City Council Agenda Report

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Crl Ya, CHICO City Council Agenda Report Meeting Date: 217117 TO: City Council FROM: Erik Gustafson, Public Works Director-O&M, (894-4202) RE: CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING FOR THE

1 Crl Ya, CHICO City Council Agenda Report Meeting Date: TO: City Council FROM: Erik Gustafson, Public Works Director-O&M, ( ) RE: CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING FOR THE VINA GROUNDWATER SUBBASIN REPORT IN BRIEF: In compliance with Sustainable Groundwater Management Act (SGMA), the City Council approved a resolution on 11/17/15 to become a Groundwater Sustainability Agency (GSA) for the portions of the Vina and West Butte groundwater subbasins that underlie the City of Chico jurisdictional limits. Since the adoption of the resolution, City staff have been working with representatives from neighboring GSAs that have jurisdiction in each groundwater subbasin. The next step is to enter into a Memorandum of Understanding (MC)U) with each GSA to address any overlap issues and form collaborative structures moving forward. A draft MOU among the City of Chico, Butte County, and the Rock Creek Reclamation District for the Vina subbasin is being proposed for Council consideration. Staff confirmed that the City's jurisdictional boundaries under the MOU will be the Chico city limits. Recommendation: The Public Works Director-0&M recommendsthatthe City Council authorizethe City Manager to execute a Memorandum of Understanding (MOU) with the other GSA agencies that overlie the Vina groundwater subbasin to address the GSA overlap areas in this subbasin. FISCAL IMPACT: None at this time. However, the full fiscal impact of complying with the SGMA is unknown at this time and will be determined once Groundwater Sustainability Plans (GSPs) are outlined. BACKGROUND: In September 2014, Governor Brown signed SB 1168, SB 1319, and AB 1739, which collectively comprise the SGMA Effective January 1, 2015, the general purpose of SGMA is to provide local and regional agencies the authority to sustain and manage groundwater resources within their jurisdiction. SGMA requires local agencies and water districts to form a GSA(s) to prepare Groundwater Sustainability Plans (GSP). The intent of the GSP is to ensure long-term sustainability of the groundwater subbasin(s) by mitigating groundwater overdraft, monitoring usage/storage, and maintaining water quality. Local agencies subject to the SGMA include any agency which has water supply, water management, or land use responsibilities within a groundwater subbasin. Private water companies or purveyors regulated by the CA Public Utilities Commission, such as CalWater, cannot be a GSA, but can participate in a GSA structure and GSP process through cooperative agreements. As part of SGMA, the California Department of Water Recourses (DWR) identified and prioritized 515 groundwater subbasins in California. There are four subbasins that underlie Butte County - North Yuba, East Butte, West Butte and Vina (a map of the local Subbasins is in Attachment 1). These basins also underlie other neighboring counties and water districts. For instance, Chico overlies the West Butte and Vina subbasins, which also underlie portions of Tehama, Glenn, and Colusa Counties. DWR classified East and West Butte subbasins as high priority, while Vina and North Yuba are classified as medium priority. None of these subbasins have been classified as critically overdrafted. SGMA established the following deadlines pertinent to Chico and the other local jurisdictions: June 1, 2016: June : July 1, 2017: January 31, 2022: January 2042: DWR adopts regulations for evaluating GSPs Local GSAs must be formed State Water Board may designate a basin as probationary if no GSA is formed GSPs must be adopted and begin implementation in high and medium basins Groundwater sustainability must be achieved for high and medium basins If a GSA or GSAs are not formed for all of a basin, or if a GSP is not prepared by the deadlines, the State can intervene, impose fees, and assume management of the groundwater subbasins.

2 RE: Vina GSA Overlap MOU Meeting Date: CC 2/7/17 Page 2 Most local agencies have already filed notifications with DWR to form a GSA. Butte County filed to be a GSA for all four subbasins The City of Chico, having jurisdiction over local land use policies, filed to be a GSA for the West Butte and Vina subbasins. The table below summarizes the GSA formations for each subbasin in this area: SUBBASIN East Butte ( 14 entities) West Butte (7 entities) North Yuba (6 entities) Vina (4 entities) CURRENT GSA'S Cities of Oroville, Gridley, Live Oak and Biggs, Counties of Butte and the Sutter Extension, Butte College, Western Canal Water District, Butte Water District, Biggs-West Gridley Water District, Richvale Water District, Thermalio Water and Power District, and Reclamation Districts 2054 and 1004 City of Chico, Counties of Butte, Colusa and Glenn, Western Canal Water District, Durham Irrigation District. and Reclamation District 1004 Cities of Oroville and Marysville, Butte County, South Feather Water and Power District, Yuba County Water Agency, and the Cordua Irrigation District Butte County, City of Chico, Tehama County Flood Control and Water Conservation District, and Rock Creek Reclamation District DISCUSSION: Although local agencies were initially encouraged to form a GSA to ensure that all interests were acknowledged and recognized by DWR, new legislation was passed (Senate Bill 13) stipulating that any overlap between other GSAs within a subbasin must be removed. This can be achieved through subbasin boundary modifications, GSA consolidations. or cooperative agreements. Since Tehama County Flood Control and Water Conservation District (Tehama County FCWCD) filed to be an exclusive GSA for the entire Vina subbasin, a MOU between the City, the County, and Rock Creek Reclamation District is being proposed to manage that portion of the Vina subbasin that underlies Butte County. Tehama County FCWCD will then be the exclusive GSA for the portion that underlies Tehama County. The MOU, a copy of which is attached as Attachment 2. is general in nature with the primary intent to address the GSA overlap by 6/30/17. The MOU outlines the powers, roles, and responsibilities of the parties as follows: Requires the signatory agencies to work together towards developing a GSP(s) and meeting the requirements of SGMA Provides for the City of Chico and Butte County to be jointly responsible for implementing a GSP(s) in areas that are within the Chico city limits and Butte County boundaries Powers include ability to adopt SGMA standards, policies, methodologies, and best management practices. Requires unanimous or majority consent vote for any actions taken under the powers of the MOU. Provides for each party to be solely responsible for any costs or expenses for their participation in the MOU Includes mutual indemnification for all parties and its officers and employees. Allows for Tehama County or other agencies to become party to the MOU if desired in the future This js the first MOU that is being proposed to address the GSA overlap for the four subbasins in Butte County. If this MOU is approved by Council, a second MOU with the GSA partners in the West Butte subbasin will be brought forward to the Council soon. PUBLIC CONTACT: Tonight's City Council meeting agenda was publicly posted and noticed. Reviewed By: Approved By. Erik Gustaf,On,irect5*T Public Works - 0&M DISTRIBU TON: < City Clerk (3) Vickie Newlin. Butte County Department of Water and Resource Conservation Pete Bonovich, California Water Service.MJz.Cb L Mark Orrile, City Manager 9 ATTACHMENTS 1. Map of SJbbasins Ii, Butte County 2. Draft MOU

$Attachment 1: Bulletin 118 Subbasins in Butte County Butte County Groundwater Subbasins DYE ORE.E'K \----- REED BLUFF.<}, L 0,5 MOLINOS - Gls.5 $ CiO,LUNA-. _ 9 1112 1 WEST 2 Y B.U.T.T.E.hs/- EAST G!$

3 Attachment 1: Bulletin 118 Subbasins in Butte County Butte County Groundwater Subbasins DYE ORE.E'K \----- REED BLUFF.<}, L 0,5 MOLINOS - Gls.5 $ CiO,LUNA-. _ WEST 2 Y B.U.T.T.E.hs/- EAST G!:An COFUS: *B'UTTE Ligind NO ;LH 1.«YUBA Subbasin Name El Cal.15. CORN;NG S.I. - DIE CREEK ///EISTBUTTE LOS MOL.,OS SOUTH,w YUBA IMes 4»: SUTTER CD visr eure

ATTACHMENT 2 MEMORANDUM OF UNDERSTANDING FORMING THE VINA SUB-BASIN GROUNDWATER SUSTAINABILITY PARTNERS THIS MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into on, by and between the County

4 ATTACHMENT 2 MEMORANDUM OF UNDERSTANDING FORMING THE VINA SUB-BASIN GROUNDWATER SUSTAINABILITY PARTNERS THIS MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into on, by and between the County of Butte ("Butte" herein), Rock Creek Reclamation District ("District' herein) and the City of Chico ("Chico" herein), each a "Party" and collectivelythe "Parties". WHEREAS, on September 16, 2014, Governor Jerry Brown signed into law Senate Bills 1168 and 1139 and Assembly Bill 1739, known collectively as the Sustainable Groundwater Management Act ("SMGA"); and WHEREAS, the purpose of SGMA is to create a comprehensive management system in the State of California by creating a structure to manage groundwater at the local level, while providing authority to the State to oversee and regulate, if necessary, the local groundwater management system; and WHEREAS, SGMA empowers local agencies to adopt groundwater management plans that are tailored to the resources and needs of their communities to provide a bufferagainst drought and contribute to reliable water supply forthe future; and WHEREAS, Water Code Section authorizes a combination of local agencies overlying a groundwater basin to elect to become a Groundwater Sustainability Agency ("GSA") by using a memorandum of agreement or other agreement; and WHEREAS, Butte is a local agency qualified to become a GSA because Butte manages water, has a water supply, and has land use responsibilities over a portion of the Vina Sub-basin (Basin Number ), DWR Bulletin 118) within the Sacramento Valley Groundwater Basin ('Basin") a DWR-designated high-priority basin; and WHEREAS, Chico is a local agency qualified to become a GSA because Chico has a water supply, and has land use responsibilities over a portion of the Vina Sub-basin within the County of Butte; And WHEREAS, District is a local agency with water management authority within a portion of the Vina Sub-basin; and WHEREAS, on October 15, 2015, Butte held a public hearing to determine whether to become a GSA and on October 15, 2015, Butte adopted Resolution No , electing to become a GSA; and WHEREAS, on November 17, 2015, Chico held a public hearing to determine whether to become a GSA and on November 17, 2015, Chico adopted Resolution No , electing to become a GSA; and WHEREAS on September 22, 2016, District held a public meeting to determine whether to become a GSA and on October 18, 2016, District adopted Resolution No. 01, electing to become a GSA, and WHEREAS, as GSAs, the Parties have elected to work collaboratively with other interested agencies to develop and implement a Groundwater Sustainability Plan ("GSP") to sustainably manage the Vina Sub-Basin pursuant to SGMA. 1

5 ATTACHMENT 2 NOW THEREFORE, incorporating the above recitals herein and exhibits attached, it is mutually understood and agreed as follows: 1. PURPOSE. This MOU is entered into by and between the Parties to facilitate a cooperative and ongoing working relationshipthat will allow compliance with SGMA and State law, both as amended from time to time, The primary goal of the MOU is to eliminate overlap between the GSAs within Butte County and to establish a working partnership to move toward a multi-gsa agreement to cover all portions of the Vina Sub-Basin within Butte County prior to the June 30, 2017 deadline set under SGMA. Henceforth, the Parties may expand the goals of the Vina SGMA Partners to address future deadlines established under SGMA. 2. VINA SUB-BASIN GROUNDWATER SUSTAINABILITY PARTNERS. The Parties hereby establish the Vina Sub-basin Groundwater Sustainability Partners (Vina SGMA Partners) to manage the Butte County portion of the Vina Sub-basin as set forth in Exhibit 3. ADDITIONAL AGENCIES. Additional agencies with service area boundaries outside the jurisdiction of the Parties may join and incorporate theirservice area boundaries or portions thereof into the Vina SGMA Partners upon the mutual consent of all Parties. For instance on June 2, 2015 and November 3, 2015, Tehama County held a public hearingto determine whether to become a GSA and on November 3, 2015, Tehama adopted Resolution No , electing to become a GSA for the Tehama County portion of the Vina Sub-basin. In the future Tehama County may request to be added as an additional agencyto this MOU and at that point will be added to Exhibit - as amended from time to time in compliance with SGMA, and the boundaries of the Vina SGMA Partners may be expanded accordingly. 4. POWERS. 4.1 In additional to any other action availableto develop and implement SGMA, including a GSP, the Vina SGMA Partners may perform the following functions: Adopt standards for measuring and reposting water use Develop and implement policies designed to reduce or eliminate overdraft with the boundaries of the Vina Sub-basin Develop and implement conservation best management practices as outlined by DWR Develop and implement metering, monitoring and reporting related to groundwater pumping. 2

6 ATTACHMENT 2 5. DECISION MAKING PROCESS. 5.1 With the exceptions noted herein, it is the intent of the Parties that all actions undertaken by the Vina SGMA Partners are done by unanimous consent of the Parties; however in unanimous consent is not possible, a majority vote of the Parties is required. 5.2 In the event of an impasse or disagreement, the Parties shall use their best effortsto find a mutually agreeable result. To this effect, the Parties shall consult and negotiate with each other in good faith in an attempt to reach a solution that is mutually satisfactory. If the Parties do not reach a solution, them the mattershall be submitted to a non-binding arbitration or mediation within a reasonable period of time. 6. ROLES AND RESPONSIBILITIES OF THE PARTIES. 6.1 The Parties will work jointly to fulfill the Purposes of the MOU, SGMA, and the development and implementation of a GSP within the boundaries of the Vina Sub-basin. 6.2 The Parties will meet regularly to discuss SGMA, GSP development and implementation activities, assignments, and on-going work progress. 6.3 The Parties may form committees as necessary from time to time to discuss issues that impact the Vina Sub-basin. 6.4 Butte and Chico are jointly responsible for implementingthe GSP in areas of the Vina Sub-basin that are within both City limits and Butte County boundaries. 6.5 The Tehama County GSA is responsible for implementing the GSP in areas of the Vina Sub-basin that are within the County of Tehama. 7. FUNDING. Unless agreed to otherwise, each Party's participation in the MOU is at its sole cost and expense. 8. TERM. This MOU shall remain in effect unless terminated by the mutual consent of the Parties and as allowed by State law. 9. AMENDING THE MOU. This MOU and Exhibits hereto may only be amended by a subsequent writing, approved and signed by all Parties. 10. HOLD HARMLESS. No Party, not any officer or employee of a Party, shall be responsible for any damage or liability occurring by reason of anything done oromitted to be done by another Party under or in connection with this MOU. 3

7 ATTACHMENT 2 APPROVED AS TO CONTENT: COUNTY OF BUTTE DATE: APPROVED AS TO CONTENT: CITY OF CHICO APPROVED AS TO CONTENT: ROCK CREEK RECLAMATION DISTRICT DATE: Date: APPROVED AS TO FORM: COUNTY OF BUTTE DATE: APPROVED AS TO FORM: CITY OF CHICO APPROVED AS TO FORM: ROCK CREEK RECLAMATION DISTRICT DATE: Date: 4

$EXHIBIT A TO THE MEMORANDUM OF UNDERSTANDING Groundwater Sustainabili_ty_Agencies --VINA SUB BASIN \ 1 3/ VINA SUBBASIN, 1. 1 1 C, Roc'k Creek ReaIm'atibn District : 1 3,... *.$

8 EXHIBIT A TO THE MEMORANDUM OF UNDERSTANDING Groundwater Sustainabili_ty_Agencies --VINA SUB BASIN \ 1 3/ VINA SUBBASIN, C, Roc'k Creek ReaIm'atibn District : 1 3,... *. - Hydrography, FE] Rock Creek Reclamation District W/A City Limits (Chico) --- Bulletin 118 Subbasin - VINA. a ; Spheres Of Influence (Chico) F7 Butte County Boundary.i: t:.. 2 City of Chico e rl \ \\ f BCWR - October 2016 ' Sourcet E.Ti, Delorm,

Butte County Board of Supervisors Agenda Transmittal

Butte County Board of Supervisors Agenda Transmittal Clerk of the Board Use Only Agenda Item: 3.38 Subject: Resolution to Establish the Butte County Groundwater Sustainability Agency in the West Butte