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HomeMy WebLinkAboutStaff Report 4.A 09/19/2005CITY OF PETALUNIA, CALIFORNIA AGENDA BILL Agenda Title: Resolution Approving a Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impairment: Determining The Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impainnent Will Not Have a Significant Adverse Effect on The Environment; Authorizing The Community Development Director to File a Notice Of Exemption; and Authorizing and Directing The Mayor to Execute The Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impainnent C l —• — •— 1,1 Meeting Date: September 19, 2005 Meeting Time: © 3:00 PM ❑ 7:00 PM Cate2ory (check one): ❑ Consent Calendar ❑ Public Hearing ® New Business ❑ Unfinished Business ❑ Presentation Department: Director: Water Resources & Michael Ban, P.E. Conservation ft— Cost of Pronosal: $0 Amount Budgeted: N/A Attachments to Agenda Packet Item: Contact Person: Phone Number: Michael Ban, P.E. 778-4487 Account Number: N/A Name of Fund: N/A Attachment A — Sonoma County Water Agency Resolution No. 05-0007 Attachment B — New Impainnent MOU Attachment C — Notice of Exemption Resolution Summary Statement: The existing Impairment Memorandum of Understanding (MOU), which allocates the available water delivery capacity in the Sonoma County Water Agency's Water Transmission System to its water contractors, expires on September 30, 2005. The New Impainnent MOU allocates the available water delivery capacity through September 2008. Recommended City Council Action/Suggested Motion: City Management recolmnends the City Council approve the resolution for the memorandum of understanding regarding water transmission system capacity allocation during temporary impairment. Reviewed by Admin. Svcs. Dir: Date: K lel r odav's Date: August 26, 2005 Reviewed by City Attornev: Date: Revision # and Date Revised: # Approved tv Manager: 0TDate: File Code: S\WR&C\Water\6110 Source of Supply\I0 Master Agreement\City Council\2005\Sept 19\mou agenda bill CITY OF PETALUMA, CALIFORNIA SEPTEMBER 19, 2005 AGENDA REPORT FOR RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT: DETERMINING THE MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT WILL NOT HAVE A SIGNIFICANT ADVERSE EFFECT ON THE ENVIRONMENT; AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO FILE A NOTICE OF EXEMPTION; AND AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE THE MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT EXECUTIVE SUMMARY: The existing Impairment Memorandum of Understanding (MOU), which allocates the available water delivery capacity in the Sonoma County Water Agency's Water Transmission System to its water contractors, expires on September 30, 2005. The New Impairment MOU allocates the available water delivery capacity through September 2008. City Management recommends the City Council approve the resolution for the memorandum of understanding regarding water transmission system capacity allocation during temporary impairment. 2. BACKGROUND: Impairment MOU The Sonoma Cotmty Water Agency (Agency) amnially provides approximately 57,000 acre-feet of potable water to Petaluma, Santa Rosa, North Marin Water District, Cotati, Rolmert Park, Valley of the Moon Water District, Forestville County Water District, and Sonoma through the Eleventh Amended Agreement For Water Supply, which was executed in January 2001. The Agency also provides approximately 8,000 acre-feet of potable water annually to the Marin Municipal Water District through a separate agreement. The Agency's Water Transmission System consists of a network of reservoirs, pipelines, pump stations and storage tanks with a daily peak capacity of 84 million gallons per day (mgd). In 1993, the Agency began working on the Water Supply and Transmission System Project (WSTSP), which is designed to increase the peak capacity of the Transmission System to 149 mgd. In 1999, peal: daily flowrates reached 81 mgd. At that time it became apparent that the Agency was not going to be able to construct the WSTSP in a timely manner and increase the delivery capacity of the Transmission System. In December 1999, the Agency Board of Directors adopted Resolution No. 99-1564 declaring that the reliable surmnertime water production capacity of the Transmission System is temporarily impaired by being limited to an average monthly capacity of 84 million gallons per day (mgd). In March 2001, the Agency executed the Afemorandwn of Understanding Regarding if'ater Transmission Svsteni Capacity Allocation During Tempora, hnpairment (Impairment MOU) with Cotati, Petaluma, Rohnert Park, Santa Rosa, Sonoma, Forestville Water District, North Marin Water District, Valley of the Moon Water District, Marin Municipal Water District and Town of Windsor. The purpose of the Impairment MOU was to establish a procedure for addressing periods of temporary impairment in order to optimize allocation of the available supply and avoid the necessity of having to impose water delivery curtailments. The key provision of the Impairment MOU was the establishment of maximum average day in month delivery rates for each signatory for the years 2000 through 2005. The Impairment MOU expires on September 30, 2005. New Impairment MOU In February 2004, the Water Advisory Committee (WAC) began negotiating a New Impairment MOU with the Agency in anticipation of the expiration of the Impairment MOU on September 30, 2005. On January 4, 2005, the Agency Board of Directors adopted Resolution No. 05-0007 again declaring that the Transmission System is temporarily impaired and directing their General Manager to continue negotiating a New Impairment MOU (Attachment A). Negotiations on the New Impairment MOU proceeded through June 2005. hi July, the Final New Inpainnent MOU was completed (Attaclunent B). Key provisions of the New Impairment MOU include: Effective until September 30, 2008 (unless amended) Allocates 92 mgd of available capacity in the Transmission System to the water contractors and other customers (the Agency anticipates completing construction of Collector No. 6 in 2005/2006, which will increase the Transmission System's capacity from 84 mgd to 92 mgd). Retains Petal una's legal entitlement to the full 21.8 mgd of capacity provided for in the 11" Amended Agreement for Water Supply. Establishes a Special Operations Group to optimize coordinated operation of the Transmission System. The New Impairment MOU establishes Petaluma's maximum flowrate at 17.1 mgd. This is an increase of 7% above the current MOU limit of 16.0 mgd. The average daily flowrate for the peals month in 2005 was 12.2 mgd. No additional structures will be constructed to increase the capacity of the Transmission System before the New hmpainment MOU expires in September 2008. By this time, Collector No. 6 will have been in operation for three summers. This will give the Agency an opportunity to further evaluate the peak capacity of the Transmission System and determine if it can handle flowrates higher than 92 mgd. If the Transmission System can handle tlowrates higher than 92 mgd, then the new peals capacity of the Transmission System will be the basis for allocating capacity in a new MOU, which would become effective after September 2008. Notice of Exemption The New Impairment MOU is exempt from the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations Section 15061(b)(3) because it does not change the delivery entitlement of any customer of the Agency and does not authorize the construction of any new facilities. Following City Council approval of the New Impairment MOU, a Notice of Exemption will be filed with the County Cleric (Attachment C). ALTERNATIVES: Alternatives available for this action include: 1. Adopt the resolution. 2. Take other action as directed by the City Council. 4. FINANCIAL IM PACTS: There are no anticipated additional costs associated with the New Impairment MOU. 5. CONCLUSION: Since the Agency is unable to deliver the water delivery entitlements proscribed in the l lm Amended Agreement, the New Impairment MOU serves as the legal instrument for allocating the available capacity in the Transmission System to the Agency's water contractors. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION: Delivery of potable water to Petaluma's water customers. RECOMMENDATION: City Management recommends the City Council approve the resolution for the memorandum of understanding regarding water transmission system capacity allocation during temporary impairment. 4 ►_v�_�y:I►Ip)►rr_ SONOMA COUNTY WATER AGENCY RESOLUTION NO. 05-0007 4 THE WITHIN INSTRUMENT IS A CORRECT COPY OF THE ORIGiNAL ON FILE IN THIS OFFICE. ATi --JAN 0 tt 2005 EEVE T. LEWIS. County Clerk a ex-0160b BQrNk_ot_A Bvnrd o7 ASG the run UL #9 Resolution No. 05-0007 County Administration Bldg. Santa Rosa, CA Date: January 4, 2005 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SONOMA COUNTY WATER AGENCY FINDING AND, DECLARING. THAT THF- CAPACITY OF THE WATER TRANSMISSION SYSTEM IS TEMPORARILY IMPAIRED, AND DIRECTING THE GENERAL MANAGERICHIEF ENGINEER TO CONTINUE NEGOTIATIONS OF A NEW MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING THE TEMPORARY IMPAIRMENT. WHEREAS, the Sonoma County Water Agency (Agency) operates a water transmission system pursuant to the Eleventh Amended Agreement for Water Supply dated January 26, 2001, between the Agency and eight cities and water districts in Sonoma and Marin Counties; and . WHEREAS, the Eleventh Amended Agreement for Water Supply assumes that the transmission system can deliver water at an average rate during the peak month of 136.1 million gallons per day (mgd); and WHEREAS, on March 1, 2001, the Chair of the Board signed the Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impairment (impairment MOU) allocating capacity during the summer months; and WHEREAS, the Impairment MOU is scheduled to terminate an September 30, 2005; and WHEREAS, Collector No. 6 and its connecting pipeline are projected to be placed into service by the summer of 2005, increasing the reliable monthly summertime production capacity of the transmission system to 92 mgd; and WHEREAS, 92 mgd is significantly less than the total delivery limits contained in the Eleventh Amended Agreement (136.1 mgd), and thus the capacity of the Agency's transmission system will be temporarily impaired even after Collector No. 6 and its connecting pipeline become fully operational; and WHEREAS, the Agency received a request from the Chair of the Water Advisory Committee requesting an extension of the Impairment MOU; and WHEREAS, Agency staff are negotiating a new Impairment MOU with the water contractors, Town of Windsor, and Marin Municipal Water District; and NewXmt�vmrel H014 R1-1 1:W1 CLkAGENDAWI56PEGLAR£ IMPAiRM9W AGENDA Rrr RN.DDC FILE: WCJ60-0-7 6 WHEREAS, if negotiations for the new impairment MOU are unsuccessful, the Agency may be required to allocate water supplies during the peak summer months pursuant to the curtailment provisions of the Eleventh Amended Agreement and its agreements with Windsor and Marin Municipal. ' NOW, THEREFORE, BE IT RESOLVED that the Board of directors of the Sonoma County Water Agency hereby finds,'determines, and declares as follows: 1. All of the above recitals are true and correct. 2. Effective as of the date that Collector -No. 6 and its connecting pipeline are fully operational, the reliable water production capacity of the water transmission system is temporarily impaired, and Is limited to a reliable delivery capacity of 92 million gallons per day (mgd) as a result of the temporary impairment. 3. Effective as of the date that Collector No. 6 and its connecting pipeline are fully operational, the temporary impairment of the transmission system identified in Resolution No. 99-1564 shall no longer exist. 4. The General Manager/Chief Engineer is memorandum of understanding regarding during the temporary impairment period. DIRECTORS: BROWN KERNS SMITH Ayes -5 Noes Absent Abstain IAU1CLUGEN0ANT,U5CioECLARE IMPAIRMENT AGENDA RPT REV.DDC directed to continue negotiations of a new water transmission system capacity allocation KELLEY REILLY SO ORDERED. R1-2 fILE: tvG60-4-7 MOU-Memorandum of Understanding, RegarzGng Water Trensrnisslon System Capacity Allocation During Temporary Impairment NEW IMPAIRMENT MOU Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impairment This Memorandum is made by and between the following public agencies: SONOMA COUNTY WATER AGENCY (Agency) CITY OF COTATI (Cotati) CITY OF PETALUMA (Petaluma) CITY OF ROHNERT PARK (Rolmert Park) CITY OF SANTA ROSA (Santa Rosa) CITY OF SONOMA (Sonoma) FORESTVILLE WATER DISTRICT (FWD) NORTH MARIN WATER DISTRICT (NMWD) VALLEY OF THE MOON WATER DISTRICT (VOMWD) MARIN MUNICIPAL WATER DISTRICT (MMWD) TOWN OF WINDSOR (Windsor) SECTION 1 - RECITALS (a) The Sonoma County Water Agency (Agency) was created by California state legislation (Statutes of 1949, Chapter 994 as amended). The Agency operates and maintains a water supply and transmission system (Transmission System) authorized by the Eleventh Amended Agreement for Water Supply (Eleventh Amended Agreement) between and among the Agency and eight public entities: Cotati, Petaluma, Rohnert Park, Santa Rosa, Sonoma, FWD, NMWD, VOMWD, dated October 25, 1974 and last amended January 26, 2001, by means of which water is fiunished to the parties thereto. The Agency furnishes water to Windsor pursuant to the application for water service approved on April 1, 1987. Windsor is one of the Agency's "other Agency customers" as that term is defined in the Eleventh Amended Agreement. The Agency furnishes water to MMWD pursuant to the Third Amended Offpeak Water Supply Agreement and Agreement for Sale of Water Between the Sonoma County Water Agency and Mann Municipal Water District both of which were last amended by the Supplemental Water Supply Agreement dated January 25, 1996 (MMWD Agreements). (b) The Agency has proposed a Water Supply, Transmission, and Reliability Project (WSTRP). As of the date of this agreement, the Agency is preparing an environmental impact report for the project. The objective of the WSTRP is to provide a safe, economical, and reliable water supply to meet the defined future needs of the Agency's service area. If the WSTRP is approved by the Agency's Board of Directors and the new facilities described therein are fully permitted, constructed, and operational, it is estimated that the WSTRP will increase the amount of water that can be diverted by the Transmission System from the Russian River (a combination of re -diversion of stored water and direct diversion of available flows) to approximately 101,000 acre-feet per year, and increase the Transmission System's delivery capacity from 92 million gallons per day (mgd) to approximately149 mgd. (c) All of the facilities authorized by the Eleventh Amended Agreement have not been constructed. Limitations exist in the existing Transmission System, which may preclude reliable delivery of some of the delivery entitlements enumerated in Sections 3.1 and 3.2 of the Eleventh Amended Agreement. (d) On January 4, 2005 the Board of Directors of the Agency adopted Resolution No. 05- 0007 declaring that the capacity of the water transmission system is temporarily impaired. One of the projects authorized by the Eleventh Amended Agreement as well as prior agreements is Collector No. 6 - a portion of the 20 mgd of collector capacity defined in Section 1.1(s) of said agreement. As of the date of this MOU, installation of Collector No. 6 is nearly completed and it is projected to be placed in service in the fall of 2005. This project and its connecting pipeline are designed to achieve a reliable monthly surmnertime production capacity of 92 mgd from the Transmission System. (e) The highest Peak Demand measured during an Agency billing month was 80 mgd in August 2000. Although year-to-year increases in Peak Demand are highly variable due to variations in summer weather, the average annual increase in Peak Demand historically has been approximately 2 mgd. Due to the temporary impairment of the Transmission System capacity, the water production capacity of the Transmission System may be exceeded during Sumner Months if Peak Demand continues to increase as it has historically. (f) Section 3.5 of the Eleventh Amended Agreement provides how water will be apportioned in the event of a temporary impairment of the capacity of the Transmission System. (g) Since August of 2001, the parties to this MOU have been negotiating a new agreement, termed the Restructured Agreement for Water Supply (Restructured Agreement) to replace the Eleventh Amended Agreement. (h) The parties recognize that in the near tern during periods of high demand usually caused by high temperatures, the deficiency in reliable Transmission System capacity may cause potable water storage tank levels to become unacceptably low and unable to recover in response to each day's demand. The parties further recognize that the best interim management option to counter and reverse declining storage tank water levels is for the Agency's customers to: (1) use Standby Local Supply Production Capacity and/or (2) reduce demand on the Transmission System by shifting or temporarily delaying key large components of demand, such as large irrigation accounts on automatic control systems. 10 SECTION 2 - DEFINITIONS The terms used in this MOU that are defined in Section 1.1 of the Eleventh Amended Agreement shall have the meaning set forth in said Section 1.1. In addition, the following terms are defined for this MOU: (a) "Standby Local Supply Production Capacity" means the potable water capacity from surface supply lakes or wells that the parties to this agreement (other than the Agency) can produce from their own facilities. Such production capacity may be: (1) sources of supply permitted by the California Department of Health Services for regular and normal use but are standing idle or are not being fully utilized at the time a hot spell event occurs or, (2) well water sources which are permitted for use for short periods of time during emergencies. (b) "Peale Demand" means the average day demand in mgd during the maximum use summer month. (c) "Special Operations Group" is the group described in Section 5 hereof. (d) "Summer Months" means June, July, August and September. Measurements of use during Summer Months are based on an Agency billing month, which may vary by several days from the calendar period of an actual month. (e) "Periods of Temporary Impairnment," mean the Summer Months occurring during the term of this MOU when the Transmission System is capable of reliably delivering an average of no more than 92 mgd in a month, as solely determined by the Agency. SECTION 3 - PURPOSE The purpose of this MOU is to establish an equitable allocation of 92 mgd of water from the Transmission System during Periods of Temporary Impairment and to implement a special operational response in order to optimize allocation of the available supply, coordinate Standby Local Supply Production Capacity, to avoid the necessity for the imposition of the water delivery curtailments prescribed by Section 3.5 of the Eleventh Amended Agreement, or, if adopted, Section 3.5 of the Restructured Agreement, to provide greater certainty for water contractors, and to set forth the necessary cooperative actions and planning to mitigate or avoid the consequences of Periods of Temporary hnpairnent. All other terms and conditions of the Eleventh Amended Agreement or, if adopted, the Restructured Agreement, shall remain in full force and effect. In the event the Restructured Agreement becomes approved during the term of this MOU, the allocations set forth in Table 1 of this MOU shall continue to apply during the term of this MOU and shall govern allocation of water during Periods of Temporary hnpairment. 11 SECTION 4 - TEMPORARY DELIVERY CAPACITY ALLOCATION (a) The purpose of this MOU is set forth in Section 3. It is not the intent of this MOU to diminish the delivery entitlements set forth in Sections 3.1, 3.2 and 3.3 of the Eleventh Amended, or if adopted, Sections 3.1, 3.2 and 3.3 of the Restructured Agreement; nor shall expansion of the average daily potable water capacity in mgd that the parties to this MOU, other than the Agency, can reliably produce throughout the Summer Months from their own facilities, or the implementation of any water conservation action, program or project or implementation or expansion of any recycled water project that reduces potable water demand on the Transmission System by any party to this MOU diminish said delivery entitlements. (b) During the tern of this MOU, whether or not the Restructured Agreement is fully executed, each of the parties to this MOU agrees to use its best efforts to limit its demand on the Transmission System during Periods of Temporary Impairment to the applicable rates set forth in Table 1. Table 1 Peale Demand Allotments for Summers of 2006 through 2008 Mgd Cotati 1.9 Petaluma 17.1 Rohnert Park 5.4 Sonoma 3.8 Santa Rosa 39.1 Town of Windsor 1.5 Valley of the Moon WD 4.9 I Forestville WD 0.9 Other Agency Customers (1) 1.7 North Marin Aqueduct (2) 15.7 Total 92.0 Notes: (1) Forestville WD and Town of Windsor are shown separate from Other Agency Customers. (2) Apportionment of deliveries into the North Marin Aqueduct is governed by the agreement: Intertie Agreement Between NMWD and MMWD dated March 11, 1993. (c) During Periods of Temporary Impairment, the liquidated damages provided for in Section 3.3(b) of the Eleventh Amended Agreement, or, if adopted, Section 3.13 of the Restructured Agreement, shall apply. Liquidated damages will be assessed only if a party takes water from the Transmission System in an amount in excess of its average during month delivery limits as set forth in Sections 3.1, 3.2 and 3.3 of the Eleventh Amended Agreement or, if adopted, the Average Daily Rate of Flow Dining Any Month delivery limits as set forth in Sections 3.1, 3.2 12 and 3.3 of the Restructured Agreement. The parties further agree, however, that the provisions of Sections 3.1(c) and (d) of the Eleventh Amended Agreement or, if adopted, Sections 3.1(c) and (d) of the Restructured Agreement, shall not apply during the 12 -month period following the date this MOU is terminated. (d) Table 1 may be amended by the affirmative vote of more than fifty percent (50%) of the total weighted voting power which must be cast by at least seven of the parties to this MOU, or their authorized representatives. For the purpose of this paragraph, all of the parties to the Eleventh Amended Agreement, except the Agency, shall have weighted voting power proportional to their average during month water delivery entitlement expressed in mgd as set forth in Section 3.1 of the Eleventh Amended Agreement. The Agency, Windsor and MMWD shall have weighted voting power proportional to 1.2 mgd, 1.5 mgd and 3.8 mgd, respectively. Should the parties hereto that have Table 1 allocations less than the delivery entitlements provided in Sections 3.1, 3.2 and 3.3 of the Eleventh Amended Agreement or, if adopted, Sections 3.1, 3.2 and 3.3 of the Restructured Agreement require more transmission system capacity, same shall be accommodated to the extent that transmission system capacity supplied by the Agency is available. (e) Table 1 does not address limitations in aqueduct capacity. The maximum capacity downstream of Ely Booster is limited and, consistent with the provisions of the Eleventh Amended Agreement, flows are subject to detailed operating procedures set by Petaluma, NMWD, MMWD and the Agency. It is the intent of these procedures to preserve the depth of water storage in the Agency's Kastania Tank above 15 feet for the benefit of Petaluma. Maximo n capacity of the Amiadel-Sonoma Aqueduct is limited and flows are subject to detailed operating procedures set by Sonoma, VOMWD and the Agency. It is the intent of these procedures to preserve storage in the Agency's Sonoma Tanks and to assure optimal flow and pressure conditions in the Sonoma Aqueduct. (f) The parties agree that consideration of constriction of the following facilities are of the highest priority; and, subject to environmental review, funding and all applicable laws and regulations, including the applicable conditions of the Eleventh Amended Agreement or, if adopted, the Restructured Agreement, the Agency agrees to use best efforts to cause these planned facilities to be completed so that the following objectives can be met at the earliest possible date: 1. To alleviate shortages in diversion capacity, construction of Collector 6. 2. To alleviate shortages south of Ely Booster Station on the Petaluma Aqueduct, construction of the South Transmission System Project. 3. To alleviate shortages south of Eldridge Tanks on the Sonoma Aqueduct, construction of the aqueduct segment between Eldridge Tanks and Madrone Road. 4. To alleviate shortages south of Oakmont, construction of a portion of the Annadel— Sonoma pipeline from Pythian Road to Henno Road pipeline. 5. To alleviate storage shortages, constriction of Kawana Tank II facilities. (g) The parties further agree that it is a high priority to achieve and maintain 20 mgd of standby pump and collector capacity as authorized by the Eleventh Amended Agreement, and the 13 Agency agrees, subject to environmental review, funding and all applicable laws and regulations, including the applicable conditions of the Eleventh Amended Agreement or, if adopted, the Restructured Agreement, to use best efforts to achieve this objective by completing the necessary facilities at the earliest possible date. During the term of this MOU, the General Manager or City Manager of each party, or his or her designee, shall designate a representative for a Special Operations Group, which shall meet as frequently as necessary. The Special Operations Group shall be headed by a representative of the Agency and shall be comprised of key operations personal. The chief mission of the Special Operations Group shall be (1) to optimize coordinated operation of the Transmission System and Local Supply Production Capacity, and (2) to coordinate and implement potential voluntary water demand reductions, for the purpose of meeting the reasonable needs of the Regular Customers and MMWD. The Special Operations Group shall: 1. Identify, quantify and categorize Local Supply Production Capacity facilities of each of the parties. 2. Examine prior weather conditions and other appropriate records and data, and design appropriate responses to various weather scenarios. 3. Identify significant water users whose demand could be temporarily reduced, establish communications with account operations staff, and develop a cooperative voluntary means of reducing demand. Initially this effort should target irrigation sites owned by the parties or other government agencies. 4. Work cooperatively in the event that demands on the transmission system exceed capacity to implement a suitable response based upon use of Local Supply Production Capacity and reducing demands on the transmission system. SECTION 6 — OTHER EFFORTS (a) The parties agree to maintain active membership in the California Urban Water Conservation Council and implement the urban water conservation Best Management Practices as established and from time to time amended by said Council. (b) Each party hereto expresses its intent to actively pursue and implement water conservation measures designed to reduce demand on the Transmission System during the Sunnier Months throughout the term of this MOU. Annually, on a date to be set by the Chairperson of the Water Advisory Conunittee, the parties hereto shall be surveyed and report in writing and describe specific measures implemented and progress achieved in reducing demand on the Transmission System dicing the Surnmer Months. 14 SECTION 7 - WAIVER OF RIGHTS By signing this MOU, the parties do not waive or relinquish any legal or equitable right that they might otherwise have with respect to any of the actions, activities or obligations contemplated by the Eleventh Amended Agreement or, if executed, the Restructured Agreement, except to the extent specifically superseded by this MOU. SECTION 8 - AMENDMENT OF MOU Except as expressly authorized in Sections 4(d) and 11, amendments, revisions or modifications to this MOU shall be in writing and shall be executed by all parties to this MOU. SECTION 9 - THIRD PARTY CLAIMS It is not the intent of the parties to this MOU to create any third party beneficiaries. Any failure to perform under the terms of this MOU shall not create any claim or right by any individual or entity not a party to this MOU. SECTION 10 - ENTIRE AGREEMENT This writing is intended both as the final expression of agreement between and among the parties hereto with respect to the included ternls and as a complete and exclusive statement of the terms of the MOU, pursuant to Civil Code § 1856. SECTION 11 - TERM OF MOU The Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Periods of Temporary Impairment, dated March 1, 2001 shall tenninate and this MOU shall become effective upon the signature of the parties hereto and shall remain in effect until September 30, 2008 unless terminated earlier by a vote of more than fifty percent (50%) of the total weighted voting power which must be cast by at least seven of the parties to this MOU. Voting power shall be the same as defined in Section 4(d) hereof. For the purposes of this section, votes shall be cast by resolution adopted by the governing board of each voting party and shall be delivered to each of the parties hereto. Not later than July 1, 2007, the parties agree to meet, review and consider the reliable capacity of the Transmission System and Local Supply Production Capacity and other pertinent factors, and determine whether or not and under what terns this MOU should be extended. Extension of this MOU is not subject to weighted voting and shall require the approval of all the parties hereto. 15 SONOMA COUNTY WATER AGENCY By: ATTEST: Deputy County Clerk CITY OF COTATI By: Mayor ATTEST: City Clerk CITY OF PETALUMA By: Mayor ATTEST: City Clerk- CITY lerkCITY OF ROHNERT PARK By: Mayor ATTEST: Date: Date: Date: Date: 16 City Clerk CITY OF SANTA ROSA By: Date: Mayor ATTEST: City Clerk CITY OF SONOMA By: Date: Mayor ATTEST: City Clerk FORESTVILLE COUNTY WATER DISTRICT By: President ATTEST: Secretary Date: 17 NORTH MARIN WATER DISTRICT By: Date: President ATTEST: Secretary is VALLEY OF THE MOON WATER DISTRICT By: Date: President ATTEST: Secretary MARIN MUNICIPAL WATER DISTRICT By: Date: President ATTEST: Secretary TOWN OF WINDSOR By: Date: Mayor ATTEST: Town Clerk 19 F.Ay VAT, 10 11009140w,- IN NOTICE OF EXEMPTION 20 NOTICE OF EXEMPTION To: _ Office of Planning & Research From: CITY OF PETALUMA 1400 Tenth Street, Room 121 11 English Street Sacramento, CA 95814 Petaluma, CA 94954 X County Clerk County of Sonoma Santa Rosa, CA 95401 Project Title: Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impairment Project Location : Sonoma and Marin counties Description of Project: The Memorandum of Understanding Regarding Water Transmission System Capacity Allocation During Temporary Impairment (MOU) is an agreement between Sonoma County Water Agency (SCWA) and its primary customers. To address deficiencies in the reliability of SCWA's transmission system capacity during the peak summer months, the MOU requires the customers to use their best efforts to limit demand on SCWA's transmission system to certain specified amounts. The MOU does not change the amount of water to which any customer of SCWA is contractually entitled, or authorize the construction of any new facilities. Name of Public Agency Approving Project: City of Petaluma Name of Person or Agency Carrying Out Project: City of Petaluma Exempt Status: California Code of Regulations, Title 14, Chapter 3, Section 15061(b)(3) Reasons why project is exempt: There is no possibility that the MOU would result in a significant effect on the environment, because the agreement does not change the delivery entitlement of any customer of SCWA and does not authorize the construction of any new facilities, and thus will have no direct or indirect environmental impacts. SCWA's existing agreements with its customers provide for an allocation of capacity during periods of temporary impairment. The allocations set forth in the MOU represent the allocations agreed to by SCWA's customers as appropriate under the terms of the existing agreements. Deliveries under the MOU will thus not differ materially from those under existing agreements. The MOU will thus not result in a direct or indirect physical change in the environment. Lead Agency Contact Person: Signature: X Lead Agency Applicant Date Received for filing at OPR: Area Code/Telephone: Date: Title: 21 22 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING A MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT; DETERMINING THAT THE MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT WILL NOT HAVE A SIGNIFICANT ADVERSE EFFECT ON THE ENVIRONMENT; AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO FILE A NOTICE OF EXEMPTION; AND AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE THE MEMORANDUM OF UNDERSTANDING REGARDING WATER TRANSMISSION SYSTEM CAPACITY ALLOCATION DURING TEMPORARY IMPAIRMENT WHEREAS, the City of Petaluma ("City") and the Sonoma County Water Agency ("Agency") are parties to the Eleventh Amended Agreement for Water Supply ("the Eleventh Amended Agreement"), under which the Agency supplies potable water to the City and to other cities and districts (the "primary customers"); and WHEREAS, the Agency and its primary customers including the City, are parties to an existing Memorandum of Understanding Regarding Transmission System Capacity Allocation During Temporary hnpainnent (the "Existing MOU"), which allocated 84 million gallons per day (mgd) of transmission system capacity during the summer months among the primary customers; and WHEREAS, in February 2004, the Agency and its primary customers began negotiating a new Impairment MOU; WHEREAS, on January 4, 2005 the Board of Directors of the Agency adopted Resolution No. 05-0007 declaring that effective as of the date that Collector No. 6 and its connecting pipeline are fully operational, the reliable water production capacity of the water transmission system is temporarily impaired, and is limited to a reliable delivery capacity of 92 mgd as a result of the temporary impairment; and WHEREAS, the Agency and its primary customers have negotiated a new Memorandum of Understanding Regarding Transmission System Capacity during Temporary Impairment (the "New MOU"), which allocates 92 mgd of transmission system capacity during the summer months among the Agency's primary customers; and WHEREAS, execution of the New MOU will give the Agency's primary customers, including the City, greater certainty with respect to the amount of water available for delivery during the sununer months; and WHEREAS, City staff have reviewed the New MOU and have determined that it is exempt from the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations (Section 15061(b)(3)) because it can be seen with certainty that there is no 23 possibility that approval of the Extended MOU may have a significant effect on the environment, for the reasons set forth in the Notice of Exemption; and WHEREAS, City staff has prepared a Notice of Exemption for the New MOU in accordance with CEQA and the State CEQA Guidelines; and WHEREAS, approval and execution of the New MOU is in the interest of the City and in the public interest; NOW THEREFORE BE IT FURTHER RESOLVED, by the City Council that: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 2. Approval of the Memorandum of Understanding Regarding Transmission System Capacity during Temporary Irnpainnent is exempt from the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations (Section 15061(b)(3)) because it can be seen with certainty that there is no possibility that such approval will have a significant effect on the environment. 3. The Memorandum of Understanding Regarding Transmission System Capacity during Temporary Impairment is approved. 4. The Mayor is directed and authorized to execute the Memorandum of Understanding Regarding Transmission System Capacity during Temporary Impairment and that the Mayor is authorized to approve minor, administrative changes to said document, if any. 5. The Comnnmity Development Director is authorized and directed to file a Notice of Exemption with the County Clerk in accordance with provisions of the California Environmental Quality Act. 6. This Resolution shall become effective immediately. 7. All portions of this Resolution are severable. Should any individual component of this Resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining Resolution portions shall be and continue in full force and effect, except as to those Resolution portions that have been adjudged invalid. The City Council of the City of Petaluma hereby declares that it would have adopted this Resolution and each section, subsection, clause, sentence, phrase and other portion hereof, irrespective of the fact that one or more section subsection, clause sentence, phrase or other portion may be held invalid or unconstitutional. 24