August 22, 2000 BOS Agenda notes by the Board Watcher This report mainly concentrates on environmental issues. REGULAR CALENDAR DEVELOPMENTAL SERVICES SONOMA COUNTY WATER AGENCY 62. Water efficient clothes washer presentation for the 2000 Sonoma County Fair drawing: Request Chair to draw three qualified entries from the Water Efficient Clothes Washer and announce the winning entries. [BW Comment: The significance of the following issue is that its passage will permit an additional pipeline to Marin County to pipe water to southern Marin County, and to increase the Sonoma County population by 40%, equal to the City of Santa Rosa for future growth.] 63. Eleventh Amended Agreement for Water Supply Resolution making findings, directing the General Manager/Chief Engineer approve the Eleventh Amended Agreement for Water Supply and giving direction to the General Manager/Chief Engineer Water Agency Staff Notes: Prior Board Action(s): 12/15/98 Res. No. 98-1614 approving the Water Supply and Transmission System Project 11/17/98 Res. No. 98-1423 certifying the Water Supply and Transmission System Project Final Environmental Impact Report 08/26/97 Res. No. 97-1128 approving the Tenth Amended Agreement for Water Supply and Construction of the Russian River-Cotati Intertie Project Background: Water Supply and Transmission System Project Environmental Impact Report on file with the clerk. The Tenth Amended Agreement for Water Supply and Construction of the Russian River-Cotati Intertie Project between SCWA and eight cities and water districts (defined as water contractors) was first executed in 1974 last amended 11/17/97, and provides for the financing, construction, operation and maintenance of the water transmission system. It can deliver an average of 92 million gallons per day during peak demand month. In 1992 the WA general manager found the existing system would no longer be adequate to serve contractors' future water supply needs. WA Directors/BOS agreed that a new project was needed to supplement the 1974 project. Work on the EIR and the Water Supply and Transmission System Project (WSTSP) began. The Agency's General Manager was directed to finalize the final agreement, now known as the Eleventh Amended Agreement for Water Supply, (Attachment No. 2 on file with the clerk). This was completed in June 1999. Authorization to finance, construct, operate and maintain additional water supply and transmission system facilities identified in the WSTSP is dependent upon execution of the Eleventh Amended Agreement for Water Supply. Once executed the Eleventh Amendment would supersede the Tenth Agreement. It becomes effective upon execution of all parties and remains in effect until June 30, 2036 or until revenue bonds are paid in full if any are outstanding on 6/30/36. A summary of the Agreement is in Attachment No. 3. The Eleventh Amended Agreement will update the language in the present agreement to implement the WSTSP approved by the Board in '98. The revisions to the agreement reflect water conservation savings, annual and monthly delivery limits, expansion of the system identified as elements of the WSTSP. The Eleventh Amended Agreement provides authorization to finance, construct, operate, and maintain water supply and transmission system facilities necessary to deliver water to customers at an average of 148.9 million gallons per day (mgd) during the peak month, plus 20 mgd of standby capacity. The Eleventh Amended Agreement has been approved and executed by seven of the eight water contractors, most recently in 11/99. The City of Petaluma is actively considering approval at this time. The General Manager/Chief Engineer is requesting approval of the Eleventh Amended Agreement and authorization from the Board to execute the Agreement on behalf of the Agency upon its execution by all other parties. Attachments: 1. Resolution (R1; 2. Eleventh Amendment Agreement for Water Supply (A2); 3. Executive Summary of the Eleventh Amended Agreement for Water Supply (A3); 4. CEQA Environmental Analysis of the Eleventh Amended Agreement for Water Supply (A4). On File with the Clerk: 1. Water Supply and Transmission System Project Environmental Impact Report Background (continued) Because the outcome of the City of Petaluma's decision is uncertain, the General Manager is seeking board direction: Specifically to work with county counsel to prepare a new agreement(s) between the Agency and the other 7 water contractors if the City of Petaluma does not execute the 11th Amended Agreement by September 15, 2000. Necessary to ensure that other water contractors participate in the project even if Petaluma declines. In addition some of the water supply and transmission facilities in WSTSP are needed now. The Agency does not have the authority to design or construct these necessary facilities without the complete execution of the 11th Amended Agreement or another, equivalent agreement. A few of the water contractors, including Petaluma have indicated a desire to pursue more aggressive water conservation activities than those in the WSTSP and the 11th Amended Agreement. Agency staff agrees and recommends the Board direct the General Manager/Chief to work with the cities to develop and explore mandatory water conservation measures. The General Manager would also like to work with the cities on one other issue: to evaluate potential regional water demands identified since the WSTSP was developed. CEQA Compliance: The WSTSP EIR was certified by the Agency's Directors/BOS. Agency staff prepared an Environmental Analysis (Attachment No. 4) to decide if a supplemental or subsequent EIR is required for the 11th Amended Agreement. The additional document is not required. Requested Actions: The attached resolution would: 1. Determine that no additional environmental document is required. 2. Provide board approval of the Eleventh Amended Agreement. 3. Direct and authorize General Manager/Chief to execute the 11th Agreement upon its execution by all other parties. 4. Direct General Manager/Chief to work with County Counsel to prepare new agreement(s) for water supply if all other parties have not executed the Agreement by 9/15/00. 5. Direct General Manager to work with cities and water districts to develop and implement mandatory water conservation activities. 6. Direct General Manager to develop for Board consideration consultant contracts to evaluate mandatory water conservation activities. 7. Direct General Manager to work with cities and water districts to evaluate potential regional water demands identified since WSTSP was developed. It is the General Manager/Chief's intent to return to the Board every 6 months to communicate the status of the Agency's work with the cities and water districts served by the Agency as directed under items 4 through 7 above. END B2 [BW Comment: This is all I have time to write up on Agenda Item 63. I did NOT present any information on theEleventh Amended Agreement or CEQA Environmental Analysis for Eleventh Amended Agreement. This is a very important item. It is on the Regular Calendar. Public comments will probably be given by members of the audience. Please try to be there at 8:30 AM. Although it will be heard later, no one knows how much later.] [BW: There are several more items of great importance on the August 22 Agenda.]