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HomeMy WebLinkAbout10-24-16 CC Mtg - C4. MOA with Gallatin County and AGAI for Water Mitigation Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Craig Woolard, Public Works Director SUBJECT: Memorandum of Understanding for an Education Campaign Regarding Water Mitigation in the Gallatin Valley MEETING DATE: October 24, 2016 AGENDA ITEM TYPE: Consent Agenda RECOMMENDATION: Approve payment of $20,000.00 to Association of Gallatin Agricultural Irrigators (AGAI) for and education campaign regarding water mitigation in the Gallatin Valley. BACKGROUND: The growing population and changing land use in the Gallatin Valley have created new challenges and opportunities for all water users. Because the Gallatin Valley is a closed basin and closed to any new surface water appropriations since 1993, new water use is reliant on groundwater extraction. In 2007, Montana legislatively recognized the connection between groundwater and surface water. As such, all new groundwater development must mitigate any adverse effects on surface water rights. The City of Bozeman’s Integrated Water Resources Plan calls for the development of groundwater as one future water supply option. Development of a municipal groundwater supply will require mitigation, and effective mitigation will require that water users in the valley understand water rights and options for mitigation. The attached memorandum outlines an educational program administered by the Association of Gallatin Agricultural Irrigators (AGAI) and facilitated by One Montana. The program will be funded equally by Gallatin County and the City of Bozeman ($20,000 each). The program will include: • Internal workshops during which trusted experts will present water mitigation options available to water users • Development of users guides on water rights and mitigation banking. • Workshops at individual ditch companies’ annual board meetings • Workshops at urban community organization meetings, focused on telling the story of significant water management and conservation assets provided by current water management practices. • Case study work of the Farmer’s Canal process of assessing bylaws, inventorying existing practices, and data collection that could inform the change of use process. 41 • A series of articles in the Bozeman Daily Chronicle focused on educating urban community members about irrigation and municipal water supply management in the Gallatin Valley; and a second series in the Belgrade New focused on educating irrigators on water law basics, mitigation options, and urban growth and integrated water resources planning. An informed and educated water user community will result from this project and this knowledge will help improve water management throughout the valley in the future. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Staff recommends payment out of the Water Fund. 42 MEMORANDUM OF AGREEMENT Between CITY OF BOZEMAN And GALLATIN COUNTY And ASSOCIATION OF GALLATIN AGRICULTURAL IRRIGATORS For AN EDUCATION CAMPAIGN REGARDING WATER MITIGATION OPTIONS IN THE GALLATIN VALLEY This Memorandum of Agreement (this ‘Agreement’) made this day of , 2016, between the CITY OF BOZEMAN, a municipal corporation of the State of Montana (COB), the GALLATIN COUNTY (on behalf of the Gallatin County Planning Board), and the ASSOCIATION OF GALLATIN AGRICULTURAL IRRIGATORS (AGAI), describes the duties, agreements and obligations of the COB and AGAI in connection with the research, analysis, and outreach regarding water mitigation options in the Gallatin Valley, in furtherance of the COB’s Integrated Water Resources Plan. Article 1 – Roles and Responsibilities Campaign Summary In response to increasing demand for water in the Gallatin Valley, as well as a myriad of proposed mitigation projects coming from outside groups, the Association of Gallatin Agricultural Irrigators (AGAI) proposes a collaborative education campaign to educate its members about the various mitigation options available to water rights holders in the Gallatin Valley. A second and equally important mission of this campaign will focus on educating the general public about the significant water management and conservation assets provided by current water management practices, and the long-standing culture of shared sacrifice and water stewardship practiced by the irrigation community in the Gallatin River Watershed. 43 This education campaign comes in response to a survey of all AGAI-member ditch company boards, which consistently identified education about mitigation options, and options for new uses for water such as expanded irrigation, as the greatest need for most water users in the valley. As a result of the survey, AGAI has formally established a “Mitigation and Augmentation Committee” comprised of ditch company representatives. This committee, under the supervision of AGAI’s Board of Directors, will oversee all functions of this educational campaign. The Need First and foremost, AGAI believes that water users need to become more educated on their management and mitigation options because this knowledge will help improve agricultural operations and businesses in the face of an uncertain future. Gallatin Valley has the fastest growing population in the state, and with these pressures come new challenges and opportunities. With this growing population comes an increasing demand on water resources and a more complex environment for irrigators who want to keep water on their land as well as those irrigators who are looking at land development options. One complexity is that the basin has been legislatively closed to any new surface water appropriations since 1993 because surface water is fully appropriated. As a result, new water use is reliant on groundwater extraction. In 2007, Montana legislatively recognized the connection between groundwater and surface water, and all new groundwater development must mitigate any adverse effects on surface water rights. The process of developing a mitigation plan is burdensome and costly, requiring water users to find an existing surface water right, complete a regulatory change of use process, and then prove and sustain appropriate mitigation that will offset any adverse effects caused to an existing water right by the new water use. While there are multiple mitigation options for irrigators to consider, it is apparent that a coordinated and intentional educational campaign between trusted partners is the needed next step. Therefore, AGAI, the Famer’s Canal, One Montana, and the Gallatin Conservation District propose a collaborative educational campaign to inform all types of water users in the Gallatin about the challenges and opportunities that lie ahead. The Plan Based on initial meetings with AGAI leadership, the City of Bozeman, and all three Gallatin County Commissioners, AGAI is proposing the following deliverables for this phase of the project: 1) AGAI will work with One Montana, the Gallatin Conservation District, Blake Creek Project Management and the Gallatin County Planning Board to organize 2-4 44 internal workshops during which trusted experts will present water mitigation options available to water users. Examples of mitigation options that can help the valley meet future water demand that could be presented on and discussed include: -Converting existing water right on property -Changing water rights to marketing for mitigation - Developing a basin wide water bank -New surface water permit (in an open basin elsewhere) -Exempt wells -Water transfers -Water reservations -Reuse of treated effluent -New groundwater permit Generating knowledge, ownership, and leadership on future water supply discussions within the ag community will be the first priority. 2) The Development of two “MontGuide” summary documents for the Montana Extension Service, the first focused on “Water Rights and Montana’s Prior Appropriation Doctrine”, and the second summarizing “Water Mitigation Banking in Montana’s Closed Basins.” “MontGuide” reports are reviewed, published, and distributed by MSU Extension Service agents, and are a trusted source of unbiased information for many members of our state’s agricultural community. 3) A traveling “road show” of workshops at individual ditch companies’ annual board meetings. 4) A traveling “road show” of workshops at urban community organization meetings, focused on telling the story of significant water management and conservation assets provided by current water management practices, and the long-standing culture of shared sacrifice and water stewardship practiced by the irrigation community in the Gallatin River Watershed. 5) Specific case study work dealing with the Farmer’s Canal; the main focus being on legal support assessing bylaws, inventorying existing practices, and possibly beginning the process of data collection that could inform the change of use process. Proposing a series of articles in the Bozeman Daily Chronicle focused on educating urban community members about irrigation and municipal water supply management in the Gallatin Valley; and a second series in the Belgrade New focused on educating irrigators on water law basics, mitigation options, and urban growth and integrated water resources planning. 45 Partners Association of Gallatin Agricultural Irrigators (AGAI): The mission of the association is to be the guardian and advocate of the Gallatin River system and its historically decreed water rights. AGAI has convened a “Water Augmentation and Marketing Subcommittee” which will be the primary conduit of any educational campaign. AGAI has formally established a “Mitigation and Augmentation Committee” comprised of ditch company representatives, and this committee will oversee all functions of this educational campaign. Gallatin Conservation District (GCD): GCD’s mission is to promote and guide the conservation and management of natural resources in Gallatin County. Blake Creek Project Management: Krista Lee Evans serves as AGAI’s government affairs consultant. Additionally, Krista leads the Senior Water Rights Coalition, is the Executive Director for the Montana Agricultural Business Association and the Montana Grain Elevators Association. Blake Creek Project Management also conducts water rights analysis and planning. Krista and her associates are well position to provide analysis for individual canal companies and water right holders who are assessing their mitigation options, and she will play a key role in any education and outreach programming associated with AGAI’s “Water Augmentation and Mitigation” subcommittee. One Montana is a non-partisan, non-profit organization dedicated to creating a vibrant Montana by connecting rural and urban communities over common issues. We do this by managing what most nonprofits and communities frequently do not have the time or resources to do - the joint efforts of likely and unlikely partners to build large scale collaborations to solve our state’s challenges. One Montana’s role would be to act as a neutral facilitator and convener in preparing outreach meetings and educational workshops. Budget: This proposed budget has been drafted to account for facilitator hours, research and technical writing, case study work (including some legal analysis and data collection), materials, and meeting costs. It is assumed that the full budget will be funded jointly by the COB and the Gallatin County Planning Board, on a 1-1 ratio of $20,000 each: Research and Technical Writing Two MontGuide documents, other educational materials $10,000 46 Analysis for Farmer’s Canal Case Study Bylaw review and water delivery framework $15,000 Materials Printing costs for MontGuides and other outreach materials $2,000 Facilitation and Meeting Costs Planning, facilitation, and meeting costs for 2-4 townhall forums for irrigators, canal company board meetings, and workshops for other community organizations $8,000 AGAI Administrative AGAI administrative costs including grant oversight, payments, record keeping, mileage, and other travel costs as deemed appropriate by AGAI. $5,000 TOTAL: $40,000 Conclusion: If the ongoing development and implementation of various water mitigation and future water supply strategies is to be successful, that success will depend on the up-front engagement and ownership from the local agricultural community. If that can be achieved, this project will provide a viable example for Montana’s other water-scarce, growing communities who are likely to face similar challenges in planning for future water supplies. A variety of strategies and approaches could be considered in this dialogue. Finding a neutral convener and facilitator is an essential step in bringing together diverse stakeholders around a complex and contentious topic of shared interest. Project partners are committed to developing—through education and engagement—leadership and common understanding in the ag and urban communities, facilitating a robust and inclusive dialogue, and helping stakeholders to find shared solutions and sustained partnership opportunities moving forward. Article 2 – Payment Schedule A) The COB will deliver one lump sum payment of $20,000 to AGAI in October 2016. This amount will be contingent on a one-for-one funds match from the Gallatin County Planning Board. B) Gallatin County will deliver one lump sum payment of $20,000 to AGAI in October 2016. This amount will be contingent on a one-for-one funds match from the COB. 47 C) AGAI agrees to track the time of any staff and subcontractors in connection with this Agreement. D) AGAI will provide quarterly reports. The quarterly reports will include details on activities, costs of the activity, number of individuals reached, and general response and feedback. A final report will be provided that summarizes the impacts of the educational campaign and potential next steps. Article 3 – Duration of the Agreement The proposed scope of work will encompass 16 months beginning October 1, 2016 lasting until December 31, 2017. The assumption is that 2-4 major meetings will be possible within that time frame, in addition to a number of smaller outreach presentations to various groups and the generation of sufficient education and outreach materials. Article 4 – Independent Contractor A) The parties agree that AGAI is an independent contractor for purposes of this Agreement and is not to be considered an employee of the COB for any purpose. Neither AGAI or any of its employees, officials, or agents, are subject to the terms and provisions of the COB’s personnel policies handbook and may not be considered a COB employee for workers’ compensation or any other purpose. AGAI is not authorized to represent the COB or otherwise bind the COB in any dealings between AGAI and any third parties. B) The application and use of any funds awarded are at the sole discretion of AGAI provided the expenditures fall within the budget outlined above. Workshops, workshop topics, workshop speakers and other educational material will be determined by AGAI. C) In accepting any grant funding AGAI and its membership are not agreeing to any additional requirements other than what is provided in this agreement. Additional requirements would include but are not limited to mitigation water pricing, mitigation water sales priority, and other transactions related to water rights. Article 5 – Non-Discrimination A) AGAI will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital 48 status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability. Article 4 – Execution IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, on the day and year first written above. CITY OF BOZEMAN (Signature) (City Manager) __________________________________________ (Printed Name) APPROVED AS TO FORM: GREG SULLIVAN, CITY ATTORNEY GALLATIN COUNTY (Signature) (County Administrator) __________________________________________ (Printed Name) 49 ASSOCIATION OF GALLATIN AGRICULTURAL IRRIGATORS (Signature) (President, Board of Directors) (Printed Name) APPROVED AS TO FORM: DAVE WEAVER, AGAI LEGAL COUNCIL 50