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HomeMy WebLinkAboutAgenda Bill 09.B.1 02/24/2003~ FEB 2 4 2003 4 4 1 R CITY OF PETALUMA, CALIFORNIA AGENDA BILL Agenda Title Discussion and Possible Direction Regarding the Meeting Date: February 24, 2003 Sonoma County Water Agency's Draft Water Policy Statement . Department Water ' Director : Contact Person Phone Number Resources & Michael Ban Michael Ban 778 -4304 Conservation r Cost of Proposal N/A Account Number N/A Amount Budgeted N/A Name of Fund: N/A Attachments to Agenda Packet Item Agenda Bill Appendix A — Revised Draft Water Policy Statement (SCWA) Appendix B — Proposed Comments on Revised Draft Water Policy Statement Summary Statement The Agency periodically declares it's "water policy" to assist Agency Staff and the oard of Directors in developing and'operating its varied programs. These declarations are generally rompted by changes in circumstances, responsibilities or operations at the Agency. The Agency's current Water Policy was issued in 1991 to document the changing nature of the Agency's roles and responsibilities. Specifically, the 1991 Water Policy described the4need to expand the Agency's water transmission system and the need to secure additional appropriative water rights to meet increasing water demands. in,lVlarch 2002, the Agency formally presented the most recent. version of its Draft Water Policy Statement (Water Policy). The Revised.Draft Water Policy was issued,in December 2002 and presented to the Sonoma County Board of Supervisors at.a workshop on December 16, 2002. The Agency requests that comments on the Revised Draft Water Policy be submitted by February 28, 2003. Council Priority THIS AGENDA ITEM IS CONSIDERED To BE PART OF, OR NECESSARY To, ONE OR MORE,OF THE 2001 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JULY 21, 2001. Priority(s): N/A Recommended City Councif Action /Suggyested Motion City Management recommends' the City Council consider .and discuss the Water Policy, and direct City Management to submit comments on the Water Policy as proposed :in Appendix B and as may be amended by the Council. Reviewed by Finance Director: Reviewed by City.Attorney Date: Approved bv/(;itv Mana er: Date: Date: Today's Date February 12, 20.03 Revision # and Date Revised ": File Code: S: \water resources & conservation \Water \6110 Source of Supply\20 water agency contractors \water policy statement\ci council - 2 -24-03 \agenda bill cover.doc • CITY OF PETALUMA CALIFORNIA FEBRUARY 24, 2003 AGENDA REPORT FOR DISCUSSION AND POSSIBLE DIRECTION REGARDING THE SONOMA COUNTY WATER AGENCY'S REVISED DRAFT WATER POLICY STATEMENT 1. EXECUTIVE SUMMARY The Agency periodically declares ;it's "Water policy" to assist Agency Staff and the Board of Directors in developing and operating its varied programs. These declarations are generally prompted by changes in circumstances, responsibilities or operations at the Agency. The Agency's current Water Policy was issued in 1991 to document the changing nature of the Agency's roles and responsibilities. Specifically, the 1991 Water Policy described the need to expand the Agency's water , transmission system and the need to ,secure additional appropriative water rights to meet_ increasing water demands. In March 2002, the Agency formally presented the most recent version of its Draft Water Policy Statement (Water Policy). The Revised Draft Water Policy was issued. in December -2002 and presented. to the, Sonoma : County-Board of. Supervisors at a workshop on December 16, 2002. The Agency requests that comments on the Revised Draft. Water Policy be submitted by February 28, 2003. City Management recommends! the City. Council consider and ,discuss 'the Water Policy, and direct City Management.to submit comments on the Water Policy as proposed in Appendix B and as maybe amended by the Council. 2. BACKGROUND SONOMA COUNTY WATER AGENCY The Sonoma County Water Agency (Agency) is primarily known as a municipal water supplier. To this end the Agency',supplies water- to cities and public agencies serving the populated areas of Sonoma and Marin counties. Approximately 600,000 residents rely upon the Agency for a portion or all of their water supply. The Agency also provides wastewater management through the operation of county sanitation districts and Agency sanitation zones, flood control, recreation and electricity generation. Through the l th Amended Agreement For Water Supply', the Agency provides water to the . cities of Cotati, Petaluma, Santa Rosa, Rohnert Park, and Sonoma, and the following special ` This agreement Was executed on January 26, 2001. SAwater resources & conservation \Water \6110 Source of Supply\20 water agency contractors \water policy statement \city council - 2-24 - 03\Agenda Bill.doc purpose districts. the Forestville Water District, North Marin Water District, and the Valley of the Moon Water District. These entities are collectively referred to as the "water contractors." The water contractors are all signatory'to the 1 l th Amended Agreement for Water Supply. The Marin Municipal Water District (MMWD) also purchases water from the Agency: MMWD is not a water contractor. MMWD's purchase of Agency water is authorized'by a separate agreement with the Agency entitled "Supplemental Water. SuppiyAgreement. "' This agreement allows MMWD to purchase water from the Agency when capacity is available in the aqueduct and not being used to deliver entitlements to the water contractors. The Agency owns and operates diversion faci lities on the Russian River in the Rio Nido/Wohler Bridge area which : are supplied with water from the'natural flow of the Russian River, water stored in winter for later release from Lake Sonoma, and water stored in winter-and other. times of the year for later release from lake Mendocino. Lake Sonoma is created by,Warny Springs Dam Land ' Lake Mendocino is created by Coyote, Dam. These dams are federal projectsunder the jurisdiction of the U S'. Army Corps of Engineers. The Agency contracts with thel Corps for water stored and - released from the water supply pool, of each dam. Lake'Mendocino also recaptures water .released into'Potter:Valleyby P.G. & E., which operates a hydropower generation`station at the head ofPotter Valley: 'Water for the power stationis diverted through a tunnel from the South ;;Fork of°the Eel,River via the Cape Horn Damn regulation fdd lity. Power productiomis optimized by the storage °of watenin Lake Pillsbury (created • by'Scott'Darri) located, on the South Fork Eels, River: Using the natural channel of:Dry Creek ,and "the Russian River; the Agency diverts water`from the Russian River nearWohler Bridge via five Ranney collector wells. Each Ranney collector well consists of a 13 -foot inside •dia_ meter with 16 -foot outside diameter concrete':aissor extbi:idffig 80 to 100 -feet, d6epll into the grPerforated horizontal `intake pipes . extend radially from the bottom ofe each caisson to a maxmuin of 17 into the aquifef: Each collector well - . is fitted with a motor housing about 40 feet above the streanibed which -pumps water into the' aqueduct system. Water reaching.the collector has percolatedahrough.about 90- feet of natural sand and gravels making up the hed of the river. The transmission system also includes pipelines (also known as aqueducts),. storage tanks, and booster,pump stations. Water is delivered to Petaluma through the Petaluma Aqueduct, a 3`6- inch diameter = pipeline which was constructed in the early 1960s. This`pipeline, which extends from,. Santa Rosa to the southern end of.Petaluma, also provides water to :Cotati, Rohnert.Park,. North-Marin Water District. and Marin Municipal Water,District. Water. is conveyed from the Petaluma Aqueduct to the North Marin Water District, and the Mann Municipal Water District through. the North Marie Aqueduct, which was constructed in 196 1. 2 S:\waterTeSOUrCCS & conservation4ater \6110 Source of Supply\20 water agency contractors \water policy statement\city council- 2 -24- 03\Agenda Bill.doc 11 t11 Amended Agreement For Water Supply The. I 11h Amended Agreement for Water. Supply was executed on January 26, 2001. Under this agreement, the water contractors have fixed water delivery entitlements up to 133.4 million gallons per day (mgd). Petaluma's'share is 21.8 mgd. Another 2':7 mgd is set aside for other Agency customers. Furthermore, MMWD can receive up to 12.8 mgd during the peak summer months, provided it does not interfere with deliveries of entitlements to any water contractor. The agreement obligates the water contractors to pay the cost-of operating and maintaining the water transmission system. In order to meet the increase in demand established by the 11 Amended Agreement, the water transmission system must be expanded to increase its capacity from 84 mgd to 1 149 mgd. The Agreement obligates the Agency to construct certain additional facilities needed to meet the water demand increases. T1e.Agency's current rights to Russian River water are limited to a maximum of 75,000 acre - feet per year. 'In order to meet the entitlements of the 11 Amended Agreement For Water Supply.. the Agency must increase its water rights to 101,000 acre -feet per year. In Fiscal Year 01 -02, the Agency delivered 61,443 acre -feet of water to its customers. The l 0 1h Amended Agreement for Water Supply authorized construction of Collector No. 6. This project will increase the transmission: system's capacity from 84 mgd to 92 mgd. This project is under construction. Completion'i's anticipated to' occur in-early 2004. • During the summer months of 1999, ifi6 highest. eak deriian& on the Agency's transmission system was'81 . mgd which-is°over 96 0 /( of the 'system''s peak capacity. This prompted the Board. of Directors.of the Agency to adopt `Resolution No. 99456 December 7, 1.999,. declaring that liable summertime water roductronca acityof the transmission _system is currently the re p p temporarily >mpai'red by being limited to an average'monthly. capacity of 84 mgd. In response to the Agency's actions, on March 1, 2001, the water contractors, MMWD and Town of Windsor entered into an agreement'with the Agency entitled "Memorandum of Understanding Regarding Water TransmrssioriSystem Capacity All During Temporary Impairment" (MOU). The MOU supplants and augments the l l Amended Agreement For Water Supply in several ways: Local water production capability is encouraged and recognized The available Agency water.supply is allocated among the parties through the summer of 2005 Three priority projects for the new water transmission system are identified: . o Collector No. 6 o North segment of the parallel Petaluma Aqueduct from Cotati to the southern end of Petaluma o Segment of parallel Sonoma Aqueduct from Eldredge Tanks to Madrone Road. • SAwater resources &.conservation \Water \61.10 Source of Supply\20 water agency contractors \water policy statement \city council - 2-24 - 03\Agenda Bill.doc Expansion of water conservation efforts, construction of recycled waterprojects and increased. standby local supply projects that; reduce peak month water demands on the aqueduct. system are encouraged Requirement to sgn.the Memorandum of Understanding Regarding Urban Water Conservation, and join as a member of the California Urban Water Conservation Council The MOU remains in effect until September 30, 2005,. PURPOSE OF WATER POLICY STATEMENT In March. 2002, the Agency formally presented the most recent version of its Draft, Water Policy Statement (Water Policy). The.Agency periodically declares it's ``waterpolicy"to assist Agency Staff and the Board of Directors in.developingand operating its varied programs � These declarations are generally' prompted by changes in circumstances, responsibilities or operations at the Agency. The Agency's current Water Policywas issued in 1991 to , document the.changing nature of the Agen_cy's roles and respons brlities. Specifically,. the 1991 Water - Policy described the need to' expand the Agency's water transmission system and the need to secure additional appropriative water rights to meet increasing water demands. Actions that - prompted, the Agencyto issue'the. Draft Water Policy in March,2002, include: s. The Agency's assumption of responsibility for operation and-mamtenance;of county service areas and „sanrtation districts•providing wastewater servicesan.January 1'995;: • The listing of coho salmon, chinook. salmon, and steelhead by..the National _Marine: Fisheries ,Serviee; as threatened, in the Russian River Watershed and adjacent watersheds under the Federal, Endangered Species: Act (ESA); The California Fish and Game Commission's finding as warranted the.California Department of Fish. and Game' -s: recommendation to list coho salmon- as endangered under the California ESA between San.Francisco :Bay °and Punta Gorda, "including the Russian,Rver Watershed; and •. The termination of an agreement between the Agency and the Mendocino County Russian River Flood Control and Water Conservation hnprovementDistri'ct (the term of this agreement ended in March 2002), making it necessary for the agency to initiate steps to address Lake Mendocino water rights issues. A copy of the Draft Water Policy Statement is provided in Appendix A. SUMMARY OF WATER POLICY STATEMENT The Water Policy includes the Water Policy Statement and, four attachments. The, following sections briefly address ieach section. The Agency has requested. comments be submitted by February 28, 2003. SA%ti ater resources & conservation4ater \6110 Source - of Supply\20 wateragency contractors \water policy statement \city council - 2-24- 03\Agenda Bill.doc 4 • Water Policy Statement The Policy Statement begins with set of guiding principles that address safety and sustainability, environmental impact, economic efficiency, innovation, local growth decision - making, leadership, cooperation and partnership, and public participation. Among the declarative statements within the guiding principles is: "Decisions as to the appropriate levels of growth and development properly reside with the cities and counties in the Agency's service area. The Agency should provide services, to the extent possible, to accommodate planning decisions made by those agencies. The Guiding Principles are followed by a series of "Goals and Policies for Specific Agency Programs and Activities." `The format of this section,is to describe the issue or issues regarding services provided by the Agency. Once the issues are described, the "Policy" and "Direction" to address the issues are identified. For example, the issues addressed under "A. Water Supply Activities and Obligations" include: '1) Russian River Rights; 2) Water Supply, and 3) Water Demand. Water Supply Activities and Obligations — Russian River Rights • Under "Russian River Water Rights,'' the Agency's water rights are described, including an 8,000 acre - foot reservation of Lake Project water for use in Mendocino County by the Mendocino County Russian River Flood Control and Water" Conservation Improvement District; aril a 10 acre foot reseivaton for use in the Russian,River basin in Sonoma County. Regarding the reserved water, the Water Policy states: "Recent hydrological and water rights allocation, model studies performed by the Agency demonstrate that current diverters are probably taking more than these reserved amounts during 'dry years, and could greatly exceed these amounts iri extremely dry years." In response to this issue, the Water Policy directs: "Agency staff will increase efforts to quantify and monitor existing uses of Russian River and Russian.River tributary water so that the Agency's priority water rights may be enforced in times of shortage." Water Supply Activities and Obligations - Surface Water Under the issue of "Surface Water," the Water Policy describes two circumstances which will limit the Agency's ability to meet future 'water demands in its service area: 1) growth patterns and regional climate, and 2) The presence of federally protected species within the ® 5 S: \water resources & conservationMater \6110 Source of Supply\20 water agency contractors \water policy statement \city council - 2-24 - 03\Agenda Bill.doc Agency's service areas. In response to Item 2, the Agency initiated a Section 7 consultation in 1997. 0 To address the issue of historic growth patterns andvater demands, .the Water Policy directs the Agency to "evaluate the reliability of future water supplies by quantifying the anticipated available :surface water supply and the anticipated demands of the Agency's customers" upon completion of the Section 7 consultation. The,Russian River Watershed,Section 7 Consultation is expected to be completed`in August including issuance of a Biological Opinion by the National Marine Fisheries Services (NMFS). The quantification of available water supply and the anticipated water :demands were previously evaluated in the Agency's 1 99,8 EIR for the Water Supply and Transmission System Project. Though,not necessarilya directive, Directive "Hi" for Surface Water states: "The outcome of the Section 7 Consultation could result in changes to the Agency's operations that make more -or less water available:for use." Further directives with respect to Surface Water include: "vi. The Agency will renegotiate existing contracts and negotiate new water supply contracts to ensure that those; contracting with the Agency pay an appropriate share of environmental , costs associated with delivering current and future water supply; These may include environmental. permitting, compliance, mitigation, restoration,. and. enhancement costs. This statement appears to indicate that the,Ageney:believes that" "those contracting with the Agency"' are not p aying their appropri ate share -of environmental costs. Since FY 96/97 the. Water Agency Contractors and other.agencycontractors.:that pay into. the Agency 's Water. Transmission O&M Fund have;contributed,over $4 million towards the 7-Consultation and associated fisheries' research. This issue is- reiterated.in Section A.3 -Water Demand. Water Supply Activities and Obligations Recycled Water The Water Policy recognizes the importance of recycled water and describes how the use: of . recycled water�benefits watersheds fisheries, groundwater resources, and surface water supply by "decreasing, water diversions from the Russian River, its tributaries, and,groundwater basins." The Water Policy describes', several studies initiated by the Agency, including a study to evaluate the potential use of recycled water to ,enhancement of the Napa - Sonoma Salt Marsh: "Under a cooperative, agreement, the Agency's SVCSD Wastewater Treatment Plant, and potentially other wastewater treatment{plants, in the region, would supply recycled' Water to be used by the CDFG to restore and enhance the Napa- Sonoma'Salt Marsh The policy for recycled water include the following: Includes: Cotati, Petaluma, Rohnert Park, Santa Rosa Sonoma, Forestville Water District, North Marin Water District, and "Valley ofihe Water District. 6 SAwater re §ounce "s & conservation4ater\61' l0 Source of Supply\20 witef \water policy statement\city council - 2-24 - 03\Agenda Bill.doc • "The Agency will seek to allocate costs of recycled water projects equitably in proportion to the benefits that each party receives. As part of its efforts to maintain a sustainable regional water supply, the Agency will also seek to acquire rights to recycled water produced by others to offset water use where possible." The Water Policy does not describe whom the Agency will seek to acquire recycled water rights from, or how the Agency will go about acquiring the rights. Water Supply Activities and Obligations - Water Demand With respect to the water contractors, the Water Policy states one of the issues to be resolved during negotiation of the new Agreement for Water Supply is: "...clarification of the obligation of water contractors to pay appropriate shares of environmental costs associated with delivering current and future water supply such as environmental permitting; compliance mitigation, restoration, and enhancements costs..." This same issue was identified in the "Surface Water" section. The Agency's water rights within,theRussian River are ,subject an 8,000 acre -foot reservation. of Lake Mendocino Project water. which is held by Mendocino County Russian River Flood • Control and Water Conservation Improvement District (IvICID). The Water Policy states: "Mendocino County representatives have asserted some 'type of right to more than the 8,000 acre -feet of water coveredfby MCID's existing water'rights. The factual or legal basis for this claim is uncerfain. The policy directive in response to this issue is "The Agency will be prepared to initiate litigation to protect the Agency's interest in Lake Mendocino water supply." The Marin Municipal Water District (MMWD) is not a water contractor; they are not a signatory to the 11 Amended Agreement. Delivery of water to MMV;D by the Agency is covered by s upplemental water supply agreements with the Agency. MIVIVWD's rights to capacity in the Agency's trarisrni`ssion,system are subordinate to the water contractors. MMV%TD has yet to declare. whether or not it wants to become a water contractor-and a signatory to the.next water supply agreement. The Water Policy addresses this issue as follows: "...it is in the general interest of the Agency, upon unanimous support by the water contractors, to provide MMWD with the opportunity to become one of the signatories to the transmissions system agreement, thereby eliminating multiple water supply contracts." • SAwater resources & conservation \Water \6l 10 Source of Supply\20 water agency contractors \water policy statement \city council - 2-24 - 03\Agenda Bill.doc Wastewater Management.Pro -grams and Activities • After discussing "Water Supply Activities and Obligations the Water Policy addresses "Wastewater Management Programs and Activities." In 1995, responsibility for administration of county sanitation districts and county sanitation zones was transferred from the County of Sonoma to, the Agency. 'The Agency is now responsible for eleven sanitation districts and county sanitation zones that serve populations ranging from several hundred to more than 30,0.00. These are managed as financially independent enterprises of the Agency. Because the Agency's organizational structure is not suited to efficiently administer the smaller wastewater systems under its control, the Water'Policy directs the Agency'to: "...work to either(l) facilitate the transfer of sanitation systems: serving fewer than about 2,500 people to local public entities, or (2)-consolidate such.facilities in order to create systems with greater than about2,500 people." The Agency provides wastewater collection system. services to approximately 1,500 residents in the unincorporated Sonoma` County community of Penngrove (this service area is `known as •the SCWA Penngrove Sanitation Zone) Under contractwith Petaluma, wastewater from Penngrove is pumped to. Petaluma'&wastewater coll'echori system for collection, treatment anddisposal or reuse. Since the population served ds.less than 2,500, the SCWA Penngrove Sarntation'Zone would appear to qualify as one of the san>tation systems, that the Agency will work to,facrlitate. the transfer-to local public 'entit es,,:as d'e 6iibed under Item .l above. With.resReet to recycledwater, this section.of-the Water'Policy states: "Recycled wateruse could also-reduce the diversion from tributaries and streams of.the . Russian River and San Francisco Bay that provide, habitat for federally threatened species 'including steelhead, coho salmon and Chinook salmon, and also provide the primary water supply to various cities, towns, and other municipalities within the county." The Water Policy ,continues with the following: "The Agency is currently investigating potential sources of recycled water throughout the Agency's service area in both Sonoma, and Marin counties." The directive given with respect. to recycled water has. two separate parts. The first part addresses the production .of recycled water as follows: "The Agency will pursue the development of projects, including collection system and wastewater treatment °plant upgrades, recycled water projects, an d otherprojects as identified, that could eventually eliminate surface water discharges (under normal rainfall 8 S: \water resources & conservation \Water \6110 Source of Supply\20 water agency contractors \waier policy statement \city council - 2 -24- 03\Agenda;Bill.doc conditions) and fully and beneficially use all recycled water produced by wastewater treatment plants in Sonoma County." The second part addresses the acquisition of recycled water rights: "Because the Agency supplies potable water supply in Marin County, the Agency will also encourage recycled water projects in Marin County, and where possible, work to secure recycled water rights in.Marin County to be used to offset potable water use in the Agency's service area, both in Sonoma and Marin Counties." The Agency currently has access to recycled water rights through operation of its sanitation districts and zones in Sonoma County. The Water Policy discusses projects the Agency is pursuing at the Forestville Wastewater Treatment Plant, Occidental Plant, and the Sonoma Valley County Sanitation District. However, the two.statements above, and prior statements in the Water Policy, indicate that the Agency is strongly interested in controlling, or at a. greatly influencing how other agencies throughout Sonoma and Marin County manage their recycled water. The Water Policy does not recognize the extensive.recycfed water programs administered by some of the water contractors, including the Town of Windsor, Petaluma, and Santa Rosa. Flood Control Programs and Activities The Agency's flood control programs and activities include: • Operation of Lake Sonoma and Lake Mendocino; • Operation of the Central Sonoma Watershed:Proje.ct; • The construction of drainage and flood control projects through operation of its flood control zones; and • Maintenance of channels and creeks throughout its flood control zones, including sediment removal, channel clearing, vegetation maintenance and bank stabilization. Petaluma lies within the Agency's Zone 2A flood control zone. Zone 2A, along with. the Agency's other flood control zones, was created. in the early 1960s. Property taxes were set to collect sufficient funds to .finance flood control services within the zones. With passage of Proposition 13 in 1976, the funds generated under property taxes were severely cut resulting in a reduction in revenue for. the, zones. Additional assessments for Zones. lA and 2A were passed in 1986 and reapproved in 1996. The annual authorization: for these assessments extends through 2006. Since many of the Agency's flood control channels are habitat or potential habitat for the salmonid.species that.have; been ,listed.as;:threatened,under the Federal ESA, the.Agency has curtailed its maintenance activities pending completion of the' Section 7 Consultation. The Agency initiated the Section 7 Consultation for the Russian River Watershed in 1997. The • 9 SAwater resources & conservation \Water \6110 of Supply\20 water agency contractors\water policy statement \city council - 2-24 - 03\Agenda Bill.doc Biological Opinion from the National Marine Fisheries Services is scheduled for completion in August 2004. The Agency is scheduled to begin the Section 7 Consultation for the Petaluma Watershed in 2003. A date for completion of this work -has not been determined. The Water Policy indicates. that the Agency is evaluating the impact the maintenance. changes are having on the hydraulic capacity of their facilities. Policy directives given in support of Flood. Control_ Programs and.Activities include: "a. The Agency will continue to perform flood control activities that corifdrm to regulatory requirements, including the requirements of the Federal ESA and Clean Water ,Acts, and any requirements: that result from the.Agency's ongoing 'Section 7' Consultation With the NNIFS and the Corps.'-' "d. The Agencywill evaluate additional mechanisms for public funding of needed : programs and.improvements prior to the expiration of the voter- approved flood control assessments.in Zones IA and 2A. To maintain the' existing flood control benefits within Zones 1 and 2A, the Agen'cywill seek voterapproval of the'benefit assessments in 2006." Natural Resources - Protection, Recovery and Enhancement This-section of Water Policy,descnbes the Agency's on -going efforts to complete the: Section 7 Consultation to. evaluate the effects., of certain Agency water- and flood control facilities and operations on listed fish species. The Water Policy offers several directives regarding Russian River Fisheries, including: "a. The.Agbhey use its'. best, efforts to ensure a prompt and effective: completion of the pendin' &ction 7 Consultation. 3» "b. The >Agencywill seek'to renegotiate existing contracts and negotiate new water supply. contracts including the Restructured Agreement for - Water Supply such that those contracting with ;tlie Agency pay an appropriate share of environmental costs associated with delivering current and future water supply..." This section of the Water Policy also describes. the Agency's.interests and activities in the San Pablo Bay Watershed, including the provision of 'water supply to the Sonoma Valley, southern Sonoma; County and Marin, and the maintenance of flood control channels and natural creeks. With respect to water supply, the Water Policy states: "During the summer peak water use period the Agency has difficulties providing - enough water to meet the demands of its contractors adjacenf to San Pablo Bay.... In addition, to address watersupplyproblems - in Petaluma, the Agency's Water Conservation Program 3 The mostrecent schedule anticipates issuance of the Biological Opinion from NUTS in August 2004. 10 SAwater resources .& conservation \Water \6110 Source of Supply\20 water, agency'contractors \water policy statement \city council. -. 2-24 - 03\Agenda Bill.doc and a recycled water supply study, being prepared by the North Bay Watershed Association (NBWA) are identifying additional, steps, to reduce water demand." The Water Policy offers several directives regarding`the San Pablo Bay Watershed: "a. Recognizing the water supply constraints associated with the Agency's existing water supply facilities within the Sonoma Valley and Petaluma Valley, the Agency will identify and pursue the use of recycled water to offset potable water use." "b: Subject to available funding, the Agency will continue to study groundwater usage within the Sonoma Valley and Petaluma Valley to identify issues of concern regarding groundwater pumping within ,the Agency's service areas. 4s "e. Where possible, the Agency will work cooperatively with local entities, and federal and state regulatory agencies, on regional partnerships or cooperative ventures to use recycled water for environmental restoration and enhancement purposes. In particular, the Agency will continue to work with local sanitation agencies, and federal and state agencies to promote the use of recycled water to restore the Napa- Sonoma Salt Marsh complex." City Management's proposed comments on the Water Policy are provided in Appendix B. 3. ALTERNATIVES Alternatives available for the Water Policy include: 1. Consider and discuss the Water Policy, provide direction to City Management regarding responses to Water Policy. 2. Consider and discuss the Water Policy and the proposed comments under Appendix B, direct City Management to submit proposed comments as may be amended. 3. Take no action. 4. FINANCIAL.IMPACTS The financial impacts of the Water Policy are unknown. 4 The Water Policy describes a study being conducted in cooperation with,the US Geological Service in the Sonoma Valley. No discussion of a groundwater study in the Petaluma Valley is provided. ® 11 S: \water resources & conservation \Water \6110 Source of Supply\20 water agency contractors \water policy statement \city council - 2-24 - 03\Agenda Bill.doc 5. CONCLUSION The Water Policy addresses all of'the key functions of the Agency. The Water'Policy includes statements regarding water recycling flood. control; maintenancepiactices, and environmental costs that should be further clarified. 6. OUTCOME&ORPERFORMANCE MEASUREMENTs,THAT WILL 16ENTIFY SUCCESS OR COMPLETION: Submission of comments on the Water Policy. 7. RECOMMENDATION City Management recommends the City Council consider and discuss the Water Policy, and, direct City—Management to submit comments on the Water Policy as proposed in Appendix B and. as maybe amended by the Council. 1'2 • SAwatetresource's,& conservation \Water \6110 Source ofSupply\20 water agency' contractors \water policy statement \city council - 2-24 - 03\A'genda Bill.doc • APPENDIX A REVISED DRAFT WATER POLICY STATEMENT (SCWA) • • • Prepared By The Sonoina County Water Agency December 2002 • �t Y� 1. Prepared By The Sonoina County Water Agency December 2002 • TABLE OF CONTENTS INTRODUCTION ..................................................................................... ............................... 1 REVISED DRAFT WATER POLICY STATEMENT 2002 ...................... ............................... 3 I. Principles for the New Century ....................................................... ..................._........... 3 II. Goals and Policies for Specific Agency Programs and Activities ...... ............................... 4 A. Water Supply Activities and Obligations ....._. .............................. ......:........................ 4 1 . Russian .River Water Rights ..................................................... ............................... 4 2. Water Supply .......................................................................... ............................... 6 3 . Water Demand .............................................:........................ ............................... 13 B. Wastewater Management Programs and Activities ...... ...... ......... 20 C. Flood Control Programs and Activities...... .................... , ....... ....... ......... 22 b D. Recreational ".Activities on Agency Propert y ............. ..... .............. 25 E. Security, Safety and Pt-eparedness ......... ............. 26 F. Natur al Resource Protection, Recover, and Enhancement........... .............. 27 � aY Ru 1 ssian.River Fis h eiies .......... . ..............27 Me a .. ' 2. ablo Bay Wate'r'shed ...... ... ....:.......... . ........ .................._ ....... .. .............. 30 III. Implementation ......................................................................... ............................... 33 Revised Draft Water Policy Statement 2002 i December 2002 REVISED DRAFT SONOMA COUNTY WATER AGENCY WATER POLICY STATEMENT 2002 INTRODUCTION The Sonoma County Water Agency (Agency), created by California state legislation in 1949 (Statutes of 1949, Chapter 994 as amended), provides five types of services: ➢ Municipal, Water Supply. The Agency supplies water to cities and public agencies serving most populated areas of Sonoma and Marin Counties. The total population relying upon the Agency to provide all or part of its water supply'is al5but 600,000 and increasing. The Agency also regulates the flow of the Russian River with releases of water from Lake Mendocino and Lake Sonoma. ➢ Wastewater .Management',, The Agency operates county sanitation districts and enc sanitation_ zones providing; wastewater management A: services to areas within Sonoma County ➢ flood' Contro`l. The Agency constructs flood control projects in ® cooperation with federal, state, and local-agencies. The Agency also performs channel maintenance on both natural waterways and constructed flood control channels within Sonoma County. ➢ ; :'Recreation. The Agency provides recreation services at its Sprung Lake flood control facility and also allows some recreational use of other Agency N. _...< property : b, ➢ El'ectr'icity Generation. The Agency generates electrical energy at its Warm Spring. Dam hydroelectric facility. To assist Agency staff in developing and operating programs identified above, the Agency's Board of Directors (Board) has on several occasions formally declared the Agency's water' policy. Policy declarations have in large part evolved from changes in circumstances, responsibilities, or operations at the Agency. Historically, the Agency has declared its policy with regard to the Russian River for activities including: operating criteria for Lake Mendocino; operations for Agency water supply and flood control facilities; maintenance of minimum flows in The Agency's enabling legislation was amended in 1994 to include wastewater management as an area of Agency service - area: Legislation adopted in 1994 expanding the Agency's powers to include wastewater became effective January 1, 1995. The legislation changed the existing county service areas that provide wastewater services within Sonoma County to Agency service areas. On that date, the Agency also assumed management and operation responsibility for the county sanitation.districts that are governed by the Board of Supervisors through contracts between the Agency andthe county sanitation districts. Revised Draft 'Water Policy Statement 2002 1 December 2002 Dry Creek by the Agency, in its operation, of ,Lake Sonoma for water supply; coordinated operation of Lake Mendocino and Lake Sonoma for water supply and to meet minimum flows in the Russian River; and, operation of the Agency's Lake Sonoma hydroelectric project. . The most recent major policy direction, the Agencys current Water Policy Statement, was adopted by the Board_ on January 29, 1991. The 1991 Water Policy Statement documented both the existing uses of the Russian River and the changing nature of the Agency's roles and responsibilities;_as the. region's largest provider of water supply and flood control services. Specifically, the 1991 Water Policy_ Statement identified that the Agency's water transmission system would soon have to be expanded, and recognized the need to secure additional appropriative water" rights to provide for the .diversion of water, necessary to serve the development allowed for in various general plans adopted within the Agency's service area. The Water Policy Statement also identified and declared. that: Water conservation was an ; important element to ensure an adequate water supply; adequate streamflows must, be maintained to protect instream uses including fisheries, recreation and tourism, and commercial fishing; and, Sonoma County residents must be assured a permanent adequate water supply. Acknowledging: the Russian River's importance to counties other than Sonoma, the Water Policy Statement also declared that responsible:stewardship of the Russian River requiredthat Russian River water be made available to help meet the needs] of Meridocia& and Maria Cpuntres on an as available basis, after satisfying :instream uses and Sonoma County needs. Reeentipevelopnzents, .Since 1991, four major changes have occurred that require the Agency to revisit and update thevexisting Water Rolicy Statement. on Jaimar-y 1, 1995, , the Agency assumed hresp.onsibylity, for administration of county, service areas and sanitation districts providmg wastewater services. Second,. coho salmon, cMook salmo n,`. aiid steelliead' were listed under thefederal Endangered Species Act(ESA) as threatened m theRussiari River watershed and' adjacent watersheds ;by the National Marine is Service 611 October 31, 1996, August 18, 997 and Septem* 16, 1999, respectively and on August 30, 2002, the Gorda including the Russian River watershed) as endangered under the California ESA Third, the Agency faces new challenges associated with a .continually changing; regulatory environment. Finall y, a water supply agreement entered into between the Agency and the Mendocino County Pp y g Russian River Flood Control and Water Conservation Improvement DistrrctJMCID) in.. 1992, _ P Im pursuant to the Agency's 1991 Water Policy Statement,, ended ' in 'March 2000, making it necessary for the Agency to initiate steps to address Lake Mendocino water rights issues. Based on the changes •in circumstances previously identified, the Board directed Agency staff to update the 1991 Water Policy Statement. The following presents an overview of the content of the 2002 Water Policy Stateme including the purpose acid need for the update. Water Policy Statement 2002. The purpose of the Water Policy Statement 2002 (Water Policy Statement) update is to provide Agency staff with specific ,policies and direction _ that will :assist Agency staff in implementing existing programs and activities, while recognizing the changes that have occurred since 1991. In addition, changes will continue to occur' :within the �r. Revised Draft Water Policy Statement 2002 2 December-2002 Agency's services leas therefore, the Water Policy Statement provides flexibility to address future changes so that the Agency may continue to ensure its ability to provide the necessary services as identified in the Water Policy Statement. The Water Policy Statement focuses on core Agency services. ar -eas,. providing, necessary guidance to form the basis for Agency decision - making. First, recognizing the importance of having a clear set of guiding principles, the Water Policy Statement begins with a series of maxims, entitled f Principles for the New Century, that will serve as :a foundation for Agency decision - malting in the years ahead. Next, because each of these principles will guide Agency staff, .subsequent sections of the Water Policy Statement integrate these principles into specific policies and direction for the following Agency programs: ➢ Water Supply Activities and Obligations ➢ Wastewater. Management Programs and Activities; ➢ Flood Control Programs and,Activities; ➢ Recreational Activities on AgencyProperty; ➢ Security, Safety, and Preparedness; and, ➢ Natural Resource Protection, Recovery, and Enhancement. Finally, to assist Agency staff in car out the policies and direction specified, the remainder of the ; Water Policy Statement describes an approach to implementing' the Water Policy Statement, including a process 'gto update the Board on progress made in implementing the Water Policy Statement. The following sections; present the j Revised Draft" Water Policy Statement._ REVISED DRAFT WATER PQEICY STATEMENT2002.- � 3 Principles' for�the New Gentury . The A ene will` continue to P rovide ::its existing water supply, flood control, g y P. wastewater :management, and recreation services to —meet th6,. Beds of cuz ent and future residents. In performing these services, the Agency will act in a measured, reasonable, and environmentally responsible manner, guided by the following principles: ➢ Safety and Sustainability: Water is a limited resource and should be used conservatively and wisely. The Agency should seek to provide, protect, and preserve a safe and reliable supply of water to serve present and future consumptive needs. ➢ maize -- Environmental Impact: Agency activities should be conducted to ' maximize beneficial .impacts and minimis or avoid adverse impacts on the _environment where feasible ➢ Economic Efficiency: The Agency should embrace efficiency to limit the financial burden on ratepayers and taxpayers. ➢ Innovation: The Agency should welcome change. Innovative methods of • carrying out Agency activities and new technologies may, where feasible, Revised Draft Water Policy Statement 2002 3 December 2002 save taxpayers and ratepayers money and provide s ban ificant environmental • benefits. ➢ Local Growth Decision - malting: Decisions as to the ,prey- appropriate levels of growth and idevelopment properly reside with the cities and counties in the Agency's service area. The Agency should provide services, to the extent possible, to accommodate planning decisions made by those entities. Leadership, Cooperation and - Partnerships: Successful watershed improvements will require collaboration among and funding from many federal, state, and local agencies and private individuals and organizations, including the 'Agency: The,Agency should play an integral role 'in assisting with the development leadership, and coordination of ,these cooperative efforts and partnerships and actively seek fivading for watershed improvements. Public 'Participation: The , Agency should inform , t, e, public of its activities and educate ;the public, on water related issues The Agency should actively= eele public iripuf on.-decisions affecting .Agency, activities, ,and should encourage the public to participate in watershed improvement efforts. U. Goals and- Pohces for_ S ecific Aaenc Pr.6 p y gams and Activities F11 1 ussxai2 fiver ate�< a�zts � � , . Background: The Agency holds:r- appropriative water rights: for much of the water. available-��in. the Russian River, during all but ,high rainfall month&.2 The Agency's appropriativel. water rights are subject only to: (1) riparian rights,' (2) the rights, of pre 4949 appropriators to natural flow of the Russian River and to water ilnported into the watershed (3) an 8,00,0 acre -foot :reservation of Lake. Mendocino Project water for. use in. Mendocino County . and (4) ,a: 10,000 acre - feet' reservation 'for use in the Russian River :.basin in Sonoma County: Recent hydrological and water rights allocation model studies performed by. the Agency 2 These rights derive principally from the assignment to the Agency of a portion of the State of California's 1949 application ;for the Lake Mendocino Project. appropriative water rights, the Agency's 1'960 ,application for Lake Sonoma-Project appropriative water rights, and permits to directly divert Russian River flow ., - Appropria_tive water rights are the dominant rights in the Russian River basin. The basic, principle of the appropriative doctrine embodied =iii, California water rights law is "fi rst in time, first in.right." The person who first appropriates water and puts it to beneficial use has a right superior to later appropriators. 'Riparian rights are linited to natural flow and. do not include the right to water stored in one season for.use in another season of "tbe iht to divert water tbatis importi d into the watershed from.another watershed ° Held by the Mendocino. County Russian River Flood Control and Water Conservation. Improvement District (MCID), for use in.its service area Revised Draft Water Policy Statement 2002 4 December 1002 • demonstrate that current diverters are probably taking more than these reserved amounts during dry years, and would could. greatly °exceed these amounts in extremely dry years. The Agency's water rights permits authorize the Agency to use water for recreation, municipal use, domestic "use, industrial use and, with respect to Lake Mendocino and directly diverted water, irrigation use. The permits contain terms that limit the amount of water that the Agency can directly divert from the Russian River and.redivert from water released from storage in Lake Mendocino and Lake Sonoma. These permits also require that the Agency release enough water to maintain specific minimum streamflows in the Russian River and. Dry Creek to protect fishery and other instream uses. Thus, in order to maintain minimum streamflows, these permits may require the Agency to use its stored water to offset diversions by others, even if the diversions by others exceed their legal rights. The State Water Resources Control Board (State Water Board) has the authority to change the limits that exist on the Agency's diversion and rediversion of water from the Russian River. The State Water: Board and the courts have the authority to enforce existing legal. limits on the taking of water by others. The Agency's existing agreement for water supply, the Eleventh ": Amended Agreement for Waters Supply' (Agreement for Water Supply), among other items, requires that to obtain t efforts" and maintain the Agency use its "be s water rights sufficient to make the water deliveries covered by that agreement' To meet the limits established in-the Aare4ent for Water Supple. the A .Qencyhas subnutted water nalit.s Wheat - ns to the State Water Board to increase rh +o to �iiro, and rn lirrPri' tz�afr�r fflrnrn the 7�r'FC(11t �1>1t11C11'17EC1 t()tal O i f`75.000 acre -feet per vear the Agency's enabling act prohibits it from conveying o alienating any ill Agency 5 Diversion refers to water that is directly diverted from waterways. Rediversion refers to water that has been diverted previously, stored behind a containment structure such as a dam, rel' ased:into'a waterway, and then rediverted for use. 6 This agreement for water supply, to which the Agency, the cities of Cotati, Petaluma, Rohnert Park, Santa Rosa and Sonoma and the Forestville, North Marin and Valley of the Moon W,ater'Districts (VOMWD) are parties, was originally entered into in 1974 and has been amended eleven times, most recently in January, 2001. Negotiations for additional modifications to the existing grreement for Water Snply are eiTe4ed eab- :" sh hear fatii rein the early stages The Agency also has water supply contracts with the Ivlarin'Municipal Water District and serves supplemental water to the Town of Windsor California American Water Company ( Larkfield /Wil< tip -; � Districtj_, Am the Kenwood and Penngrove Water Companies Lawndale Mutual Water Company, and other small users. Revised Draft Water Policy Statement 2002 5 December 2002 Policy and Direction Regardinu Russian River Water Rights Policy: The Agency should take all .steps reasonably necessary to defend its existing water rights and to acquire additional rights.as needed to meet its contractual obligations. Direction.. a. The Agency will. continue to file objections with the. State Water Board to the: issuance .of any new Russian River, Dry Creek, or other water .rights, including those applications'; that could affect ° the Agency's water rights unless the new rights are conditioned to recognize the priority of the Agency's rights. b. Agency staff will increase efforts , to quantify and monitor. existing uses. of Russian River and Russian. River tributary water so that the Agency's priority water rights may be enforced in.times of shortage. c. needed to provide . d. potentially compe Agency's water rid provision of using existing .rilents with i protect the .feasible, the The Agency's enabling act au.'thorizes it, to provide water and constrict facilities needed to serve water for all purposes, including domestic, municipal, commercial, industrial, recreational and. agricultural purposes.' The Agency's enabling act does not however, require that the Agency provide a water supply to`.any particular .party uz.any particular ,amount or from any particular source. The Agency has constructed and operates a water transmission system that delivers potable water to distribution systems in Sonoma and Marin -Counties. The water transmission system has been financed and constructed, and is operated ,and maintained, pursuant to the Agreement for Water Supply between the Agency and the. cities and water districts it The Agency's.enabling:act (Statutes.of 1949, Chapter. 994 as amended) contains no limitations. on the uses to which water served by the Agency may be put to use., The.Agei cy,, under' contract with the federal g m overnent;, has rights to store water in' Lake Sonoma for Water ; supply use. -Although the Agency's enabling act. does not'limit uses to which the Agency may 'pu water both the federal contract and the water rights for Lake Sonoma- preclude the use of water - for irrigation and' „agricultural use. The Agency will apply; for ,and pursue new and modified water rights as Cr under current, amended and ;future water ,supply ab eements, The Agency 611. continue to develop and negotiate a. water users as krecessary to resolve water rights disputes • • • Revised - Draft Water <'o ky Statement 2002 6 December 2002 serves. The Agency's Lake Sonoma hydroelectric facility was similarly developed at the expense of and is operated to benefit the Agency's water transmission system customers. Additionally, the Agency has contracts with several cities and water districts which allow those entities to take Russian River water under the Agency's water rights when their rights are inadequate. The principal sources of water for the Agency's water transmission system and other municipal diverters will continue to be the runoff from the Russian River watershed, augmented by diversion`s from the Eel River made by Pacific Gas and Electric Company's (PG &E) Potter Valley Project. During the dry months of the year, the Russian River flow is regulated by the Agency with releases of stored water from Lake Mendocino and Lake Sonoma. From Lake Mendocino to the Dry Creek confluence near Healdsburg, the flow of the Russian River is regulated with releases from Lake Mendocino. The flows of Dry Creek and the Russian River downstream from the Dry Creels ,confluence are regulated with releases from Lake Sonoma. Releases from storage for rediversion by the Agency's water transmission system and other municipal rediverters situated downstream from the confluence of Dry Creel-, are generally made from Lake Sonoma. The Agency also regulates ulates the flow of the Russian River for the ;benefit of v; agricultural, municipal, and instreanl beneficial uses ,' As noted above this function is carried out in accordance with c(4tditions contanded in the Ageney's water rights permits. While the greatest source of water available in the Agency's service area is surface water, future ".surface water supplies may not be sufficient to provide all the water ;needed in the region. Water conservation is already a significant component of!,fhe water supply demand equation. Recycled water and the conjunctive use of surface and groundwater supphes..will become increasingly important in the Agency's service area'and must be:considered m-p�' luating the regional water supply. _ P * ublic and prrva e entities currently using (or expected to use) water from the Agency or the ;Russian River for=�consumptrve purposestgenerally fall into five groups: parties to the existing Agreement for mater Supply, other�Sono Countyrirnumcipal interests, Mendocino County interests (both agricultural and urban), the Marro Municipal Water District (MMWD), and Sonoma County agricultural interests along the Russian River, Dry Creek, and elsewhere. The Agency expects to be able to provide a reliable ,municipal water supply for the Parties to the Agreement for Water Supply over the next twenty years, generally from Russian River sourcesa However, this water supply. will not be adequate to serve the expected needs of all these groups for all time, given the region's climate and historic growth patterns. In addition, emerging water- quality issues pose a potential threat to the Agency's water supply. Emerging water ,quality issues involve the potential regulation .of chemicals that are currently not regulated. Examples of.currently unregulated chemicals include endocrine disruptors, and pharmaceuticals. While the Agency's water .supply facilities have reliably produced high quality potable water for over 40 years'the.Agency inust:remain vigilant in addressing potential water quality impacts to its water supply while maintaining the ability of these facilities to continue to reliably produce sufficient, and excellent water quality. Consequently, the Agency must continuously evaluate This expectation is based on certain assumptions outlined in the Agency's Urban Water Management Plan ® 2000, adopted April 17, 2001.. Revised Draft `Water Policy Statement 2002 7 December 2002 issues that could impair the performance of its water supply facilities. Iff . - • ges asseeiated With epner-g iug walte-r qu To further evaluate, and plan for those emerging water quality issues, the Board directed the Agency in November 1 2001 9 to continue to perform water quality studies necessary to evaluate the potential impacts of emerging water quality issues on the Agency's ,potable water supply. Another challenge to the Agency's ability to provide a reliable water supply is the presence of federally.protected species within the -Agency's service areas. Many of the Agency's water supply facilities are located in areas that are habitat or potential habitat for three threatened species under. the "federal ESA, coho and chihook salmon, and steelhead. Water released ,from Lake Sonoma .and Lake Mendocino is rediverted at the Agency's Wohler and Mirabel collector facilities for water,supply use. During, low flow periods, the Agency operates an inflatable rubber - darn'that creates:a water supply pool that increases infiltration adjacent to the Agency's collector wells,and..isl used to fill infiltration ponds adjacent to the Agency's collector wells at Wohler..In addition, surface water is: directly diverted behind the inflatable dam into the Agency's;infiltration ponds at Mirabel. Since the Russian River provides habitat for the three listed .fish species,- the Agency's water .supply activities located along the - :Russian River have the potential to impact theseasted fish species.- . To address. the potential ,impacts to listed fish species from the Agency's water supply facilities and operations; the Agency is participating in 'a Section 7 Consultation under -the federal ESA along, with Nl the National,aririe Fisheries Service NM.1 S and U S Army Corps of Engineers (Corps) The Agency's water supply activities are one sub�ect' in the ongoing Section 7 Consultation (Discussed in the Natural_ Resources, Protection and E ihancemeriUsection of this document) The ESA prolubitioi ion "take " "rnf .fisted species may result ffiL anges to the Agency's water supply activities: A major focus of tie consultation is to evaluate whether the operation of the Agency's' existing water'supply�I facihti s affect thetth d` fish ree° threatenesh species U the Russian River .water "shed llri. addition the Section 71 Consultation will also evaluate the potential effeet� f future Agency water supply facilities one -these species Of' particular significance to the Agency is the extent to which the4 outcome of this process may aff6et how or if the A "gency, :is able"'to operate the inflatable dam at Mirabel. Restructuring or eliminating the Agency's use of the, inflatable .darn and :.infiltration, ponds would significantly reduce the production capacity of the Agency's existing facilities. Consequently, the• determination of whether the ,Agency is. able, to . :operate, the inflatable dam, and infiltration ponds will dictate . whether the Agency must plan additional facilities to meet only additional future demand or whether future facilities must also account for lost production capacity. Therefore *the Section 7 9 Resolution .No. 01- 1397,November,26, 2001. 10 The Agency's and `U.S, Army Corps of Engineers' flood control activities within the Russian River watershed are also being; evaluated as: part of the Section 7 Consultation. Additional. information regarding the flood control" components of the Section 7 Consultation are described in the Flood Control Programs and Activities section of this document. ' "Take" is defined in the ESA as; to harass, harm; pursue, hunt, shoot, wound, kill, trap, capture, collect or attempt to engage nranyssuch conduct. 1 -B, etho we�ds, ftny- actual harmto an individual memher of a protected , species, whether caused ac iv4y -O t ha', diiectIv or indirect (e.c, through adverse modific�ition of habitat), may " be considered a take" under the ESA. Revised. <Draft Water Policy'Stat'ement 2002 8 December.2002 6 1 Consultation remains a driving force behind water supply planning efforts for the Agency, as the outcome of this process will dictate not only how current facilities are operated, but how future facilities will be constructed and operated. b. Groundwater Three groundwater wells located west of the City of Santa Rosa, near the Laguna de Santa Rosa, provide a secondary source of water for the Agency's water transmission system. Although groundwater makes up only a ,small part of the water supply currently provided by the Agency, it is the primary source of water supply in many parts of Sonoma County not serviced by the Agency's water transmission system. In addition, many of the Agency's water contractors operate groundwater wells to supplement deliveries made by the Agency (e.g., Rohnert Park, Cotati, Petaluma, Sonoma, and Valley of the Moon Water District jVOMWD] As a supplemental source, groundwater is vitally important iii helping these communities meet peak demands. The extent to which groundwater can provide a reliable ,future regional water supply is not known. Several studies, conducted in the 1980's, contain outdated information. Both the m Agency and County of Sonoa..have embarked `on studies to assess groundwater conditions in certain areas of Sonoma County. The Agency, in particular, is .,studying groundwater in the Sonoma Valley, and Alexander and Russian River Valleys in. cooperation Mth: the U.S. Geological Survey. The study, in. its ti .b second veai will be compieted� over the next fe}ff-- y ears : recognizing thegrowing importance of groundwater as a finite source of water supply, additional groundwater studies will be needed to better assess regional and local groundwater conditions (both qualit and quantity) throughout Sonoma County. An unportant additional source of water is recycled] water. Use of' cycled water by Aaencv and non Agency customers' (for example, agricultural users) may benefit watersheds, fisheries grouridvvater resources; �faceVater supply by decreasing water diversions from the Russian River, its tributaries, and groundwater basins. Use of recycled water will also decrease the need for direct discharges from wastewater treatment facilities into streams and rivers and " other surface water bodies, further benefiting the Russian River watershed. Since 1995, the Agency has operated` wastewater treatment plants and collection systems in Sonoma County; and other public entities operate wastewater treatment plants throughout the Agency's service area. With appropriate levels of wastewater treatment, water reclaimed from these plants can be 'used in, the. place of potable water for specific purposes (e.g., for irrigation) and thus reduce demand on and extend potable water supplies throughout the region, while simultaneously reducing surface water discharges: The Agency has developed extensive recycled water programs. Recycled water produced from, wastewater treatment plants managed by the Agency is used for beneficial . purposes including habitat enhancement, potable offset for municipal uses, and as an irrigation source for p l an ts r `local agriculture. Se : al--e t'.._ A 5e �"J st + +, eat __ � p ~ d � led 6 r bo-n uses. For example, the Airport- L-arkfield- Wilciup County Sanitation Zone delivers recycled water for agricultural irrigation purposes. The Forestville County in Sanitation District provides recycled water for agricultural irrigat and will soon be providing Revised Draft Water Policy Statement 2002 9 December recycled water for urban uses ;(landscape irrigation). The Sonoma Valley County Sanitation District (SVCSD) provides recycled water to ' agricultural lands, and: to wetland areas in the. San Pablo Bay watershed. Recognizing the long -term benefits of recycled water as a resource for institutional and urban- reuse, agriculture,. and habitat enhancement, the Agency's Board directed staff to study the potential to further use recycled water. Several Agency studies, one in the Russian River, Alexander and Dry .Creek Valleys, and two in the Sonoma Valley, will evaluate 2the potential to beneficially use recycled water. In the Russian River, Alexander and D.ry Creek Valleys, the. Agency is studying the feasibility of delivering recycled water from the City .of'Santa.Rosa's- Geysers; pipeline to: agricultural land the 'Ruskafi D ir .7- e" ^„ Providing A 1 �, ^„ate,• t7 - ; recycled water to vineyard owners in the Alexander Valley will reduce the current practice of surface water diversions :from the Russian River and. its tributaries, and reduce groundwater Pumping from lands adjacent to the Russian River and its. tributaries. Benefits of -such a. project, include protection ofRussian River fisheries, protection of regional water , supply, and,, indirectly, the reduction of surface water discharges': frornlocal wastewater treatment plants. In the Sonoma. Valley, the Agency has in bated twos �studies, to ,examine the potential for use of; recycled water, The' first study,. the Soi orna° Valley Recycled 'Water Feasibility Study, will evaluate alternatives to store and supply recycled' ;water to potential al p , a gr. s munici cultural, and insbitutryraCuser of r Sonoma, an d Za� c oo P . tJnder^a e�ate arrangement between the A enc A O he ;,study will identify- and evaluate alternatives that. ,could provide recycled water forben fcial use within" both the City of Sonoma --A 4.4ho r og rr—Watei - DietiEt service areas Potent benefitsof providing recycled water in the Sonoiia, Valley include provision of recycled water to offset potable wat6iuse in the District" City's service: areas, reduction of surface.. water dIse a'rges at the c ^ " ^ "° SVCSD Wastewater Treatment Plant, an potential reduction of groundwater pumping in the Sonoma Valley. The second'study, to address the potei tial to-'use recycled=�water- for habitat enhancement =of the Napa Sonoma Salt Marsh, 'is being conducted by th'e Agency in cooperation the California .Coastal Conservancy, the Corps; and the CDFG. For this study, the- Agent is evaluating the feasibility of supplying recycled water to the Napa= Sonoma Salt Marsh, an area, comprised of former ,salt ponds and owned by the CDFG. Under a cooperative agreement, the .Agency SV-CSD Wastewater Treatment Plant, and. potentially, other wastewater treatmenf olants 'in. there i�* on ,.would supply recycled water to be used by the CDFG _ _ to restore and enhance the Napa - Sonoma. Salt Marsh. •. Revised Draft' Water Policy Statement 2002 10 December 2002 0 Policy and Direction Regarding Water Supply: .Policy: The Agency will use its .best efforts t.o take Raeasafes neee9saity 41& maintain the :Russian River water supply sufficient to allow the Agency to supply water to its customers meet its water eei4r- ete - e4 + tl ng- e- . as specified in the Agency's existing water supply agreements. The Agency should quantify the supply of water available from all sources. The Agency should continue to study groundwater, recycled water, and conservation as part of a strategy to optimize the overall regional water supply within the Agency's service area. Where feasible, the Agency should pursue recycled water projects that offset pet-able- water use within the. z4a sen4e -area. Of great importance, the Agency should continue to study and monitor the water quality. of the Russian River, including emerging water quality issues, to safeguard the re primary water supply. Direction: a. Surface water i. Upon completion of the Section Consultation, .theEyAgency will evaluate the VI reliability of future water supplies bq;, quantifying the anticipated available surface water supply and the anticipated demands of the Agency's customers. ' As a .part .ofthis evaluation, the Agency, in consultation with its water customers, will promote .a public discussion of the extent to which available water supplies .can be extended and the risks of shortage and how to address potential • reductions and reduce peak demands u The` Agency will` continue tot ake steps necessary to maintaui the adequacy of the surface water supply avarfable`Jo the region, ii cludim p icipation in Federal Energy Regulatory Commission, Cahf$rnid Public Utilities � Commission, and State "Water Board proceedings In particular, they Agency will actively `,participate in proceedings involving the Potter Valley $Project, to ensure�thafwthe interests of water users n Meridocrno <riSonoma and Marin Counties receive consideration in such proceedings and that decisions affecting water supply from the Potter Valley Project are made on a sound scientific basis. iii. To assess future water supply sufficiency, the Agency will make assumptions about the level of risk of shortage or curtailment that is acceptable for any particular type of water use. This assessment. will be diffrc lt-to eor33pl @t t l need to be re- evaluated when the Section 7 Consultation (discussed in the Natural Resource Protection, Recovery and Enhancement section of this document) has been completed. The outcome of the Section 7 Consultation could result u1 changes to the Agency's operations that make more or less water available for retabl . uses use. iv. To the extent the Agency controls additional regional water supplies, the Agency will work to identify .priorities for allocation of the available water supply and conditions under which that supply will be used to ensure maximum regional benefits. v. The Agency will cooperate with others in evaluating and protecting against risks to the quality of the Russian River surface water supply. Continued efforts will include:. (a) ® Revised Draft Water Policy Statement 2002 11 December 2002 cooperation with the State Department of Heal • p p Health Services to maintain the .high water quality- if ,' xpe-Rs�e,aAd ehenaieally ii4ensiye p4Rt; (b) continued. review of activities .proposed by others as needed .to ensure such activities do not impair the quality or quantity of the Agency's surface water supply; and,, (c) continued studies and research regarding advanced, wastewater treatment technologies and the ability of natural filtration to address emerging water quality issues for potable supply along the Russian River. VII: The Agency will renegotiate existing contracts and negotiate new water supply contracts so that those contracting with. the Agency. pay an appropriate share of environmental costs associated with delivering current- and future water supply. These may include environmental permitting, compliance, mitigation, restoration, and enhancements costs. vii:. The Agency will, continue to negotiate contracts for additional surface water supplies -as -may be available to municipal customers within the Agency's service area generally on a "first° come, first >served" basis. In evaluating requests; consideration will be given to whether _ entities requesting new water supplies are using recycled water to the -,greatest extent practicable or are willing to convey anyrights "to 'recycled water to the Agency so -that the Agency . may maintain a ; sustainable regional water supply, �mnd 2, , entities "',re ues new sti "lies, are taking-, appropriate stems to ensure that, their water supply activities do not .advei sely effect listed snecies under the. federal and state ES T i viii. Tie .Agency will continue to negotiate and ei7ter i11to agreements with municipal- - Russian Ri *er water users for -additional I�surface watei supply M. under the ; Agency's NI existing water rights, _ ' b �G�:oundwate� z The Agency will cooperate with local; state, and federal officials to evaluate.the location yield; and quality of groundwater resobices iii,4 o ma County. Suchi formation will be utilized bythe Agency-to, evaluate the _role :of groundwater as part of the regional water supply, in conjunction °with surface. water, water .conservation and recycled water. Priority will :be -given to evaluating those areas, with existing identified groundwater basins, starting with the Alexander 'Valley (both Alexander and Cloverdale areas), Russian River Valley (Healdsburg, area), and the Sonoma Valley, and the. potential connectivity between basins. Thereafter, studies will focus -on the lower Russian River Valley, Santa Rosa Plain, and Petaluma Valley. The Agency's interest has been and, will continue to be that of a water supplier. u. The Agency will move forward to develop data necessary for evaluating conjunctive use of surface and groundwater. Revised, Water Po..ticy Statement 2002 12 Deceimber 2002 • • C. Recycled Water i. The Agency will investigate and, where feasible, implement and encourage others to implement projects to produce, distribute, and increase the use of recycled water. Use River- watershed wiI4 effi3e�ively r-eduee demand en the g . The Agency will seek to allocate costs of recycled water projects equitably in proportion to benefits that each party receives. As part of its efforts to maintain a sustainable regional water supply, the Agency will also seek to acquire rights to recycled water produced by others to offset p water use where possible. ii. The Agency will continue to pursue agricultural user agreements for the use of recycled water to further reduce surface water discharges to local waterways, while promoting the agricultural production and sustainability of the region. 3. Water Demand Backzround: J The Water Supply ino -_..- " .......J..,. .,I... n revised anni transmission e Agency's Water Contra( icy providesli water to its filth amended in ?001. �lete —tie merit -Teems m e - ?49-1.. The latesa Water Supply, includes r athly vvater lim j ;ontrac' ors n under the Agreement for y �t h e- er�.y«nd its u r ;' ter tPpl= the l°venth neat to the agreement the Eleventh to reflect water conservation savings, authorizes extiansion a of the water stem£' These revisions include ➢ Implementation . of water conservation measures to achieve required savings of 6,600 acre -feet per year ➢ Annual water delivery limits ➢ Monthly delivery limits at an average of 149 million gallons per day (mad) during the peals month ➢ Expansion of the existing water transmission system capacity from 92 mgd to 149 mgd, plus 20 mgd of standby capacity, with `the construction of water production or diversion facilities, pipelines, water storage taidcs, booster pump stations, and/or other facilities necessary.to reliably deliver an average. of 149 mgd during the peal( month ➢ Allocation of costs among the water contractors for expanded transmission system facilities Negotiation of the most recent Agreement for Water Supply resulted in several outstanding issues requiring fin-ther discussion. Issues to be resolved 'include: maximizing financing flexibility for future construction; the process :whereby additional capital financing and construction is approved by the water contractors; clarification regard recycled water projects; Revised Draft Water Policy Statement 2002 13 December 2002 clarification regarding additional water conservation requirements; the addition of the Town of Windsor and -MNIWD as water contractors; clarification of the obligation of water contractors to pay appropriate shares of environmental costs associated with delivering current and future - water, supply such as environmental permitting, compliance mitigation, restoration, and enhancements costs; and, :efforts to protect and preserve water quality through open space purchases, easements, and acquisition of riparian zones. The appropriate venue for resolution of these issues .is the -next agreement. the Restructured Agreement for Water Supply. To that end, the water contractors have initiated a process .to identify issues to resolve in the new - ' Rests uctured Agreement for Water Supply. b. Sonoma County Municipal Interests The Agency - is the largest water °supplier -in .Sonoma County. As previously discussed, the Agency obtains most of .its water from runoff from the Russian River, watershed, augmented `by diversions from the Eel River made by PG &E's Potter Valley Project'. Because the majority of the Agency's water supply comes from these sources, the Agency has an interest in safeguarding the sources of Rtssx =Diver water-supply for its water contractors. In addition to the-Agemy'�s water contractors, the Agency also provides supplemental.water,to other water customers under., separate-agreements outside' of the.= Agency's Agreement fort Waiei Supply.' Ili the past, where possible, the Agency lias';entered into agreements with outside entities ,p provide primary or backup water supplies. These agreemepts, - with the . 'exception of these with other ARency'custo ners:as defined in the A�4reemei t for Water -Supply are supplemental °.in nature�e and subordinate to .the Agency's Agreement for Water. Supply' Under certain conditions; water , supplied. under these . agreements` n ay'be curtailed to ,ensure: that the'Agency can nieet its, water . contractors' p'ealc'derriands. i s c ge icultural Interests ASonoma Coiulty's agneiilturalndustry including -twine grapes, ;dairy and other crops, contributes significantly to the County's economy and quality of life. Agriculture contributes to the'Couhtys'unique scenery and is an important economic contributor, both directly and through its relationship to :the tourism iizdust*: Much of this agricultural production depends on Russian River and Russian River tributary water. Agricultural water users obtain water under claims -of riparian rights and 1 .2 Tle Agency has =oirtwo occasions entered into negotiations w it Ii PG&E to acauire ihe.F'otter. Valley Pro n has ever been reached with I'Ci &E on a botential purchase -and atpreseiit the.. Aaencv is nc itions Nvith PG&E for otential purchase of tht PhtterValleV'Proiec The Agenw's A "for Water Su °provisions permif6w the AgenC Lo acquire the Potter Valley Project as part of the water tran,"'i ission su 'it 'Become available Acquisition under the Agreement for Water. Supply would require anriroyal from • Revised Draft Water Policy Statement.2002 14 December 2002 appropriative p rights. ' ever., it t difficult to establish the source and legal basis of an agricultural water with ever, may For be example, the source of water taken from an agric g ultural ' well adjacent to a stream may be natural river underflow (to which a riparian water user is entitled), water originating in storage in Lake Sonoma or Lake Mendocino (to which a riparian water user has no sight), water from an underground aquifer (to which the overlying owner has a right)„ water taken under a separate appropriative water rights permit, or a combination of those sources. Performing hydrologic evaluations of these different sources would be time - consuming and costly. The Lake Sonoma water supply is not legally available to agriculture, and the Lake Mendocino water supply is generally fully allocated in "times of shortage. Moreover, Potter Valley Project diversions into the Russian River watershed, which provide a significant portion of agriculture's surface water supply, may not remain at their present levels. Accordingly, it is unlikely that the Agency can provide significant new surface water supplies to agriculture. However, there may be other sources of supply for ag icultural users including recycled water. The Agency is currently investigating the feasibility of providintr recycled water to users i11 the A NT alla' u R ncci'nn P Vk7t -r Y llf'v. Oo nonia Vallev. and D.ry Creek Valle to offset existing use of Russi River and tribut a d. ,Mendocino Co cno) Interests 6 In 1992, after many years of discussion, the Agency entered alto a surplus water supply agreement with the MCID 4YUnder this contract, the Agency agreed to allow MCID to r divert up to 13,000 were -feet of water under the Agency's water riglits permits associated with Lake Mendociri on an as available' basis In return, ', agre d to account and report water use within MCID, which would, provide the Agency with the u1f ®rmation necessary to quantify s Mendocino County water use dtringdryyears = The agreement povided that It would terminate after five years if t'l State Water Board had not approved necessary changes in points of le diversion andmplace of use under. - e Agency's , water rights permits The five years passed, and the Agency proceeded in good faith to pursue approval of an application to the State Water Board to secure the changes in points of diversions and place of use. The Agreement was extended once, in 1998 at MCID's.request, but expired by its terms in 1999. The Agency offered MCID another agreement extending the time for securing the water rights permit changes. However in March, 2000, MCID notified the Agency and State Water Board that it would not sign an extension. agreement. is 14 The Agency's' Lake Mendocino water rights are subject to both an 8,000 acre -foot . right held by the Mendocino County Russian,River Flood Control and Water Conservation Improvement District and a 10,000 acre -foot reservation.for use in'the Sonoma Countyportion of the Russian River Valley. In addition, the Agency's rights to Lake Mendocino water are subject to water rights that existed before 1949, the date: of priority of the Lake Mendocino water rights. These pre-4949 uses are estimated to be about 13,000 acre feet per year total it Sonoma and Mendocino Counties. 15 Several factors affect diversions from the Eel River. They include new regulatory limitations on diversions which may be imposed by the Federal Energy Regulatory Commission and physical limitations that will exist as Scott Dam, PG &E's Potter Valley Project water storage facility is affected by increasing sedunentation. Revised Draft Water Policy Statement 2002 15 December 2002 Accordingly, `Mendocino County interests in the Labe Mendocino water supply are •. currently limited to that granted in ;their state. water right- -8,000 acre -feet per year- -with the Agency having the right to the remaining water supply.. Mendocino County representatives have asserted some type of right'to more than the 8,000 acre -feet of water covered by MCID's existing water right. The factual or legal basis for this claim is uncertain. Mendocino County representatives .have also indicated an interest in dete whether enlargement of Lake Mendocino may in the water supply yield, of the facility. Although the Agency .might. support such a proposal, the Agency would need to perform modeling studies to 'quantify the potential water supply benefits and reach an "agreement with Mendocino. County interests as to how the costs and benefits would be shared. Recent efforts n'Mendo.cino County, including a water supply forum held in early Feb unty to purchase privately Held water rights suggest that Mendocino. County water' supply interests recognize the need to actively address water supply issues associated, with existing water rights. The Agency remains interested in resolving outstanding water rights issues, with Mendocino County interests. e '> Marin. Couny) linter -ests, ' r. Residents of E ' � northern 1Vlarin. County Have been full partners 'in developiiient of the Russian River water supply'since the ate `195,0s. The - North Maiw Water.Distr' O NMWD) was an original partner in constructin ,;the iPetaluma A ueducf som Meted ill 1961 The 'Petaluma' • g q. p.�.:.Y , Aqueduct served both :Petaluma and •northern Mann. CountyMWD; was also an original participant in construction of the Russian River Cotatf Inter i Project and has always been a partner.to the water ttansmis'siori systb m.agreernent, though its eleven amendments As such,. the NMWD is a full partlaer in the Agreenent'for Water Supply. zsWfer supply discussions between the Agencyand southernr'Marin County residents, originally began in 1963. However, it was not until July of 1975• that: a water supply . agreement was entered into between MMWD and the Agency. The, Agency- MIVIWD' supplemental water .supply agreements were last amended in January 199.6: Until such time as the MMWD, becomes a water' contractor subject to the newv Restructured' Agreement for Water Supply, MMWD'.s- r =ight.-to capacity in. the Agency's transmission system, is sul:wdinate to the right of the Sonoma County water contractors and NMWD. Under certain conditions; to assure that the. water contractors' demands are met, the '1vIMWD may receive. reduced delivery of supplemental water. Therefore, it is' in the general ' interest of the Agency upon .unanimous . sup o.rt_by the water an -the i. x.,r —t om- i�or� }aliz�tle . t , me wit n e ALD b , to provide MMWD with the opportunity'to b . , . y .., . .,... become one of the signatories to the transmission system agreement, thereby eliiiiinatuig :multiple. water supply contracts: 0 Devised Draft Water Policy °Statement 2002 16 DeceMber'2602 0 f. Water Conservation Formal urban water conservation efforts were initiated by the Agency almost two decades ago. The Agency first employed a full-time water conservation specialist in September 1985. The Agency's current water conservation program is staffed by a water conservation coordinator and seven water conservation and water specialists. The Agency , offers a water education program without cost to all public and private schools (grades K -6) within the Agency's service area. This program provides instruction both in the classroom and at the Agency's field -study site. The Agency also carries out a public information program. This program includes participating in the California Water Awareness Month campaign, "beat the heat" campaigns, media marketing, and placing and staffing informational .booths at regional fairs. The Agency's water conservation program, in cooperation with the water contractors, also - includes water -use surveys for residential customers, large landscape conservation programs and incentives, washing machine rebate programs, conservation programs for commercial, industrial and institutional accounts, residential toilet replacement programs, and several other programs." The Agency' funding for water conservation programs operated by the water contractors and supplies professio�ally,'Arah - 1 ,staff to carry out these programs. The Agency and the water contractors have each si- ed thk Cahfonua Urban Water Conservation Council's -' (CVWCQ Memorandum of Undeistandin k(MOU Regarding water agency - in California to ha its 6011 Water; conservation stretches the available water supply by rediicuzg demand. Under the Agreenzei t for Water.Su' - A the Agency and' its water contractors arei committed to implementingffeasiblebest management-practic so ihat least -6,600 acre- feet4favater per year may be saved through water conservation. This requirement does not preclude additional or more aggressive water conservation measures from being implemented, or additional savings from occurring. The projected savings of 6,600 acre -feet per year was determined to be simply the amount of savings that could reasonably be achieved for use in planning for future water supplies. Policy and Direction Regarding Water Demand Policy The .Agency should evaluate the future regional water demands for its contractors under the existing Agreement for Water Supply, other Sonoma County municipal interests, Mendocino County interests (both agricultural and urban), the MIvIWD, and Sonoma County agricultural interests along both the Russian River, Dry Creek, and elsewhere, both for the customary twenty -year planning period and beyond. The Agency should also work cooperatively with Mendocino County water interests to resolve outstanding water rights issues. In the Restructured Agreement for Water Supply, the Agency's water contractors and other customers fe The Agency's Urban Water Management Plan contains more detailed information regarding demand • projections and the Agency 's'water conservation program. Revised' Draft Water Policy Statement 2002 17 December 2002 should provide adequate funding to ensure a reliable long term water supply. The Agency sh ould assist its customers in identifying steps to take to ensure that waters mply. activities within the Russian River watershed and other watersheds where listed fish species occur are .conducted in:a manner that is prote&]W of listed fish species. The Agency should also assist its customers in implementing all feasible water -conservation measures to assist in reducing demands on the Agency's transmission system especially during peals demand periods. The Agency and its water contractors should' continue their commitment to water conservation and, where appropriate, encourage, alternative and innovative methods of savingwater Direction: a. The Agency's Water Contractors i. The ,Agency will fulfill its responsibilities to provide water, under the Agreement- .for Water. Supply by completing construction of the Water Supply and Transmission System Project: This project,will provide safe and reliable water supply to the, Agency's to the extent needed by the population authorized by the local general plans that were in existence during developmei that project. u. The, Agency will, - seek to negotiate and implement a,. Restructured Agreement for Water N• Supply to resolve outstanding *' `;issues whichiinclude: maxunzing financing. flexibility for future construction; the prdcess whereby, capital financing and construction ::is approved by the •water contractors - ' 5 `clarification' regarding' recycled water projects; -clarification regarding additional water conservation requirements, the addition ofj the Town of Windsor and MMWD as w.atei contractors; clarification of the igbligation Hof water contractors to pay appropriate shares ofd environmental: costs ass gcia hv with deering current and, future water supply ouch as ren nmental p rmttting, compli ance ,�nutigation,` restoration , and enhancement costs; and, effofts toprotect andpreserve wateirquahty through open space purchases, easements, and acquisitiort of riparian zones T13e- b �y i eelC= `to- negc�t ate- A±Jd -4 err3ent =a- r�ew-water species occur are conducted' i1i a tuanner`that is protective of listed fish species. b. Sonoma County Mimicipal Interests i. Subject" to the Agency's obligations to its existing regrular customers E. , all municipal water supply entities will be given the opportunity to enter into contracts with the Agency to receive a primary or backup water supply, either by becoming parties to the new Restructured Agreement for Water Supply or through "separate supply contracts with the Agency. Regular customers as delined'in the Agreement for WaterSunt ly imlude "the water contractors•and ol:her ) • Aceucv customers: Revised.Draft Water Policy Statement:2002 18 December 2002 1 . ii. All such entities will share, as appropriate, in the costs of necessary capital improvement projects, 'environmental permitting, compliance, mitigation, restoration, and enhancement projects, and. riparian zone setback protection. C. Agriculture i. The Agency will cooperate with agriculture to develop physical solutions to water supply needs. These physical solutions will include development of alternative water supplies, focusing on recycled water projects that diminish the impact of agriculture on regional water supplies and on water - dependent fish and wildlife species. ii. Although the Agency must be prepared to protect its water rights from encroachment by other users, the Agency will seek to avoid litigation where possible and will make reasonable efforts to .accommodate other water users through agreements that quantify, where practical, existing legal uses. d. Mendocino Coun'tj) Interests orlc to initiate. discussions issues. ooperate with Mendocino oblems, including recycled be prepared to initiate liti to investigate ter, and other the Agency's i. The Agency will work with the Water Advisory Committee to consider inclusion of clu tie M VI1WD as a water contractor in the nivi- Restructured Agreement for Water Supply. u. In. negotiating the terms for inclusion of MMWD as a water contractor in the - = Restructured. Agreement for Water Supply, the Agency will work to stricture the agreement so that all- Marin County residents who are supplied Russian River water will bear the same risks, responsibilities, and benefits as the other water contractors. Marin County residents will be required to assume the entire risk of future investments in transmission system capacity intended to serve them, and the commensurate obligations to fund needed projects and programs including environmental permitting, compliance, mitigation, restoration, and enhancement projects and the Agency's recycled water program. Mendocmo'iCo mty water 0 RevisedDraft Water Policy Statement 2002 19 December 2002 f. , Water- Conservation L - The Agency will work to maintain and update and revise as necessary its water education and public information program to encourage present and future Agency customers to develop and maintain a water conservation ethic. ii: The Agency will continue to provide water conservation funding and staff support to its water, contractors to assist them in developing new and innovative; programs appropriate for their jurisdictions and. in implementing the BM.'Ps contained. in the CUWCC MOLJ Regarding Urban Water Conservation iii Californi iii. The Agency will continue to develop and . maintain a centralized staff with expertise .innew and innovative technologies, and cost - effective water - conservation practices iv. The Agency will •assist the contractors in drought preparation, including analysis of "demand hardening " effects of water conservation fixtures and programs. v. The Agency will, cotinue to develop' the water.., conservation, program for commercial, industrial, rand institutional accounts, as these accounts' represent a mayor opportunity. for additional' water conservation. v1 The Agency will work to further the landscape water conservation program, to assist the, Agency m peals demand reduction. - Wu To" mzplement the above, the will seek `federal `and state; grant funding to help offset the cosi"' associated with the Agen&ls water conservation program " ; B. Wastewater 1Vlanagement Pro rams and Activities >• Background: In January 1995, the Agency became responsible for five county sanitation districts and fsix county ,sanitation zones that operate wastewater- collection, treatment, reclamation, and disposal systems serving unincorporated areas of Sonoma County. Since 1995, the Agency has transferred. control of one system, the Sears Point Sanitation Zone, to a local entity, and has added one' sanitation facil ty,Ahe'Mayacamas service area, wl ich.is:managed by the Agency, but operated. by an. outside entity. The Agency currently operates the county ,sanitation districts under contract: The county sanitation districts and Agency sanitation zones are - managed as financially independent enterprises of the Agency. Of the eleven ;districts and zones, the Agency currently operates nine wastewater sanitation systems that serve populations ranging. in �s "' . ` refers purveyors y have implemented water conservation devices such as l low floto toilets u and nshowerheads Wheat such water conservation hardware° is implemented, the ability to further reduce Ovate usage or conserve water is limited and, therefore said to be "demand hardened:" The ability to further reduce demand through water conservation measures is difficult to accomplish under such conditions. 19 Legislation:in,1995 added sanitation services to the Agency'&,.responsibilities (Statutes of 1949,. Chapter 994 as amended in 1995). • Revised Draft Water Policy.Statement 2002 20 Deceftiher 2002 number from several, hundred to more than 30,000. The remaining two systems are operated by outside entities under separate ,agreements: i Two primary constraints exist for the Agency in its operation of wastewater treatment plants. First, the Agency's organizational structure has developed over the past forty years for the primary purpose of providing wholesale water supply and flood control services. This organizational structure is well suited for operating larger water and wastewater systems, but it is inefficient for the Agency to operate smaller wastewater systems. The Agency's small wastewater systems serve, in some cases, as few as several hundred users. Based on the low number of ratepayers, it is difficult to support the larger administrative structure of the Agency that exists to oversee these small systems. The small ratepayer base also, makes it difficult to fund improvements aimed at upgrading the systems to operate more efficiently. For small systems, local control and operation appears to `be a viable option. In some cases, significant public support exists for local control "of the smaller facilities. Based on these factors, it is prudent for the Agency to investigate the potential to transfer or consolidate facilities where possible to create a more efficient operating structure. Second , the A enc i facing increasing re lato re uirements that ie uire the g Y s � � b b t� rY , q , � , � q Agency to upgrade w,existing secondary wastewater treatment plants and reduce wastewater discharges to local Ai erways, Regulatory requirements associated with the discharge of water C produced Y nduced b wastewater treatment plants are becoming increasingly stringent. At tinges during the discharge season, the Agency's wastewater treatment plants experience problems u1 treating the amount of wastewater entermggihe plant, in part due to. aging collection systems. This has resulted in violations off existing peimits resulting in fines. Additionally;, operators iof wastewater treatment plants are increasingly�becoming the targets,oflawswts ind'er the Clean Water Act by private citizens and organizations. .To address these issues, the Agency is currently upgrading the Forestville Wastewai =er tTreatn ent ,pPlant, aid investigating options to upgrade secondary wastewater treatment plants in Occidental and,' Sonoma. Valley to. a tertiary level of treatment. With terh�atinent, the Agency's = existing plants would produce recycled water that can be used in a broader array of apph'cations for municipal and agricultural reuse. In areas, where high quality groundwater or surface water is not available, recycled water is :currently being utilized as a primary source of irrigation °water. In addition, many agricultural users may have inadequate water rights and would also benefit from the use of recycled water. Use of recycled water for municipal and agricultural irrigation can reduce demands on regional surface water and groundwater supplies, and reduce wastewater discharges to local waterways. Recycled water use could also reduce the diversion from tributaries and streams of the Russian 'River and San Francisco Bay that provide significant habitat for federally threatened fish species including steelllead, coho salmon and 'ehinoolc salmon, and also provide the primary water supply to various cities, towns, and other municipalities within the county. The Agency is currently investigating potential sources of recycled water throughout the Agency's service area in both 'Sonoma and Marin counties. Revised Draft Water Policy Statement 2002 21 December 2002 Policy and Direction Regarding Wastewater Managennent Programs and Activities • Policy: The Agency . should: (1) :investigate and pursue the potential to consolidate and transfer ownership of existing small wastewater ,treatment plants to local entities; (2) investigate the feasibility of upgrading existing secondary wastewater treatment plants to tertia ry levels;. and, () pursue 3. continue to opportunities to provide recycled, water to municipal pp and agricultural users within the county in order to reduce surface water discharges to. ,local waterways, and - provide significant regional water supply and environmental benefits. Direction: ,a. Where possible, Agency will work to either (1.) facilitate: the.transfer of sanitation systems "serving fewer- than about 2;500 :people to local public entities, or (2) consolidate :such;facilities -in order to create systems with greater than,about 2,50*0,people. b. The .Agency will investigate the feasibility and, where appropriate; upgrade existing secondary wastewater`treatn eat plants to a tertiary level. c Elie— Aenc3reee -' �� 1} #13e- liaba�se3ted �ufaeeer , he A enc will ursue ,tfie . disehan. g . b. , T g y ,p . :development of projects, including, collection system and wastewater treatment plant upgrades, recycled water projects, and other projects as identified, that could eventually elvminate. surface, water discharges (under normal rauifall, conditions) �arid fully and beneficially use all recycled water produced by wastewater txeah -rent plants in Sonoma County Because the Agency supplies. potable water supply inn Maria Gounty, the Agency w111, also encourage recycled water projects in Ivlarm.Count "and where possible; work -to secure iecycled -water rights in Mari County to be used to offset' potable water use u, the: he Agency's service area; both in Sonoma and Maru1, Count_ ies i d. The Agency will continue to pursue agricultural user agreements' for the use of ,recycled water'to further reduce surface water discharges to local waterways, while promoting .the agricultural production and sustainability of the region: C. Flood Control'PYrograms and Activities Background: The Agency constructed and maintains, numerous flood control facilities, both independently and ; in cooperation with federal agencies. Theprincipal federal flood control facilities protecting Sonoma County are Lake 'Sonoma and Lake. Mendocino; both constructed: by the Corps: These facilities regulate flood flows from a portion of the Russian River basin and - reduce flooding in.urbanized areas located. downstream of 'the dams. The Agency is the local sponsor for both facilities and retains ongoing obligations to maintam channels, as well as specific bank stabilization and ,erosion control works constructed by the Corps to limit erosion from flobd releases from the dams. • 9 Revised Draft Water Policy Statement 2002 22 December 2002 The Agency also constructed and maintains the Central Sonoma Watershed Project that includes four reservoirs built in the late 1960's to reduce flooding in the Santa Rosa area. The reservoirs, located on Santa Rosa Creels, Brush Creels, Paulin Creek, and Matanzas Creels, were built it cooperation with the U.S. Department of Agriculture, Soil Conservation Service, now known as the Natural Resource Conservation Service. The channel maintenance activities associated with Lake Sonoma and Lake Mendocino, and the Central Sonoma Watershed Project, protect urbanized areas including the City of Santa Rosa from flooding. The Agency also conducts channel maintenance activities on over 300 miles of creeks and waterways within the .Sonoma County portion of the Russian River watershed. In 1958, a report submitted to the Agency's Board (Engineer's :Report for Creation of Benefit Zones) identified flood control zones of benefit within Sonoma County. The report proposed eight geographical zones of benefit, each of which is comprised of a major watershed. The purpose of designating specific .zones of benefits was to raise funds, to construct and maintain flood control works. Subsequently, over several years, six of the zones were formed including Zones IA (Laguna -Mark West Watershed), 2A (Petaluma Creek Watershed), 3A (Valley of the Moon Watershed), 5A (Lower Russian River Watershed), 7A (North Coastal Watershed), and 8A (South Coastal Watershed). To fund projects in these zones, property taxes were set annually to collect sufficient funds to finance flood control services within t$p zones. With the assage of Proposition 13 in 1976, the funds generated under property taxes were severely cut resulting it a reduction in revenue for the zones. Following the disastrous flooding in 1986, the Board initiated steps to initiate benefit, assessments to raise funds for ,, flood condor projects. Benefit assessments for Zones IA and 2A� were passedn by popular vote iiin 1986 and , subsequently re- approved by voters in 1996. These, assessments'fund e- ei and maintenance activities The `annualauthorizatior for these assessments extends fizrough 2006 r� With i` Zones lA (the �lvlark West Creels- Laguna de Santa Rosa watershed), Zone 2A (the Petaluma Raver watershed), Zone 3A (the Sonoma Creels watershed), and „Zone SA (the Russian Raver from the mouth Redwood Hij hw ` at Healdsburg (e cl ding the area within Zone 1A), the Agency has constructed and maintains some flood control channels. The maintenance activities for these zones have included sediment removal, channel clearing, vegetation maintenance, and,baii1c stabilization. Many of the Agency's flood control channels are habitat or potential habitat for the salmonid species that have been listed as threatened under the federal ESA. Because the Agency's flood control activities (and, inparticular, 'its flood channel maintenance practices) may affect these species, the Agency's flood control activities are being addressed in the ongoing Section 7 Consultation (Discussed in the Natural Resources, Protection and Enhancement section of this document). The ESA ,prohibition on "take” of listed species has already resulted in changes to the Agency's flood control and channel maintenance activities. For example, the Agency is removing woody debris only in constructed flood channels, thus leaving natural channels largely undisturbed. In addition, vegetation maintenance activities are conducted to retain canopy cover as much as possible in the riparian zones. The Agency is currently evaluating these changes and their impact on hydraulic capacity. Revised Draft Water Policy Statement 2002 23 December 2002 Storniwater discharge& into the Agency's flood control channels that are in the Santa Rosa Creek watershed are permitted under National Pollution 'Discharge Elimination System (NPDES) Permits with the North Coast.; Regional Water Quality Control Board (NCRWQCB) c .e—SaB eisbe- a l egi 1 t�7.,' +0 . Q ahty Gear,-:,; BoaFd-- (-S -Bz� T. ° G C). Under the NCRWQCB permit, the Agency, and its permit, partners, the City of Santa Rosa and County of Sonoma have, worked to reduce discharges of pollutants of,concen ' , ells. The Agency, County of Sonoma and City of Santa Rosa are committed to continuing to examinerways to further.reduce discharge of pollutants into R6 ee � — lan3el-s waters of the state : :• -, ., .. s stated . - For the Agency's flood control facilities within -the San Francisco,-Bay Regional Water Quality. Control ' ' ( Q ZJ g Y g g PP Boas d s�� SFBRVJ CB ' 'urisdiction the A enc is „� investi atin o , o rtunities + rinrine „ .,;f. „ +,, � coordinating reQorial stonilwater permitfin� ' requ i rements for _ ��. c, r . and mor itoting'with,other entities. adjacent to San Pablo Bay. In the San Pablo Bay region, the A. North ,`Bay Watershed Association .,(NBWA � agencies with conunon interests in the San Pablo ]_ is ;interested in developing a coordinated approach. Policy, and I Policy:(` The 1 extent pi acticable„ given re should continue to naintaul f. threatened fish species are nii to examine ways tO., uce po Direction. 0 icy is a member and !active participant in. the e. NBWA is currently composed of -public Watershed. Among other'taslcs', the NBWA rg Flood Control P should continue to and rograms and Activities' providel flood control and funding? limitation: /aterways such that. imp possible: The Agency; - vices `to the The Agency s to federally Auld continue a. The Age �' g Y - ,e, to „ its d ,,, rAr - +:.,; +s continue to perform flood control,activities. that conform to regulatory requirements,.including,the requirements of the.'federal'ESA acid Clean Water Acts, and any requirements that result fromthe Agency's .ongoing Section 7 Consultation with the 'N { ' "" i4 S ,h ILTLl 0 ,U' : , N11VfTS and the Corps. b. The Agency will continue to participate with the 'City of Santa Rosa and County of Sonoma 'in a joint NPDES permit. The Agency will work to coordinate a regional approach to reducing, county flood control.problems A,coordinated approach weuk4 -will include regional coordination on flood control issu both within the NCRWQCB and SFBRWQCB jurisdictions The Nervy will also investigate the potential for . &joint NPDES ,permits between local entities within the Agency's service areas - b .. in the NCRWQCB and SFB'RWQCB • 20 Additional information about the North Bay Watershed Association is included in the Natural Resources Protection,,.Recovery, and; Enhancement portion,of this document. Revised'Draft Water Policy Statement 2002 24 December 200 Jurisdictions. At 9�ieh time when eitheim pen itPree-es , the —If . joint permits are ill provide "feasible and appropriate, the Agency w leadership in obtaining a joint permit between the Agency, City of Santa Rosa, and other participating towns and cities within Sonoma and Mendocino County as well as a joint permit with local entities in Marin County, and in southern Sonoma County including the cities of Petaluma and Sonoma, to reduce flood control problems. c. Similar to the Agency's efforts with the NBWA in San Pablo Bay, the Agency will work to develop a consortium of local entities within the Russian River watershed to develop cooperative efforts, to address flood control problems in the Russian, River watershed both in Sonoma and Mendocino County. d. The Agency will evaluate additional — mechanisms for public funding of needed programs and improvements prior to the expiration of the voter- approved flood control assessments in Zones IA and 2A. To maintain the existing flood control benefits within Zones IA and 2A, the Agency will seek voter approval of the benefit assessments in.2006. D. Recreational Activities on Agency.Property:..;., n . Backgiound :' The Agency's enabling act authorizes <it to -`providelT water for recreation and to provide limited recreation opportunities in connection with its flood control and water supply facilities, .Consistent )A th this authority, the Agency lids entered .into agreements �. with other public entities to developsor authorize recreational uses on Agency property, including at Sprung Lake and along Santa�Rosa Creek, Colgan Creek, areas ad)acent to Brush Creels, the Russian River several creeks located in the Santa Rosa Plain. the- Agency manages R, ;ce;ara k,vP.r :nti,rc,iant tn:ats state wale, : r 'ht hermits_ which provide recreational benefits fiver. The Avencv also owns Droperty throughout Sonoma County; much of it in scenic locations. preserves the existing visual character of natural scenic areas. Policy and Direction Regarding Recreational Activities on Agency Property Policy: The Agency should consider additional opportunities for managnlg its propertyto.,increase public recreational use and open space benefits. The Agency should maintain existing opportunities and provide new opportunities for public recreational use of Agency property, to the extent consistent with budgetary constraints and the primary use of the property for flood control and water supply purposes. Direction: a. The .Agency will evaluate its existing property and consider public partnerships to develop recreational opportunities. Priority will be given to recreation opportunities that benefit the greatest number of people while continuing to protect water quality, alleviate flooding, and provide sanitation services. ® Revised Draft Water Policy Statement 2002 25 December 2002 7 b. When acquiring land and siting future facilities, the Agency will consider the public recreation potential of the _land and will cooperate with other agencies to enhance active and passive recreational opportunities, where appropriate, while continuing to protect water quality and supply, and alleviate flooding.. E. Security, Safety and Preparedness Background: In 1996, the Agency adopted an Emergency Preparedness Policy. Pursuant to this policy, the Agency lids developed procedures including an .Emergency Operations Plan (EOP), to guide Agency responses to emdgencies. The Agency's EOP identifies a wide range of emergency circumstances, . includng floods, earthquakes, spills, power failures, vandalism, and sabotage, and directs staff responses to emergency situations. The Agency continues to assess risks to its facilities on an ongoing basis. According: to the U. S: EnvironmentaL.Protection Agency, the primary threats to the Nation's drinking water supplies are contamination` by chemical, biological, or radiological agents, damage, destruction, sabotage of physical�_infrastructure,;and disruption p, Computer systems In the Russian River region; earthquakes and floods present an additional risk to the Agency facilities and operations... l Policy and) Policy: The. and :systems r and th'e regic sabotage` Security, Safety and uld take such steps as are supply #p natural and facilities nd from • a. The vulnerability . of the Agency''s water supply and sanitation facilities will continue to be evaluated. on an ongoing basis, facility by .facility, with particular atteiition to reducing risks to Agency facilities. Priority will be. given to prevention. of harm fi -om: earthquakes, floods and sabotage:, The assessment should evaluate: (1) the risks to the, reliable operation of the Agency's facilities; -(2)_ improvements, administrative and operational modifications to reduce risk of impaired operation, where feasible; and, (3) the costs. for implementing such measures. b. The Agency's EOP will continue to be updated on an ongoing basis to ensure that appropriate "security, safety, and preparedness measures are incorporated. Revised Draft Water Policy Statement 2002 26 'December 2002 F. Natural Resource Protection, Recovery, and Enhancement 1. Russian River Fisheries Background: In carrying out water supply, flood control, and sanitation activities, the Agency must comply with.laws, rules, and regulations enacted to protect natural resources, as well as with permit terms and conditions. Applicable laws include state and federal endangered species and water quality acts, federal and state safe drinking water acts, federal and state environmental laws, and state water laws (including the constitutional prol>ibitions against waste and unreasonable use of water): In addition, as a public entity, the Agency has a responsibility to consider the "public trust" interests in regional waterways, including uses of the waterways for recreation, fish, wildlife, and aesthetics. The Agency's unique responsibility for the Russian River fisheries arises from the Agency's control of the nonflood releases of water from two federal projects, Lake Mendocino (on the East Fork, Russian River) and Lake Sonoma (on Dry Creels and Warm Springs Creek, Russian River tributaries). ' The Agency controls the nonflood releases from these projects through the" Agency's contracts with the federal government and- . compliance with its state water rights permits.`: The latter obligate the Agency to maintain certau mii„rri stieamflows in the Russian River and Dry Creels foz, among other reasons; the�'benefit ofthe fisheries. The Agency's responsibility also arises from its flood control, sanitation, and water supply and hydroelectric generation activities in the Russian River basin. Three species of River anadromous fish, coho and chinoo salmon and steelhead, have been'l sfe- as threatened under the federal ESA In response to these listings, the Agency is co�isulting tivith state ;'and::: federal agencies to determuie what changes ;are needed to ensure that Agency activities do: not # hst6. specifies. The most significant is a consultation authorized by,` Section 7 of tl* e federal ES 1, which is being carried out .pursuant to a lvlemoranQUfir1 °"o'r"°Uriuc,6talLUUtr, ariavus — , s5----Y, ..... ­ ___ _ ._____._____ _ - Ser dated December 3.1, 1997. Under the Section 7 Consultation, the Agency, nil cooperation with the Corps and . tio-rl- A�a�eil� "r c °''R^ ���- a�� is evaluatu7g the effects of certain Agency water supply and flood control facilities and operations, and Corps flood control operations on listed fish species. As part of the Section 7 Consultation, the Agency and Corps are preparing a Biological Assessment (BA) to assess impacts of the Corps' and Agency's operations related to flood control and water supply, and, to support the Section 7 Consultation. The BA will provide • a description of the actions subject to consultation, and ultimately provide the basis for the 'N o t ioral "'`arise ;r ' '' '" c-e to prepare a Biological Opinion (BO) that will evaluate the Agency's and Corps' activities, including conservation actions. The BO will r ' 1 c � e e2 state the �d- a€ie 1- PoY- ­�--�- � NMFS s opinion ,as to whether or not the actions included in. the consultation are likely to jeopardize the con_ tinued existence of the listed fish species or adversely ,modify their critical habitat. The BO will, in effect, authorize a certain amount of take of the listed species under' certain specified terms and conditions. To be allowed to take listed fish, the Agency and. the Corps must comply with these terms and conditions. Therefore, the BO will affect how the Agency operates existing and proposed water supply and diversion facilities, and flood control facilities. Revised Draft Water Policy Statement 2002 27 December 2002 To address species recovea at th.e fed eral level t he:N`MFS, CDF G,. Corps, and the Counties of Mendocino Sonoma and Marm (among others) entered into a for MOO Recovery Plaimin-g_ The pgg?ose of the MOU for Recovery Plamlins is to develop a recovery plan and facilitate the- coordination of recovery activities- between federal state and local. entities. The Agency is interested in adding additional signatories to the MOU for Recovery Planning to further. coordinate: and facilitate the involvement of local entities in the reeoveEy l�cprocess. In addition to the federal listings on August 30 2002 the California Fish `and endangered undev the state ESA To address the heed for recovery planning at the state level, the - Board passed a� resolufion approving_suipport to the CDFG on the development of a ;recovery strategy for coho sahrmon The Berard directed staffto provide professional. and technicaLserv.ices to assist CDFG in recovery planning efforts. The Agency's piimary reason -for participation in this process is that the final content of the State Coho Recovery Strategy has the, potential to .impact. t he Agency's water snippy perations for vears to cone; Tlie outcome. of °the S "tate Coho • • in efforts to protect listed fish species in the Russian River and its tributaries. As part ot its ongoing efforts, the Agency is currently investigating partnership opportunities with other entities to further protect the; Russian River and its tributaries; including the protection of native habitat for listed fish species; regional water supply, and water quality. Two examples of the Agency's ongoing efforts for watershed protection- include the' Agency's 'Fisheries Enhanceineint- Trograin (FEP), and the ongoing development of"Agency watershed: protection partnerships.. Since .1 996, the Agency has conducted and coordinated the FEY, With a primary goal,of'improving native fish resources of the'Russian River and its tributaries. 'The focus.of..the FEP is to enhance habitat' for federally listed 'fish species including chinook salmon, coho salmon, and steelhead. As. part of the FEP, the, Agency, lias conducted and coordinated °more -than 70 projects. These activities included stream restoration projects, fish and habitat _studies, and other watershed projects. Several noteworthy projects have been initiated under ther FEP, including the Copeland. Creek: Restoration Project, the Crocker Creek Dain Removal Project, and the Mumford " Dam Fish Passage. and Riparian Enhancement Project. For the Copeland Creels Project, the Agency has completed more than 6,000 linear feet of °riparian restoration. For the .Crocker and Mumford. projects, the Agency anticipates opening up more than 5'5 miles of spawning ,habitat for Revised Draft Water- Policy Statement 2002 28 Deceniber,2002 •' listed species that is impaired due to habitat, degradation and impediments to fish passage at the two sites. The Agency has also been instrumental in fostering partnerships with outside local entities for the purpose of enhancing and protecting watershed areas. Recently, the Agency's Board authorized a funding agreement between the Agency and the Sonoma County Agricultural Preservation and Open Space District (District) in the amount of $250,000 to contribute toward the District's acquisition of the Cooley Ranch Conservation, Easement, a cooperative effort to protect more than 19,000 acres of land in northern Sonoma County and southern Mendocino County adjacent to Lake Sonoma: The Agency's Board also recently authorized a joint purchase between the A and the District of 394 acres of riyerfroint property upstream of the Agency's water supply diversion facilities. In addition to Eeele�— --h e examples the Agency is continuing efforts to identify partnership opportunities with County agencies and other entities to protect and enhance watershed lands throughout the Russian River watershed. Through such efforts, the Agency is committed to safeguarding the Russian River watershed for both fisheries, and as a reliable long -term regional water supply. The Agency intends to continue to carry out and, ?vhexe appropriate, expand its Russian River fisheries enhancement and restoration programs, and watershed ,protection activities. Recovery of the threatened salrnonid species and general watershed improvement will require participation and support from a wide range of public and private agencies and groups, including the Agency. ; -The Agency i committed to providing a leadership role in continuing these_ efforts to protect, preserve and enhance the Russian River watershed k Policy, :and D a etion Regarding Russian Rzve Fisheries_' r Policy: The Ageizcy has a unique responsibility wain respect to the: Russian River anadromous fisher In addition W,, complyii g withl3 all. regulatory requirements, the Agency should encouri sponsor, and, where feasible, contribute to --and participate'--m-carrying out comprehensive programs to maintain, protect, and recover the „Russian River fisheries.. In so doing, the Agency should participate in coordinating fisheries recovery and watershed improvement efforts and identify and pursue new and increased funding sources for such efforts. The Agency should also provide leadership in coordinating activities among relevant agencies and groups to ensure efficient application of resources. Direction: a. The Agency will use its best efforts to ensure a prompt and effective completion of the pending Section 7 Consultation. b. The Agency will seek to renegotiate existing contracts and negotiate new water supply contracts including the new — Restructured Agreement for Water Supply such that those contracting with the Agency -pay an appropriate share of environmental costs associated with delivering current and future water supply. These costs may include environinental permitting, compliance mitigation, restoration, and enhancement costs. Revised Draft Water Policy Statement 2002 29 December 2002 c. To facilitate coordination of fisheries recovery efforts; the Agency will work to modify the existing MOU for Recovery:Planninc- and negotiate and implement te new MOU among local entities that operate within the Russian River watershed a e�? ent. First, the Agency will work 'to modify the recently si i5ed ing M.OU among public agencies involved in. fisheries restoration and population recovery efforts: -in. the North - central California. Coast recovery planning domain ui�de � �•T' e r° eves =y phaf "�ou.4 &eiel d�nplerier�fed to include additional 'local entities as signatories to, the MOU for Recovery Plangi.n. The purpose of the MOU for Recovery Planning is' to facilitate coordination among federal; state, and local efforts..in the recovery planning process and in increasing fisheries populations. Second the Agency "will. yworlc to develop a ,memorandum of understanding among local public agencies :Mi the Russian River watershed which use the Russian River for water supply, affect the Russian River through waste discharges and land: use . activities, or. are , affected. by Russian,River flooding. The purpose of the memorandum of understanding is to coordinate local agency projects across jurisdictional boundaries to address regulatory. constraints 'in a more p g g g cost - effective manner, and to facilitate ,the p of fundin amore local a encies for recov er planning and fishery restoration efforts in the Russian River watershed. d The Ageney will continue 'to, work with federal, state„ and lgeal agencies on cooperative efforts to preserve and protect the water supply, water quality,!'and�en�u_onmental resources of the Russian -River watershed. e. The Agency will ident' and t ursue other, funding sources for fishery >' p enhancement, water quality imp i6 vemerits, and restoration and recovery efforts,'mcluding state, federal, and private sources, sc that, the Agency's ratepayers and Sonoma County taxpayers do not pay a disproportionate shafO f Ifiese costs t . f Thee Agency will continue to play an active role in recovery ofthreatened fish populations urthn the , - central *Cahfori a Coast° Planning = `Domain, tfiiiddgh continued leadership and, participation with federal, state and local agencies that are involved in the recovery planning process. 2. San Pablo Bay Watershed: Background; The Agency has interests ,and participates in a number of activities in the San Pablo'Bay watershed. The Agency's interests stem from its involvement in providing water supply to urbanized areas adjacent to San Pablo Bay, its involvement in flood control activities in the Petaluma River and Sonoma. Creels, waterslieds, its management of the S } • atieiq tri SUCSD4 Wastewater Treatment Plant Leh that discharges treated effluent to tributaries of San Pablo Bay, and its participation in regional planning efforts to promote recycled. water use and environmental restoration in the San Pablo Bay region. The'San Pablo. Bay watershed is home to federal and state -listed sensitive species, and provides significant wetland and grassland habitat for numerous shorebird and wildlife species. The fo briefly 2 Water quality improvements are needed for 'direct waste discharges and also indirect, or nonpoint source discharges-. • Revised Draft Water Policy Statement :2002 30 December 2002 t n describes the Agency's operating environment in the San Pablo Bay watershed including: the Agency's water supply, flood control and sanitation responsibilities; the environmental resources in the San Pablo Bay area; and cooperative agency efforts underway to promote recycled water use and environmental restoration. Regarding water supply, the Agency provides wholesale water to two entities within Sonoma Valley, the VOMWD and the City of Sonoma (City). The VOMWD and City retail water to customers located within the San Pablo Bay watershed.. Three of the Agency's water contractors, the City of Petaluma, the NMVVD, and MMWD, and a water customer, the Penngrove Water Company, are.also.lo.cated within the San Pablo Bay watershed. Currently, the Agency's water supply system is constrained both within the Sonoma Valley and Petaluma Valley. During the summer peak water use period, the Agency has difficulties providing enough water to meet the demands of its contractors adjacent to San Pablo Bay. The Agency is currently investigating options to ensure a more reliable water supply during peak use periods. In particular, the Agency is investigating the use of recycled water to offset potable water use. The Agency is also studying groundwater use under a cooperative partnership with the U.S. Geological Survey. The purpose of the study is to identify problems associated with groundwater pumping throughout the Sonoma Valley. In addition, to address, water sup -, y� oblems in Petaluma, the Agency's Water .Conservation Program. and a recycled water study bean prepared by the North Bay Watershed Association (NBWA�j are identifying additional steps to reduce water demand. • Regarding flood control, the Agency currently has management responsibility for approximately 20 flood control,, channels and numerous natural creeks in the San Pablo Bay watershed. The Agency is responsible for ensutingdli t these charnels and creeks are maintained to protect local resources duringflooding events kl In addition,to water supply and flood control operations, the Agency also operates the SVCSD. VCSD currently d'scharges' treated °eflluent either to Schell and Hudeman Slough, or to the SVCSD's reclamation system for beneficial.reuse. The reclamation system is a system of storage ponds and distribution lines that connect to privately owned irrigation systems, transmission lines, and pumping stations that allow for the reuse of recycled wastewater for irrigating pasturelands and, vineyards. The reclamation system also consists of three wetland management units. Recycled water is used in two of the three management units to enhance wetland habitat. The SVCSD also, has the capability to deliver water to nearby wetlands that are managed by the California. Department of Fish and Game. Due to limited storage space, any recycled water in the ponds ,that. is not reused for irrigation, or wetland habitat enhancement is discharged to Hudeman Slough during the discharge season between November 1 and April 30. Due to changes in water quality regulations, and constraints associated with the - SVCSD's discharge permit, the SVCSD faces increasing challenges .associated with continuing its, discharge to local waterways during the discharge season. As such, the SVCSD is interested in pursuing alternative projects to further reduce discharges within the San Pablo Bay watershed. The environmental resources of the San Pablo! Bay region are diverse in nature ranging from mudflats and marshes, to upland grassland habitat. The areas adjacent to the SVCSD's wastewater treatment plant and reclamation system, and some of the SVCSD's Revised Draft Water Policy 'Statement 2002 31 December 2002 reclamation system land; provide significant wetlands and wildlife habitat for sensitive species. These lands, including the Cargill Salt. Ponds recently acquired by the CDFG, the reclamation system's management units, :constructed wetlands mitigation ponds, and diked baylands in the, area also ,provide habitat for .a large number ,of shorebirds and other wildlife species. Of particular importance to the area, the SVCSD initiated the Hudernan Slough. Wetland Enhancement Project to mitigate impacts associated with construction of the SVCSD's Rl and R2 storage reservoirs. The project includes approximately 120' acres of _upland grasslands, upland mitigation ponds, seasonal saline wetlands, permanent ponds,, and diked 'brackish marsh. 'The SVCSD has used recycled water in some of these areas to create year -round habitat for listed species: A study conducted by the SVCSD concluded, that the use of recycled water, if properly - managed, can be _ used for restoration purposes to provide s barufcanthabitat benefits to the local area.. -In addition to the SVCSD's current Wetlands •Enhancerrient Project, there are other potential opportunities for resin "ration and enhancement including 'CDFG's Cargill Salt Ponds, as well •as'other areas not yet identified by the. SVCSD. C] The Agency and the SVCSD` are :active participants in the NBWA, currently composed ,of 14 agencies with. common interests in the :San Pablo Bay Watershed. The purpose of the .NBWA , is to coordinate member agency activities ,rra,Fthe areas�of permitting• and environmental restoration. . Member agencies share` d common interest na. co de with various regulations, environmental permitting, = recycled water use, preservation, habitat restoration, protection of water quality; acquisitions to support such common interests. The NBWA c feasibility,study to identify opportunities to beneficially use re watershed In addition tuthe NBWA, a. number of sanitation San Pablo Bay; hayedscussed the;,potential to work on coupe d or tlueateined species' Iservation, ,and in funding a rter in the San Pablo Bay located oni! or adjacent. to to recycled water Benefits. of reusee include lYabrtat protection and enhanc groundwater pumping water diversions, potential wetlands creation and reduction "Zf surface water discharges to ; San Pablo -Bay from focal M.� p lants. . , ,•_.x:Fw Policy and Direction Regarding San Pablo Bay TVatersh'ed enciauy reuse . nt, offset of enhancement, iter treatment . Policy: Due to the significant environmental resourcesJo.cated in the San Pablo Bay area, the ; Agency, as a primary operator" of water supply, flood control :and sanitation services has; a: responsibility operate its facilities in an environmentally responsible manner. As a water supply purveyor and discharger to local waterways, the Agency, onbehalf of the:SVCSD, should identify sand pursue - opportunities to beneficially reuse recycled water to reduce discharges to local waterways and tributaries adjacent: �to San Pablo Bay while providing' regional water supply °and environmental' benefits. In its efforts, •the:.Agency should seek opportunities to ,develop cooperative ,partnerships. in the areas of recycled water and environnerital restoration, and where . possible, identify and pursue federal state funding to carry out those .efforts. In addition, ,the Agency should work with local regulatory. agencies to develop regulations 'and modifications to ex isting'regulations that recognize and balance the needs of sanitation agencies and. environmental resources, in the San:Pablo Bay area. Revised Draft Water Policy Statement 2002 32 December 2002 ; H i Direction: a. Recognizing the water supply constraints associated with the Agency's existing water supply facilities within the Sonoma Valley and Petaluma Valley, the Agency will identify and pursue the use of recycled water to offset potable water use. b. Subject to available funding, the Agency will continue to study groundwater usage within the Sonoma Valley and Petaluma Valley to identify issues of concern regarding groundwater pumping within the Agency's service areas. c. The Agency will work cooperatively with the NBWA member agencies, local sanitation agencies, resource conservation districts, the Sonoma Ecology Center, and other entities to identify, evaluate, and where appropriate pursue recycled water projects in the San Pablo Bay region in order to optimize the beneficial reuse of recycled water: d. Recognizing the competing interests within the 'San Pablo Bay watershed, the Agency will actively participate in the process to develop or modify existing federal and state regulations 'affecting sanitation agencies, such that,, implementation;:, rribnitorng, feasibility, and costs to sanitation agencies are considered when developing or modifying suchregulations. e Where possible, the Agency will "'work cooperatively with local entities, and federal and state regulatory agencies, on regional partnerships oi cooperative ventures to use recycled water for ei?vironmental restoration and enhancement purposes In particular, the Agency will continue.ao work with local sanitation agencies, and federal and state agencies to promote the use of recycled water to:restore the Napa °Sonoma Salt Marsh complex. f TYie A vork to Treatment Plant twle"rtiary leve*Nto ; assist in reducing surface water .discharges to local waterways and provide=Tecyc ed water that'can4e used a- ,wider range- of beneficial, -uses within the watershed. g. The Agency will continue to pursue agricultural user agreements for the use of recycled water to further reduce surface water discharges to local waterways, while promoting the agricultural production and sustainability of the region. h. The Agency will actively identify and pursue federal, state, and local funding to carry out the activities identified above. M. Implementation In order 1to effectively use the Water Policy Statement,, Agency staff will work to implement the policies and direction identified in the Water Policy Statement for specific Agency activities. In doin so the Agency will pursue implementation strategies that limit the financial. burden on Sonoma CountYtaxpayers and the Agency's water supply custo.m.ers' ratepayers to th maximum extent: practicable. In anticipation of continued regional change and the dynamic nature of the Agency's work, Agency staff will deliver an initial implementation progress report to the Revised Draft Water Policy Statement 2002 33 December 2002 Board within 4y p¢£ths O£ approval oft the Water Policy Statement. Additional progress reports willbe delivered to the 3»#J.e#Ary two years mJeafter as requested by the 3o +3 When ap2ro2riae and as directed by the 5q£$ the Agency's Water Policy Statement willbe revised an/updated. . . . \ § I R Revised #g# Water Policy k6emAf2002 34 . December 2002 � 0 � § . \ • December 2002 � 0 • PR OPOSED COMMENTS ON REVISE DRAFT WATER POLICY STATEMENT • r� CITY OF PETALUMA, CALIFORNIA • COMMENTS' ON DRAFT SCWA WATER POLICY STATEMENT DECEMBER 2002 The following comments are provided in response to the Sonoma County Water Agency's Draft Water Policy Statement, December 2002. Environmental Costs. Several statements in the Water Policy appear to indicate that the Agency believes its contractors are not paying an appropriate share for environmental costs. For example, one of the policy directives with respect to Surface Water is: "vi. The Agency will renegotiate existing contracts and negotiate new water supply contracts to that those contracting with the Agency pay an appropriate share of environmental costs associated with delivering current and future water supply. These may include environmental permitting, compliance, mitigation, restoration, and enhancement costs." 1. We would appreciate further clarification on this issue: It would be helpful if the Water Policy were to describe why the Agency believes the water contractors are not paying an appropriate share of environmental costs. Recycled Water. The City of Petaluma supports the Water Policy's statements regarding the importance of recycled water. As an owner and operator of an extensive water recycling program, we recognize the benefits of using recycled water. The Water Policy indicates that the Agency is interested in obtaining rights to recycled water produced by others. 2. Through operation of its wastewater treatment facilities, 'the Agency already has access to recycled water.., Why does the Agency believe it needs to acquire recycled water rights beyond those that it already owns? 3. What means will the Agency use to obtain recycled water rights? 4. Will the Agency seek. to acquire recycled water rights only from other agencies that are not using their recycled water, or will the Agency try to obtain recycled water rights from agencies that are already using recycled water that they produce? Section-7 Consultation. The Water Policy clearly indicates that the results of the Section 7 Consultation could impact`the Agency's water supply and flood control activities: Given the importance of the Section 7 Consultation, we offer the.following comment: 5. It is the City's understanding that the National Marine Fisheries Service's Biological Opinion, with respect to the Russian River Watershed Section 7 Consultation, is scheduled for completion in August 2004. The City suggests that the Water Policy include a schedule for completion of the Russian River SAwater resources & conservatio7i\Water \6110 Source of Supply\20 water agency contractors \water policy statement\city council - 2- 24 -03 \petaluma comments:doc Watershed Section 7 Consultation and the schedule for beginning and completing the Petaluma Watershed Section 7 Consultation. • Flood ,Control. The Agency conducts maintenance of flood control channels and creeks throughout.Zone 2A and the City of Petaluma. The Water Policy- states "The Agency will continue to perform flood control activities that conform to regulatory. requirements, including the requirements; of the. federal ESA and Clean Water Acts, and any requirements that result from the Agenc's ongoing Section 7 Consultation with the NIvIFS and the Corps" It is the City's understanding that the Agency has severely curtailed its channel maintenance activities, including:maiitenance of channel's and creels in Petaluma, pending completion, of the Section 7 consultations. The Russian River Watershed Section 7 Consultation has been;in progress since 1997, and is not scheduled for completion until August.2004. The Petaluma Watershed Section 7 Consultationhas yet to begin. Given the lengthy timefrarne necessaryto complete a Section 7 Consultation, the City is concerned that if the Agency continues to curtail its channel and creek maintenance activities in.Petaluma until the Petaluma Watershed Section 7 Consultation is completed, the flood carrying capacity of these facilities will be reduced. We have 'the following comment: 6. The City suggests revising the Water Policy direction regarding floodcontrol programs as: follows: "The agency will continue to perform flood control activities that conform to regulatory requirements; including the requirements of the federal ESA and. Clean Water Acts, and any requirements that result from the Agency's ongoing Section 7 consultation with the NMFS and the Corps in a manner that:maintains and m>proves. he,hvdraulic capacity oNts els. and ussian of the, 11 2 SAwater resources & conservation \Water \6110 Source of Supply\20 water 'agency contractors \water policy statement\city council - 2- 24-03\petaluma comments.doc