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ADOPT A RESOLUTION APPROVING A COOPERATIVE AGREEMENT FOR THE MOKELUMNE RIVER INTEGRATED CONJUNCTIVE USE PROGRAM AND WATER RIGHT APPLICATION FOR MOKELUMNE RIVER WATER WITH THE NORTH SAN JOAQUIN WATER CONSERVATION DISTRICT, STOCKTON EAST WATER DISTRICT, MOKELUMNE RIVER WATER AND POWER AUTHORITY, SAN JOAQUIN COUNTY FLOOD AND WATER CONSERVATION DISTRICT, AND THE COUNTY OF SAN JOAQUIN (CITYWIDE)
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving a Cooperative Agreement (Exhibit 1 to the Resolution) for the Mokelumne River Integrated Conjunctive Use Program and Water Right Application for Mokelumne River water with the North San Joaquin Water Conservation District, Stockton East Water District, Mokelumne River Water and Power Authority, San Joaquin County Flood and Water Conservation District, and the San Joaquin County.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) provides drinking water service to the northern and southern regions of the Stockton Metropolitan Area, with the California Water Service Company and San Joaquin County serving the central region.
The Delta Water Treatment Plant (DWTP), completed in 2012 as part of the Delta Water Supply Project, provides up to 30 million gallons per day of treated surface water from the San Joaquin Delta and Mokelumne River.
The Mokelumne River Integrated Conjunctive Use Program (MICUP) is a regional water-resilience initiative in San Joaquin County that helps mitigate drought and climate-change impacts by diverting excess Mokelumne River flows during wet years to recharge the Eastern San Joaquin Groundwater Subbasin, strengthening long-term water reliability for local agriculture and communities.
If approved by the City Council, this item would authorize a Cooperative Agreement for the Mokelumne River Integrated Conjunctive Use Program (MICUP) and Water Right Application for Mokelumne River water (Application 29835) with the North San Joaquin Water Conservation District (NSJWCD), Stockton East Water District (SEWD), Mokelumne River Water and Power Authority (MRWPA), San Joaquin County Flood and Water Conservation District (SJCFWD), and the County of San Joaquin (County).
DISCUSSION
Background
In 1990, the Mokelumne River Water and Power Authority (MRWPA), a Joint Powers Authority formed by San Joaquin County (SJC) and the San Joaquin County Flood and Water Conservation District, filed Water Right Application 29835 with the California State Water Resources Control Board (CSWRCB).
The primary goal of MICUP is to develop facilities that can capture unappropriated flows from the Mokelumne River under Application 29835 and deliver new surface water supplies for groundwater recharge operations in the Eastern San Joaquin (ESJ) Subbasin. By enhancing recharge, the program aims to reduce groundwater overdraft and support the sustainability objectives outlined in the ESJ Groundwater Sustainability Plan. Key elements of MICUP include:
• Identifying preferred project alternatives
• Providing conceptual design-level detail for those alternatives
• Establishing an environmental compliance strategy
• Preparing environmental documentation for the preferred alternatives
The MRWPA must continue to exercise due diligence and advance plans and projects to place the water to beneficial use, or risk having Application 29835 canceled by the CSWRCB.
In November 2022, the ESJGWA received grant funding from the California Department of Water Resources through the 2021 Sustainable Groundwater Management Round 1 Implementation Grant program, which included $3.3 million for MICUP.
On March 22, 2023, the SJC Department of Public Works, acting on behalf of MRWPA, selected GEI Consultants, Inc. (GEI), to perform the services required under the grant to advance and finalize the water right application to the CSWRCB. The SJC Board of Supervisors approved the contract with GEI on August 22, 2023, and GEI has been performing services to advance MICUP since that time.
Present Situation
The Delta Water Treatment Plant Groundwater Recharge Project has been identified as a potential location for utilizing MICUP water. The City of Stockton (City) is evaluating additional sites throughout Stockton that have canal access capable of conveying Mokelumne River water for other potential groundwater recharge projects.
The City, in coordination with the SJC, NSJWCD, and SEWD (the Participating Agencies), has developed a proposed Agreement that defines roles and responsibilities; outlines water-right petition activities; adds the Participating Agencies as co-applicants to Application 29835; addresses water allocations under MICUP and Application 29835; and establishes cost-sharing arrangements for ongoing MICUP and water right petition activities. MUD staff anticipate continued engagement with interested and concerned stakeholders through stakeholder meetings and formal responses to protests as the application process progresses.
All grant funds allocated to MICUP have now been fully expended; however, additional work is still required to complete certain grant deliverables. Beyond finishing the remaining MICUP tasks, further activities will also be necessary to secure the associated water rights and address any legal challenges that may arise related to Application 29835.
Cost sharing for all petition activities includes a fixed annual contribution from the SJC, with the remaining costs allocated among the Participating Agencies based on agreed-upon percentages: 40% City of Stockton, 40% NSJWCD, and 20% SEWD.
If approved by the City Council, the City will become a Participating Agency for MICUP and will contribute 40% of the costs for MICUP activities, consistent with the Cooperative Agreement. The City’s anticipated share for FY25-26 is $59,200 and for FY26-27 is $100,000.
If approved by the State Water Board, MICUP could offset Groundwater overdraft in the ESJGWA.
Environmental Clearance
As part of the water-rights application, a Draft Environmental Impact Report (DEIR) must be prepared and released for public review and comment. The DEIR is expected to be completed by the end of 2026.
FINANCIAL SUMMARY
The MICUP Cooperative Agreement outlines the shared costs and shared resources and includes a first year and second year budget to cover application expenses.
The City’s $59,200 share of expenses for FY25-26 is available in the FY 2025-2026 budget in the Water Fund - Administration Division.
The $100,000 share of expenses for FY26-27 and future financial requirements for the agreement will be reviewed and subject to City Council approval during the annual budget development process.
This action has no impact on the General Fund, or any other unrestricted funds.