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Authorize the Chair of the Board to execute a Memorandum of Understanding regarding Cooperative Solutions for the Lakes Water System with the City of Vallejo and any amendments thereto; and Designate two Board Members to serve on a Policy Committee called for in the MOU
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Authorize the Chair of the Board to execute a Memorandum of Understanding regarding Cooperative Solutions for the Lakes Water System with the City of Vallejo and any amendments thereto; and
2. Designate two Board Members to serve on a Policy Committee called for in the MOU.
SUMMARY:
The Lakes Water System (LWS), owned and operated by the City of Vallejo (City), provides potable water for domestic use for approximately 2,800 customers in the unincorporated Solano and Napa Counties. Since 2016, Supervisor Spering and staff have been engaged in discussions with the City about the long-term options for the LWS. These discussions led to execution of a one-year Due Diligence Agreement with the City in November 2016 to allow the County to evaluate the challenges and identify potential improvement opportunities in the unincorporated county region. Following expiration of the Agreement, staff from both the City and County continued discussions which resulted in development of the proposed Memorandum of Understanding (MOU). The purpose of the MOU is to memorialize a continued commitment between both jurisdictions focused on coordinated efforts towards identifying solutions for sustainable, reliable, and cost effective water supply system for the LWS customers. Adoption of the MOU establishes a high degree of commitment and collaboration between the County of Solano and City of Vallejo toward identifying solutions for the LWS area that meet mutual goals.
On January 8, 2019, the Vallejo City Council authorized the City Manager to execute the MOU and directed staff to create a Lakes Water System Policy Committee of elected representatives under the provisions of the MOU. On January 22, 2019, the City Council adopted a resolution creating a Lakes Water System Policy Committee and appointing Mayor Sampayan and Councilmember McConnell to serve on the LWS Policy Committee. In order to participate, the Board of Supervisors would authorize the Board Chair to execute the MOU and designate two Board Members to serve as representatives on the LWS Policy Committee created by the MOU.
FINANCIAL IMPACT:
The cost of developing this MOU is borne within the normal operating costs of the Department involved and is included within the Department’s adopted budget. There are not financial obligations associated with signing onto the MOU. The MOU memorializes a process in which the County has been actively engaged, which includes a contribution of staff time. Future board approval will be sought for any expenditure not included within the adopted budget.
DISCUSSION:
The Lakes Water System (LWS), owned and operated by the City of Vallejo (City), includes dams, reservoirs, distribution/transmission lines, water treatment facilities, other infrastructure, and surrounding lands on two lakes: Frey and Madigan in Solano County. Water to the LWS is provided by Lakes Frey and Madigan, and by agreements and/or water exchanges, Solano Irrigation District and the City of Fairfield. Solano Irrigation District also separately provides raw irrigation water to some areas within the LWS delivery area. In addition, properties in and near the LWS service area are served by other water purveyors and/or obtain water through groundwater wells.
Since May 2016, Solano County staff and individual Board members have had discussions with the City of Vallejo and other interested parties about the long-term and future use of the LWS. As a result of the discussions, a Due Diligence Agreement was executed between Solano County and the City of Vallejo on November 22, 2016 with the purpose to allow the County to identify the challenges and evaluate alternatives for management of the LWS. Initially, the Agreement was to allow the County a one-year time period to consider the feasibility of forming a new entity to lease the LWS. During the period of the Agreement, the City of Vallejo water operations transitioned into a standalone Water Department and the city’s management staff began engaging with the County toward assessing options to address challenges for the City’s continued operations of the LWS.
As part of these efforts and to assist with the system evaluation, the County contracted with Brown and Caldwell, an environmental consultant who together with the County and City staff began outlining the challenges and potential options for the region. The work included documenting the existing infrastructure and other water systems that serve the area and identifying some of the key operating issues for the LWS. This initial effort provided a baseline framework to begin exploring potential improvement options for the region’s water systems. The work also illuminated the need for coordination between all parties moving forward to ensure that viable solutions are mutually beneficial and align with the County’s General Plan goals and land use policies. The proposed MOU was developed from these discussions with the objective to memorialize a commitment from both parties to continue a collaborative, integrated, and comprehensive approach to assess viable options for the LWS.
The key objectives in the MOU focuses on identifying ways to improve the aging infrastructure, consolidate multiple water systems in the area, and evaluating funding mechanisms in order to help stabilize customer rates along with maintaining a regional water distribution system consistent with the Solano County General Plan. The MOU may be terminated by mutual written consent or by either party upon thirty (30) days written notice.
The MOU creates two committees; a Policy Committee consisting of appointed members from each governing body and a Technical Committee of city and county staff. Rate payers residing in the LWS service area will participate through the process. The MOU also specifies involvement of rate payers residing in the LWS area to serve on an advisory committee formed in conjunction with the City’s water rate study or any future public process focused on the LWS area. This has already occurred with a LWS resident serving on the City’s rate study.
The Policy Committee would consist of a subgroup of representatives from both the City of Vallejo Council and County Board of Supervisors. Two members from each jurisdiction’s legislative bodies are recommended to participate on the Policy Committee. The objective of the proposed Policy Committee is to consider recommendations from the Technical and other LWS focused committees and guide their respective boards and councils through the process. Policy Committee members would meet jointly on an as-needed basis.
The Technical Committee proposes to consist of city and county staff that will meet regularly in order to share information, identify mutually viable options, and make recommendations for the Policy Committee consideration.
ALTERNATIVES:
1. The Board could choose not to sign the MOU with the City of Vallejo. This is not advised as the MOU demonstrates a desire of both agencies to address the concerns and work toward solutions to benefit the County residents.
2. In lieu of establishing a new committee, the Board could choose to designate the Land Use and Transportation Committee to serve as the Policy Committee representatives pursuant to the terms of the MOU.
OTHER AGENCY INVOLVEMENT:
Solano County is engaged with multiple local, state and federal agencies and stakeholders as part of assessing the Lakes Water System options including residents and community groups in Green Valley and Gordon Valley, the City of Vallejo, Solano County Water Agency, City of Fairfield, Solano Irrigation District, State Water Resource Control Board, Division of Safety of Dams, Division of Drinking Water, Department of Water Resources, U.S. EPA, and many other agencies.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION