City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00663 4/22/2025 Item 4.
Fiscal Year 2025/26 Proposed Operating Budget and Cost Sharing Agreement for the Sacramento City-County Office of Metropolitan Water Planning (CCOWMP, also known as the Water Forum)
File ID: 2025-00663
Location: Citywide
Recommendation: Pass a Motion: 1) approving the Fiscal Year (FY) 2025/26 Proposed Operating Budget for the Water Forum; and 2) establishing an interagency cost share agreement for the Water Forum Successor Effort (WFSE) and Habitat Management Element (HME), with the El Dorado Irrigation District, Placer County Water Agency, City of Folsom (minus Ashland), City of Roseville, San Juan Water District, Citrus Heights Water District, Fair Oaks Water District, Carmichael Water District, Sacramento Suburban Water District, Golden State Water Company, California American Water, Sacramento County Water Agency, and East Bay Municipal Utility District.
Contact: Ashlee Casey, Interim Executive Director, (916) 808-1995, [email protected]; Emily Lee, Administrative Analyst, (916) 808-1993, [email protected]; Water Forum; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected], Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Exhibit A - Water Forum Annual Budget Overview
3-WFSE/HME Interagency Cost Share Agreement
Description/Analysis
Issue Detail: The FY2025/26 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 FY2025/26. 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).
File ID: 2025-00663 4/22/2025 Item 4.
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 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 FY2025/26 Proposed Operating Budget and approval of the FY2025/26 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 November of 2024, and by the Water Forum Successor Effort
File ID: 2025-00663 4/22/2025 Item 4.
Plenary in December of 2024.
Rationale for Recommendation: Approval of the FY2025/26 proposed operating budget and interagency agreement 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 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 FY2025/26 is $2,123,140 in revenue and $2,066,640 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 Exhibit A.
The approved operating budget will be included and allocated through the citywide budget process.
There are no General Funds allocated or planned for this agreement.
Local Business Enterprise (LBE): Not applicable.
FY 25 FY 26
Adopted Proposed
1,393,949 1,050,519
940,286 922,621
Total Revenue Need 2,334,235 1,973,140
Fund 7104 - Habitat Management Element
Fund 7103 - Water Forum Successor Effort
Water Forum Budget Projection Summary
Exhibit A
FY 25 FY 26
Adopted Proposed(4)
1,165,126 1,172,520
Permanent staff(1) 1,165,126 1,082,724
Employee services contingency 413240 89,796
122,516 153,536
75,131 109,006
Leased office space 444010 58,451 53,538
Office Parking spaces 444010 4,680 4,860
Postage 461010 200 207
Printing and Binding 455010 900 932
Office Supplies 461020 2,000 2,070
Rental of Equipment (photocopier) 444020 900 932
Food Program 463010 6,500 6,500
Security Services 434030 1,500 1,148
Insurance 452010 0 38,820
19,385 19,773
Training/Conferences 432010 12,735 12,990
Transportation 458010 1,900 1,938
Meals 458020 925 944
Lodging 458030 2,850 2,907
Other Travel Expenses 458030 975 995
24,000 20,617
Telecommunications 12,000 8,257
Cellular Telephone 453020 2,000 506
Communication Lines 453030 10,000 7,751
Equipment and Software 12,000 12,360
Computer Software 461210 5,500 5,665
Computer Equipment 474410 5,000 5,150
Computer Software Maintenance 443050 1,500 1,545
4,000 4,140
Subscriptions And Publications 464020 1,000 1,035
Memberships and Sponsorships 481150 3,000 3,105
(546,753) (493,037)
Accounting(2) 39,000 0
Legal 9,533 9,628
Citywide Cost Plan(2) 0 52,250
DOU Fiscal & Admin Services (Reimbursement)/Charge (100,000) (103,700) HME Cost Share Reimbursement (495,286) (451,215)
653,060 191,000
Communications and Outreach 433060 50,000 56,000
Facilitation Support 433060 0 70,000
Grant Support 433030 0 30,000
Legal 433020 5,000 25,000
Website and SharePoint 433060 30,000 10,000
Water Forum 2.0 MYOP 568,060
1,393,949 1,024,019
- 26,500
1,393,949 1,050,519
3) The Operating Reserve will be funded over the first five years of the new agreement to minimize funding impacts to purveyors and to maintain at least $100,000 in available fund balance for unplanned needs. The Operating Reserve excludes costs associated with operating programs. In the event of full revenue loss, programs will be suspended until revenues are available.
4) FY26 Final includes the adjustments for the final position budgeting report, updated liability insurance premium, final adjustments to COS cost share, final adjustments to citywide cost plan, and misc. IT adjustments. Savings will be added to professional services that will later be applied to employee services to support possible overages for Executive Director or Senior Engineer when either position is filled at a higher total compensation rate.
Operating Reserve Needs(3)
Total Revenue Need
Notes:
1) There are no assumptions for additional staff; however, if the Water Forum is successful in obtaining substantial grant funding, an augmentation could be needed in the future. 2) The Accounting budgeted transfer will be deleted in FY26 when the Citywide Cost Plan charges are implemented. The City of Sacramento has covered the Citywide Costs in error since WF inception. The Citywide Cost Plan includes all citywide shared services including but not limited to Finance, Human Resources, City Council, City Clerk, Information Technology, etc.
City of Sacramento/HME - Shared Resources Costs
Consulting Services for General Operations
Total Expenses
Staff / Labor and Benefits
Operating Services and Supplies
Office and Supplies
Travel and Training
Information Technology
Human Resources (recruitment, memberships)
Water Forum Successor Effort (WFSE)
Fund 7103 FY26 - FY30
Projected Costs
Account
Codes
FY 25 FY 26
Adopted Proposed
495,286 451,215
WFSE Cost Share Reimbursement 495,286 451,215
445,000 591,406
Grant Support 30,000 76,406
River Corridor Health - Habitat Enhancement Projects 150,000 - River Corridor Health - Required Monitoring and Decision Support 95,000 120,000 State of the River - Metrics Reporting and Data Informatics/Visualization - 150,000 River Corridor Health Program - Technical Support - 110,000 Flows and Operations - Technical Expertise 170,000 135,000 940,286 1,042,621
491,000 296,000
Grant Reserve Annual Allocation - 18,500
River Corridor Health - Science and Monitoring - (120,000) Grant Match for USBR WaterSMART Grant ($650,000) (195,000) - 296,000 194,500
940,286 922,621
Water Forum Habitat Management Element (HME) Fund 7104 FY26 - FY30 Projected Costs
Total Revenue Needs
Grant Reserve Funds
Remaining Grant Reserve
City of Sacramento/WFSE - Shared Resources Costs
Consulting Services for Core Programs
Total Expenses
Interagency Agreement
For Cost-Sharing the Fiscal Year (FY) 2025-2026
Water Forum Successor Effort and Habitat Management Element Budget of the Water Forum
THIS AGREEMENT is made and entered into on July 1, 2025, by and among El Dorado Irrigation District; Placer County Water Agency; City of Folsom (minus Ashland); City of Roseville; San Juan Water District; Citrus Heights Water District; Fair Oaks Water District; Carmichael Water District; Sacramento Suburban Water District; Golden State Water Company; California American Water; Sacramento County Water Agency; Sacramento Area Flood Control Agency and the City of Sacramento (on behalf of the Water Forum).
Recitals
A. The parties to this Interagency Agreement (collectively “Parties” and individually “Party”) acknowledge that the Water Forum 2.0 Agreement is not yet signed and a final cost allocation formula has not been agreed upon.
B. Entering into this Interagency Agreement for FY2025-2026 does not imply that the Parties have agreed to this cost allocation formula on a permanent basis or have approved the entirety of the Water Forum 2.0 Agreement.
C. The Parties are optimistic that the Water Forum 2.0 Agreement will be signed in the summer of 2025, but will not assume any obligations pursuant to the Water Forum 2.0 Agreement until it is final.
Therefore, the Parties, in consideration of the mutual obligations set forth herein, agree as follows:
Section I.
Water Forum Successor Effort Cost-Sharing: The Parties identified below have each agreed to pay a pro-rata amount of the total costs for funding the Water Forum Successor Effort (WFSE) activities (based upon their number of active water connections and the 5-year average quantities of groundwater production and American River diversions, or a negotiated amount), as set forth below for the period of July 1, 2025, to June 30, 2026.
WFSE (Fund 7103)
Cost-Sharing Partners
FY 2025-2026
Cost Share Amounts
El Dorado Irrigation District 66,634
Placer County Water Agency 56,874
City of Folsom (minus Ashland) 62,054
City of Roseville 110,238
San Juan Water District 55,474
Citrus Heights Water District 42,377
WFSE (Fund 7103)
Cost-Sharing Partners
FY 2025-2026
Cost Share Amounts
Fair Oaks Water District 32,775
Carmichael Water District 27,725
City of Sacramento 219,192
Sacramento Suburban Water District 97,382
Golden State Water Company 32,010
California American Water 93,116
Sacramento County Water Agency 83,311
East Bay Municipal Utility District 15,356
Sacramento Area Flood Control Agency 20,000
Sacramento Municipal Utility District 21,000
El Dorado Water Agency 15,000
Total: 1,050,519
Habitat Management Element Cost-Sharing: The Parties identified below have each agreed to pay a pro-rata amount of the total costs for funding the Habitat Management Element (HME) activities (based upon their number of active water connections and the 5-year average quantities of groundwater production and American River diversions, or a negotiated amount), as set forth below for the period of July 1, 2025, to June 30, 2026.
HME (Fund 7104)
Cost-Sharing Partners
FY 2025-2026
Cost Share Amounts
El Dorado Irrigation District 61,817
Placer County Water Agency 52,762
City of Folsom (minus Ashland) 57,568
City of Roseville 102,268
San Juan Water District 51,464
Citrus Heights Water District 39,314
Fair Oaks Water District 30,406
Carmichael Water District 25,720
City of Sacramento 203,345
Sacramento Suburban Water District 90,342
Golden State Water Company 29,696
California American Water 86,385
Sacramento County Water Agency 77,288
East Bay Municipal Utility District 14,246
Total: 922,621
Sacramento County American River Parkway Contribution: Given the County of Sacramento’s long history of stewardship in the American River Parkway (Parkway) and strong partnership with the City of Sacramento on issues related to the Parkway, the County of Sacramento commits to provide
separate funding from the water agencies in the amount of $150,000 in FY 2025-2026 to be used to build Water Forum’s cash reserves and provide operational stability to the Water Forum.
Section II.
Reimbursement: The Water Forum shall administer all consultant agreements and other expenses incurred during FY 2025-2026 for the WFSE and HME. The Parties agree to pay the Water Forum for their share of such costs, totaling the amount set forth for each party in Section I, above, within 30 days after receipt of invoices.
The Water Forum will invoice each Party one time at the beginning of each fiscal year for its annual cost allocation. It is understood and agreed that although this Interagency Agreement only pertains to reimbursement for costs incurred during the period from July 1, 2025, to June 30, 2026, the WFSE and HME will extend past June 30, 2026. Any reimbursement of costs incurred by Water Forum after June 30, 2026, would be governed by a new or amended interagency cost-sharing agreement.
Section III.
Sacramento Municipal Utility District, El Dorado Water Agency, and East Bay Municipal Utility District: Sacramento Municipal Utility District (SMUD), El Dorado Water Agency (EDWA), and East Bay Municipal Utility District (EBMUD) have entered into separate agreements with the City of Sacramento (on behalf of the WATER FORUM and the WFSE) to pay their share of the costs identified in Section II, above, up to the amounts set forth for SMUD, EDWA, and EBMUD, respectively, in Section I, above.
Section IV.
Changes in Terms: Any changes to the terms of this Interagency Agreement shall be approved by all Parties and shall be effective when reduced to writing and signed by all Parties.
Section V.
Contingent obligation: This Interagency Agreement is entered into prior to annual budget adoption by some of the Parties and is subject to funding availability in each Party’s approved budget for the applicable fiscal year. In the event that a Party’s governing body does not approve sufficient funding to meet the obligations of this Interagency Agreement, the Parties will meet and confer on a revised cost allocation.
Section VI.
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 Interagency Agreement.
Section VII.
Independent Contractors: All contractors employed during any phase of the WFSE and HME 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 Parties 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 Interagency Agreement is executed as follows:
El Dorado Irrigation District,
By: __________________________ Date: ___________________
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This Interagency Agreement is executed as follows:
Placer County Water Agency,
By: __________________________ Date: ___________________
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This Interagency Agreement is executed as follows:
City of Folsom, a municipal corporation
By: __________________________ Date: ___________________ Bryan Whitemyer, City Manager
APPROVED AS TO CONTENT:
By: __________________________ Date: ___________________ Marcus Yasutake, Environmental & Water Resources Director
APPROVED AS TO FUNDING:
By: __________________________ Date: ___________________ Stacey Tamagni, Finance Director
APPROVED AS TO FORM:
By: __________________________ Date: ___________________ Steven Wang, City Attorney
ATTEST:
By: __________________________ Date: ___________________ Christa Freemantle, City Clerk
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
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
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:
Citrus Heights Water District
By: __________________________ Date: ___________________ Print Name: General Manager
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:
Fair Oaks Water District
By: __________________________ Date: ___________________ Print Name: General Manager
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:
Carmichael Water District
By: __________________________ Date: ___________________
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: WATER FORUM 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
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 Suburban Water District
By: __________________________ Date: ___________________
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:
Golden State Water District
By: __________________________ Date: ___________________
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:
California American Water
By: __________________________ Date: ___________________
Single Agreement: This Interagency Agreement may be signed in multiple counterparts, which together will constitute a single Interagency Agreement. This Interagency 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
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 Area Flood Control Agency
By: __________________________ Date: ___________________