City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00569 4/30/2024 Consent Item 7.
FY2024/25 Proposed Operating Budget and Cost Sharing Agreements for the Sacramento City -County Office of Metropolitan Water Planning (CCOWMP, also known as the Water Forum) File ID: 2024-00569
Location: Citywide
Recommendation: Pass a Motion 1) approving the Fiscal Year (FY) 2024/25 Proposed Operating Budget for the Water Forum; 2) establishing an interagency cost share agreement for the Water Forum Successor Effort (WFSE), with the County of Sacramento, City of Roseville, City of Folsom, Placer County Water Agency, Sacramento Municipal Utility District, the San Juan Water District, and El Dorado County Water Agency; and 3) establishing an interagency cost share agreement for the Habitat Management Element (HME), with the County of Sacramento.
Contact: Jessica Law, Executive Director, (916) 808-1998, [email protected], Water Forum; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected], Department of Utilities; Emily Lee, Administrative Analyst, (916) 808-1993, [email protected], Water Forum
Presenter: None
Attachments:
1-Description/Analysis
2-Exhibit A - Water Forum Annual Budget Overview
3-WFSE Interagency Cost Share Agreement
4-HME Interagency Cost Share Agreement
Additional Description/Analysis
Issue Detail: The FY2024/25 proposed operating budget for the Water Forum includes estimated revenue, program support transfers, and expenditures necessary to maintain staffing levels and fund the Water Forum program and service commitments in FY2024/25. Service commitments include work on the Lower American River (LAR) Flow Management Standard, groundwater sustainability, and habitat enhancement projects, an essential requirement of the historic Water Forum Agreement (WFA).
Under the current Interagency Agreement (C2001-005) governing operations of the Water Forum, funding for the WFSE and HME is provided by water suppliers who are signatories to the WFA.
Policy Considerations: This recommendation is consistent with the Mayor and City Council’s mission to protect, preserve, and enhance the quality of life for present and future generations. This
File ID: 2024-00569 4/30/2024 Consent Item 7.
recommendation is also necessary to meet mitigation requirements specified by the WFA Environmental Impact Report of 2000.
The WFA (C1999-222) approved in FY1999/00 includes a mechanism for a WFSE to ensure actual implementation of the Agreement for 30 years. The WFSE is being administered under the auspices of the CCOMWP. The WFSE continues the interest-based collaborative process successfully used to develop the WFA.
Economic Impacts: None.
Environmental Considerations: Continuing administrative activities and government fiscal activities do not constitute a project and are therefore exempt from CEQA review [CEQA Guidelines § 15378 (b)(2) and (b)(4)].
Sustainability: Approval of the FY2024/25 Proposed Operating Budget and approval of the FY2024/25 WFSE and HME Cost Share for the Water Forum is consistent with the following City of Sacramento’s General Plan Goals.
Environmental Resource Goal 1.1 - Water Quality Protection is supported by the first co -equal objective of the Water Forum Agreement “To provide a reliable water supply for planned development to the year 2030.”
Environmental Resource Goal 1.1.1.- Conservation of Open Space Areas is promoted by the second co-equal objective of the Water Forum Agreement “To preserve the fishery, wildlife, recreational, and aesthetic values of the lower American River.” Sustainability Goal No. 7 - Parks, Open Space, and Habitat Conservation is promoted by the second co-equal objective of the Water Forum Agreement “To preserve the fishery, wildlife, recreational, and aesthetic values of the lower American River.” Sustainability Goal No. 8 - Water Resources and Flood Protection is supported by the first co-equal objective of the Water Forum Agreement “To provide a reliable water supply for planned development to the year 2030.”
Commission/Committee Action: The proposed budget was reviewed and approved by the Water Forum Coordinating Committee in February of 2024, and by the Water Forum Successor Effort Plenary in March of 2024.
Rationale for Recommendation: Approval of the FY2024/25 proposed operating budget and interagency agreements will enable the Water Forum to continue its services and projects related to regional water resource issues, including implementation of the HME, completion of the LAR Flow Management Standard, and regional assistance on water conservation program implementation.
These activities have been deemed essential to maintaining the LAR as a functioning ecosystem and preserving the American River Parkway’s reputation as the jewel of the Sacramento Region. These ongoing activities, under the guidance of the Water Forum have gained regional, state-wide, and
File ID: 2024-00569 4/30/2024 Consent Item 7.
national recognition and have helped to define Sacramento as a leader in water management, open space preservation, and ecological stewardship.
Financial Considerations: The proposed operating budget for FY2024/25 is $2,155,445 in revenue and $2,336,675 in expenditures for the WFSE Fund (7103) and the HME Fund (7104). The details of revenue and expenditure budgets for both funds are outlined in Table 1. Funding from the Proposed Interagency Cost Share Agreements will provide $2,155,445 in funding to support the FY2024/25 Proposed Operating Budget. The remaining funding needs of $181,230 will come from the available fund balances for the WFSE (7103) of $40,460 and the HME Fund (7104) of $140,770.
The approved operating budget will be included and allocated through the citywide budget process.
The WFA describes the cost-sharing process among the water purveyors for all the interagency agreements. The contributions are adjusted each year for inflation if applicable.
Other purveyors with contracts for CVP water agreed to contribute to the HME in those years when they divert non-CVP water above their baseline. The potential amount of these contributions is unknown at the time budgets are prepared and not included in the projection.
Local Business Enterprise (LBE): Not applicable.
FY 24 FY 25
Approved Approved
($) ($) ($) (%)
FUNDING/REVENUE
Water Forum Successor Effort (WFSE) 961,024 785,429 (175,595) -18.27% Habitat Management Element (HME) 789,412 799,516 10,104 1.28% Revenue Subtotal 1,750,433 1,584,945 (165,488) -9.45% Water Forum 2.0. (WF 2.0) 570,500 570,500 - 0.00%
Revenue Total 2,320,933 2,155,445 (165,488) -7.13%
EXPENDITURES
Water Forum Successor Effort
Staff / Labor and Benefits 568,573 669,840 101,267 17.81% Operating Services and Supplies 153,457 71,049 (82,408) -53.70% Consulting Services and Programs 219,212 85,000 (134,212) -61.22% WFSE Subtotal 941,242 825,889 (115,353) -12.26%
Water Forum 2.0 570,500 570,500 - 0.00%
WFSE Total 1,511,742 1,396,389 (115,353) -7.63%
Habitat Management Element
Staff / Labor and Benefits 367,250 495,286 128,036 34.86% Consulting Services and Programs 422,160 445,000 22,840 5.41% HME Subtotal 789,410 940,286 150,876 19.11%
TOTAL FUND BALANCE DRAW
WFSE Fund HME Fund
FY24 Beginning Fund Balance 138,000 496,000
FY24 Projected Revenue 961,024 789,412
FY24 Projected Expenses 941,242 789,410
FY24 Estimated Yearend Fund Balance 157,782 496,002
FY25 Fund Balance Draw 40,460 140,770
FY25 Projected Beginning Fund Balance 117,322 355,232
181,230
472,554
Difference
Water Forum Annual Budget
FY 25
- Overview -
FY 22-24 to FY 23-25
Total
634,000
1,750,436
1,730,652
653,784
Exhibit A
Interagency Agreement
For Cost-Sharing the Fiscal Year (FY) 2024-2025
Water Forum Successor Effort Budget of the
Sacramento City-County Office of Metropolitan Water Planning THIS AGREEMENT is made and entered into on July 1, 2024, by and among Sacramento County; Sacramento County Water Agency; City of Roseville; City of Folsom; Placer County Water Agency; San Juan Water District, and the City of Sacramento (on behalf of the Sacramento City- County Office of Metropolitan Water Planning and the Water Forum).
The parties to this agreement, in consideration of the mutual obligations set forth herein, agree as follows:
Section I.
Operating Budget Cost-Sharing: The cost-sharing partners of the Water Forum identified below have each agreed to pay a pro-rata amount of the total costs for funding the Water Forum Successor Effort (hereinafter referred to as “WFSE”) activities (based upon their number of active water connections as of December 31, 2023, or a negotiated amount), as set forth below for the period of July 1, 2024, to June 30, 2025.
Water Forum Successor Effort (Fund 7103)
Cost-Sharing Partners
FY 24-25
Cost Share Amounts
Sacramento County - Zone 13 266,989
City of Sacramento 297,283
City of Roseville 101,161
City of Folsom 50,301
Placer County Water Agency 23,970
San Juan Water District in Placer County 15,303
Sacramento Municipal Utility District 21,123
El Dorado County Water Agency 9,297
Total: 785,429
Section II.
Reimbursement: The Sacramento City-County Office of Metropolitan Water Planning (hereinafter referred to as “CCOMWP”) shall administer all consultant agreements and other expenses incurred during FY 2024-2025 for the WFSE. The parties agree to reimburse the CCOMWP for their share of such costs, up to the amount set forth for each party in Section 1, above, within 30 days after receipt of invoices.
On behalf of the CCOMWP, the City of Sacramento Finance Department will invoice each cost- sharing partner at the beginning of each fiscal year quarter, except in those instances where the cost-sharing partners have mutually agreed to be invoiced in another time period (i.e., one annual invoice). It is understood and agreed that although this agreement only pertains to reimbursement for costs incurred during the period from July 1, 2024, to June 30, 2025, the WFSE will extend past June 30, 2025. Any reimbursement of costs incurred by CCOMWP after June 30, 2025, would be governed by a new or amended cost-sharing agreement.
Section III.
Sacramento Municipal Utility District and the El Dorado County Water Agency: Sacramento Municipal Utility District (SMUD) and the El Dorado County Water Agency (EDCWA) have entered into separate agreements with the City of Sacramento (on behalf of the Sacramento City-County Office of Metropolitan Water Planning and the Water Forum Successor Effort) to pay their share of the costs identified in Section II, above, up to the amounts set forth for SMUD and EDCWA, respectively, in Section 1, above.
Section IV.
Changes in Terms: Any changes to the terms of this agreement shall be approved by all parties and shall be effective when reduced to writing and signed by all parties.
Section V.
Indemnity: Each party shall, to the fullest extent allowed by law, indemnify, hold harmless and defend the other party or parties, its officers and employees from any actions, liability, or other expenses (including reasonable attorney fees) for any damages or injury to persons or property, occurring by reason of any negligent or wrongful act or omission by the indemnifying party, its officers or employees under this agreement.
Section VI.
Independent Contractors: All contractors employed during any phase of the Water Forum Successor Effort are independent contractors. Contractor employees assigned to perform contract work related to the Water Forum are and will remain employees of the contractor and will not be considered employees of any of the signatory agencies for any reason.
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
Sacramento County Water Agency,
an agency created pursuant to the Sacramento County Water Agency Act
By: __________________________ Date: ___________________ Print Name: Director, Department of Water Resources
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: Sacramento County Counsel
ATTEST:
By: __________________________ Date: ___________________ Print Name: Clerk of the Sacramento County Water Agency
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
City of Sacramento, a municipal corporation
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: Deputy City Attorney
RECOMMENDED:
By: __________________________ Date: ___________________ Print Name: CCOMWP Executive Director
By: __________________________ Date: ___________________ Print Name: Department of Utilities Director
APPROVED:
By: __________________________ Date: ___________________ Print Name: Assistant City Manager
For: City Manager
ATTEST:
By: __________________________ Date: ___________________ Print Name: Assistant City Clerk
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
City of Roseville, a municipal corporation
By: __________________________ Date: ___________________ Print Name: City Manager
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: City Attorney
APPROVED AS TO SUBSTANCE:
By: __________________________ Date: ___________________ Print Name: Environmental Utilities Director
ATTEST:
By: __________________________ Date: ___________________ Print Name: City Clerk
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
City of Folsom, a municipal corporation
By: __________________________ Date: ___________________ Print Name: City Manager
APPROVED AS TO CONTENT:
By: __________________________ Date: ___________________ Print Name: Environmental & Water Resources Director
APPROVED AS TO FUNDING:
By: __________________________ Date: ___________________ Print Name: Finance Director
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: City Attorney
ATTEST:
By: __________________________ Date: ___________________ Print Name: City Clerk
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
Placer County Water Agency
By: __________________________ Date: ___________________ Print Name: Director of Resource Management
Section VII.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This agreement is executed as follows:
San Juan Water District
By: __________________________ Date: ___________________ Print Name: General Manager
Interagency Agreement
For Cost-Sharing the Fiscal Year (FY) 2024-2025
Habitat Management Element Budget of the
Sacramento City-County Office of Metropolitan Water Planning THIS AGREEMENT is made and entered into on July 1, 2024, by and among Sacramento County; Sacramento County Water Agency; Golden State Water Agency; and the City of Sacramento on behalf of the Sacramento City-County Office of Metropolitan Water Planning (CCOMWP).
The parties to this agreement, in consideration of the mutual obligations set forth herein, agree as follows:
Section I.
Cost-Sharing: The cost-sharing partners of the Sacramento Region Water Forum identified below have agreed to pay a share of the total costs for funding the Habitat Management Element of the Water Forum Agreement, as set forth below, for the period of July 1, 2024, to June 30, 2025. These costs are determined according to the cost allocation principles established in the Water Forum Agreement, (Section IV Lower American River Habitat Management Element, subsection D, pages 85-88), as adjusted annually for inflation.
Cost Sharing Partners Cost Share Amounts
Sacramento County - Zone 13 533,011
City of Sacramento 266,505
Non-CVP Diversions 0
Golden State Water Company 0
Total: 799,516
Section II.
Invoicing: On behalf of the CCOMWP, the City of Sacramento Finance Department will invoice each cost-sharing partner at the beginning of each fiscal year quarter. It is understood and agreed that although this agreement only pertains to funding for the period from July 1, 2024, to June 30, 2025, the HME will extend past June 30, 2025. Any agreement regarding funding after June 30, 2025, would be governed by a new or amended cost-sharing agreement.
Section III.
Changes in Terms: Any changes to the terms of this agreement shall be approved by all parties and shall be effective when reduced to writing and signed by all parties.
Section IV.
Indemnity: Each party shall, to the fullest extent allowed by law, indemnify, hold harmless and defend the other party or parties, its officers and employees from any actions, liability, or other expenses (including reasonable attorney fees) for any damages or injury to persons or property, occurring by reason of any negligent or wrongful act or omission by the indemnifying party, its officers or employees under this agreement.
Section V.
Independent Contractors: All contractors employed during any phase of the agreement are independent contractors. Contractor employees assigned to perform contract work related to the HME will remain employees of the contractor and will not be considered employees of any of the signatory agencies for any reason. This agreement is executed as follows:
Section VI.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement.
This agreement is executed as follows:
Sacramento County Water Agency,
an agency created pursuant to the Sacramento County Water Agency Act
By: __________________________ Date: ___________________ Print Name: Director, Department of Water Resources
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: County Counsel
ATTEST:
By: __________________________ Date: ___________________ Print Name: Clerk of the Sacramento County Water Agency
Section VI.
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement.
This agreement is executed as follows:
City of Sacramento, a Municipal Corporation
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Print Name: Deputy City Attorney
RECOMMENDED:
By: __________________________ Date: ___________________ Print Name: CCOMWP Executive Director
By: __________________________ Date: ___________________ Print Name: Department of Utilities Director
APPROVED:
By: __________________________ Date: ___________________ Print Name: Assistant City Manager
For: City Manager
ATTEST:
By: __________________________ Date: ___________________ Print Name: Assistant City Clerk