1. Santa Ana River Conservation and Conjunctive Use Program- Prop 84 Grant Funding Contract
Kelley Gage
March 9, 2017

2. Background
Santa Ana River Conservation and Conjunctive Use Program (SARCCUP):
SARCCUP is the watershed-scale program that will bank imported water to enhance water supply reliability and increase available dry year supplies in the Santa Ana River Watershed
SARCCUP is a $100 million program developed by the five regional water agencies in a collaborative effort with support from Proposition 84 funding
SARCCUP successfully secured over $55 million in grant funding in the last round of Proposition 84 funding

3. Background
EMWD
IEUA
OCWD
SBVMWD
WMWD
SARCCUP Agencies

4. Background SARCCUP includes the following elements:
Water Use Efficiency: Assistance for agencies to develop conservation-based rates
Habitat Creation: for the Santa Ana Sucker fish and Arundo Removal along the Santa Ana River
Watershed-Scale Cooperative Water Banking Program: includes water banking to store water in wet years and provides a new supply during droughts and emergencies resulting in new Dry Year Yield (DYY) for the watershed

5. EMWD’s SARCCUP Phase 1 Facilities
San Jacinto Basin
Mountain Ave West Recharge Facilities
3 Production Wells (sites being investigated)
Est. Construction Cost:
$22,280,000
Grant Funds Awarded:
$12,786,000
EMWD’s Contribution:
$9,300,000

6. Previous Board Actions on SARCCUP
In 2014: Board approved a Memorandum of Understanding that authorized the five SAWPA member agencies to collaborate and secure Prop 84 IRWM funding for a watershed-scale conjunctive use program
In 2015: the Board approved Amendment 1 to the MOU, which added references to the more formalized Santa Ana River Conjunctive Use Program, along with “Foundational Principles” to maximize local resources and avoid competition between the SAWPA member agencies for the Prop 84 IRWM funding
In 2016: the Board approved a new MOU between all SARCCUP parties agreeing to equally pay one-fifth cost of local match for program

7. SARCCUP Program Agreement Framework
Program Funding
Program Operations
Grant & Construction
Coordinated Operating, Storage, Exchange and Management Agreement
SARCCUP Agencies
EMWD
IEUA
OCWD
SBVMWD
WMWD
Operating Committee
Funding Agreement
SARCCUP Agencies
PA-23 Agreement
(Grant Administration & Construction Management)
SARCCUP Agencies
SAWPA
Other Agreements
MWD Demonstration Project Agreement
HSJ Watermaster Storage Agreement

8. SARCCUP Grant Administration
DWR provides oversight on grant performance and project implementation
Department of Water Resources (DWR) (granting agency)
Grant administration and oversight of project performance
Santa Ana Watershed Project Authority (SAWPA) (grantee)
Responsible for management of the SARCCUP program and will provide necessary documentation to SAWPA
Project Agreement 23 (PA23)
(Sub-Grantee) Responsible for project component construction/ implementation of Facilities #1
Agency 1
Agency 2
Agency 3
Agency 4
Agency 5
(Sub-Grantee) Responsible for project component construction/ implementation of Facilities #2
(Sub-Grantee) Responsible for project component construction/ implementation of Facilities #3
(Sub-Grantee) Responsible for project component construction/ implementation of Facilities #4
(Sub-Grantee) Responsible for project component construction/ implementation of Facilities #5

9. SAWPA-EMWD Sub-Grantee Agreement
Covers EMWD’s Phase 1 SARCCUP facility costs and other Prop Round grant and program administration costs
* EMWD’s local match share will be $9.3 million, in accordance with the 2016 MOU where all agencies agreed to equally pay one-fifth cost of local match for program.
Contract term is five years, with a ten year performance reporting requirement
Description
Total
Total Contract Amount - Includes Phase 1 Facility and Grant Administration Costs
$22,906,118
Grant-Reimbursed Costs
$12,786,153
Local Match
$10,119,965*

10. SARCCUP Program – Previously Authorized Development Phase Costs
Description – Summary through Final Design
EMWD’s Share
ERRP CEQA, Prelim. Design & Prop. Evals.
$ 1,757,183
Cost Sharing Activities – Agreements, Master Plan & DS Model
272,062
SAWPA Led Activities – Program Manager, PA-23 & PA-22
395,305
Preliminary & Final Design – Phase 1 Facilities, Prop. Acquisition
2,361,000
Contingencies
214,450
Total Costs through Final Design June 30, 2017
$ 5,000,000
Cost Sharing includes: Program CEQA for SARCCUP, support for the Overall Operating and Financial Agreements, Watershed Master Plan, and Decision Support Model
SAWPA staff labor to support PA-23 & PA-22 (WUE Phase 2) meetings, Program Manager (RMC), and contract between SAWPA & RMC
Phase 1 Facilities include Final Design for Mountain Avenue West Recharge Site, Preliminary & Final Design for three production wells, property acquisition (two sites) and development of a Storage Agreement with the H-SJ Watermaster

11. Next Steps
Individual SARCCUP Agencies enter into Sub-Grantee Agreements with SAWPA
SARCCUP Agencies develop agreements that facilitate construction, implementation, funding, and overall operations of the facilities and water purchases
EMWD completes CEQA and preliminary and final design for the Phase 1 facilities, acquires the necessary property, and develops a Storage Agreement with the HSJ Watermaster
Future implementation costs to be authorized by Board prior to expenditures

12. Recommendation
Approve and authorize the General Manager, or his designee, to execute the Proposition 84 Integrated Regional Water Management 2015 Round Implementation Grant Funding Contract between the Santa Ana Watershed Project Authority and Eastern Municipal Water District in support of the SARCCUP Program.

13. Contact Information
Kelley Gage
Senior Director of Water Resources Planning
(951) Ext. 4561