City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00744 4/29/2025 Item 16.
Agreement: Regional Water Authority Program Agreement
File ID: 2025-00744
Location: Citywide
Recommendation: Adopt a Resolution: authorizing 1) the Interim City Manager or designee to execute an agreement with the Regional Water Authority (RWA) to conduct Phase 3 of the Sacramento Regional Water Bank Project for an amount not-to-exceed $126,960; and 2) a budget transfer from Base CIP Contingency-Water (Z14000700, 6005) in the amount of $137,385, and from Drinking Water Quality (Z14001500, 6005) in the amount of $19,389 to the Water Master Plan Program (I14510200, 6005).
Contact: Kathy Sananikone, Project Manager, [email protected], (916) 808-1425; Brett Ewart, Supervising Engineer, [email protected], (916) 808-1725; Sherill Huun, Engineering & Water Resources Division Manager, [email protected], (916) 808-1455; Pravani Vandeyar, Director, [email protected], (918) 808-3765; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Regional Water Authority Program Agreement, Sacramento Regional Water Bank, Phase 3 3-Regional Water Authority Program Agreement, Starting Balance Modeling Analysis 4-Resolution
Description/Analysis
Issue Detail: Staff recommend Council approve an agreement with Regional Water Authority for Phase 3 of the Sacramento Regional Water Bank Project. The Water Bank will be a sustainable groundwater storage and recovery program intended to increase conjunctive use capacity and operations in the region to improve the long-term reliability of water supplies. The Water Bank will include an accounting system of storage and recovery with a monitoring program to ensure long-term groundwater basin sustainability and consistency with the Sustainable Groundwater Management Act. Phase 3 of this Project will be working on the Starting Balance Modeling Analysis to evaluate the
File ID: 2025-00744 4/29/2025 Item 16.
amount of water that has been previously banked through conjunctive water management by Water Bank participating agencies that may be incorporated into the Water Bank project as a starting balance.
Agreement for Phase 1 was executed in 2020 and consisted of work that was primarily associated with pre-feasibility activities. Phase 2 Agreement was executed in 2021 and focused on technical and environmental activities, as well as established governance and created contracting templates for water banking operations. More detailed information regarding the water bank can be found at RWA’s water bank website - https://rwah2o.org/sacramento-regional-water-bank/.
Policy Considerations: City Council approval is required for budget augmentations in excess of $250,000. This action is consistent with the 2040 General Plan Policy HCR-2.6 to coordinate with other entities.
Economic Impacts: None.
Environmental Considerations: The proposed activity is a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 5), however RWA will be the lead agency for CEQA compliance. The activities described in this report are continuing administrative or maintenance activities, such as purchases or personnel-related activities. This activity is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
Sustainability: The proposed project is consistent with the 2040 General Plan under policy PFS-3.5 and the Climate Action & Adaptation Plan policy A-1-5 as it collaborates on regional water supply solutions, which will help secure sufficient water treatment capacity.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: RWA completed a Regional Water Reliability Plan (RWRP) that examined the vulnerabilities of the region’s water supplies and identified mitigation actions for improving water supply reliability. One of the mitigation actions was to establish a regional Sacramento Regional Water Bank program to account for increase conjunctive use capacity and operations in the region. Funding the City’s share of the Sacramento Regional Water Bank Project will allow cost-effective partnering of improving the long-term reliability of water supplies.
Financial Considerations: The proposed agreement is for an amount not-to-exceed $126,960. To provide sufficient funding for the duration of the project, a budget augmentation of $156,774 is required. Staff recommends transferring $137,385 from the Base CIP Contingency-Water (Z14000700, 6005), and $19,389 from Drinking Water Quality (Z14001500, 6005) to the Water Master Plan Program (I14510200, 6005).
File ID: 2025-00744 4/29/2025 Item 16.
There are no General Funds planned or allocated for this project.
Local Business Enterprise (LBE): Not applicable.
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
REGIONAL WATER AUTHORITY
PROGRAM AGREEMENT
SACRAMENTO REGIONAL WATER BANK, PHASE 3
This Agreement is made and entered into as of the ____ day of ______, 20 25, by and between the Regional Water Authority (“RWA”), a joint exercise of powers authority formed under California Government Code section 6500, and following, and the Members and Contracting Entities of RWA listed in Exhibit 1 to this Agreement, upon their execution of this Agreement (who are collectively referred t o in this Agreement as “ Program Committee” or “Program Committee Agency(ies) ”), to provide for carrying out a Project or Program that is within the authorized purposes of RWA, and sharing in the cost and benefits by Program Committee Agencies.
RECITALS
A. RWA is a joint powers authority, formed to serve and represent regional water supply interests and to assist its members in protecting and enhancing the reliability, availability, affordability and quality of water resources.
B. The joint powers agreement (“RWA JPA”) pursuant to which RWA was formed and operates, and as was amended on October 8, 2013, authorizes RWA to enter into a “ Project or Program Agreement,” which is defined in the RWA JPA as an agreement between RWA and two or more of its Members or Contracting Entities to provide for carrying out a Project or Program that is within the authorized purposes of RWA, and sharing in the cost and benefits by the parties to the Project or Program Agreement.
C. Article 21 of the RWA JPA states: “The Regional Authority’s projects are intended to facilitate and coordinate the development, design, construction, rehabilitation, acquisition or financing of water-related facilities (including sharing in the cost of federal, State or local projects) on behalf of Members and/or Contracting Entities. The Regional Authority may undertake the development, design, construction, rehabilitation, acquisition or funding of all or any portion of such projects on behalf of Members and/or Contracting Entities in the manner and to the extent authorized by such Members and/or Contracting Entities as provided in this Agreement, but shall not accomplish these functions, nor acquire or own water-related facilities in its own name.”
D. Article 22 of the RWA JPA states: “Prior to undertaking a project or program, the Members and/or Contracting Entities who elect to participate in a project or program shall enter into a Program or Program Agreement. Thereafter, all assets, benefits and obligations attributable to the project shall be assets, benefits and obligations of those Members and/or Contracting Entities that have entered into the Project or Program Agreement. Any debts, liabilities, obligations or indebtedness incurred by the Re gional Authority in regard to a particular project or program, Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
including startup costs advanced by the Regional Authority, shall be obligations of the participating Members and/or Contracting Entities, and shall not be the debts, liabilities, obligations and indebtedness of those Members and/or Contracting Entities who have not executed the Project or Program Agreement.”
E. There is nothing in the RWA JPA or RWA policies that would prevent the participation of unaffiliated entities in projects conducted by RWA and its Members and Contracting Entities under a Project or Program Agree ment, subject to approval of all participating Members and Contracting Entities and the unaffiliated entity’s execution of the Program Agreement.
F. RWA and the Program Committee Agency desire to carry out a Program and share in the costs and benefits of the Program, as a Project or Program Agreement as provided for in Articles 21 and 22 of the RWA JPA.
In consideration of the promises, terms, conditions and covenants contained herein, the parties to this Agreement hereby agree as follows:
1. Recitals Incorporated. The foregoing recitals are hereby incorporated by reference.
2. Defined Terms. Terms defined in the RWA JPA will have the same meaning in this Agreement.
3. Description of the Pro gram. The program (“Program”) that RWA and the Program Committee Agency desire to carry out is the completion of activities required to establish the Sacramento Regional Water Bank (“Water Bank ”). The Water Bank will be a sustainable groundwater storage and recovery program intended to increase conjunctive use capacity and operations in the region to improve the long -term reliability of water supplies. The Water Bank will include an accounting system of storage and recovery wit h a monitoring program to ensure long-term groundwater basin sustainability and consistency with the Sustainable Groundwater Management Act. This phase of work will be focused on final feasibility determinations, including environmental analysis, needed to achieve Federal recognition of the Water Bank. A general scope of work for Phase 3 is attached hereto as Exhibit 2 (“Program Description”).
4. Program Committee. Each Program Committee Agency previously formed a Program Committee consisting of one representative (and alternates) designated by each Program Committee Agency . The Program Committee will meet as necessary from time to time to administer and implement this Agreement on behalf of all Program Committee Agenc ies. A majority of the total members of the Program Committee will constitute a quorum . To proceed with a vote to take action, a quorum must be present at a meeting, with a majority of the number present required for an affirmative vote . Each member of the Program Committee will have one vote, either by its representative or an alternate. When a vote to take action will occur, notice of at least seven days shall be provided to all Program Committee members to provide reasonable opportunity to participate in the consideration of the action item.
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
5. Sharing in Program Costs and Benefits. The total estimated cost to complete the Water Bank has been recently estimated at $3,740,000. Funding to initiate the Water Bank project and advance multiple planning, modeling, and environmental efforts has agreed upon with the vast majority secured through multiple sources of funding including Phase 1 ($493,000) and Phase 2 ($1,150,000) Program agreements, and a Department of Water Resources (DWR) 2022 Urban Drought Grant ($660,000). Additional funding is in the process of being obtained from a DWR Facilitation Support Services program currently estimated at $100 ,000 and from the Federal Government (WIIN act appropriation) administered through the United States Bureau of Reclamation (USBR) currently estimated at $710,000. These two proposed sources of funds have not been secured. For this reason, the estimated funding necessary to complete the Water Bank project is between $629,000 (assuming proposed estimated amounts of funding are secured) and $1,437,000 (without proposed funding).
The assessments and not -to exceed budgets for each Program Committee Agency are further described and attached hereto as Exhibit 3 (“Financing Plan”). Each Program Committee Agency will make one or more payments to RWA for completion of the Program. Program Committee Agencies shall have full access to final work products of the Program.
At the conclusion of the Program, the Program Committee will take action on the disposition of any remaining funds. If the Program Committee elects to return the surplus funds to the Program Committee Agencies, RWA will pay back such funds to the Program Committee Agencies on a pro rata basis reflecting the amount of the payments made by each of Program Committee Agency.
In accordance with the provisions of Articles 21 and 22 of the RWA JPA, any debts, liabilities, obligations or indebtedness incurred by RWA in regard to the Program will be the obligations of the Program Committee Agency, and will not be the debts, liabilities, obligations and indebtedness of those Members and Contracting Entities who have not executed this Agreement.
6. Role of RWA. The RWA will (a) ensure that the interests of Members and Contracting Entities of RWA who do not participate in this Program are not adversely affected in performing this Agreement ; (b) provide information to the Program Committee Agency on the status of implementation of the Program; (c) assist the Program Committee in carrying out its activities under this Agreement ; d) secure consultant support services through a competitive selection process as identified in RWA Policy 300.2 , where applicable; and e) manage consultant support services in completion of the Program.
7. Authorization to Proceed with the Program. Upon execution of this Agreement, the Program Committee Agencies agree to fund their portion of the Program costs in an amount and manner as described in Exhibit 3 (“Financing Plan”) to this Agreement.
8. Term. This Agreement will remain in effect for so long as any obligations under this Agreement and/or obligations from other sources of funding secured for completing the Program remain outstanding.
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
9. Withdrawal. A Program Committee Agency may withdraw from this Agreement without requiring termination of this Agreement, effective upon ninety days’ notice to RWA and the other Program Committee Agenc ies, provided that, the withdrawing Program Committee Agency will remain responsible for any indebtedness incurred by the Program Committee Agency under this Agreement prior to the effective date of withdrawal. If any surplus funds remain after the withdrawing Program Committee Agency has met all of its financial obligations under this Agreement, then such funds will be returned to the withdrawing Program Committee Agency in proportion to the total contribution made by each Program Committee Agency.
10. Amendments. This Agreement may be amended from time to time with the approval of all of the Program Committee Agencies and RWA.
11. Privileges and Immunities. All of the privileges and immunities from liability; exemptions from laws, ordinances and rules ; and all pension, relief, disability, worker's compensation and other benefits that apply to the activity of officers, agents or employees of RWA or the Program Committee Agencies when performing their respective functions for those agencies will, to the extent permitted by law, apply to them to the same degree and extent while engaged in the performance of any of the functions a nd other duties under this Agreement. It is further understood and agreed by RWA and the Program Committee Agenc ies that, notwithstanding anything contained herein, the employees of RWA and of each Program Committee Agency shall continue to be entirely and exclusively under the direction, supervision and control of the employing party.
12. No Third Party Beneficiary. RWA and the Program Committee Agencies understand and agree that this Agreement creates rights and obligations solely between RWA and the Program Committee Agenc ies and is not intended to benefit any other p arty. No provision of this Agreement shall in any way inure to the benefit of any third person so as to constitute any such third person as a third -party beneficiary of this Agreement or any of its items of conditions, or otherwise give rise to any cause of action in any person not a party hereto.
13. Liabilities. With respect to this Agreement, RWA and the Program Committee Agencies expressly agree that the debts, liabilities and obligations of RWA and of each Program Committee Agency shall remain the debts, liabilities and obligations of that party alone and shall not be the debts, liabilities and obligations of any other party to this Agreement, except as may be otherwise set forth herein or in an amendment to this Agreement.
14. Audits and Accounting. All funds provided under this Agreement shall be separately accounted for and maintained, with books and records of such funding open to inspection by the Program Committee Agencies. Funding under this Agreement shall be subject to and consistent with the audit and accounting procedures set forth in Articles 27 and 28 of the RWA JPA.
15. General Provisions. Any notice to be given under this Agreement shall be made by:
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
(a) depositing in any United States Post Office, postage prepaid, and shall be deemed received at the expiration of 72 hours after its deposit; (b) transmission by reputable overnight courier service; (c) transmission by electronic mail; or (d) personal delivery. This Agreement shall be governed by the laws of the State of California. The contact information for each Participant with respect to this section of the Agreement is set forth in Exhibit 4 (“Notice Information”). This Agreement may be executed by the parties in counterpart, each of which when executed and delivered shall be an original and all of which together will constitute one and the same document.
16. Signatories’ Authority. The signatories to this Agreement represent that they have authority to execute this Agreement and to bind the Program Committee Agencies on whose behalf they execute it.
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
The foregoing Sacramento Regional Water Bank, Phase 3 Program Agreement is hereby agreed to by RWA and the Program Committee Agency.
Dated: __________, 2025 ______________, 2025
Signature Signature
Jim Peifer
Executive Director
Regional Water Authority
Pravani Vandeyar
Department of Utilities Director
City of Sacramento
List of Agreement Exhibits
Exhibit 1 – Program Committee Agency
Exhibit 2 – Program Description
Exhibit 3 – Financing Plan
Exhibit 4 – Notice Information
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
EXHIBIT 1
PROGRAM COMMITTEE AGENCIES
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK, PHASE 3 PROGRAM
Proposed Participating Agencies
California American Water
Carmichael Water District
Citrus Heights Water District
City of Folsom
City of Lincoln
City of Roseville
City of Sacramento
El Dorado Irrigation District
Elk Grove Water District
Fair Oaks Water District
Golden State Water Company
Placer County
Placer County Water Agency
Sacramento County Water Agency
Sacramento Regional County Sanitation District
Sacramento Suburban Water District
San Juan Water District
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
EXHIBIT 2
PROGRAM DESCRIPTION
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK, PHASE 3 PROGRAM
The Sacramento Regional Water Bank Program Phase 3 scope of work and budget is described below in four primary tasks.
SCOPE OF WORK
The following tasks describe the overall work activities expected for the Sacramento Regional Water Bank (“Water Bank”) Program, Phase 3. More detailed scopes of work and deliverables would be specified upon the issuance of task orders to authorize the work. The description of tasks within each work category either provides for a continuation of task activities initiated in the Phase 2 agreement and/or DWR 2022 Urban Drought Grant or represent new tasks necessary to advance the completion of the Water Bank.
Work Category 1: Technical Activities
To reach an operational , federally -recognized Water Bank and the goals identified by the Program Committee Agencies , the following technical activities were identified:
• Develop and Analyze Preliminary Water Bank Scenarios – Confirmation and development of baseline for Water Bank Analysis, development of preliminary Water Bank scenario development, analysis and interpretation of modeling results, QC/verification of results, initial “loss factor” analysis using existing GSP scenarios, develop preliminary analysis of “loss factor”, and development preliminary analysis of “leave behind”.
• Develop Consistent CalSim-CoSANA Baselines – Develop existing conditions baseline, develop future conditions baseline with climate change, develop cumulative conditions baseline, analysis and interpretation of baseline results, and QC/verification of results. • Ongoing Modeling Support – Technical team coordination calls, Water Bank check in recuring calls, and presentation of results.
• Water Accounting System – Develop Water Accounting System (WAS) concept paper establishing a set of policies and procedures to encourage and support conjunctive use operations to facilitate the long‐term sustainability of the underlying groundwater basin as a source of public water supply. The WAS is a vital Water Bank task necessary to manage and track the movement of water in and out of the Water Bank. The WAS will include procedures on operational baseline (based on individual and detailed data analysis from each Program Committee Agency), recharge accounting, recovery Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
accounting, recognition of previously banked water, banking losses/leave behind, accounting, storage rights tracking, in-lieu recovery tracking, consistency with Groundwater Sustainability Plans, and implementation/administration activities. This will be developed in coordination with local Groundwater Sustainability Agencies to provide consistency with applicable Groundwater Sustainability Plans. • Best Management Practices (BMPs) for Conjunctive Use Implementation - This task includes development of a set of BMPs to facilitate conjunctive use expansion that covers a range of operational, hydrogeological, technical, and public engagement issues that may face the Program Committee Agencies.
• Financial Analysis - This task includes the development of a financial analysis tool to assess potential long-term net returns, water markets, and scenarios for bridging the differences in cost between surface water and groundwater.
Work Category 2: Environmental Activities
The following are activities to support state, federal, and local environmental requirements. It includes regional and statewide impact analyses including (but not limited to) the use of CalSim 3 and regional models.
• CEQA/NEPA Scoping/Rescoping – Scoping provides an opportunity to develop the project definition and assumptions. In 2024, rescoping efforts informed the public about the inclusion of potential transfers associated with the Water Bank. The Project Description will be revised based on rescoping feedback. Rescoping also identified potential project proponents and opponents where RWA may want to focus on building partnerships, coordinating, etc. related to Water Bank operations. • CEQA/NEPA Documents – This activity includes preparation of environmental documentation and associated impact analyses. An Environmental Impact Report (CEQA) and a separate Environmental Assessment (NEPA) are being prepared. The EIR will be both a project specific document that analyzes in-basin use of the Water Bank by Participating Agencies as well as a programmatic document that analyzes effects of water transfers that may involve partners located south of the Delta.
Work Category 3: Institutional Activities
The following activities will establish governance and create contracting templates for water banking operations. Although many of these tasks started during early phases of work, they will continue until project completion.
• Governance – This activity will determine and establish a formal governance structure for Water Bank operations and management, assuming an RWA-managed program. It will establish tools to support the governance structure, and roles and responsibilities. It will Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
also address policy-related issues such as potential fees from transfers and environmental commitments.
• Legal Support – This activity will include development and review of environmental strategy, environmental documentation, and other policy related matters necessary to develop the Water Bank project.
Work Category 4: Miscellaneous Activities
In addition to the above activities, three more activities were identified which focus on collaboration and engagement efforts related to the Water Bank. Although many of these tasks started during early phases of work, they will continue until project completion. • Program Committee Support – A Water Bank committee has been formed that consists of local water purveyors that may participate in the future Water Bank. This activity will provide support for up to 6 additional committee meetings during year 2025. • United States Bureau of Reclamation (USBR) Engagement and Coordination – This activity will provide funding to engage and coordinate with the USBR staff to obtain Water Bank Federal Acknowledgement consistent with the USBR Groundwater Banking Guidelines for Central Valley Project Water Effective Date: November 12, 2014 and Updated October 4, 2019.
Estimated Budget by Work Category
Base Contingency
(20%)
Work Category 1: Technical Activities $250,000 $50,000 Work Category 2: Environmental Activities $250,000 $50,000 Work Category 3: Institutional Activities $45,000 $9,000 Work Category 4: Miscellaneous Activities $84,000 $16,800 Not-to-Exceed Total $629,000 $125,800
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
EXHIBIT 3
FINANCING PLAN
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK, PHASE 3 PROGRAM
In developing the proposed fees for each agency, factors such as agency size, past participation in a groundwater substitution transfer, and the likelihood and level of participation in the Water Bank in the future were considered. A not-to-exceed fee was established assuming the acquisition of other sources of funding will become available during the course of the Phase 3 Program. RWA staff will pursue the collection of f ees immediately following signature with each Program Committee Agency. RWA staff will only pursue collection of contingency fees upon a majority approval of the Program Committee.
Proposed Not-to-Exceed Fee Table
Program Committee Agency Base Contingency
(20%)
California American Water $30,600 $6,120
Carmichael Water District $27,800 $5,560
Citrus Heights Water District $33,400 $6,680
City of Folsom $22,300 $4,460
City of Lincoln $13,900 $2,780
City of Roseville $30,600 $6,120
City of Sacramento $105,800 $21,160
El Dorado Irrigation District $13,900 $2,780
Elk Grove Water District $13,900 $2,780
Fair Oaks Water District $33,400 $6,680
Golden State Water Company $66,800 $13,360
Placer County $5,600 $1,120
Placer County Water Agency $22,300 $4,460
Sacramento County Water Agency $66,800 $13,360
Sacramento Regional County Sanitation District $30,600 $6,120 Sacramento Suburban Water District $77,900 $15,580
San Juan Water District $33,400 $6,680
Totals $629,000 $125,800
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
EXHIBIT 4
NOTICE INFORMATION
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK, PHASE 3 PROGRAM
California American Water
Attn: S. Audie Foster
4701 Beloit Drive
Sacramento, CA 95838
Phone: (916) 568-4259
Email: [email protected]
Carmichael Water District
Attn: Cathy Lee
7837 Fair Oaks Blvd
Carmichael, CA 95608
Phone: (916) 483-2452
Fax: (916) 483-5509
Email: [email protected]
Citrus Heights Water District
Attn: Hilary Straus
6230 Sylvan Road
Citrus Heights, CA 95610
Phone: (916) 725-6873
Fax: (916) 725-0345
Email: [email protected]
City of Folsom
Attn: Marcus Yasutake
50 Natoma Street
Folsom, CA 95630
Phone: (916) 461-6161
Fax: (916) 351-8912
Email: [email protected]
City of Lincoln
Attn: Chris Nelson
600 6th Street
Lincoln, CA 95648
Phone: (916) 434-2449
Email: [email protected]
City of Roseville
Attn: Sean Bigley
2005 Hilltop Circle
Roseville, CA 95747
Phone: (916) 774-5513
Email: [email protected]
City of Sacramento
Attn: Brett Ewart
1395 35th Avenue
Sacramento, CA 95822
Phone: (916) 808-1725
Email: [email protected]
El Dorado Irrigation District
Attn: Brian Mueller
2890 Mosquito Road
Placerville, CA 95667
Phone: (530) 642-4029
Fax: (530) 642-4329
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
Email: [email protected]
Elk Grove Water District
Attn: Bruce Kamilos
9257 Elk Grove Blvd.
Elk Grove, CA. 95624
Phone: (916) 685-3556
Fax: (916) 685-5376
Email: [email protected]
Fair Oaks Water District
Attn: Tom Gray
10326 Fair Oaks Blvd
Fair Oaks, CA 95628
Phone: (916) 967-5723
Fax: (916) 967-0153
Email: [email protected]
Golden State Water Company
Attn: Paul Schubert
3005 Gold Canal Drive
Rancho Cordova, CA 95670
Phone: (916) 853-3636
Fax: (916) 852-6608
Email: [email protected]
Placer County
Attn: Christina Hanson
3091 County Center Drive, Ste 140
Auburn, CA 95603
Phone: (530) 745-3011
Fax: (530) 745-3080
Email: [email protected]
Placer County Water Agency
Attn: Tony Firenzi
144 Ferguson Road
Auburn, CA 95603
Phone: (530) 823-4965
Email: [email protected]
Sacramento County Water Agency
Attn: Kerry Schmitz
827 7th Street, Room 301
Sacramento, CA 95814
Phone: (916) 874-4681
Fax: (916) 874-8693
Email: [email protected]
Sacramento Regional County Sanitation
District
Attn: Jose Ramirez
10060 Goethe Road
Sacramento, CA 95827
Phone: (916) 876-6059
Email: [email protected]
Sacramento Suburban Water District
Attn: Dan York
3701 Marconi #100
Sacramento, CA 95821
Phone: (916) 679-3973
Fax: 916-972-7639
Email: [email protected]
San Juan Water District
Attn: Greg Zlotnick
P.O. Box 2157
Granite Bay, CA 95746
Phone: (916) 791-6933
Fax: (916) 791-6983
Email: [email protected]
Regional Water Authority
Attachment 2
Water Bank Phase 3 Program Agreement 20Sep24_Final_COS
Attn: Jim Peifer
2295 Gateway Oaks Drive, Suite 100
Sacramento, CA 95833
Phone: (916-967-7692
Fax: (916) 967-7322
Email: [email protected]
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
REGIONAL WATER AUTHORITY
PROGRAM AGREEMENT
SACRAMENTO REGIONAL WATER BANK,
STARTING BALANCE MODELING ANALYSIS
This Agreement is made and entered into as of the ____ day of ______, 2025, by and between the Regional Water Authority (“RWA”), a joint exercise of powers authority formed under California Government Code section 6500, and following, and the Members and Contracting Entities of RWA listed in Exhibit 1 to this Agreement, upon their execution of this Agreement (who are collectively referred to in this Agreement as “ Starting Balance Funding Group” , to provide for funding and input to carry out a modeling analysis to evaluate a proposed starting balance of banked groundwater to potential ly incorporate into the Sacramen to Regional Water Bank (Water Bank ) Project (the “Program”). Complet ion of the scope of work defined in this Agreement supports the Program that is within the authorized purposes of RWA, and sharing in the cost and benefits by the parties to the Project or Program Agreement.
RECITALS
A. RWA is a joint powers authority, formed to serve and represent regional water supply interests and to assist its members in protecting and enhancing the reliability, availability, affordability and quality of water resources.
B. The joint powers agreement (“RWA JPA”) pursuant to which RWA was formed and operates, and as was amended on October 8, 2013, authorizes RWA to enter into a “ Project or Program Agreement,” which is defined in the RWA JPA as an agreement between RWA and two or more of its Members or Contracting Entities to provide for carrying out a Pro ject or Program that is within the authorized purposes of RWA, and sharing in the cost and benefits by the parties to the Project or Program Agreement.
C. Article 21 of the RWA JPA states: “The Regional Authority’s pro jects are intended to facilitate and coordinate the development, design, construction, rehabilitation, acquisition or financing of water-related facilities (including sharing in the cost of federal, State or local projects) on behalf of Members and/or Contracting Entities. The Regional Authority may undertake the development, design, construction, rehabilitation, acquisition or funding of all or any portion of such projects on behalf of Members and/or Contracting Entities in the manner and to the extent authorized by such Members and/or Contracting Entities as provided in this a greement, but shall not accomplish these functions, nor acquire or own water-related facilities in its own name.”
D. Article 22 of the RWA JPA states: “Prior to undertaking a project or program, the Members and/or Contracting Entities who elect to participate in a project or program shall enter into a Program or Program Agreement. Thereafter, all assets, benefits and obligations attributable Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
to the project shall be assets, benefits and obligations of those Members and/or Contracting Entities that have entered into the Project or Program Agreement. Any debts, liabilities, obligations or indebtedness incurred by the Regional Authority in regard to a particular project or program, including startup costs advanced by the Regional Authority, shall be obligations of the participating Members and/or Contracting Entities, and shall not be the debts, liabilities, obligations and indebtedness of those Members and/or Contracting Entities who have not executed the Project or Program Agreement.”
E. RWA and the Starting Balance Funding Group desire to carry out the Program and share in the costs and benefits of the Program, as a Project or Program Agreement as provided for in Articles 21 and 22 of the RWA JPA.
In consideration of the promises, terms, conditions and covenants contained herein, the parties to this Agreement hereby agree as follows:
1. Recitals Incorporated. The foregoing recitals are hereby incorporated by reference.
2. Defined Terms. Terms defined in the RWA JPA will have the same meaning in this Agreement.
3. Description of the Program. The Program that RWA and the Starting Balance Funding Group desire to carry out is the completion of modeling analysis to evaluate the amount of water that has been previously banked through conjunctive water management by Sacramento Regional Water Bank (“Water Bank”) program committee agencies that may be incorporated into the Water Bank project as a starting balance. The Water Bank will be a sustainable groundwater storage and recovery program intended to increase conjunctive use capacity and operations in the region to improve the long-term reliability of water supplies. The Water Bank will include an accounting system of storage and recovery with a monitoring program to ensure long-term groundwater basin sustainability and consistency with the Sustainable Groundwater Management Act . The work identified within this A greement is a component of the Water Bank project development . A general scope of work for the Program is attached hereto as Exhibit 2 (“Program Description”).
4. Program Committee and Starting Balance Funding Group. A Program Committee consists of one representative (and alternates) designated by each member of the Starting Balance Funding Group shall be formed to develop the special study of the technical basis for accounting for groundwater previously banked by the members (and possibly other agencies not participating in the Program). The Starting Balance Funding Group shall fund, direct, and provide input during the execution of work defined by the Progr am Description. These local agencies, referred to as the Starting Balance Funding Group, will meet as necessary from time to time to administer and implement this Agreement. At key milestones during the implementation of Program, the Starting Balance Funding Group with RWA staff may engage and seek input from the Program Committee for the Phase 3 Water Bank Program Agreement.
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
5. Sharing in Program Costs and Benefits. The total estimated cost to complete the Program Description as defined in Exhibit 2 has been estimated at $100,000.
The assessments and not -to exceed budgets for each of the Starting Balance Funding Group agencies are further described and attached hereto as Exhibit 3 (“Financing Plan”). Each Starting Balance Funding Group agency will make one or more payments to RWA for completion of the Program. Starting Balance Funding Group agencies shall have full access to final work products of the Program.
At the conclusion of the Program , the Starting Balance Funding Group agencies will take action on the disposition of any remaining funds. If the Starting Balance Funding Group agencies elects to return the surplus funds to the Starting Balance Funding Group agencies , RWA will pay back such funds to the Starting Balance Funding Group agencies on a pro rata basis reflecting the amount of the payments made by each of Starting Balance Funding Group agencies. In accordance with the provisions of Articles 21 and 22 of the RWA JPA, any debts, liabilities, obligations or indebtedness incurred by RWA in regard to the Program will be the obligations of the Starting Balance Funding Group agencies , and will not be the debts, liabilities, obligations and indebtedness of those Members and Contracting Entities who have not executed this Agreement.
6. Role of RWA. RWA has been directed in the fall of 2024 at multiple Program Committee meetings to evaluate the amount of conjunctive use (i.e. banking) that may be recognized as a starting balance for the Water Bank Project. The RWA will (a) ensure that the interests of Members and Contracting Entities of RWA who do not participate in this Program are not adversely affected in performing this Agreement ; (b) provide information to the Starting Balance Funding Group agencies on the status of implementation of the Program ; (c) assist the Starting Balance Funding Group in carrying out its activities under this Agreement ; d) secure consultant support services through a competitive selection process as identified in RWA Policy 300.2, where applicable; and e) manage consultant support services in completion of the Program.
7. Authorization to Proceed with the Program . Upon execution of this Agreement, the Starting Balance Funding Group agencies agree to fund their portion of the Program costs in an amount and manner as described in Exhibit 3 (“Financing Plan”) to this Agreement.
8. Term. This Agreement will remain in effect for so long as any obligations under this Agreement and/or obligations from other sources of funding secured for completing the Program remain outstanding.
9. Withdrawal. A Starting Balance Funding Group agencies may withdraw from this Agreement without requiring termination of this Agreement, effective upon ninety days’ notice to RWA and the other Starting Balance Funding Group agencies , provided that, the withdrawing Starting Balance Funding Group agencies will remain responsible for any indebtedness incurred by the Starting Balance Funding Group agencies under this Agreement prior to the effective date Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
of withdrawal. If any surplus funds remain after the withdrawing Starting Balance Funding Group agencies has met all of its financial obligations under this Agreement, then such funds will be returned to the withdrawing Starting Balance Funding Group agencies in proportion to the total contribution made by each Starting Balance Funding Group agencies.
10. Amendments. This Agreement may be amended from time to time with the approval of all of the Starting Balance Funding Group agencies and RWA.
11. Privileges and Immunities. All of the privileges and immunities from liability; exemptions from laws, ordinances and rules ; and all pension, relief, disability, worker's compensation and other benefits that apply to the activity of officers, agents or employees of RWA or the Starting Balance Funding Group agencies when performing their respective functions for those agencies will, to the extent permitted by law, apply to them to the same degree and extent while engaged in the performance of any of th e functions and other duties under this Agreement.
It is further understood and agreed by RWA and the Starting Balance Funding Group agencies that, notwithstanding anything contained herein, the employees of RWA and of each Starting Balance Funding Group agencies shall continue to be entirely and exclusively under the direction, supervision and control of the employing party.
12. No Third Party Beneficiary. RWA and the Starting Balance Funding Group agencies understand and agree that this Agreement creates rights and obligations solely between RWA and the Starting Balance Funding Group agencies and is not intended to benefit any other party. No provision of this Agreement shall in any way inure to the benefit of any third person so as to constitute any such third person as a third- party beneficiary of this Agreement or any of its items of conditions, or otherwise give rise to any cause of action in any person not a party hereto.
13. Liabilities. With respect to this Agreement, RWA and the Starting Balance Funding Group agencies expressly agree that the debts, liabilities and obligations of RWA and of each Starting Balance Funding Group agencies shall remain the debts, liabilities and obligations of that party alone and shall not be the debts, liabilities and obligations of any other party to this Agreement, except as may be otherwise set forth herein or in an amendment to this Agreement.
14. Audits and Accounting. All funds provided under this Agreement shall be separately accounted for and maintained, with books and records of such funding open to inspection by the Starting Balance Funding Group agencies. Funding under this Agreement shall be subject to and consistent with the audit and accounting procedures set forth in Articles 27 and 28 of the RWA JPA.
15. General Provisions. Any notice to be given under this Agreement shall be made by:
(a) depositing in any United States Post Office, postage prepaid, and shall be deemed received at the expiration of 72 hours after its deposit; (b) transmission by reputable overnight courier service; (c) transmission by electronic mail; or (d) personal delivery. This Agreement shall be governed by the laws of the State of California. The contact information for each Participant with respect Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
to this section of the Agreement is set forth in Exhibit 4 (“Notice Information”). This Agreement may be executed by the parties in counterpart, each of which when executed and delivered shall be an original and all of which together will constitute one and the same document.
16. Signatories’ Authority. The signatories to this Agreement represent that they have authority to execute this Agreement and to bind the Starting Balance Funding Group agencies on whose behalf they execute it.
The foregoing Sacramento Regional Water Bank, Starting Balance Modeling Analysis Program Agreement is hereby agreed to by RWA and the Starting Balance Funding Group agencies.
Dated: ______ __, 2025 _______ __, 2025
Signature Signature
JIM PEIFER
Executive Director
Regional Water Authority
Pravani Vandeyar
Department of Utilities Director
City of Sacramento
List of Agreement Exhibits
Exhibit 1 – Program Committee Agencies
Exhibit 2 – Program Description
Exhibit 3 – Financing Plan
Exhibit 4 – Notice Information
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
EXHIBIT 1
PROGRAM COMMITTEE AGENCIES
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK,
STARTING BALANCE MODELING ANALYSIS PROGRAM
Starting Balance Funding Group agencies
Carmichael Water District
City of Sacramento
Golden State Water Company
Sacramento County Water Agency
Sacramento Suburban Water District
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
EXHIBIT 2
PROGRAM DESCRIPTION
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK,
STARTING BALANCE MODELING ANALYSIS PROGRAM
The Sacramento Regional Water Bank (Water Bank) Program Starting Balance Modeling Analysis scope of work and budget is described below.
SCOPE OF WORK
The goal of this Program is to evaluate the amount of water that has been previously banked through conjunctive water management by Water Bank participating agencies that may be incorporated into the Water Bank project as a starting balance. To accomplish this goal RWA will be utilizing the regions modeling tools and prior data and information from participating agencies in the North and South American subbasins.
The following components describe the work activities expected for the Water Bank Starting Balance Modeling Analysis.
Component #1: Woodard & Curran Modeling Analysis
Woodard & Curran have been procured by RWA to utilize the regional Cosumnes-South American-North American (CoSANA) groundwater model and work with RWA and an ad hoc work group (i.e. the Starting Balance Funding Group) to determine how much water has been previously banked and remains in the NASb and SASb that can be withdrawn without causing undesirable results under the Sustainable Groundwater Management Act.
The key question posed by RWA staff and supported by the Program Committee during the fall of 2024, is:
Question #1 - How much water has been banked (recharged) in the North American and South American subbasins (NASb & SASb) by Water Bank Participating Agencies that is above and beyond what (1) is needed for sustainability under SGMA developed GSPs, (2) has already been transferred, and (3) has been lost from the subbasins?
To address this question, an analysis of the conditions of the surface water and groundwater system during the historical period without implementation will be conducted. This analysis will include confirmation of historical assumptions in the CoSANA model, collecting data and confirming assumptions of the banked water for each participating agency, quantify a “no previously banked water condition”, quantify an “extractable volume of previously banked water”, conduct post processing and quality control model results, and provide project management and coordination.
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
Component #1 does not include any RWA staff or other support and includes Woodard & Curran’s level of effort only.
Component #2: RWA and other Consultant Support
RWA staff will provide support for the technical analysis identified in component #1 including leading meetings, providing data and technical recommendations, and project management.
As part of this component, it is anticipated RWA staff will provide limited external engagement and coordination beyond the Starting Balance Funding Group and Program Committee, including the NASb and SASb Groundwater Sustainability Agencies, the Water Forum, and potentially other interested parties.
This component also includes a very limited level of effort from consultants supporting the development of the Water Bank project including Stantec and Khadam consulting. Consulting support will enable any proposed starting balance volume to be properly integrated into core Water Bank development activities including surface modeling, water accounting system development, and environmental documentation.
Estimated Budget
Costs
Component #1: Woodard & Curran Modeling Analysis $81,885 Component #2: RWA and other Consultant Support $18,115 Not-to-Exceed Total $100,000
Estimated Schedule
The estimated schedule to complete this Program is approximately 4 months.
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
EXHIBIT 3
FINANCING PLAN
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK,
STARTING BALANCE MODELING ANALYSIS PROGRAM
In developing the proposed fees for each agency, the document or estimated amount of prior conjunctive water management activities were considered . RWA staff will pursue the collection of fees immediately following signature with each Starting Balance Funding Group agency.
Proposed Not-to-Exceed Fee Table
Starting Balance Funding Analysis Agency Base
Carmichael Water District $16,090
City of Sacramento $14,569
Golden State Water Company $5,109
Sacramento County Water Agency $10,218
Sacramento Suburban Water District $54,015
Totals $100,000
Attachment 3
Water Bank PBW Program Agreement 22Jan25_Final
EXHIBIT 4
NOTICE INFORMATION
REGIONAL WATER AUTHORITY
SACRAMENTO REGIONAL WATER BANK,
STARTING BALANCE FUNDING GROUP AGENCIES
Carmichael Water District
Attn: Cathy Lee
7837 Fair Oaks Blvd
Carmichael, CA 95608
Phone: (916) 483-2452
Fax: (916) 483-5509
Email: [email protected]
City of Sacramento
Attn: Brett Ewart
1395 35th Avenue
Sacramento, CA 95822
Phone: (916) 808-1725
Email: [email protected]
Golden State Water Company
Attn: Sean Twilla
3005 Gold Canal Drive
Rancho Cordova, CA 95670
Phone: (916) 825-7471
Fax: (916) 852-6608
Email: [email protected]
Sacramento County Water Agency
Attn: Michael Grinstead
827 7th Street, Room 301
Sacramento, CA 95814
Phone: (916) 874-4681
Fax: (916) 874-8693
Email: [email protected]
Sacramento Suburban Water District
Attn: Dan York
3701 Marconi #100
Sacramento, CA 95821
Phone: (916) 679-3973
Fax: 916-972-7639
Email: [email protected]
Regional Water Authority
Attn: Jim Peifer
2295 Gateway Oaks Drive, Suite 100
Sacramento, CA 95833
Phone: (916-967-7692
Fax: (916) 967-7322
Email: [email protected]
@BCL@4817A0E2, Rev. 09/09/2020
RESOLUTION NO. 2025-
Adopted by the Sacramento City Council
April 29, 2025
Regional Water Authority Program Agreement, Sacramento Regional Water Bank Ph 3
BACKGROUND
A. The Regional Water Authority (RWA) is a joint powers authority representing 22 water providers and affiliates in the greater Sacramento region, of which the City of Sacramento (City) is a member.
B. RWA completed a Regional Water Reliability Plan that examined the vulnerabilities of the region’s water supplies and identified mitigation actions for improving water supply reliability.
C. The recommended mitigation action was to establish a regional Sacramento Regional Water Bank program to account for increased conjunctive use capacity and operations in the region.
D. Funding the City’s share of the Sacramento Regional Water Bank Project will allow cost-effective partnering of improving the long-term reliability of water supplies.
E. A budget augmentation of $156,774 is required to provide sufficient funds to complete the Regional Water Bank Project under the Water Master Plan Program (I14510200).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or City Manager’s designee is authorized to execute an agreement with the Regional Water Authority to conduct Phase 3 of the Sacramento Regional Water Bank Project for an amount not-to-exceed $126,960.
Section 2. The City Manager or City Manager’s designee is authorized to transfer $137,385 from the Base CIP Contingency-Water (Z14000700, 6005), and $19,389 from Drinking Water Quality (Z14001500, 6005) to the Water Master Plan Program (I14510200, 6005).
Adopted by the City of Sacramento City Council on April 29, 2025, by the following vote:
Ayes:
Noes:
@BCL@4817A0E2, Rev. 09/09/2020
Abstain:
Absent:
Attest:
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.