/or Seller, as appropriate to enter into this Agreement.

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19 IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement for Storage and Conveyance of 2020 Transfer Water.

Approved as to Legal Form
and Sufficiency
State of California
Department of Water Resources

Spencer Kenner Chief Counsel

Ted Craddock Deputy Director

Date Date

City of Sacramento City of Sacramento

Approved as to Form

Hector Barron Assistant City Manager

Michael Voss City Attorney

Date Date

City of Sacramento

Alameda County Water District
Attest

Wendy Klock-Johnson City Clerk

Robert Shaver General Manager

Date Date
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 10/14/2020 10/13/2020
10/14/2020
10/14/2020
DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 10/19/2020
10/20/2020
2020 Transfer Water Agreement
SWPAO # 20-757
20 County of Kings

Dudley Ridge Water District

Rebecca Campbell Admin. Officer

Dale Melville Manager-Engineer

Date Date

Kern County Water Agency

Holly Melton Water Resources Manager

Date
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 10/14/2020
10/13/202010/16/2020
DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
E1-1
EXHIBIT 1

GROUNDWATER PUMPING, MONITORING, MITIGATION, AND REPORTING PLANS

CITY OF SACRAMENTO
Seller is located in Sacramento County. Seller proposes to make water available for transfer by pumping groundwater from transfer wells in Figure E1-1 and Table E1-2 of this Exhibit for municipal use in lieu of diverting surface water under its water right Permit 11360 pursuant to SWRCB Order dated July 6, 2020. Seller executed Purchase Agreements with Buyers effective June 24, 2020 and September 25, 2020.

1. POINT OF TRANSFER
Seller’s Point of Transfer will be the diversion works at Fairbairn Water Treatment Plant on the lower American River.

2. PROPORTIONATE SHARE
Buyers’ Proportionate Share of Transfer Water is shown in Table E1-1. Losses, if any, to Transfer Water after the Point of Transfer will be shared based on this Proportionate Share.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Table E1-1. Buyers’ Proportionate Share of Transfer Water Buyer Jul Aug Sep Oct Nov
Alameda County
Water District 3.9056% 3.9056% 3.9056% 0 0
County of Kings 0.8653% 0.8653% 0.8653% 0 0
Dudley Ridge
Water District 3.8451% 3.8451% 3.8451% 4% 4%
Kern County
Water Agency 91.3840% 91.3840% 91.3840% 96% 96%
Total 100% 100% 100% 100% 100%

3. BUYERS’ TURNOUTS
Buyers’ Turnouts for delivery of Transfer Water to Buyers service area will be the delivery structures along: (1) the California Aqueduct Repayment Reach # 7 and 8 for Alameda County Water District, (2) the California Aqueduct Repayment Reach # 6 for County of Kings, (3) the California Aqueduct Repayment Reach # 8D for Dudley Ridge Water District, and (4) the California Aqueduct Repayment Reach # 9, 10A, 11B, 12D, 12E, 13B, 14A, 14B, 14C, 15A, 16A, and 17E and Coastal Branch Repayment Reach # 31A for Kern County Water Agency.

4. MAXIMUM TRANSFER AMOUNT FROM GROUNDWATER PUMPING
Through the end of the Transfer Period by pumping from approved wells listed in Table E1-2 and shown in Figure E1-1, Seller will make Maximum Transfer Amount of 14,000 acre-feet of water available for transfer, subject to verification by DWR. The Maximum Transfer Amount is the “Total” value of Item 3 in Table E1-3, which is equal to the total maximum proposed pumping minus the total baseline pumping (Item 1 minus Item 2).

The wells listed in Table E1-2 of this Exhibit shall only be used to pump Transfer Water after the flow meter for each well has been certified by a licensed professional engineer or professional geologist as required in Section 6 (Flow Meters) of this Exhibit and all wells have been approved by the DWR contact listed in Article 23.b of this Agreement.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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The wells listed in Table E1-2 shall not be used to pump Transfer Water until DWR has received all required documentation for the specific well to be pumped and officially approved in writing that specific well for use in the transfer. This groundwater shall be for municipal use that would otherwise have been served with surface water within Seller’s service area during the Transfer Period. The combined amount of Seller’s monthly diversion of surface water in 2020 and the total actual quantity of Transfer Water delivered at the Point of Transfer from this Exhibit, including streamflow depletion, up to the Maximum Transfer Amount provided by Seller under this Agreement shall not exceed the amount under its water right Permit 11360. The Seller at its own cost shall be responsible for the distribution of groundwater pumped under this Agreement within the boundaries of Seller’s service area.

5. ACCOUNTING OF TRANSFER WATER
Table E1-4 illustrates the accounting process of Transfer Water made available by Seller and delivered by DWR to Buyers at the Buyers’ Turnouts. With data verified by DWR, the net Transfer Water made available from Seller (Item 5) less streamflow depletion of 13 percent (Item 6) is equal to the net Transfer Water available at the Point of Transfer for export (Item 7). Item 9 is the exported Transfer Water after the deduction of carriage water (Item 8). Item 10 is the amount of Transfer Water delivered to Buyers at the Buyers’ Turnouts.

By the 10
th day of every month, the Seller shall report to DWR the gross quantities of groundwater pumped, to the nearest one tenth (0.1) acre-foot, from each well under this Agreement for the previous month. Seller shall send the groundwater pumping information to the contacts listed under Article 23.b (Notices) for verification.

Within 30 days of receipt of all information reasonably requested by DWR, DWR will provide: (1) to Buyers and Seller, the amount of Transfer Water made available by Seller subject to verification in Article 7 (Verification); and (2) to Buyer, the amount of Transfer Water delivered to Buyers, after deduction of losses noted in Article 10 (Conveyance), at the Buyers’ Turnouts. DWR shall report all amounts of Transfer Water to the nearest acre-foot.

6. FLOW METERS
Seller at its own cost shall ensure that it acquires and properly installs, calibrates, and maintains any flow-measuring devices required under this plan. A California state licensed professional engineer or professional geologist experienced in groundwater and wells shall certify that each flow meter is properly sized, DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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positioned, and calibrated in place and in conformance with the manufacturer’s specifications prior to use.

Flow meters shall be calibrated at minimum within the manufacturer’s recommended calibration period and be approved by DWR, before the beginning of the Transfer pumping. Seller shall provide DWR with a copy of the written certification for each flow meter installed and proposed for use prior to the start of transfer pumping. These written certifications shall include:

• Certifier’s name and professional license number
• Date of inspection
• Description of the pump and well including:
o Master Site Code/Seller’s identifier/latitude and longitude coordinates
o Depth and diameter
o Inflow screen depth(s) below ground surface
o Cap and casing lengths and depths below ground surface o Pump make (mfg), serial number, size (hp/kw), rating (gpm), and power source.
• At least two digital photos showing the pump in close-up view and a view of the well installation including piping to and from the well area. • If a pump efficiency test was conducted, include the test results and report.
• Certifier’s statement that the flow meter is properly installed and calibrated in-place in conformance with manufacturer’s specifications. • Certifier’s signature.

Seller shall ensure that its operation of any flow measuring devices installed at the wells listed in Table E1-2 allow for accurate accounting of the discharge from these wells. When Seller is pumping wells listed in Table E1-2 Wells Approved for Transfer Pumping under this Agreement, Seller shall record instantaneous and cumulative (i.e. totalizer) flow meter values using a properly sized, positioned, and calibrated flow meter on each well. DWR may consider wells with improper certification ineligible for transfer pumping during the Transfer Period.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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7. MEASURING AND RECORDING GROUNDWATER PUMPED
Seller shall record instantaneous and cumulative (i.e. totalizer) flow meter values immediately prior to the initiation of pumping to replace Transfer Water and continue recording measurements once each month, as close as practical to the last day of the month, through the end of the Transfer Period. Seller shall use DWR supplied Excel spreadsheet to record all flow meter measurements. Seller shall submit the completed Seller Groundwater Data Electronic Reporting Form with flow meter data as an email attachment to the DWR contact listed under Article 23.b (Notices) by the 10th day of each succeeding month through the month following the end of the transfer period.

8. GROUNDWATER LEVEL MEASUREMENTS
Seller shall measure groundwater levels in all wells listed in Table E1-2, Wells Approved for Transfer Pumping and all monitoring wells (excluding DWR monitoring wells) identified in Table E1-5 (Groundwater Level Monitoring Wells) on the following schedule:
a. Prior to transfer: Groundwater levels will be measured monthly from March of the transfer year until the start of transfer. b. Start of transfer: Groundwater levels will be measured on the same day that the transfer begins, prior to the pump being turned on. If transfer wells are turned on incrementally, all transfer and monitoring wells should be measured before the first transfer well is turned on.
c. During transfer: Groundwater levels will be measured weekly throughout the transfer period.
d. Post-transfer: Groundwater levels will be measured weekly for one month after the end of transfer pumping, after which water levels will be measured monthly through March of the following year.

Seller shall measure groundwater levels from a reference point clearly marked on the well by the Seller. Seller shall measure groundwater levels from the reference point to the water surface in the well to the nearest tenth of a foot (0.1 feet).

The Seller shall download data collected monthly by DWR as part of the regional groundwater level monitoring network and incorporate and archive that data with the Seller’s collected data. DWR’s data is available online through the California DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Statewide Groundwater Elevation Monitoring (CASGEM) database (https://www.water.ca.gov/Programs/Groundwater-Management/Groundwater- Elevation-Monitoring--CASGEM) and for transfer projects that have dedicated DWR monitoring wells with data loggers, data is stored on the Water Data Library (
http://www.water.ca.gov/waterdatalibrary/docs/Hydstra/index.cfm/) Seller shall provide DWR the combined data in monthly monitoring reports and in the final report (see Section 11 below) as part of the groundwater monitoring program for the transfer wells and all Seller and DWR monitoring wells as identified on Tables E1-1 and E1-4, respectively.

Seller shall use DWR supplied Excel spreadsheet to record all groundwater level measurements. All data shall be provided on a single spreadsheet. Seller shall submit the completed electronic data report with groundwater level measurements as an email attachment to the contact listed under Article 23.b (Notices) by the 10
th day of each succeeding month through April 2021.

9. POTENTIAL EFFECTS OF GROUNDWATER SUBSTITUTION PUMPING Seller is responsible for analyzing potential effects of groundwater extraction associated with this Agreement. Seller is responsible for implementing monitoring and mitigation measures as defined in Attachment 1 (Groundwater Substitution Mitigation Plan), Attachment 2 (Groundwater Level Monitoring Plan), and Attachment 3 (Land Subsidence Monitoring Program) of this Exhibit.

10. COORDINATION PLAN:

Seller shall coordinate the collection and organization of monitoring data as specified in this Exhibit. Seller’s identified point of contact (POC):

Seller Contact – Regional Water Authority
Rob Swartz
5620 Birdcage Street, Suite 180
Citrus Heights, CA 95610
(916) 607-9208
[email protected]
The Seller’s POC is responsible for communicating with the well operators and other decision makers, and monitoring and reporting of transfer-related data. The Seller’s POC shall aid coordination and possibly participate in DWR requested DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
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visits or inspections of transfer and monitoring wells prior to and through the end of the Transfer Period.

11. FINAL REPORT
Seller shall submit a final report to the contact listed under Article 23.b (Notices) no later than May 31, 2021. The final report shall include, at the least, the following items:
a. A summary of the water transfer project, including regional and local maps of the project area.
(1) At a minimum, the project summary should include:
(a) an overview of project operations,
(b) pumping capacities and volume for each of the extraction wells,
(c) explanation of the groundwater level monitoring grid, including its adequacy to monitor the potential effects to the aquifer(s) and address any potential third-party impacts, (d) frequency and duration of monitoring, including its adequacy to monitor the potential effects to the aquifer(s) and address any potential third-party impacts,
(e) the pumping and monitoring well construction, and
(f) pumping well power supply.
(2) Project area maps should include:
(a) pumping well(s),
(b) monitoring wells,
(c) location of the pumping well point of use (field, irrigation canal, etc.), and
(d) surface water features
(3) Groundwater level contour maps for the area shown in Figure E1-1, showing pre-transfer groundwater levels, groundwater levels at the end of the transfer, and final recovered groundwater levels.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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b. An evaluation of the effects of the water transfer program, identifying program-related impacts to groundwater and surface water (both during and after pumping), and the extent and significance, if any, of impacts to local groundwater users.
c. A hard copy of the report and an electronic version of the report in Adobe and Word format, and all the project-related field data summarized in Excel spreadsheets tables and graphs and organized according to data collection point and subject matter.
d. Scanned images of all handwritten field notes and data collection forms for production and monitoring wells, which includes groundwater levels, groundwater quality, and field meter calibration information should be included as attachments to the final report.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Table E1-2. Wells Approved for Transfer Pumping
Master Site Code Local Well
Designation
Power
Source Latitude Longitude
386115N1214786W001 SAC-091 Electric 38.6115 -121.4786
386220N1214766W001 SAC-093 Electric 38.622 -121.4766
386072N1214425W001 SAC-112 Electric 38.6072 -121.4425
386049N1214389W001 SAC-114 Electric 38.6049 -121.4389
386207N1214426W001 SAC-120 Electric 38.6207 -121.4426
386202N1214316W001 SAC-122 Electric 38.6202 -121.4316
386256N1214670W001 SAC-123 Electric 38.6256 -121.467
386283N1214349W001 SAC-126 Electric 38.6283 -121.4349
386265N1214284W001 SAC-129 Electric 38.6265 -121.4284
386380N1214455W001 SAC-131 Electric 38.638 -121.4455
386470N1214684W001 SAC-133 Electric 38.647 -121.4684
386296N1214198W001 SAC-137 Electric 38.6296 -121.4198
386410N1214345W001 SAC-138 Electric 38.641 -121.4345
385966N1214582W001 SAC-139 Electric 38.5966 -121.4582
386222N1214458W001 SAC-143 Electric 38.6222 -121.4458
386543N1214468W001 SAC-153A Electric 38.6543 -121.4468
386343N1214115W001 SAC-155 Electric 38.6343 -121.4115
385994N1214452W001 SAC-156 Electric 38.5994 -121.4452
385963N1214269W001 SAC-158 Electric 38.5963 -121.4269
386198N1213961W001 SSWD 13 Electric 38.6198 -121.3961
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Master Site Code Local Well
Designation
Power
Source Latitude Longitude
385978N1213813W001 SSWD 20A Electric 38.5978 -121.3813
386181N1213591W001 SSWD 26 Electric 38.6181 -121.3591
386153N1214200W001 SSWD 28 Electric 38.6153 -121.42
386069N1213982W001 SSWD 2A Electric 38.6069 -121.3982
386046N1214227W001 SSWD 30 Electric 38.6046 -121.4227
386145N1213504W001 SSWD 32A Electric 38.6145 -121.3504
386412N1213704W001 SSWD 33A Electric 38.6412 -121.3704
386005N1213591W001 SSWD 35 Electric 38.6005 -121.3591
385978N1213980W001 SSWD 3A Electric 38.5978 -121.398
386305N1213978W001 SSWD 40A Electric 38.6305 -121.3978
386178N1214240W001 SSWD 41 Electric 38.6178 -121.424
385945N1213519W001 SSWD 47 Electric 38.5945 -121.3519
386175N1214116W001 SSWD 4B Electric 38.6175 -121.4116
385873N1213584W001 SSWD 55A Electric 38.5873 -121.3584
386279N1213586W001 SSWD 60 Electric 38.6279 -121.3586
386362N1213751W001 SSWD 65 Electric 38.6362 -121.3751
386249N1213623W001 SSWD 66 Electric 38.6249 -121.3623
385788N1214110W001 SSWD 70 Electric 38.5788 -121.411
385841N1213534W002 SSWD 71 Electric 38.5841 -121.3534
385832N1213368W001 SSWD 73 Electric 38.5832 -121.3368
385823N1213382W001 SSWD 74 Electric 38.5823 -121.3382
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Master Site Code Local Well
Designation
Power
Source Latitude Longitude
386110N1213634W001 SSWD 9 Electric 38.611 -121.3634
384192N1214186W001 W-041 Electric 38.4192 -121.4186
384197N1214437W001 W-042 Electric 38.4197 -121.4437
384187N1214377W001 W-043 Electric 38.4187 -121.4377
384254N1214299W001 W-047 Electric 38.4254 -121.4299
384657N1213700W001 W-061 Electric 38.4657 -121.37
384601N1213562W001 W-064 Electric 38.4601 -121.3562
384383N1213873W001 W-065 Electric 38.4383 -121.3873
384563N1213533W001 W-067 Electric 38.4563 -121.3533
384455N1213533W001 W-069 Electric 38.4455 -121.3533
383904N1214153W001 W-078 Electric 38.3904 -121.4153
383976N1214193W001 W-109 Electric 38.3976 -121.4193
383966N1214241W001 W-110 Electric 38.3966 -121.4241
384055N1214003W001 W-126 Electric 38.4055 -121.4003
384036N1214030W001 W-129 Electric 38.4036 -121.403
386115N1214786W001 SAC-091 Electric 38.6115 -121.4786
386220N1214766W001 SAC-093 Electric 38.622 -121.4766
386072N1214425W001 SAC-112 Electric 38.6072 -121.4425
386049N1214389W001 SAC-114 Electric 38.6049 -121.4389
386207N1214426W001 SAC-120 Electric 38.6207 -121.4426
386202N1214316W001 SAC-122 Electric 38.6202 -121.4316
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Master Site Code Local Well
Designation
Power
Source Latitude Longitude
386256N1214670W001 SAC-123 Electric 38.6256 -121.467
386283N1214349W001 SAC-126 Electric 38.6283 -121.4349
386265N1214284W001 SAC-129 Electric 38.6265 -121.4284

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757
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Table E1-3. Maximum Transfer Amount from All Wells in Table E1-2 in Acre-Feet* Item Number Item Description Jul Aug Sep Oct Nov Total
(1) Total Pumping 5,495 6,392 5,996 3,958 3,312 26,015
(2) Baseline Pumping 2,035 2,992 2,836 1,888 1,402 12,015 (3) = (1) – (2)
Maximum Transfer
Amount Made
Available from Seller
3,460 3,400 3,160 2,070 1,910 14,000
* Monthly pumping amounts are estimated values.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
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Table E1-4. Monthly Transfer Water Delivered to Buyers in Acre-Feet* Item Number Item Description Jul Aug Sep Oct Nov Total
(1) Total Pumping
(2) Baseline Pumping
(3) = (1) – (2) Transfer Water Made
Available from Seller
(4)
Adjustment to Transfer
Water Made Available
from Seller**

(5) = (3) – (4)
Net Transfer Water
Made Available from
Seller

(6) = (5) × 0.13 Streamflow Depletion
(13 percent)
(7) = (5) – (6)
Transfer Water
Available at Point of
Transfer

(8) = (7) ×
Carriage Water
Carriage Water

(9) = (7) – (8) Exported Transfer
Water
(10) = (9) Transfer Water
Delivered to Buyers
* Final pumping amounts should be reported by Seller to the nearest one tenth (0.1) acre-foot.
**Transfer Water made available is subject to the adjustments in Article 7 (Verification) and Sections 5 and 7 of this Exhibit.

Attachment 1. Groundwater Substitution Mitigation Plan
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Groundwater Mitigation Plan

The transfer is part of a regionally-coordinated groundwater substitution proposal from areas north and south of the American River in Sacramento County. The following entities are participating in the proposed transfer either by providing surface water for delivery to the Buyers and/or pumping and delivering groundwater in lieu of the foregone surface water to meet local demands that otherwise would have been served with the transferred surface water:
• City of Sacramento Seller and groundwater pumper
• Carmichael Water District Seller and groundwater pumper • Fair Oaks Water District groundwater pumper
• Golden State Water Company Seller and groundwater pumper • Sacramento County Water Agency groundwater pumper
• Sacramento Suburban Water District groundwater pumper

Each Seller will coordinate with its associated groundwater pumper partner, where applicable, to avoid or mitigate impacts as a result of the transfer.

Potential Third Parties
To assess the third party groundwater users within the area of the transfer, two maps were developed. The first map (see Figure 1) shows the locations of other public water supply agencies within the area of groundwater pumping for the transfer. A buffer of one-mile was used around the outermost transfer wells to identify other municipal suppliers. The only agencies that fall within these criteria that are not already part of the transfer are California American Water, Del Paso Manor Water District, and Elk Grove Water District. Each of these third party agencies will be notified prior to commencement of operations.

To identify other potential third party users of groundwater, the DWR SGMA data viewer was used to download and create a density map of potential domestic wells within the area of transfer pumping (see Figure 2). Based on this map, the likelihood of third party impacts to domestic users is considered low for the following reasons:
• The occurrence of domestic wells in the Carmichael, Fair Oaks, and Golden State Water Company service areas is very low.
• In the City of Sacramento, Sacramento Suburban Water District, and Sacramento County Water Agency service areas, the proposed extractions are well within past historic groundwater use. This past use has not resulted in documented third party impacts to domestic well owners. Additionally, the majority of domestic wells in the DWR dataset were constructed several decades ago. Many of these wells are likely no longer in service.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Mitigation Process
If monitoring of groundwater levels indicates that triggers established in the Monitoring Program for the transfer or associated monitoring wells have been exceeded, Seller will reduce or suspend pumping until the levels recover to above triggers associated with a specific pumping well and associated monitoring well.

Seller shall be the contact for third-parties claiming impacts to their groundwater pumping operations purportedly caused by Seller’s groundwater pumping pursuant to this Agreement.

Seller shall forward any third-party impact report and Seller’s proposed response to DWR within ten business days of Seller’s receipt of the report. This reporting will trigger the following actions:

1. Seller will meet, within two business days or as soon thereafter as the claimant is available, with the claimant to develop a full understanding of the basis for the reported impact.

2. Seller will contact DWR to report the claimed impact and the basis for the claim, within 5 business days.

3. Seller, the claimant, and, if necessary, a representative of DWR, will investigate the reported impact to determine the extent of the impact and the linkage between the operation of the wells participating in the transfer and the impact. This investigation will include analysis of groundwater level, groundwater quality, and groundwater production data and any other relevant information.

4. Based on the results of the investigation, Seller will determine whether mitigation measures are necessary. The mitigation measures may include cessation of pumping, reduction in hours of pumping, lowering pump bowls of affected well(s), providing a temporary alternative water supply, or other measures determined to be appropriate during the course of discussion and investigation. Seller shall develop the mitigation measures through consultation with the claimant. Seller shall provide a copy of the mitigation measures to DWR. Seller will strive to develop the agreed upon mitigation measures within 10 business days of meeting with claimant.

5. Seller shall implement the agreed upon mitigation measures and monitor the results of its implementation to confirm that its mitigation efforts have succeeded in substantially reducing or eliminating third-party impacts. Seller maintains adequate financial resources to cover impact assessment studies and other reasonably anticipated mitigation needs.

Because mitigation measures center on reduction or cessation of pumping, the financial requirements for implementing these measures is nominal.

If, after investigation, Seller agrees that an adverse impact occurred during its water transfer, Seller shall take measures to avoid the same impact during Seller’s future water transfers. Note that nearly the same wells participated in the 2018 transfer with no documented impacts from transfer pumping.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 1. Locations of other public water suppliers relative to transfer wells

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 2. Density map of potential domestic wells in Sacramento County in relation to proposed transfer wells
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757

Attachment 2. Groundwater Level Monitoring Program

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Groundwater Level Monitoring Program

This is a regionally-coordinated groundwater substitution transfer from areas north and south of the American River in Sacramento County. The following entities are participating in the proposed transfer either by providing surface water for delivery to the Buyers and/or pumping and delivering groundwater in lieu of the foregone surface water to meet local demands that otherwise would have been served with the transferred surface water:
• City of Sacramento (COS) Seller and groundwater pumper • Carmichael Water District (CWD) Seller and groundwater pumper • Fair Oaks Water District (FOWD) groundwater pumper
• Golden State Water Company (GSWC) Seller and groundwater pumper • Sacramento County Water Agency (SCWA) groundwater pumper • Sacramento Suburban Water District (SSWD) groundwater pumper

The proposed transfer is being coordinated by the Regional Water Authority (RWA), which is the designated Regional Water Management Group by the Department of Water Resources (DWR) under the Integrated Regional Water Management (IRWM) Program. RWA is coordinating this transfer as a pilot, because of its potential to incentivize expanded conjunctive use operations within its IRWM planning area as a means of ensuring future water resources sustainability. RWA is coordinating with the Sacramento Groundwater Authority (SGA) and the Sacramento Central Groundwater Authority (SCGA), which act as both the Groundwater Sustainability Agencies (GSAs) over the transfer area and the designated CASGEM monitoring entities. This coordination will ensure that the monitoring plan objectives for the transfer proposal and the groundwater management objectives of the GSAs are met.

Monitoring Well Network
The locations of the transfer and monitoring wells for the participating agencies are shown in Figure 1. There are 68 transfer wells and 25 monitoring wells that will each be monitored for the transfer. Location and construction information for each well has been uploaded to the WTIMS system.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Groundwater Pumping Measurements
Each of the transfer wells in the transfer is equipped with a calibrated instantaneous and totalizing flow meter. Each respective seller will be responsible for taking flow meter readings prior to initiation of pumping and at least monthly and as close to the end of the month as practical for the duration of the transfer period. Additionally, intertie meter readings between CWD and FOWD, COS and SSWD, and COS and SCWA will be taken on the same frequency.

Intertie locations are shown in Figure 1.

Groundwater Levels
Water levels at monitoring wells will be collected in full compliance with the December 2019 Water Transfer White Paper (White Paper). Each well has a trigger elevation and an associated well within 2 miles that will be monitored for the transfer. If monitoring of groundwater levels indicates that triggers established in the Monitoring Plan for transfer or associated wells have been exceeded, Seller will reduce or suspend pumping until the levels recover to above triggers associated with a specific pumping well and associated monitoring well.

SSWD has identified three transfer wells (13, 41, and 65) that cannot be accessed for water elevations during the transfer. Well 13 is in the middle of the SSWD wellfield, and it has five wells (MW-5, MW-10, 2A, 4B, and 40A) within one mile. Additionally, Well 41 has Well 28 and Well 65 has Well 33A that will each be monitored and are less than 0.5 miles away; each well has similar construction. If any of these associated wells encounters a trigger level, pumping at wells 13, 41, and 65 will be reduced or cease pumping until such time as all the associated wells are in compliance. Attachment 1 to this Monitoring Program document is a table of all pumping and monitoring wells, their coordinates, and top and bottom screen depths, trigger depths to water, and associated monitoring wells.

There are no concerns with deep rooted vegetation associated with potential groundwater- dependent ecosystems (GDEs) in the transfer area. To assess this, a map was created using the DWR-provided coverage of Natural Communities Commonly Associated with Groundwater (NCCAG) dataset. The map also includes the Spring 2019 depth to water contour map. Each well was then assigned a 0.5-mile buffer to assess for nearby potential GDEs. The maps are shown in shown in Figure 2 and Figure 3. Each of the 34 wells that intersected an NCCAG polygon is shown in the table below. Based on review of the Spring 2019, all but 7 of the wells had depths to water of greater than 40 feet. For the remaining 7 wells, recent depth to water readings from the wells were reviewed. These actual depths are shown in Table 1, with all wells except City of Sacramento Well 139 confirmed as greater than 40 feet.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Table 1. Depth to Water at Wells within 1/2 Mile of a Mapped NCCAG Local Well Designation
If NCCAG, Depth to Water based on
Spring 2019 Regional Contour Map Static Depth to Water Level in Well SSWD 24 >100 FT
SSWD 26 >90 FT
SSWD 33A >110 FT
SSWD 40A >100 FT
SSWD 60 >110 FT
SSWD 65 >110 FT
SSWD 66 >100 FT
SSWD 70 30 FT 42.9 FT (4/2/20)
SSWD 71 >40 FT
SSWD 73 >35 FT 66.8 FT (3/30/20)
SSWD 74 >35 FT 66.1 FT (3/30/20)
SAC-091 <30 FT 40.7 FT (4/21/20)
SAC-093 <30 FT 41.4 FT (4/21/20)
SAC-120 >60 FT
SAC-123 >35 FT 52 FT (6/17/20)
SAC-124 >40 FT
SAC-126 >70 FT
SAC-129 >70 FT
SAC-133 >40 FT
SAC-137 >80 FT
SAC-138 >70 FT
SAC-139 >35 FT 33 FT (6/4/18)
SAC-143 >60 FT
SAC-153A >60 FT
SAC-155 >90 FT
SAC-156 >40 FT
W-065 >60 FT
W-067 >70 FT
W-069 >70 FT
W-126 <50 FT
W-129 50 FT
FOWD TOWN >80 FT
GSW-S. Bridge St 22A >70 FT
GSW-S. Bridge St 22B >70 FT

Based on the relatively shallow depth to water at Well 139, additional depth to water data from Well 139 that was collected as part of the 2018 groundwater substitution transfer was DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A reviewed. Table 2 below shows that prior to commencement of the transfer the depth to water was 33 feet. During the entire transfer period, the depth to water in the well was 30 feet or greater. Therefore, the groundwater table associated with the area around the well does not support a GDE.

Table 2. Depth to Water in Well 139
Well 139
Date Time Well on/off Flow rate (gpm) Water level (fbg) 6/4/2018 12:30 pm Off N/A 33’
7/2/2018 7:15 AM Off N/A 34'
7/11/2018 13:20 Off N/A 34'
7/17/2018 11:15 Off N/A 34'
7/24/2018 11:38 Off N/A 33.5'
7/31/2018 10:30 Off N/A 34,
8/6/2018 9:30 Off N/A 34'
8/13/2018 7:15 Off N/A 34'
8/20/2018 11:05 Off N/A 34'
8/28/2018 11:00 On 730 74'
9/4/2018 8:30 Off N/A 30'
9/10/2018 13:05 On 737 78'

Groundwater Quality
Each of the transfer wells is a municipal supply well that meets Title 22 water quality requirements as administered by the State Water Resources Control Board Division of Drinking Water. Each participating agency is prepared to submit a three-year summary of specific conductance and total dissolved solids upon request by DWR. Known contaminant plumes are shown in Figure 4. These are not anticipated to be affected by transfer pumping for the following reasons: 1) the proposed pumping is well within the bounds of past pumping practices by the participating agencies; and 2) detailed, site-specific contaminant capture modeling has been conducted at the Aerojet and McClellan contaminant plumes by the respective responsible parties – results indicate effective capture with planned municipal groundwater use.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Land Subsidence
Land subsidence is not a concern in the groundwater substitution area. Agencies in the region participated with DWR in its 2017 GPS Survey of the Sacramento Valley Subsidence Network.

The report compared the elevations of the valley-wide network in 2017 to the benchmark elevations established in 2008. The results of the survey clearly demonstrate that subsidence is not an issue on the eastern side of the valley, particularly in the Sacramento municipal area.

Locations of the benchmarks and the elevation difference from 2008 to 2017 are shown in Figure 5.

In addition to the recent DWR work, SGA extensively analyzed available information with respect to subsidence during development of its 2014 Groundwater Management Plan (GMP) in the transfer area north of the American River. Subsidence is not considered a concern in the SGA area as only slightly more than 2.2 feet of total subsidence was estimated between 1947 and 1991 based on USGS measurements associated with about 90 feet of groundwater level decline (rate of 0.02 feet subsidence per foot of drawdown). There was no documented damage associated with this estimated subsidence. Additionally, the 1990s represented the lowest point of groundwater elevations in the SGA area. Since that time, local agencies have committed to a conjunctive program through the historic Water Forum Agreement of 2000.

Over the past 20 years, water levels have increased in the basin relative to their historic lows.

Figure 6 shows a groundwater elevation contour map from Spring 1997 and Figure 7 shows a contour map for 2019. Note that groundwater elevations at the center of the cones of depression north and south of the American River have come up in excess of 20 feet.

In the transfer area south of the American River, subsidence is even lower than in the north area. SCGA described subsidence in its 2006 GMP as having a maximum rate of 0.007 feet subsidence per foot of drawdown. As in the north area, historic low groundwater levels in the south area were experienced in the early 1990s.

RWA will collect water level measurements from the participating agencies and compare them to the trigger values at these wells. RWA will report these results to DWR on a regular basis . If
monitoring of groundwater levels indicates that triggers established in the Monitoring Plan for transfer or associated wells have been exceeded, Seller will reduce or suspend pumping until the levels recover to above triggers associated with a specific pumping well and associated monitoring well. If any groundwater elevations exceed these thresholds, additional monitoring and mitigation measures will occur. For monitoring, nearby wells will be checked to see if there is a regional extent to the drawdown or if it is very localized to the well. If the drawdown is regionally extensive, additional monitoring will occur. DWR’s Sacramento-valley wide land subsidence monitoring network for potential land surface elevation monitoring (see Figure 5) is available. A measurement by a licensed land surveyor will be collected at the soonest practical time following identification of an exceedance in a threshold groundwater elevation at the benchmark nearest the monitoring well with the exceedance. An additional measurement will DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A be taken one month later. Based on those results, RWA will consult with DWR on additional potential subsidence monitoring or mitigation measures, including possible reduction or cessation of pumping.

Coordination Plan
Each of the seller agencies has designated a point of contact (POC) that has been identified in their respective transfer proposals submitted through WTIMS. The POC will be responsible for communication with the well operators and other decision makers, and for the monitoring and reporting of transfer-related data. The POCs are:

CWD
Cathy Lee
(916) 483-2452
[email protected]

City of Sacramento
Brett Ewart
(916) 808-1725
[email protected]

Golden State Water Company
Paul Schubert
916) 853-3636
[email protected]

Also, each of the participating agencies is closely coordinating with the Regional Water Authority (RWA) as the regional IRWM manager. RWA will coordinate and prepare necessary groundwater and subsidence monitoring, and mitigation plan requirements, as stipulated in the DWR conveyance agreements. RWA will also communicate with the GSAs (SGA and SCGA) on the transfer. RWA’s point of contact is:

RWA
Rob Swartz
(916) 607-9208
[email protected]

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Evaluation and Reporting
Each of the participating agencies will collect data, evaluate the data, and provide summary tables of data to the Project Agencies through the WTIMS site during and after the transfer.

Additionally, the data will be provided to RWA for evaluation of potential impacts at the regional level. Water level data will be provided to RWA for the purposes of developing contour maps of pre-transfer, end of transfer, and recovered groundwater elevations in March following the transfer. Each of the participating agencies will coordinate with RWA in the preparation of a final report to identify any potential transfer related impacts.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 1. Location map of transfer production and monitoring wells DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 2. Northern area transfer wells in relation to NCCAG areas DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 3. Southern area transfer wells in relation to NCCAG areas DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 4. Extents of known regional contaminant plumes

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 5. DWR Sacramento-valley-wide land subsidence monitoring network benchmark in transfer area
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 6. Spring 2007 groundwater elevations
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Figure 7. Spring 2019 groundwater elevations
DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

Attachment 1
Table of Transfer Extraction and Monitoring Wells

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Local Well Designation Well
Purpose
Latitude
[N]
Longitude
[W]
Total Well
Depth
Screen
Interval
Top
Screen
Interval
Bottom
Threshold
(depth to
water)
Method for Threshold
Determination
Associated Monitoring Well
SSWD 2A Production 38.6069 -121.3982 420 170 415 123 Historic low (05/2009) MW-11M (258-268); MW-11D (332-365) SSWD 3A Production 38.5978 -121.3980 430 220 425 120 Historic low (10/2013) MW-11M (258-268); MW-11D (332-365) SSWD 4B Production 38.6175 -121.4116 580 200 570 210 Historic low (10/2017) MW-05 (345-424) SSWD 9 Production 38.6110 -121.3634 270 170 225 125 Historic low (10/2018) MW-11M (258-268) SSWD 13 Production 38.6198 -121.3961 374 350 368 123 Historic low (05/2009) MW-05 (345-424); MW-10; 2A; 4B; 40A SSWD 20A Production 38.5978 -121.3813 475 194 400 138 Historic low (10/2009) MW-11M (258-268) SSWD 26 Production 38.6181 -121.3591 360 194 283 149 Historic low (10/2018) MW 10 (210-262) SSWD 28 Production 38.6153 -121.4200 370 222 254 116 Historic low (09/2010) MW 10 (210-262) SSWD 30 Production 38.6046 -121.4227 460 370 410 211 Historic low (11/2008) MW-05 (345-424) SSWD 32A Production 38.6145 -121.3504 355 254 355 145 Historic low (10/2015) MW-Churchill M (230-270) SSWD 33A Production 38.6412 -121.3704 320 198 318 131 Historic low (10/2013) MW 10 (210-262) SSWD 35 Production 38.6005 -121.3591 316 152 312 155 Historic low (10/2013) MW-11M (258-268) SSWD 40A Production 38.6305 -121.3978 780 270 742 200 Historic low (10/2009) MW-05 (345-424) SSWD 41 Production 38.6178 -121.4240 425 180 420 116 Historic low (09/2010) MW-05 (345-424); SSWD 28 SSWD 47 Production 38.5945 -121.3519 350 145 346 154 Historic low (05/2009) MW-11M (258-268); MW-11D (332-365) SSWD 55A Production 38.5873 -121.3584 368 182 358 153 Historic low (10/2013) MW-11M (258-268); MW-11D (332-365) SSWD 60 Production 38.6279 -121.3586 435 165 430 146 Historic low (10/2018) MW 10 (210-262) SSWD 65 Production 38.6362 -121.3751 347 187 342 141 Historic low (10/2013) MW 10 (210-262); SSWD 33A SSWD 66 Production 38.6249 -121.3623 398 170 393 169 Historic low (10/2017) MW 10 (210-262) SSWD 70 Production 38.5788 -121.4110 285 160 280 140 Historic low (10/2018) MW 12A (200-280); MW-4 (55-65) SSWD 71 Production 38.5841 -121.3534 425 165 415 114 Historic low (10/2018) SSWD 72 (320-875); MW-6 (62-72) SSWD 73 Production 38.5832 -121.3368 640 315 630 151 Historic low (10/2016) SSWD 72 (320-875) SSWD 74 Production 38.5823 -121.3382 645 195 635 151 Historic low (10/2012) SSWD 72 (320-875) MW-4 Monitoring 38.5841 -121.4185 65 55 65 47 SGA 2014 GMP Threshold N/A MW-05 Monitoring 38.6113 -121.4100 424 345 424 99 Historical low (10/2009) N/A MW-6 Monitoring 38.5828 -121.3385 72 62 72 50 SGA 2014 GMP Threshold N/A MW-10 Monitoring 38.6310 -121.3864 265 210 262 114 Historic low (09/2010) N/A MW-11M Monitoring 38.6038 -121.3882 278 258 268 94 Historic low (09/2010) N/A MW-11D Monitoring 38.6038 -121.3882 375 332 365 94 Historic low (09/2010) N/A MW-12A Monitoring 38.5947 -121.3985 285 200 280 68 Historic low (09/2010) N/A SSWD 72 Monitoring 38.5849 -121.3385 885 320 875 106 Historic low (10/2013) N/A DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A SAC-091 Production 38.6115 -121.4786 344 170 324 76 Historic low (06/2020) SAC-092 (116-308) SAC-093 Production 38.6220 -121.4766 328 146 292 54 Historic low (10/2018) SAC-092 (116-308) SAC-112 Production 38.6072 -121.4425 330 250 330 86 Historic low (10/2018) SAC-157 (132-372) SAC-114 Production 38.6049 -121.4389 366 166 366 96 Historic low (10/2018) SAC-157 (132-372) SAC-120 Production 38.6207 -121.4426 440 233 420 103 Historic low (09/2018) SAC-092 (116-308) SAC-122 Production 38.6202 -121.4316 422 230 400 108 Historic low (03/2020) SAC-127 (161-401) SAC-123 Production 38.6256 -121.4670 305 143 265 75 Historic low (10/2018) SAC-092 (116-308) SAC-124 Production 38.6247 -121.4612 306 171 298 77 Historic low (10/2018) SAC-092 (116-308) SAC-126 Production 38.6283 -121.4349 432 188 410 118 Historic low (01/2017) SAC-127 (161-401) SAC-129 Production 38.6383 -121.4467 401 136 295 108 Historic low (07/2018) SAC-127 (161-401) SAC-131 Production 38.6399 -121.4274 280 150 270 128 Historic low (09/2018) SAC-127 (161-401) SAC-133 Production 38.6470 -121.4684 514 235 510 108 Historic low (11/2018) SAC-164 (222-625) SAC-137 Production 38.6296 -121.4198 410 80 245 127 Historic low (09/2018) SAC-127 (161-401) SAC-138 Production 38.6414 -121.4359 375 113 370 121 Historic low (09/2018) SAC-127 (161-401) SAC-139 Production 38.5966 -121.4582 255 90 250 74 Historic low (09/2018) SAC-157 (132-372) SAC-143 Production 38.6222 -121.4458 330 140 330 127 Historic low (04/2019) SAC-092 (116-308) SAC-153A Production 38.6543 -121.4468 626 260 616 130 Historic low (11/2017) SAC-164 (222-625) SAC-155 Production 38.6343 -121.4115 427 175 427 148 Historic low (07/2018) SAC-127 (161-401) SAC-156 Production 38.5994 -121.4452 380 190 275 112 Historic low (11/2019) SAC-157 (132-372) SAC-158 Production 38.5963 -121.4269 328 113 313 96 Historic low (09/2018) SAC-157 (132-372) SAC-092 Monitoring 38.6176 -121.4972 435 116 308 38 Historic low (04/1997) N/A SAC-127 Monitoring 38.6267 -121.4295 401 161 401 90 Historic low (04/1997) N/A SAC-157 Monitoring 38.5944 -121.4451 377 132 372 55 Historic low (04/1997) N/A SAC-164 Monitoring 38.6580 -121.4646 635 222 625 73 Historic low (07/2018) N/A W-041 Production 38.4192 -121.4186 256 176 236 198 Historic low (09/2009) W-074 (152-192) W-042 Production 38.4197 -121.4437 245 173 245 132 Historic low (12/2011) W-032 (234-390) W-043 Production 38.4187 -121.4377 252 122 232 130 Historic low (12/2011) W-032 (234-390); W-074 (152-192) W-047 Production 38.4254 -121.4299 250 108 218 110 Historic low (07/2011) W-074 (152-192) W-061 Production 38.4657 -121.3700 914 744 896 288 Historic low (12/2011) W-068 (842-906) W-064 Production 38.4601 -121.3562 920 780 920 280 Historic low (05/2016) W-068 (842-906) W-065 Production 38.4383 -121.3873 250 150 220 131 Historic low (01/2009) W-074 (152-192) W-067 Production 38.4563 -121.3533 1087 918 1072 210 Historic low (10/2016) W-068 (842-906) W-069 Production 38.4455 -121.3533 880 559 870 295 Historic low (05/2016) W-068 (842-906) W-078 Production 38.3904 -121.4153 1337 855 1300 275 Historic low (05/2016) W-130 (1050-1456) DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A W-109 Production 38.3976 -121.4193 1368 1092 1329 260 Historic low (04/2016) W-130 (1050-1456) W-110 Production 38.3966 -121.4241 1350 1167 1298 231 Historic low (05/2016) W-130 (1050-1456) W-126 Production 38.4055 -121.4003 1440 995 1430 220 Historic low (07/2016) W-130 (1050-1456) W-129 Production 38.4036 -121.4030 1456 1074 1420 220 Historic low (07/2016) W-130 (1050-1456) W-032 Monitoring 38.4134 -121.4488 400 234 390 60 Historic low (09/2018) N/A W-068 Monitoring 38.4600 -121.3625 921 842 906 136 Historic low (08/2008) N/A W-074 Monitoring 38.4275 -121.3980 225 152 192 80 Historic low (02/2018) N/A W-130 Monitoring 38.4055 -121.4115 1493 1050 1456 110 Historic low (01/2019) N/A FOWD Heather Production 38.6504 -121.2910 630 275 610 220 Historic low (09/2014) Winding Way (170-595) FOWD Town Production 38.6433 -121.2697 605 250 585 230 Historic low (06/2020) Winding Way (170-595) FOWD Northridge Production 38.6596 -121.2555 475 308 470 323 Historic low (08/2017) FO-1596 (333-343) FOWD Madison Production 38.6647 -121.2475 566 326 556 310 Historic low (08/2017) FO-1596 (333-343) CAR-Willow Park Production 38.6049 -121.3427 271 221 269 159 Historic low (09/2005) MW-Churchill M (230-270) CAR-Garfield Ave Production 38.6230 -121.3360 637 130 637 164 Historic low (08/2005) MW - Churchill S (130-150); MW-Churchill D (490-510) CAR-LaVista Drive Production 38.6194 -121.3326 500 230 495 164 Historic low (07/2006) MW-Churchill M (230-270) MW-Winding Way Monitoring 38.6451 -121.3066 600 170 595 175 Historic low (09/2017) N/A MW-Churchill S Monitoring 38.6280 -121.3493 170 130 150 120 Historic low (09/2018) N/A MW-Churchill M Monitoring 38.6280 -121.3493 290 230 270 121 Historic low (10/2018) N/A MW-Churchill D Monitoring 38.6280 -121.3493 530 490 510 122 Historic low (09/2018) N/A FO-1596 Monitoring 38.6481 -121.2531 343 333 343 182 Historic low (04/2018) N/A GSW-Dolecetto #6 Production 38.5999 -121.2996 405 152 405 130 Historic low (06/2013) Agnes (250-470) GSW-Mather #18 Production 38.5743 -121.2936 560 363 533 186 Historic low (04/2008) Paseo #24 (436-510) GSW-S. Bridge St 22A Production 38.6337 -121.2623 600 130 565 151 Historic low (03/2008) Park #17 (89-223); Coloma #20 (430-590) GSW-S. Bridge St 22B Production 38.6338 -121.2620 570 140 550 174 Historic low (04/2008) Park #17 (89-223); Coloma #20 (430-590) GSW-Agnes Circle #8 Monitoring 38.5977 -121.3111 470 250 470 117 Historic low (04/2008) N/A GSW-Paseo #24 Monitoring 38.5891 -121.3116 512 436 510 115 Historic low (08/2018) N/A GSW-Coloma #20 Monitoring 38.6175 -121.2654 610 430 590 153 Historic low (01/2014) N/A GSW-Park #17 Monitoring 38.6353 -121.2595 310 89 223 115 Historic low (12/2015) N/A

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A 2020 Transfer Water Agreement
SWPAO # 20-757

Attachment 3. Land Subsidence Monitoring Program

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A Land Subsidence Monitoring Program
Land Subsidence
Land subsidence is not a concern in the groundwater substitution area. Agencies in the region participated with DWR in its 2017 GPS Survey of the Sacramento Valley Subsidence Network.

Locations of the benchmarks and the elevation difference from 2008 to 2017 are shown in Figure 5.

Over the past 20 years, water levels have increased in the basin relative to their historic lows.

RWA will collect water level measurements from the participating agencies and compare them to the trigger values at these wells. RWA will report these results to DWR on a regular basis . If
monitoring of groundwater levels indicates that triggers established in the Monitoring Plan for transfer or associated wells have been exceeded, Seller will reduce or suspend pumping until the levels recover to above triggers associated with a specific pumping well and associated monitoring well. If any groundwater elevations exceed these thresholds, additional monitoring and mitigation measures will occur. For monitoring, nearby wells will be checked to see if there is a regional extent to the drawdown or if it is very localized to the well. If the drawdown is regionally extensive, additional monitoring will occur. DWR’s Sacramento-valley wide land subsidence monitoring network for potential land surface elevation monitoring (see Figure 5) is available. A measurement by a licensed land surveyor will be collected at the soonest practical time following identification of an exceedance in a threshold groundwater elevation at the DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A benchmark nearest the monitoring well with the exceedance. An additional measurement will be taken one month later. Based on those results, RWA will consult with DWR on additional potential subsidence monitoring or mitigation measures, including possible reduction or cessation of pumping.

DocuSign Envelope ID: 2B3FEB66-BB73-4D4A-8DA4-0D9F8DD5FBF1 DocuSign Envelope ID: F7CF3568-3C49-4DA6-96E3-44B70974F65A

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PURCHASE AGREEMENT FOR WATER TRANSFER

BETWEEN SELLERS AND BUYERS

This Purchase AGREEMENT for Water Transfer (“AGREEMENT”) is effective when fully executed by and between Carmichael Water District (“CWD”), City of Sacramento (“Sacramento”), and San Juan Water District (“SJWD”) (collectively “SELLERS”) and the public agencies listed in Appendix A that execute this AGREEMENT (“BUYERS”).

RECITALS
A. SELLERS are California public agencies formed and operating in accordance with California law , and empowered to sell water to BUYERS as provided for in this AGREEMENT.

B. BUYERS are public agencies that execute this AGREEMENT and are formed and operating under the California Water Code and are empowered to purchase water from SELLERS as provided for in this AGREEMENT for delivery to their customers.

C. This AGREEMENT allows for BUYERS, willing purchasers, to acquire from SELLERS, willing seller s, water supplies that BUYERS have determined are needed for use in BUYERS’ service areas. The water supplies to be transferred under this AGREEMENT will be a portion of the water available to SELL ERS under the following appropriative water rights: (1) CWD, under License 1387; (2) Sacramento, under Permit 113 59, 11360 and/or other Permits duly held by the City of Sacramento, and 3) SJWD under S000656.

D. The water made available for transfer under this AGREEMENT will result from GROUNDWATER SUBSTITUTION or RESERVOIR REOPERATION

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OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants and conditions contained herein, the PARTIES agree as follows:

1. Recitals Incorporated.

The foregoing Recitals are incorporated herein by reference.

2. Definitions.

The following terms shall have the following meanings as used herein:
a. “2022 IRRIGATION SEASON” means May 1, 2022 through November 30, 2022.
b. “ASSUMED DEPLETION LOSS” means the total reduction in stream flow assumed by the California Department of Water Resources (“DWR”) to result from additional groundwater pumping that will occur as a result of the water transfer. For this AGREEMENT, ASSUMED DEPLETION LOSS will be 13%, or the amount of depletion losses established by DWR and United States Bureau of Reclamation (“USBR”) in their latest water transfer guidelines, or as accepted by DWR based on site-specific aquifer analysis of past transfers. c. “BUYERS” are the public water agencies listed in Appendix A that execute this AGREEMENT.
d. “CEQA” means the California Environmental Quality Act. e. “CONTRACT INTEREST RATE ” is the interest rate paid monthly by the Local Agency Investment Fund, calculated from the date of the payment being refunded and compounded monthly.
f. “CONTRACTORS” means the State Water Contractors.

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g. “GROUNDWATER SUBSTITUTION” is water made available by pu mping groundwater from wells within the North American or South American Groundwater Subbasin that provide municipal and industrial water service and forbearing surface water diversions of an equal amount of water for delivery to the BUYERS.
h. “PARTIES” are the BUYERS and SELLER S. DWR, while not a PARTY, does have authority to consent to this AGREEMENT.
i. “POINT OF DELIVERY” means SELLERS’ diversion point(s) or such other delivery point as agreed to by the PARTIES and DWR.
j. “RESERVOIR REOPERATION” means the purposeful release of previously stored water from the SELLER S’ reservoir or reservoirs , which absent the water transfer, would remain in storage within the SELLER S’ reservoir or network of reservoirs.
k. “SWC AGREEMENT” means the State Water Contractors 2022 Dry Year Water Transfer Agreement by and between the BUYERS and CONTRACTORS.

3. Term.

This AGREEMENT will be effective between the SELLERS and any BUYERS listed in Appendix A once they have both executed this AGREEMENT. This AGREEMENT will be in effect until December 31, 2022, or such later date when all obligations under it are satisfied. No right of renewal or right to enter into extensions of this AGREEMENT or to enter into any new water transfer agreement is expressly granted hereunder, nor may su ch a right be implied from the execution of this AGREEMENT.

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4. Agreement to Transfer Water.
a. The BUYERS have entered into a SWC AGREEMENT. In the SWC AGREEMENT, the BUYERS authorized the CONTRACTORS to handle all payments and disbursements described in this AGREEMENT on the BUYERS’ behalf. The SWC AGREEMENT requires BUYERS to deposit with the CONTRACTORS funds necessary to make the payments for water and the BUYERS’ share of regulatory costs and authorizes the CONTRACTORS to make all such payments to SELLERS required by this AGREEMENT. SELLER S shall send all notices or invoices required by this AGREEMENT to the CONTRACTORS with a copy to BUYERS, and the CONTRACTORS shall send all notices and payments to SELLER S under this AGREEMENT on behalf of the BUYERS. The CONTRACTORS shall make all payments to SELLER S required in accordance with this AGREEMENT on the BUYERS’ behalf. Nothing in this Section 4(a) shall affect or limit the BUYERS’ duties and obligations under this AGREEMENT, and they remain jointly and severally obli gated to make the subject payments to SELLERS, notwithstanding performance or non-performance on the part of the CONTRACTORS.
b. SELLERS agree to sell to BUYER S, at a price of $ 800.00 for each acre -foot, the water supply derived from GROUNDWATER SUBSTITUTIO N and/or for RESERVOIR REOPERATION for delivery in 202 2 for each-acre foot DWR and USBR (where applicable) determines is transferable and SELLER S make available to BUYERS at the POINT OF DELIVERY in accordance with DWR’s “Draft Technical Information for Preparing Water Transfers Proposals” for Water Transfers in 2022, as revised in December 2019 (“Technical Information”). Neither

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this section, nor any other provision in this AGREEMENT, shall establish a precedent or be considered binding on the PARTIES regarding the terms and conditions of agreements governing possible future transfers. c. For GROUNDWATER SUBSTITUTION transfers: DWR is imposing an ASSUMED DEPLETION LOSS on the water quantity developed throu gh GROUNDWATER SUBSTITUTION. Accordingly, the water amount developed from GROUNDWATER SUBSTITUTION that the BUYERS will receive under this AGREEMENT will be the amount pursuant to Section 6 that is determined to be transferable by DWR at the POINT OF DELI VERY in accordance with the Technical Information, after deducting the ASSUMED DEPLETION LOSS. The PARTIES acknowledge and agree that, as of the effective date of this AGREEMENT, SELLERS do not concede that there is adequate data or analyses supporting the ASSUMED DEPLETION LOSS. The ASSUMED DEPLETION LOSS for this water transfer shall in no manner whatsoever constitute a precedent for any determination or allocation of depletion loss in connection with any future water transfer involving SELLERS. Nothing in this AGREEMENT constitutes an admission by SELLERS for purposes of future transfers that the regulatory requirements imposed on this water transfer are required under applicable law. d. In the event SELLER S fail to make available the water quantity purchased at the POINT OF DELIVERY, SELLER S will first provide appropriate adjustments to the final invoice to reflect any differences in the volume of water requested by BUYERS and ultimately delivered by SELLER S. If due to unforeseen circumstances the f inal invoice reflects an amount due to BUYERS, SELLER S will promptly refund to BUYERS any payments made for purchased water not

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provided by SELLER S. Any refunds shall accrue interest at the CONTRACT INTEREST RATE.

5. Payments for GROUNDWATER SUBSTITUTION and RESERVOIR
REOPERATION Transfer Water.
a. SELLERS may invoice BUYERS for 50% of the final quantities SELLERS offer on or before May 31, 2022 provided DWR and/or the SWRCB have approved the transfer and BUYERS have called for the water. If DWR and/or SWRCB approval occurs after May 31, 2022 SELLERS may invoice BUYERS for 50% of the final quantities at that time, provided BUYERS have called the water. On or after July 30, 2022, SELLERS may invoice BUYERS for an additional 40% of the final water quantity off ered by SELLERS under this AGREEMENT. After DWR has confirmed the final water quantity delivered by SELLERS at the POINTS OF DELIVERY, SELLERS may invoice BUYERS for the final balance owed. BUYERS shall pay all invoices under this section within thirty ( 30) days of receipt. Payments not made within thirty (30) days under this section shall accrue interest at the CONTRACT INTEREST RATE, compounded monthly.

6. Water To Be Transferred; Delivery Conditions; POINT OF DELIVERY. a. SELLERS are offering up to 16,463 acre-feet of water prior to DWR -applied streamflow depletion factor. On or before 5:00 p.m. on June x, 2022, in their sole discretion, BUYERS shall notify SELLERS whether they want to buy the total amount of water offered by SELLERS. Failure by BUYERS to notify SELLERS on or before 5:00 p.m. on June x, 2022 shall be deemed an election by BUYERS to take all water offered by SELLERS. Except as provided for in Sections 6(b) and 6(c), once BUYERS have notified SELLERS of their intent to buy all water

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made available by SELLERS (or that election has been otherwise deemed to occur), BUYERS will have a “take or pay” obligation for the total amount of water offered by SELLERS and that is determined to be transferable by DWR and USBR (where applicable) at the PO INT OF DELIVERY in accordance with the Technical Information. BUYERS acknowledge that SELLERS are entering into a similar agreement with a separate party to transfer the full amount of water. 50% of DWR -approved transferable water shall be made available to the BUYERS under this agreement through November 30, 2022. If the other party fails to complete the terms of the agreement, the SELLER agrees to make the full amount of water made available and approved by DWR to the BUYERS under all remaining terms of this agreement.
b. For water made available by RESERVOIR REOPERATION:
i. BUYERS agree to purchase the amount of RESERVOIR REOPERATION water specified by SELLERS in Section 6(a) that DWR and USBR (where applicable) determine to be transferable at the POINT OF D ELIVERY, and is made available by SELLERS at the POINT OF DELIVERY. ii. Until SELLER S provide the notification set forth in Section 6( a), SELLERS may, in their sole discretion, reduce in whole or in part the amount of water being offered from RESERVOIR REOPERA TION it wishes to make available to BUYERS.
iii. If regulatory restrictions, including increased carriage losses, or State Water Project ( “SWP”) infrastructure availability limit BUYERS’ ability to divert and use the RESERVOIR REOPERATION water under this AGREEMENT, or the BUYERS choose to terminate RESERVOIR

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REOPERATION transfers, BUYERS shall provide seventy-two (72) hours notice and suspend or terminate RESERVOIR REOPERATION transfers.

Any water released prior to the effective date of the suspension or termination will be considered transferred to BUYERS.
iv. In the event SELLERS’ supply is reduced or curtailed, SELLERS will meet and confer with BU YERS, but SELLERS will reserve the right in its sole and absolute discretion to terminate this AGREEMENT. However, the obligations set forth in Section 7 will still apply.
c. For water made available by GROUNDWATER SUBSTITUTION:
i. BUYERS agree to purchase the a mount of GROUNDWATER
SUBSTITUTION water specified by SELLER S in Section 6( a) that is determined to be transferable at the POINT OF DELIVERY by DWR, subject to Section 6(c)(iv), and is made available by SELLER S at the POINT OF DELIVERY identified in Section 6(d).
ii. Until SELLER S provide the notification set forth in Section 6( a), SELLERS may, in their sole discretion, reduce in whole or in part the water quantity being offered from GROUNDWATER SUBSTITUTION it wishes to make available to BUYERS. Subject to Sec tion 6(c)(iv), SELLERS will use reasonable efforts to provide the GROUNDWATER SUBSTITUTION water during the transfer period, but cannot be the guarantor or otherwise warrant that they will be able to pump the full quantity of water offered by SELLER S and a ccepted by BUYERS.

GROUNDWATER SUBSTITUTION amounts are subject to change
based on the final start date for the water transfer, regulatory approvals and

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requirements, and any monitoring and mitigation obligations which may suspend or reduce pumping.
iii. If SELLERS elect to transfer water based on GROUNDWATER SUBSTITUTION, SELLERS shall temporarily reduce the amount of surface water diverted and used for beneficial uses within SELLERS’ service areas by an amount commensurate with the amount of groundwater pumped and make available that amount of water for transfer to BUYERS at the POINT OF DELIVERY described in Section 6(d).
iv. This AGREEMENT places no requirement or restriction on SELLER S’ diversions of surface water under their water rights or groundwater use b y SELLERS or landowners within SELLER S’ boundar ies in the 2022 IRRIGATION SEASON. However, if regulatory restrictions, including increased carriage losses, or SWP infrastructure availability limit BUYERS’ ability to divert and use the GROUNDWATER
SUBSTITUTION water under this AGREEMENT, or the BUYERS
choose to terminate GROUNDWATER SUBSTITUTION transfers, BUYERS shall provide seventy -two (72) hour s notice of the need for SELLERS to either suspend or terminate pumping. BUYERS may request SELLERS to resume GROUNDWATER SUBSTITUTION water under
this AGREEMENT, and SELLER S will resume pumping as soon as practicable, but no later than forty-eight (48) hours after BUYERS’ notice.

If pump or other mechanical failures, third party claims, or other unforeseen event s limit SELLER S’ ability to make water available to BUYERS, SELLER S shall notify BUYERS as soon as possible of the

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need to suspend, reduce, or terminate pumping. After such notification, SELLERS and BUYERS shall promptly meet to determine whether to continue the GROUNDWATER SUBSTITUTION water transfer. During periods of reduced or suspended pumping, SELLER may return to normal surface water diversions. In addition and in the event SELLERS’ supply is reduced or curtailed, SELLER S will meet and confer with BUYERS, but SELLERS will reserve the right in its sole and absolute discretion to terminate this AGREEMENT. However, the obligations set forth in Section 7 will still apply.
v. SELLERS shall monitor and prepare and submit reports as required by DWR’s Technic al Information for water made available through GROUNDWATER SUBSTITUTION. In the event that SELLER S do not produce the groundwater necessary to provide the water requested pursuant to Section 6(a), for which BUYERS have contracted and paid for, SELLERS will promptly refund to BUYERS any payments made in accordance with this AGREEMENT for each acre-foot not produced. Any refunds shall include interest at the CONTRACT INTEREST RATE. d. SELLERS shall make transfer water subject to this AGREEMENT available a t the POINT OF DELIVERY, and SELLERS shall not schedule the delivery of water to be transferred under this AGREEMENT. With the exception of, SELLERS’ responsibility for the ASSUMED DEPLETION LOSS pursuant to Section 4(c) (applicable for GROUNDWATER SUBSTI TUTION transfers), as the case may be, and to the extent provided for in Section 6, BUYERS shall be responsible for and shall bear all risks for all conveyance and other losses related

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to the inability of BUYERS or DWR to convey the water from the POINT OF DELIVERY to BUYERS, and for any carriage water losses assessed against BUYERS by USBR or DWR. BUYERS understand and acknowledge that the transfer of water will occur within the current and future regulatory parameters for the SWP, including all Biolog ical Opinion and Incidental Take Permit requirements under the federal and state endangered species acts and any additional restrictions being implemented as a result of interim operational remedies imposed by a state or federal court. SELLERS shall in no way be responsible for BUYERS’ inability, infeasibility, frustration of purpose, or increased expenses resulting from transferring or transporting the water after the POINT OF DELIVERY. To the extent provided in Section 6( a), BUYERS’ obligations under this AGREEMENT shall remain the same notwithstanding difficulty, increased costs, impossibility, or inability to transport the water to BUYERS’ place of use except as provided in this AGREEMENT. e. The water made available by SELLERS’ GROUNDWATER SUBSTITUTION or RESERVOIR REOPERATION pursuant to this AGREEMENT shall be for the exclusive use of the BUYERS, and SELLER S shall take no actions, except those permitted by this AGREEMENT that would reduce the water transferred under this AGREEMENT.

7. Obtaining Approvals; Environmental Compliance; and Related Costs. a. Approvals. SELLERS will be responsible for preparing any necessary CEQA and SWRCB documentation.
i. For GROUNDWATER SUBSTITUTION, if SELLERS are required to obtain approval by the SWRCB under Water Code Section 1725, they will

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obtain the required approval by June 30, 2022, unl ess by mutual agreement the PARTIES modify this date, under terms and conditions satisfactory to each PARTY. SELLERS shall be responsible for obtaining such approval with any necessary cooperation and assistance from BUYERS. If the SWRCB approval has not been obtained by June 30, 2022, BUYERS and SELLERS will confer to determine whether they will mutually agree to continue this AGREEMENT, with or without appropriate amendments.
ii. For RESERVOIR REOPERATION, SELLERS will be responsible for preparing necessar y CEQA, NEPA, and SWRCB documentation, acquiring Warren Act Contract or other contract or agreement with USBR as determined necessary, and executing refill agreements with USBR and/or DWR by May 30, 2022, unless by mutual agreement, the PARTIES modify this date under terms and conditions satisfactory to each PARTY. b. SELLERS are required to obtain USBR’s (where applicable) and DWR’s consent to the water transfer provided for under this AGREEMENT. BUYERS and SELLERS will cooperate with and assist each other a s necessary in obtaining approval and agreement from USBR and/or DWR.
c. BUYERS will reimburse SELLER S’ reasonable and documented out -of-pocket administrative expenses, including but not limited to legal, environmental, and engineering consultants’ fees and e xpenses incurred by SELLER S in preparing, negotiating, administering, implementing and supporting this AGREEMENT, for developing and administering mitigation and monitoring programs for GROUNDWATER SUBSTITUTION, and obtaining any necessary approvals

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supporting this AGREEMENT, regardless of whether water is transferred, unless SELLERS fail to provide any water after the BUYERS provide notification to purchase water as set forth in Section 6(a). Subject to the foregoing, SELLER S shall be entitled to this rei mbursement for such costs incurred after February x, 2022, and upon the BUYERS and SELLER S executing this AGREEMENT.

Except as set forth in Section 7( d), the maximum amount that SELLER S will be reimbursed for their out-of-pocket administrative expenses is $75,000 (for actual net deliveries of greater than or equal to 10,000 acre-feet); $37,500 (for actual net deliveries between 9,999 acre -feet and 5,000 acre -feet); and $25 ,000 (for actual net deliveries between 4,99 9 acre-feet and 1,000 acre -feet). Water quantity offered by the SELLER S but suspended, reduced, and/or terminated per Section 6(c)(iv) will be count ed towards the aforementioned administration reimbursement quantification tiers. SELLERS may invoice BUYERS one time for such expenses after May 31, 202 2. BUYERS shall pay such invoices within thirty ( 30) days of BUYERS’ receipt of the invoice. SELLERS shall invoice BUYERS for all costs under this section by no later than December 31, 2022. If SELLERS fail to invoice by December 31, 202 2, BUYERS are not obligated to pay the costs set forth in this Section 7(c).
d. In the event of an administrative challenge and/or litigat ion related to the proposed 2022 water transfer, SELLER S and BUYERS will promptly meet and confer to perform a risk assessment of the litigation/challenge, and cooperate in good faith to determine whether to terminate the AGREEMENT due to the litigation/challenge. If litigation and/or an administrative challen ge is pending as of June x, 2022 either PARTY may elect to terminate the AGREEMENT due to

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any such litigation/challenge. If either PARTY so elects to terminate the AGREEMENT, BUYERS shall still be obligated to pay SELLER S’ reasonable and documented out -of-pocket administrative expenses, and for all of the water transferred to BUYERS prior to such termination. If litigation and/or an administrative challenge is initiated after June x, 2022, SELLERS and BUYERS will promptly meet and confer to perform a ri sk assessment of the litigation/challenge, but termination of this AGREEMENT may only occur through agreement of both BUYERS and SELLERS or at the option of SELLERS in their sole discretion. SELLERS will take all necessary and appropriate actions to defend the transfer on behalf of BUYERS and SELLER S. Except as set forth in Section 7( d)(ii), BUYERS will reimburse 100% of SELLER S’ actual out -of- pocket expenses incurre d in defending the proposed 202 2 water transfer.

BUYERS shall cooperate in defending the litigation as requested by SELLER S.

SELLERS shall invoice BUYERS for expenses under this section on a monthly basis (supported by invoices) beginning the month following initiation of the proceeding or challenge, and BUYERS shall pay such invoices within thirty (30) days of BUYERS’ receipt of each invoice. However, BUYERS may still dispute such invoices after paying.
i. Subject to Section 7( d)(ii), BUYERS shall bear their own costs of any litigation and/or administrative challenge and shall pay any remedial award associated therewith, whether levied against BUYERS or SELLERS. ii. As to claims that solely challenge SELLER S’ conduct within SELLER S’ service area or above the POINT OF DELIVERY, and excepting claims governed by Section 7(d), including CEQA, Endangered Species Act, or

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administrative challenges to the entire transfer program, SELLER S shall have primary responsibility for defending such claims on behalf of both SELLERS and BUYERS, and BUYERS shal l participate in defending against such claims to the extent it deems necessary or appropriate, in BUYERS’ sole discretion. BUYERS shall bear their own fees and costs of defending against such claims. Except as provided in Section 7(c), SELLERS shall bear their own fees and costs of defending against such claims and shall pay any monetary awards associated therewith. e. Notwithstanding anything to the contrary in Sections 7(c) and (d), BUYERS shall not be required to reimburse SELLER S for the time spent by their directors, officers, or employees relating to this transfer.
f. SELLERS are required to obtain USBR’s (where applicable) and DWR’s agreement that the water made available by SELLER S at the POINT OF DELIVERY in accordance with the Technical Information is transferable to BUYERS. BUYERS are required to obtain DWR’s agreement to divert the quantity of water calculated pursuant to Section 4(b), less carriage and any other water losses assessed by DWR, at the H.O. Banks Pumping Plant for delivery to BUYERS, consistent with BUYERS’ SWP water supply contract. SELLERS will cooperate with and assist BUYERS as requested to obtain DWR’s agreement, but SELLERS shall not act as a guarantor of such an agreement. BUYERS and SELLERS acknowledge that DWR’s approval wi ll occur subsequent to executing this AGREEMENT. If DWR’s agreement is not obtained, BUYERS and SELLERS will confer to determine whether they will mutually agree to continue this AGREEMENT, with or without appropriate amendments.

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g. SELLERS shall obtain an y and all other necessary approvals required to effectuate the water transfer under this AGREEMENT, except that BUYERS shall obtain all authorizations for the conveyance of the transfer water from the POINT OF DELIVERY to BUYERS’ places of use.

8. Water Rights Not Affected.

No transfer of water pursuant to this AGREEMENT shall confer any appropriative, public trust, or other right to water on any person or entity. Nothing in this AGREEMENT shall act as a forfeiture, diminution, or impairment of an y rights of SELLER S to their full deliveries of water after the expiration of the AGREEMENT and shall in no way prejudice any of SELLER S’ rights thereto. Consistent with the provisions of California Water Code Sections 109, 475, 1011, 1244, and 11961, the PARTIES agree that no transfers under this AGREEMENT, nor the AGREEMENT itself, is evidence of the availability of surplus water beyond the term of the AGREEMENT, nor evidence of lack of beneficial use of the water involved in the transfer, and they shall not contend otherwise. The only rights granted to the PARTIES as a result of this AGREEMENT are those expressly set forth herein.

9. General Indemnity.

Subject to the provisions of Section 7(d) regarding allocation of litigation expenses, each PARTY (that is, SELLERS on the one hand, and BUYERS on the other hand) agrees to protect, defend, indemnify, and hold harmless the other PARTY and i ts/their directors, officers, agents, servants, employees, and consultants, in addition to the CONTRACTORS’ directors and employees from and against any and all losses, claims, liens, demands, and causes of action of every kind and character, without limitation by enumeration, occurring or in any way incident to, connected with, or arising directly or indirectly out of the performance or non -performance by the indemnifying PARTY hereunder.

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10. Construction and Interpretation.

It is agreed and acknowledged by the PARTIES that this AGREEMENT has been arrived at through negotiation, and that each PARTY has had a full and fair opportunity to revise the terms of this AGREEMENT. Consequently, the normal rule of construction that any ambiguities are to be resolv ed against the drafting party shall not apply in construing or interpreting this AGREEMENT.

11. Obligations Prior to Termination.

Notwithstanding any other provision hereof, the obligations of the PARTIES incurred pursuant to this AGREEMENT prior to the termination of this AGREEMENT, including without limitation the obligations to make refunds as required, shall survive the termination.

12. Severability.

The invalidity, illegality , or unenforceability of any provision of this AGREEMENT shall not render the other provisions unenforceable, invalid, or illegal.

13. Governing Law.

This AGREEMENT shall be interpreted and enforced pursuant to the laws of the State of California.

14. Modifications.

This AGREEMENT can only be modified in writing and if executed by both PARTIES.

15. Entire Agreement.

This AGREEMENT contains the entire understanding of the PARTIES related to their interests, obligations, and rights in connection with the subject matter set forth herein. All prior communications, negotiations, stipulations, and understandings, whether oral or written, are of no force or effect, and are superseded, except as referenced herein.

16. No Third-Party Beneficiary.

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The PARTIES to this AGREEMENT do not intend to create any third -party beneficiaries to this AGREEMENT and expressly deny the creation of any third -party beneficiary rights hereunder toward any person or entity.

17. Time.

Time is of the essence in the performance of each and every term of this AGREEMENT.

18. Waiver.

The w aiver or failure to declare a breach as a result of the violation of any term of this AGREEMENT shall not constitute a waiver of that term or condition and shall not provide the basis for a claim of estoppel, forgiveness or waiver by any PARTY to that term or condition.

19. Attorneys’ Fees.

If it shall be necessary for any PARTY hereto to commence legal action or arbitration to enforce the terms and provisions of this AGREEMENT, each PARTY shall be responsible for its own attorneys’ fees, expenses, and costs incurred therein.

20. Captions.

The section and subsection captions in this AGREEMENT are for convenience only and shall not be used in construing the AGREEMENT.

21. Additional Documents.

Each PARTY agrees to make, execute, and deliver any and all documents and to join in any application or other action reasonably required to implement this AGREEMENT.

22. Notice.

Any and all communications and/or notices in connection with this AGREEMENT shall be emailed, or either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows:

To: SELLERS

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Brett Ewart, Senior Engineer
City of Sacramento
Department of Utilities
1395 35th Avenue
Sacramento, CA 95822
[email protected]

To: State Water Contractors
Eric Chapman
1121 L Street, Suite 1050
Sacramento, CA 95814-3944
[email protected]

To: BUYERS
See Appendix A attached hereto for list of names and addresses of BUYERS. The PARTIES may change the foregoing addresses by providing written notice in compliance with this section.

23. BUYERS’ Liability.

BUYERS, and each of them, shall be jointly and severally liable for complying with the obligations, liabilities, terms, and conditions of this AGREEMENT, including, without limitation, the obligations set forth in Sections 5 and 7.

24. Counterparts; Facsimile Execution.

This AGREEMENT may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto except for having an additional signature page executed by any othe r PARTY. Each PARTY agrees that each other PARTY may rely upon the facsimile signature of any PARTY on this AGREEMENT as constituting a duly authorized, irrevocable, actual, current delivery of this

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AGREEMENT as fully as if this AGREEMENT contained the or iginal ink signature of the PARTY supplying a facsimile signature.

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IN WITNESS WHEREOF, the PARTIES hereto have executed this AGREEMENT as of the day and year first written above.

CARMICHAEL WATER DISTRICT
By__________________________________ Dated:_______________ Cathy Lee
General Manager

CITY OF SACRAMENTO

By__________________________________ Dated:_______________ Hector Barron
Assistant City Manager

Approved as to Form

______________________________
City Attorney

Attest:

______________________________
City Clerk
IN WITNESS WHEREOF, the PARTIES hereto have executed this AGREEMENT as of the day and year first written above.

SAN JUAN WATER DISTRICT
By__________________________________ Dated:_______________ Paul Helliker
General Manager

DUDLEY RIDGE WATER DISTRICT

By__________________________________ Dated:_______________