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HomeMy WebLinkAboutRESOLUTION 2025-148 N.C.S. 10/20/2025 Resolution No. 2025-148 N.C.S. Page 1 Resolution No. 2025-148 N.C.S. of the City of Petaluma, California RESOLUTION RECOMMENDING THAT THE CITY’S WATER ADVISORY COMMITTEE MEMBER SUPPORT THE ADOPTION OF THE WATER ADVISORY COMMITTEE TO SONOMA COUNTY WATER AGENCY STATEMENT OF INTERESTS RELATED TO THE PROPOSED NEW EEL-RUSSIAN FACILITY AND THE WATER DIVERSION AGREEMENT UNDERTAKEN BY THE EEL-RUSSIAN PROJECT AUTHORITY WHEREAS, the majority of the City of Petaluma’s water supply is provided by Sonoma Water, which utilizes the Russian River System to produce and deliver potable water for various communities; and WHEREAS, the Russian River System benefits from the Potter Valley Project (PVP), which diverts water from the Eel River into Lake Mendocino and ultimately into the upper Russian River; and WHEREAS, the PVP is owned and operated by Pacific Gas and Electric Company (PG&E) and is permitted and licensed by the Federal Energy Regulatory Commission (FERC); and WHEREAS, the PVP is instrumental in maintaining flows into Lake Mendocino and the upper Russian River, and without it, the water supply in the Russian River System will be reduced; and WHEREAS, PG&E announced its intent to surrender its FERC license and decommission the PVP, including removal of diversion infrastructure, by submitting a Final Surrender Application to FERC on July 25, 2025; and WHEREAS, in anticipation of the PVP's decommissioning, Sonoma Water, Sonoma County, the Mendocino County Inland Water and Power Commission (MCIWPC), and the Round Valley Indian Tribes (RVIT) formed the Eel-Russian Project Authority (ERPA), a joint powers authority established to construct and operate a replacement diversion system known as the New Eel-Russian Facility (NERF); and WHEREAS, ERPA and its partners negotiated a Water Diversion Agreement (WDA) with RVIT, the California Department of Fish and Wildlife (CDFW), and other stakeholders to establish diversion protocols, environmental safeguards, adaptive management measures, and long-term funding for Eel River restoration and stewardship; and WHEREAS, the WDA proposes to replace the old PVP facilities at Cape Horn Dam with the NERF to allow seasonal diversion of about 30,000 acre-feet per year to continue to Lake Mendocino, primarily in winter months; and WHEREAS, without continued diversion, Lake Mendocino’s end-of-season storage is projected to drop by half; and WHEREAS, under the WDA, RVIT will hold the former PVP water rights and lease a portion back to ERPA for NERF operations at a cost of $1 million per year, plus $750,000 annually for Eel River restoration; and WHEREAS, the NERF has a 30-year operating term with a potential 20-year extension if restoration and WDA terms are met; and Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Resolution No. 2025-148 N.C.S. Page 2 WHEREAS, preliminary construction costs are estimated at $62-67 million in 2025 dollars, excluding future decommissioning costs; and WHEREAS, funding sources and beneficiaries of the Eel River diversions have not yet been identified; and WHEREAS, Petaluma and water contractors (Contractors) are not signatories to the WDA, but there is concern that they may bear costs for the NERF and WDA through future water rates; and WHEREAS, Petaluma City Council has previously supported efforts to maintain Eel River diversions, and the Water Advisory Committee (WAC), to which Petaluma is a member, has adopted Statements of Interests to guide Sonoma Water’s role in ERPA; and WHEREAS, the WAC is considering a third iteration of the Statement of Interests, which reflects the evolving situation following PG&E’s July 2025 FERC filing and uncertainty over the costs and beneficiaries of the NERF and WDA; and WHEREAS, the updated Statement of Interests reaffirms protection of Russian River water supply and ensures that the Contractor’s obligations remain in alignment with existing agreements. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows: 1. Declares that the above recitals are true and accurate and are incorporated herein as findings of this Resolution. 2. Supports the adoption of the Water Advisory Committee to Sonoma County Water Agency Statement of Interests Related to the Proposed New Eel-Russian Facility and the Water Diversion Agreement undertaken by the Eel-Russian Project Authority. 3. Encourages active participation by the public and partner agencies in FERC’s public review process to ensure local and regional interests are reflected in final decisions. 4. Finds that adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3), which established the general rule for projects concerning which it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment as this resolution does not obligate the City or the WAC to a definitive course of action. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 20th day of October 2025, by the following vote: Approved as to form: __________________________ City Attorney AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958