FOR THE COUNCIL MEETING OF JUNE 20, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Utilities
SUBJECT: Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority
Description:
The City Council will consider an amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority (“CCWA”) to facilitate water management strategies for increasing the reliability of State Water through water storage activities for the benefit of CCWA member agencies.
Environmental Notice: The activity is not a “Project” as defined under Section 15378(b)(5) and the “common sense” exemption under Section 15061(b)(3) of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(2) and (3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing the execution of the Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority.
BACKGROUND:
CCWA was created by the member agencies in 1991 for the development, financing, construction, operation, and maintenance of local facilities required for the del ivery of State Water. The member agencies to CCWA (also referred to as participants) are the City of Buellton, Carpinteria Valley Water District, City of Guadalupe, Goleta Water District, Montecito Water District, City of Santa Barbara, City of Santa Maria , and the Santa Ynez River Water Conservation District-Improvement District #1.
The City has been receiving State Water through CCWA since 1997 and has imported over 215,000 acre-feet of water since that time. State Water is blended with local groundwater to provide a higher quality blend of water to the residents and businesses in Santa Maria to assist in meeting discharge requirements at the Wastewater Treatment Plant, and to augment total water supplies available to the City.
Persistent drought conditi ons, as well as operational constraints placed on the State Water Project, have reduced State Water reliability. In the previous three years, the State Water allocation was 5 percent, 5 percent, and 15 percent, respectively, while this year (2023), the State Water allocation is 100 percent.
2 There have been recent discussions at CCWA regarding its likelihood to be involved in facilitating water management strategies to assist CCWA participants in increasing the reliability of State Water through water storage activities. These may include participating in a groundwater bank, leasing or owning interests in above - or below-ground storage facilities, and moving water in and out of storage facilities that are not wholly owned by CCWA. The intent is for CCWA participants to deliver water to a storage facility in higher allocation (wet) years and then the water will be pumped out and returned to the CCWA participants in lower allocation (dry) years.
DISCUSSION:
To facilitate these opportunities, the Joint Exercise of Power Agreement (“JPA”) for CCWA must be amended to expressly allow CCWA to take action and enter contracts for the use of water in storage opportunities. This will be the second amendment to the JPA, the form of which is provided as Attachment “A.”
Any amendment to the JPA requires approval by the City of Santa Maria, along with the seven other CCWA member agencies. Approval of this amendment will allow CCWA to pursue water storage opportunities on behalf of its member agencies. Any costs associated with pursuing water storage projects will be borne by only those agencies choosing to participate. Member agencies not participating will be financially insulated from any costs associated with the projects.
Alternative
The City Council may elect not to approve the proposed amendment; however, for the amendment to occur, all CCWA member agencies must also approve the amendment.
Approval by the City will allow CCWA member agencies to participate in water storage while the City will be financially insulated from any costs of projects in which it does not participate. Therefore, City staff recommends approval of this amendment.
Fiscal Considerations
The fiscal considerations related to water storage will be identified at the time a project is brought to City Council for consideration. The City will pay only for those water storage projects in which it chooses to participate.
Impact to the Community
Approval of the amendment may make opportunities for water storage more available to the City. This will allow the City to compare the benefits of increased reliability with the costs associated with water banking.
Other Agency Review
Each CCWA member agency will be required to obtain approval from their respective legislative bodies for the amendment to become effective.
ATTACHMENT
Attachment “A” – Second Amendment to the JPA Creating the CCWA_2023-06-20