REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities SUBJECT ..Title Actions pertaining to receiving non-storable flood flows from Millerton Lake: 1. Adopt a finding of statutory exemption pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15282(u). 2. ***RESOLUTION - Authorizing the Execution of a contract for Temporary Water Service between the United States and the City of Fresno to purchase and accept non-storable flood flows from Millerton Lake during the current water year.(Subject to Mayor's Veto) ..Body RECOMMENDATION The Department of Public Utilities recommends that Council adopt a finding of a statutory exemption pursuant to CEQA Guidelines Section 15282(u), and adopt a resolution authorizing the Execution of a contract for Temporary Water Service between the United States and the City of Fresno to purchase and accept non-storable flood flows from Millerton Lake during the current water year should they become available. EXECUTIVE SUMMARY The City entered into a contract (9D Contract) with the Bureau providing for a Class 1 allocation of Central Valley Project Water from Millerton Lake ("Project Water"). Once the Bureau makes its annual declaration of water availability, the 9D Contract requires the City to submit to the Bureau a written schedule defining when the City will take delivery of surface water from Millerton Lake. However, in the event the Bureau declares that a temporary supply of water may exist that is not storable for Central Valley Project purposes, the City in all likelihood will request delivery of this temporary water to existing facilities and that delivery of such temporary water would cause no apparent detriment to the City. The Bureau in these instances has historically requested the Council adopt a resolution of intent to enter into a 215 Contract for the applicable water year prior to executing the 215 Contract. Although the 215 Contract has not yet been made available for the current water year, such contract when provided will be subject to review and approval as to form by the City Attorney's Office. By adopting the resolution and executing the 215 Contract, the City is not obligated to purchase non-storable flood flow. However, if non-storable flood flows are made available by the Bureau from Millerton Lake, the City can only receive water with an executed 215 Contract in place and resolution from City Council. BACKGROUND In accordance with the 9D Contract, on an annual basis the Bureau shall make available for delivery to the City 60,000 acre-feet of Class 1 water for municipal and industrial purposes, subject to the terms and conditions of the 9D Contract and regional hydrologic conditions. The Bureau's water year for Millerton Lake operations runs from March 1 to February 28 each year. On or about February 20 of each year, the 9D Contract requires the Bureau announces an initial declaration of Project Water to be made available to the City and other Friant Division contractors. The annual declaration can be adjusted during the year depending upon Central Valley Project operational conditions and regional hydrologic conditions. Once the annual declaration is made, the 9D Contract requires the City to submit to the Bureau a written schedule defining when the City will take delivery of surface water from Millerton Lake. The 9D Contract requires the City to submit its delivery schedule by March 1 of each year. One of the features of the City's 9D Contract is the ability for the City to purchase non-storable flood flows (i.e., flood-release waters) when available, from the Friant Dam. However, in order to receive such waters, the City must enter into a Contract for Temporary Water Service with the Bureau. The contract is designated a "215 Contract," referring to Section 215 of the Reclamation Reform Act of October 12, 1982. The Bureau has historically requested that the Council adopt a resolution of intent to enter into a 215 Contract for the applicable water year prior to executing the 215 Contract. Although the 215 Contract has not yet been made available for the current water year, such contract when provided will be subject to review and approval as to form by the City Attorney's Office. The Department of Public Utilities recommends Council approve the attached resolution authorizing purchase and acceptance of a 215 Contract with the Bureau, which would likely be effective through February 2022, so that the City may purchase and receive non-storable flood flows from the Friant Dam during current water year. If non-storable flood flows are made available to the City, the City will coordinate the water delivery with the Fresno Irrigation District (FID) for conveyance to the City's Leaky Acres Recharge Facility, as well as, coordinate with the Fresno Metropolitan Flood Control District (FMFCD) for storage in its facilities, if capacity is available. Historically in the past when 215 Water was made available, it has been approximately fifty percent of the cost of water during a normal year. By adopting the resolution and executing the 215 Contract, the City is not obligated to purchase non-storable flood flow. However, if non-storable flood flows are made available by the Bureau from Millerton Lake, the City can only receive water with an executed 215 Contract in place. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Statutory Exemption set forth in CEQA Guideline Section 15282(u), which exempts temporary changes in the point of diversion, place of use, or purpose of use due to a transfer or exchange of water or water rights as set forth in Section 1729 of the Water Code, because the purchased water will be temporarily diverted from its standard path in the San Joaquin River to senior water rights holders. LOCAL PREFERENCE Local preference was not implemented because the purchase of surface water does not include a bid or award of a construction or services contract. FISCAL IMPACT There is no financial obligation for the General Fund for this surface water purchase. The funding source for this surface water purchase will be the Water Division Enterprise Fund. Attachment: Resolution