HomeMy WebLinkAbout03-07-2017 Item 08 Public Hearing - Joint Powers Agreement to Form a Groundwater Sustainability Agency Meeting Date: 3/7/2017
FROM: Carrie Mattingly, Utilities Director
Prepared by: Aaron Floyd, Utilities Deputy Director – Water
SUBJECT: JOINT POWERS AGREEMENT TO FORM A GROUNDWATER
SUSTAINABILITY AGENCY
RECOMMENDATIONS
1. Approve a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, approving and authorizing the Mayor to execute a Joint Exercise of
Powers Agreement between the City of San Luis Obispo and the County of San Luis Obispo
to form the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability Agency”
(Attachment B); and
2. Authorize the City Manager to approve minor modifications to the Joint Exercise of Powers
Agreement; and
3. Authorize the use of up to $200,000 of Water fund balance as the City’s portion of initial
operating capital for fiscal year 2017/18 for the Groundwater Sustainability Agency (subject
to reimbursement from the Groundwater Sustainability Agency); and
4. Authorize the County of San Luis Obispo to take certain actions relative to the formation of
the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability Agency; and
5. Appoint one representative from City Council and the Utilities Director as an alternative
representative to serve on the Board of Directors of the San Luis Obispo Valley Groundwat er
Basin Groundwater Sustainability Agency.
REPORT IN BRIEF
The City of San Luis Obispo has a long history of groundwater use. The majority of
groundwater basins across the State have not been sustainably managed. With increased focus
due to the drought, the Governor signed the Sustainable Groundwater Management Act
(SGMA), which went into effect January 1, 2015. SGMA requires the formation of
Groundwater Sustainability Agencies to manage groundwater basins.
The Groundwater Sustainability Agency (GSA) is recommended to be formed by a Joint Powers
Agreement between the City of San Luis Obispo and County of San Luis Obispo. Other entities
utilizing groundwater would be represented on the GSA. The deadline for formation of a GSA is
June 30, 2017.
Funding for this effort will be shared proportionally by all entities until a permanent funding
source can be secured.
DISCUSSION
Background
Groundwater has played a significant role in the City’s historical water use and is an integral part
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of its One-Water future, in which water from all sources are used conjunctively to achieve the
greatest beneficial use. While the City relies more on surface water in average rain years,
groundwater is a vital part of the community’s multisource water supply. For example, the
drought that began in 1986 resulted in a significant decrease in surface water supplies and a
corresponding need for increased groundwater use. In 1990, at the height of that drought,
groundwater accounted for about 50 percent of the water supplied. As part of the 2016-17
Financial Plan supplement, Council authorized the expansion of the existing groundwater
program, including the rehabilitation of an existing well, as part of an overall water resiliency
strategy. As the City contemplates the best path towards potable reuse of highly treated
wastewater, the viable option of indirect potable reuse is directly tied to injection and extraction
of groundwater from the basin. For these reasons, it is important for the City to be actively
involved in the management of the San Luis Obispo Valley Groundwater Basin (“SLO Basin”).
According to the California Department of Water Resources, thirty million Californians rely on
groundwater for a portion of their drinking water. Groundwater provides about 40 percent of the
State’s total water supply which, depending on wet or dry years, serves as a critical buffer
against drought and climate change. Currently, in the few regions where groundwater is
managed, it is done so by local and regional agencies, some of which sustainably manage their
resources. Other regions do not manage their basin or do not do so sustainably, resulting in
problems such as groundwater overdraft, land subsidence, wells going dry, and deteriorated
water quality.
The Sustainable Groundwater Management Act
Multiple years of drought combined with a lack of uniform standards for groundwater
management led to the Governor signing the Sustainable Groundwater Management Act
(SGMA), which took effect January 1, 2015. This legislation requires the creation of new
institutions and adoption of planning documents, and grants the institutions the authorities and
resources to implement such requirements. SGMA includes enforcement tools to carry out
effective local sustainable groundwater management through the formation of Groundwater
Sustainability Agencies (GSAs) and development and implementation of a Groundwater
Sustainability Plan (GSP).
GSAs, and their respective GSPs, are required to ensure groundwater basins are managed
sustainably within 20 years of GSP adoption. Though the term “sustainability” is not specifically
defined in SGMA, the GSP must mitigate or avoid undesirable results, which are defined in the
California Water Code as one or more of the following effects caused by groundwater conditions
occurring throughout a groundwater basin:
(1) Chronic lowering of groundwater levels,
(2) Significant and unreasonable reduction of groundwater storage,
(3) Significant and unreasonable seawater intrusion,
(4) Significant and unreasonable degraded water quality,
(5) Significant and unreasonable land subsidence, and
(6) Depletions of interconnected surface water that has significant and unreasonable
adverse impacts on beneficial uses of the surface water.
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In order to communicate the condition of the various groundwater basins in the State, the
California Department of Water Resources (DWR) became responsible for prioritizing the
State’s groundwater basins. DWR designated 127 basins statewide as high and medium priority.
Six of these priority basins are located in whole or in part in San Luis Obispo County, including
the medium priority SLO Basin (Figure 1), the groundwater basin the City of San Luis Obispo
overlies.
Figure 1. Outline of San Luis Obispo (Edna) Valley Basin with overlying ent ities. Areas in blue represent the
service area of domestic water purveyors. Areas in yellow represent lands covered by Edna Valley Growers
Mutual Water Company, which provides agricultural water. All areas not shaded are represented by the
County of San Luis Obispo.
SGMA Requirements for GSA Formation
When SGMA was adopted, it became part of the California Water Code and Government Code.
Pursuant to the applicable section of this Code, an eligible local agency or combination of local
agencies (e.g. counties, cities, community services districts) overlying a groundwater basin may
decide to become a GSA for that basin. GSAs can be formed under a joint powers agreement, a
memorandum of agreement, or other legal agreement. Mutual water companies and water
corporations regulated by the Public Utilities Commission are also eligible to participate on a
GSA through a Participation Agreement (Attachment A). Pursuant to SGMA, the GSA must be
formed by June 30, 2017.
Collaborative Development of San Luis Obispo (Edna) Valley Basin GSA Agreement
Implementation of SGMA will involve local and State agencies, various water companies, and
concerned landowners. While SGMA specifies which agencies are eligible to participate on a
GSA, stakeholder outreach, coordination efforts, and the practical realities of preparing a GSP all
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benefit from the involvement of the entire community.
Under the leadership of San Luis Obispo County, eligible entities in the SLO Basin 1) County of
San Luis Obispo, 2) Golden State Water Company, 3) Edna Ranch Mutual Water Company-East,
Varian Ranch Mutual Water Company, 4) Edna Valley Growers Mutual Water Company and the
5) City of San Luis Obispo) have met to collaboratively develop the governance and funding
strategies defined in the attached Joint Exercise of Powers Agreement (JPA) (Attachment A).
The Joint Exercise of Powers Agreement
The proposed GSA will be a separate legal entity formed pursuant to the Joint Exercise of
Powers Act (“JEPA”), Government Code sections 6500 et seq. Under JEPA, two or more public
agencies can come together to form a separate legal entity in order to provide certain services or
regulatory functions. In regards to the GSA, the City and County will execute the JPA in order to
form the GSA as required under SGMA. Although only the City and County will sign the JPA,
the GSA will be comprised of a five-member board of directors which includes representatives
from the City, the County and the three eligible entities noted above.
SGMA allows a GSA to be formed via a JPA or a Memorandum of Understanding (“MOU”)
executed between all eligible entities overlying the basin. The consensus among the City and
County staff and representatives from the other entities is to form a JPA rather than execute
MOUs. The primary reasons for this recommendation is efficiency, focus and effectiveness.
With an MOU, the GSA will largely depend on City and County resources to develop and
implement the GSP and to manage the day to day operations of the agency. The City and County
obviously have differing priorities and fluctuating resources. In addition, with an MOA, both the
City and the County would need to take action on items relative to the operation of the GSA;
with a JPA, a single board with representatives from the City and County could make such
approval.
Below are some of the more significant components of the proposed JPA:
Five-member Board of Directors with representatives from the City, County, Public
Utilities Commission Water Company, and two mutual water companies overlying the
SLO Basin. The City and County will each appoint their own representative and an
alternate. Because the other entities are within the unincorporated area, the County will
appoint a representative for each company based on a recommendation from each
company.
The GSA will share the common powers of the City and County and will also have the
authorities and enforcement capabilities set forth in SGMA. As discussed in more detail
below, the GSA will have no land use authority.
Supermajority approval of the Board is required for approval of the annual budget,
levying assessments, taxes and fees, issuance of indebtedness, any stipulation to resolve
litigation regarding groundwater rights or groundwater management. Unanimous
approval is required for the adoption of the GSP or any amendments thereto. It should be
noted that through the JPA development process, there was some disagreement whether
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any decisions should be unanimous.
The creation of a stakeholder advisory committee and technical advisory committee.
Initial contributions in the total amount of $500,000 for fiscal year 2017/18 in order to
cover the initial operating costs of the GSA. The City’s share is approximately $149,000
which is subject to reimbursement by the GSA once funding sources are secured. Any
subsequent contributions, beyond the amount requested in the attached Resolution, would
need the approval of the City and other contributing parties.
The JPA can be terminated by the City or the County upon ninety days prior written
notice.
The City and abovenamed entities held stakeholder forums in Fall/Winter 2016 to receive input
on governance strategies. Presenters at the meetings gave an overview of SGMA and detailed
how the community could be involved and have their interests heard during GSA formation and
creation of the GSP.
The importance of including stakeholder representation in the GSA decision-making process is
addressed through the formation of stakeholder and technical advisory committees through
development and implementation of the basin’s GSP. Figure 2 shows the proposed approach of
the governance structure for GSA formation.
Figure 2: Proposed Groundwater Sustainability Agency Structure
Once a GSA is formed, the City and County will each appoint a representative and alternate to
the governing board. Representatives for the Agricultural Mutual Water Company Group,
Domestic Mutual Water Company Group, and PUC Regulated Water Company Group will come
from nominations by their respective group with final appointment by the Count y Board of
Supervisors. This appointment process by the Board of Supervisors is required so as to not cede
governmental powers to a non-elected body. The rationale for the County Board of Supervisors
appointing the three entity representatives is the fact that those areas all lie within the
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unincorporated area. Appointment terms are for four terms and the Board meeting are subject to
the Brown Act.
Relationship Between SGMA & Land Use Authorities
In accordance with SGMA, the GSA will function and exercise authorities as an independent
entity. One required action of the GSA will be creation of a GSP, which may result in the
regulation of groundwater extraction in a basin to ensure sustainability. Although the GSA will
not have any specific land use authority over the basin, SGMA does provide certain policy
statements and amends various provisions of the Government Code related to Planning and
Zoning Law. Specifically, the State Legislature declared that
“…it is vital that there be close coordination and consultation between California’s water
supply or management agencies and California’s land use approval agencies to ensure that
proper water supply and management occurs to accommodate projects that will result in
increased demands on water supplies or impact water resource management.”
Once the GSP is created, the GSA must review and report on any substantial amendments
proposed to the City’s General Plan for its effect on the GSP. This process is similar to the
referral provisions of the California Environmental Quality Act (CEQA) which is commonly
performed for any substantial modification to the City’s General Plan. Unlike CEQA, SGMA
does not have a conformity finding requirement or overrule type of process. Instead, the
amendments to the Government Code require coordination and information gathering between
the Groundwater Sustainability Agency and the City before a General Plan may be substantially
modified. The City and the County retain full control of its land use authority.
ENVIRONMENTAL REVIEW
The adoption of this resolution to form a JPA is not subject to CEQA. Preparation of an
environmental impact report or negative declaration would be too early in the process to provide
meaningful information for environmental assessment, as described in State CEQA Guidelines
Section 15004(b). Approval of the GSP is statutorily exempt from CEQA pursuant to Water
Code section 10728.6. Actions to implement the GSP are subject to environmental review.
FISCAL IMPACT
Costs associated with SGMA compliance can be separated into three stages. The first stage
involves the preparation of the JPA document, outreach efforts, and GSA formation. Associated
costs and efforts to-date have been made by County staff with in-kind support and stakeholder
outreach by the 1) City, 2) Golden State Water Company, 3) Edna Valley Growers Mutual Water
Company, 4) Varian Ranch Mutual Water Company, and 5) Edna Ranch - East Mutual Water
Company.
Costs associated with the second stage of the process have been reduced to a minimum and are
solely for administration of the newly formed GSA until a long-term funding solution can be
secured. This interim time-frame is expected to last through the second quarter of 2018 and
carries an estimated total expenditure of $500,000. This estimate includes legal fees for the first
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fiscal year and an estimated $219,000 in annual operating and administration costs.
Of this initial amount, $250,000 is designated for the creation of a long-term funding mechanism
for continued expenses associated with administration of the GSA, creation of the GSP, and
future management of the basin (third funding phase). If this future independent funding is not
secured, per the Water Code, a GSA may withdraw from managing the basin by notifying DWR
in writing.
The City’s proportional share of this $500,000 is currently established at $149,948. This amount
was based on a variety of factors including population, water consumption and service area with
differing weights attached to each category. Staff is requesting a not-to-exceed amount of
$200,000 to allow the Utilities Department to make any necessary subsequent contributions
which may be needed. It is also anticipated that these initial funds will be re-paid to the entities
upon formation of a long-term funding mechanism. These initial funds are available in the Water
Fund from fund balance.
Long-term costs for the GSA to implement the GSP and manage the basin are unknowable at this
time. The methodology for collection of funds and share apportionment among the basin’s
entities are also unknown at this time and will need to be one of the initial work efforts of the
newly formed GSA. Efforts to lower costs include exploration of partnerships with other GSAs
in the County to minimize expenses through shared resources, continuation of in-kind services
where applicable, and pursuance of grants. The County has already secured funding of $150,000
towards a basin characterization study – a needed work effort for creation of a GSP.
Figure 3: GSA Formation Flowchart
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ALTERNATIVES
Pursuant to SGMA, if any portion of the basin is not covered by a GSA, the County is presumed
to be the GSA for that area. If the County does not take on this role, then the State will intervene
until it can turn basin management back to a local entity. Activities could include groundwater
extraction reporting by basin users, development of Interim Plan(s) and related studies and
CEQA compliance as applicable, collection of fees, and issuance of cease and desist orders if
necessary to handle violations. The State’s clear intention is local groundwater issues should be
governed by local entities. As shown above, the ability for ongoing local control will require a
secured funding source.
1. Council could choose to form an independent GSA, isolated to those areas of the San Luis
Obispo (Edna) Valley Basin under the jurisdiction of the City. This is known as the
‘coordinated’ approach. The recommendation before City Council is known as the
‘collaborative’ approach. Regardless of the approach chosen, all areas of the entire groundwater
basin would still need to be covered by a GSA by the June 30, 2017 deadline. Selecting this
strategy would likely result in increased management complications and expenditures as
creation of a GSP and all future management would still require collaboration with other entities
in the basin.
2. Council could choose not to participate in the formation of a JPA with the County. If the City
still chose to participate in the GSA, not participating in the JPA would cede authorities (such as
appointments to the GSA) to the County; they would be the only agency with the designated
authorities and jurisdiction over the basin.
3. Council could choose to not participate in the GSA. As the GSA will prepare the GSP, which
will dictate groundwater use in the basin, including the portion the City overlies, this alternative
would result in the City having a diminished voice in basin management decisions.
4. Council could choose to appoint both the representative and alternative representative from
City Council to serve on the Board of Directors of the San Luis Obispo Valley Groundwater
Basin Groundwater Sustainability Agency. The selection of the Utilities Director to serve as
the alternative representative was recommended as a consistent resource for the elected
official during the initial stages of SGMA and in particular, during the creation of a
Groundwater Sustainability Plan. Actions taken by the GSA will likely have significant
impacts on the City’s current and future water portfolio.
Attachments:
a - JPA Agreement Part Agreement
b - Resolution for SGMA
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JOINT EXERCISE OF POWERS AGREEMENT OF THE SAN LUIS OBISPO VALLEY
GROUNDWATER BASIN GROUNDWATER SUSTAINABILITY AGENCY
This Joint Exercise of Powers Agreement (“Agreement”) is made and entered into on this
____ day of ____________, 2017 by and between the City of San Luis Obispo (“City”) and the
County of San Luis Obispo (“County”), sometimes each referred to individually as a “Member”
and collectively as the “Members,” for purposes of forming the San Luis Obispo Valley
Groundwater Basin Groundwater Sustainability Agency (“Agency”) and setting forth the terms
pursuant to which the Agency shall operate.
RECITALS
A. WHEREAS, both of the Members are local agencies, as defined in the
Sustainable Groundwater Management Act (Water Code §§ 10720 et seq.) (“SGMA”) that
overlie (or overlie portions of) the San Luis Obispo Valley Groundwater Basin (Basin Number 3-
9) (“Basin”); and
B. WHEREAS, SGMA requires the establishment of a groundwater sustainability
agency (“GSA”) for all basins designated as medium- or high-priority by the Department of
Water Resources (“DWR”) on or before June 30, 2017; and
C. WHEREAS, SGMA further requires the adoption of a groundwater sustainability
plan (“GSP”) for all basins designated as medium- or high-priority by DWR and not subject to
critical conditions of overdraft on or before January 31, 2022; and
D. WHEREAS, DWR has designated the Basin as a medium-priority basin; and
E. WHEREAS, the Members intend for the Agency to develop a GSP and to
manage the Basin pursuant to SGMA; and
F. WHEREAS, SGMA authorizes a combination of local agencies to form a GSA
through a joint powers agreement; and
G. WHEREAS, SGMA also authorizes water corporations regulated by the Public
Utilities Commission (“PUC”) and mutual water companies to participate in GSAs; and
H. WHEREAS, the Members have determined that the sustainable management of
the Basin pursuant to SGMA may best be achieved through the cooperation of the Members and
other eligible participants through a joint powers authority; and
I. WHEREAS, pursuant to the Joint Exercise of Powers Act (Government Code §§
6500 et seq.) (“JEPA”) and SGMA, the Members may create a joint powers authority to jointly
exercise any power common to the Members, and to exercise additional powers granted under
SGMA; and
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J. WHEREAS, based on the foregoing legal authority, the Members desire to create
a joint powers authority for the purpose of taking all actions deemed necessary by the joint
powers authority to ensure the sustainable management of the Basin as required by SGMA.
NOW, THEREFORE, in consideration of the promises and covenants contained herein,
the Members agree as follows:
ARTICLE 1
DEFINITIONS
The following terms have the following meanings for purposes of this Agreement:
1.1. “Agreement” has the meaning assigned thereto in the Preamble.
1.2 “Auditor” means the auditor of the financial affairs of the Agency appointed
pursuant to Section 13 of this Agreement.
1.3 “Agency” has the meaning assigned thereto in the Preamble.
1.4 “Basin” means the San Luis Obispo Valley Groundwater Basin (Basin Number 3-
9) as identified and defined by DWR in Bulletin 118 or as modified pursuant to Water Code
Section 10722.2.
1.5 “Board of Directors” or “Board” means the governing body of the Agency as
established by Article 2 of this Agreement.
1.6 “Bulletin 118” means DWR’s report entitled “California Groundwater Bulletin
118” updated in 2016, as it may be subsequently updated or revised in accordance with Water
Code Section 12924.
1.7 “Bylaws” means the bylaws, if any, adopted by the Board of Directors pursuant to
Article 11 of this Agreement.
1.8 “Director” and “Alternate Director” mean a director or alternate director
appointed pursuant to Sections 6.3 and 6.4 of this Agreement.
1.9 “DWR” has the meaning assigned thereto in Recital B.
1.10 “Effective Date” means the date on which the last Member executes this
Agreement.
1.11 “GSA” has the meaning assigned thereto in Recital B.
1.12 “GSP” has the meaning assigned thereto in Recital C.
1.13 “JEPA” has the meaning assigned thereto in Recital I.
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1.14 “Member” and Members” have the meaning assigned thereto in the Preamble.
1.15 “Mutual Water Company” has the meaning set forth in Corporations Code
Section 14300 and in Section 6.1.
1.16 “Officer(s)” means the Chair, Vice Chair, Secretary or Treasurer of the Agency to
be appointed pursuant to Article 7 and Article 13 of this Agreement.
1.17 “Public Water System” has the meaning set forth in Health and Safety Code
Section 116275.
1.18 “PUC” has the meaning assigned thereto in Recital G.
1.19 “SGMA” has the meaning assigned thereto in Recital A.
1.20 “State” means the State of California.
ARTICLE 2
CREATION OF AGENCY
2.1 Creation of a Joint Powers Authority. There is hereby created pursuant to JEPA
and SGMA a joint powers authority, which shall be a public entity separate from the Members to
this Agreement, and shall be known as the San Luis Obispo Valley Basin Groundwater
Sustainability Agency (“Agency”). The boundaries of the Agency shall be the boundaries of the
Basin as identified and defined by DWR in Bulletin 118 or as modified pursuant to Water Code
Section 10722.2. Within thirty (30) days after the Effective Date of this Agreement and after any
amendment thereto, the County or the Agency, respectively, shall cause a notice of this
Agreement or amendment to be prepared and filed with the office of the California Secretary of
State containing the information required by Government Code Section 6503.5, the State
Controller and with the San Luis Obispo County Local Agency Formation Commission. Within
ten (10) days after the Effective date of this Agreement, the County shall cause a statement of the
information concerning the Agency required by Government Code Section 53051 to be filed
with the Office of the California Secretary of State and with the County Clerk for the County of
San Luis Obispo, setting forth the facts required to be stated pursuant to Government Code
Section 53051(a). Within thirty (30) day after the Effective Date of this Agreement, the County
shall inform DWR of the Agency’s decision to become a GSA and its intent to undertake
sustainable groundwater management within the Basin in accordance with Water Code Section
10723 et seq.
2.2 Purpose of the Agency. The purpose of the Agency is to serve as the GSA for the
entire Basin and to develop, adopt and implement a GSP for the entire Basin that considers all
interests as more specifically set forth in Article 5 below pursuant to SGMA and other applicable
provisions of law.
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ARTICLE 3
TERM
This Agreement shall become effective on the Effective Date and shall remain in effect
until terminated pursuant to the provisions of Article 15 of this Agreement.
ARTICLE 4
POWERS
4.1 The Agency shall possess the power in its own name to exercise any and all
common powers of its Members reasonably related to the purposes of the Agency together with
such other powers as are expressly set forth in the JEPA and in SGMA upon becoming the
exclusive GSA within the boundaries of the Agency pursuant to Water Code Section 10723.8. In
addition, if authorized by the GSP, each Member may take separate action to impose fees or
enforce the GSP. For purposes of Government Code Section 6509, the powers of the Agency
shall be exercised subject to the restrictions upon the manner of exercising such powers as are
imposed on the County of San Luis Obispo.
4.2 Powers Reserved to the City and County. SGMA expressly reserves certain
powers and authorities to and preserves certain powers and authorities of cities and counties,
including, without limitation, the issuance of permits for the construction, modification or
abandonment of groundwater wells, land use planning and groundwater management pursuant to
city and county police powers. Neither the Director representing the County nor the Director
representing the City shall have the ability to authorize the Agency to exercise or infringe upon
any such reserved powers and authorities (the Agency must seek and receive authorization by
formal action of the County Board of Supervisors or City Council) and this Agreement shall not
be interpreted as limiting or ceding any such reserved or preserved powers and authorities.
Without limiting the foregoing and as set forth in Water Code Sections 10726.8(f) and
10726.2(d), the Agency shall have no authority to supersede the land use authority of cities and
counties or to engage in the retail sale of water within the service area of a Public Water System
without the consent of that system.
ARTICLE 5
WATER RIGHTS
As required by Water Code Section 10723.2, the Agency shall consider the interests of all
beneficial uses and users of groundwater in the Basin, as well as those responsible for
implementing the GSP. Additionally, as set forth in Water Code Section 10720.5(a), any GSP
adopted pursuant to this Agreement shall be consistent with Section 2 of Article X of the
California Constitution and nothing in this Agreement modifies the rights or priorities to use or
store groundwater consistent with Section 2 of Article X of the California Constitution, with the
exception that no extraction of groundwater between January 1, 2015 and the date the GSP is
adopted may be used as evidence of, or to establish or defend against, any claim of prescription.
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Likewise, as set forth in Water Code Section 10720.5(b), nothing in this Agreement or any GSP
adopted pursuant to this Agreement determines or alters surface water rights or groundwater
rights under common law or any provision of law that determines or grants surface water rights.
ARTICLE 6
BOARD OF DIRECTORS
6.1 Formation of the Board of Directors. The Agency shall be governed by a Board
of Directors (“Board”). The Board shall be composed of five (5) Directors consisting of the
following representatives, who shall be appointed in the manner set forth in Section 6.3:
6.1.1 one (1) representative from each of the Members; and
6.1.2 one (1) representative from each of the following groups of participants
eligible to participate in a GSA (collectively, “Participants”): (a) mutual water companies that
have water supply or water management responsibilities within the boundaries of the Agency
and are comprised primarily of agricultural lands that each enter into a participant agreement
with the Agency (“Agricultural MWC Group”); (b) mutual water companies that have water
supply or water management responsibilities within the boundaries of the Agency and are
comprised primarily of residential lands that each enter into a participant agreement with the
Agency (“Residential MWC Group”); and (c) corporations regulated by the PUC that provide
retail water service within the boundaries of the Agency that each enter into a participant
agreement with the Agency (“PUC Regulated Group”) (collectively, “Groups”). A list of those
entities within each Group expected to sign a Participant Agreement with the Agency shortly
after the Effective Date is attached hereto as Exhibit A and a draft template Participant
Agreement is attached hereto as Exhibit B.
6.2 Duties of the Board of Directors. The business and affairs of the Agency, and all
of its powers, including without limitation all powers set forth in Article 4 are reserved to and
shall be exercised by and through the Board of Directors, except as may be expressly delegated
to the staff or others pursuant to this Agreement, the Bylaws, the GSP or by specific action of the
Board of Directors.
6.3 Appointment of Directors. The Directors shall be appointed as follows:
6.3.1 The representative from the County shall be appointed by the County
Board of Supervisors.
6.3.2 The representative from the City shall be appointed by the City Council.
6.3.3 The representative from the Agricultural MWC Group shall be appointed
by the County Board of Supervisors in accordance with the procedure set forth in Section 6.3.6
below.
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6.3.4 The representative from the Residential MWC Group shall be appointed
by the County Board of Supervisors in accordance with the procedure set forth in 6.3.6 below.
6.3.5 The representative from the PUC Regulated Group shall be appointed by
the County Board of Supervisors in accordance with the procedure set forth in Section 6.3.6
below.
6.3.6 Prior to the appointment of representatives as described in Section 6.3.3
through Section 6.3.5, each Group shall nominate a representative for appointment by the County
Board of Supervisors. The County Board of Supervisors shall consider the nominee(s) for
appointment at a regular meeting. The County Board of Supervisors shall not appoint a
representative to represent a Group that has not been nominated by the relevant Group.
However, the Board of Supervisors retains the absolute discretion to confirm or reject any
nomination.
6.4 Alternate Directors. The City Council and County Board of Supervisors may also
appoint one (1) Alternate to act as a substitute for each Director. All Alternates shall be
appointed in the same manner as set forth in Section 6.3, including, without limitation, in
accordance with the same procedures set forth in Section 6.3.6 (with respect to the appointment
of alternate representatives from each Group). Alternate Directors shall have no vote and shall
not participate in any discussions or deliberations of the Board unless appearing as substitute for
a Director due to absence or legal conflict of interest. If the Director is not present, or if the
Director has a legal conflict of interest which precludes participation by the Director in any
decision-making process of the Board, the Alternate Director appointed to act in his/her place
shall assume all rights of the Director, and shall have the authority to act in his/her absence,
including casting votes on matters before the Board.
6.5 Terms of Office.
6.5.1 First Set of Directors and Alternate Directors. Subject to Section 6.5.3
below, with respect to the initial set of Directors and Alternate Directors, the Directors and
Alternate Directors representing the City, the PUC Regulated Group, and the Residential MWC
Group shall be appointed for a term of four (4) years and the Directors and Alternate Directors
representing the County and the Agricultural MWC Group shall be appointed for a term of two
(2) years. Notwithstanding the actual date of their appointments, for purposes of establishing the
foregoing terms, the initial appointments shall be deemed to have commenced on the July 1
following such initial appointment.
6.5.2 Subsequent Directors and Alternate Directors. Subject to Section 6.5.3
below, all subsequent Directors and Alternate Directors shall be appointed for a term of four (4)
years.
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6.5.3 Removal and Reappointment of Directors. Notwithstanding any other
provision of this Agreement, a Director and Alternate Director may be removed during his or her
term or reappointed for multiple terms at the pleasure of the appointing entity in accordance with
the procedure set forth in Sections 6.3 and 6.4. No individual Director or Alternate Director may
be removed in any other manner, including by the affirmative vote of the other Directors.
6.6 Vacancies. Upon the vacancy of a Director, the Alternate Director shall serve as
Director until a new Director is appointed as set forth in Section 6.3. Each Member shall provide
notice of any change in Director or Alternate Director positions to the Board of Directors or its
designee in writing within sixty (60) days of said change.
6.7 Adjustment to Board of Directors. Should circumstances change in the future,
any person or entity may petition the Members to amend this Agreement so as to add or delete
representatives to the Board of Directors.
ARTICLE 7
OFFICERS
7.1 Officers. Officers of the Agency shall be a Chair, Vice Chair, Secretary and
Treasurer. The Treasurer shall be appointed consistent with the provisions of Section 13.3. The
Vice Chair shall exercise all powers of the Chair in the Chair’s absence or inability to act.
7.2 Appointment of Officers. Officers shall be elected annually by, and serve at the
pleasure of, the Board of Directors. Officers shall be elected at the first Board meeting, and
thereafter at the first Board meeting following January 1st of each year, or as duly continued by
the Board. The Director appointed by the County shall be designated as the Chair Pro Tem to
preside at the initial meeting of the Board until a Chair is elected by the Board. An officer may
serve for multiple consecutive terms, with no term limit. Any officer may resign at any time
upon written notice to the Board, and may be removed and replaced by a majority vote of all
appointed Directors.
7.3 Principal Office. The principal office of the Agency shall be established by the
Board of Directors and may thereafter be changed by a majority vote of all appointed Directors.
ARTICLE 8
DIRECTOR MEETINGS
8.1 Initial Meeting. The initial meeting of the Board of Directors shall be called by
the County and held in San Luis Obispo County, California within thirty (30) days after the date
on which the Agency becomes the exclusive GSA within the boundaries of the Agency pursuant
to Water Code Section 10723.8.
8.2 Time and Place. The Board of Directors shall meet at a date, time and place set
by the Board within the jurisdictional boundaries of one or more of the Members.
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8.3 Special Meetings. Special meetings of the Board of Directors may be called by
the Chair or by a majority of all appointed Directors, in accordance with the provisions of
Government Code Section 54956.
8.4 Conduct. All meetings of the Board of Directors, including special meetings,
shall be noticed, held and conducted in accordance with the Ralph M. Brown Act (Government
Code §§ 54956 et seq.). The Board may use teleconferencing in connection with any meeting in
conformance with and to the extent authorized by applicable law.
8.5 Local Conflict of Interest Code. The Board of Directors shall adopt a local
conflict of interest code pursuant to the provisions of the Political Reform Act of 1974
(Government Code §§ 81000 et seq.)
8.6 Minutes. The Secretary shall cause to be kept minutes of all meetings of the
Board of Directors.
ARTICLE 9
DIRECTOR VOTING
9.1 Quorum. A majority of the Directors shall constitute a quorum for purposes of
transacting business, except that less than a quorum may vote to adjourn the meeting.
9.2 Director Votes. Voting by the Board of Directors shall be made on the basis of
one (1) vote for each Director. A Director, or an Alternate Director, when acting in the absence
of his or her Director, may vote on all matters of Agency business unless disqualified because of
a conflict of interest pursuant to California law or the local conflict of interest code adopted by
the Board of Directors.
9.3 Affirmative Decisions by the Board of Directors.
9.3.1 Majority Approval. Except as otherwise specified in this Agreement, all
affirmative decisions of the Board of Directors shall require the affirmative vote of a majority of
all appointed Directors, provided that if a Director and Alternate Director are both disqualified
from voting on a matter before the Board because of a conflict of interest, that Director shall be
excluded from the calculation of the total number of Directors that constitute a majority.
9.3.2 Super Majority Approval. The affirmative vote of four-fifths of all
appointed Directors shall be required to approve the following: (i) the annual budget; (ii) the
levying of taxes, assessments or fees by the Agency; (iii) the issuance of indebtedness; and (iv)
any stipulation to resolve litigation concerning groundwater rights within or groundwater
management for the Basin, provided that if a Director and Alternate Director are both
disqualified from voting on a matter before the Board because of a conflict of interest, that
Director shall be excluded from the calculation of the total number of Directors that constitute a
four-fifths majority.
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9.3.3 Unanimous Approval. A unanimous vote of all appointed Directors shall
be required to approve adoption of the GSP and any amendments thereto and adoption of the
Bylaws and any amendments thereto.
ARTICLE 10
AGENCY ADMINISTRATION, MANAGEMENT AND OPERATIONS
The Board of Directors may select and implement an approach to Agency administration
and management that is appropriate to the circumstances and adapted to the Agency’s needs as
they may evolve over time. Details of the Board’s decision on Agency administration,
management and operation shall be incorporated into the Bylaws and reviewed and revised using
the established process for revising the Bylaws.
ARTICLE 11
BYLAWS
The Board of Directors shall cause to be drafted, approve and amend Bylaws of the
Agency to govern the day-to-day operations of the Agency. The Bylaws shall be adopted at or
before the first anniversary of the Board’s first meeting.
ARTICLE 12
ADVISORY COMMITTEES
12.1 Creation of External Advisory Committees. The Members hereby establish the
San Luis Obispo Valley Groundwater Basin Stakeholder Advisory Committee (“Stakeholder
Advisory Committee”) and the San Luis Obispo Valley Groundwater Basin Technical Advisory
Committee (“Technical Advisory Committee”).
12.1.1 Stakeholder Advisory Committee. The Stakeholder Advisory Committee
shall be composed of members that the Board determines collectively represent the interests of
all beneficial uses and users within the Basin, as more specifically described in Water Code
Section 10723.2. The Stakeholder Advisory Committee shall provide input and feedback to the
Board of Directors on topics related to SGMA implementation within the Basin, including,
without limitation, funding strategies, metering and monitoring of groundwater extractions,
technical studies, development of the GSP and development of regulations implementing the
GSP.
12.1.2 Technical Advisory Committee. The Technical Advisory Committee shall
be composed of members that the Board determines possess technical expertise relevant to
SGMA implementation within the Basin, including, without limitation, expertise in financial
management, water law, irrigation management, policy administration, water resources and
hydrology. The Technical Advisory Committee shall provide input, feedback and
recommendations on topics related to SGMA implementation within the Basin, including,
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without limitation, funding strategies, metering and monitoring of groundwater extractions,
technical studies, development of the GSP and development of regulations implementing the
GSP.
12.2 Creation of Internal Advisory Committees. The Board of Directors may from
time to time appoint one or more advisory committees or establish standing or ad hoc
committees composed of less than a quorum of Directors to assist in carrying out the purposes
and objectives of the Agency.
ARTICLE 13
ACCOUNTING PRACTICES
13.1 General. The Board of Directors shall establish and maintain such funds and
accounts as may be required by generally accepted public agency accounting practices. The
Agency shall maintain strict accountability of all funds and a report of all receipts and
disbursements of the Agency.
13.2 Fiscal Year. The Fiscal Year of the Agency shall be July 1 – June 30.
13.3 Appointment of Treasurer and Auditor; Duties. Notwithstanding Section 7.2, the
Treasurer and Auditor shall be appointed in the manner, and shall perform such duties and
responsibilities, specified in Government Code Sections 6505.5 and 6505.6. Until such time as
the Board determines otherwise, the Agency’s Treasurer shall be the Treasurer of the County of
San Luis Obispo and the Agency’s Auditor shall be the Auditor of the County of San Luis
Obispo.
ARTICLE 14
BUDGET AND EXPENSES
14.1 Budgets.
14.1.1 Initial Budget. The initial budget of the Agency for Fiscal Year ending
June 30, 2018 shall not exceed $500,000 unless otherwise agreed to by the Board of Supervisors,
the City Council and each of the Participants.
14.1.2 Regular Budgets. Beginning Fiscal Year 2018 – 2019, no later than sixty
(60) days prior to the end of each Fiscal Year, the Board shall adopt a budget for the Agency for
the ensuing Fiscal Year.
14.2 Initial Contributions. In order to provide the necessary capital to initially fund the
Agency until the Agency is able to secure other funding sources, during Fiscal Year 2017 –
2018, the Members and Participants, as more specifically set forth in the participant agreements,
shall each provide the listed initial contribution to the Agency’s Treasurer no later than thirty
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(30) days after the date on which the Agency becomes the exclusive GSA within the boundaries
of the Agency pursuant to Water Code Section 10723.8 provided that each of the Participants
identified in Exhibit A has executed a participant agreement with the Agency:
County $223,437
City $149,948
Edna Valley Growers Mutual Water Company $71,450
Varian Ranch Mutual Water Company $11,513
Edna Ranch Mutual Water Company $11,513
Golden State Mutual Water Company $32,139
If the Agency’s Treasurer does not receive all such contributions on or before ten (10) days after
the due date set forth above and notwithstanding the noticing period set forth in Section 15.3,
either Member may terminate this Agreement upon ten (10) days written notice to the other
Member.
14.3 Reimbursement of Initial Contributions. To the extent the Agency is able to
secure other funding sources, and to the extent permitted by law, the Agency shall reimburse the
initial contributions set forth in Section 14.2 to the Members and the Participants on a
proportionate basis in relation to their initial contributions to the Agency.
14.4 Subsequent Contributions. In is anticipated that the Agency will secure other
funding sources to fund the Agency during Fiscal Year 2018 – 2019 and in subsequent Fiscal
Years. In the event that such other funding sources are not secured, the Board shall adopt a
resolution requesting each of the Members and the Participants to consider additional funding
and demonstrating in detail both the need for the funding and the purposes for which the
additional funding will be utilized, provided that nothing contained in this Section 14.4 shall be
construed as requiring either Member or any of the Participants to agree to any subsequent
contributions. For Fiscal Year 2018 – 2019 and following, both the budget and any cost sharing
agreement shall be determined prior to any financial expenditures or incurrence of any financial
obligations or liabilities by the Board.
ARTICLE 15
LIABILITIES AND TERMINATION
15.1 Liability. In accordance with Government Code Section 6508.1, the debt,
liabilities and obligations of the Agency shall be the debts, liabilities and obligations of the
Agency alone, and not the Members.
15.2 Indemnity. To the fullest extent permitted by law, the Agency shall indemnify,
defend and save harmless each Member, each Director, and any officers, agents and employees
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of the Agency from and against any and all claims and losses whatsoever, occurring or resulting
to persons, firms or corporations furnishing or supplying work, services, materials or supplies to
the Agency in connection with the performance of this Agreement, and, except as expressly
provided by law, from any and all claims and losses accruing or resulting to any persons, firms
or corporations, for damage, injury, or death arising out of or connected with the Agency’s
performance of its obligations under this Agreement.
15.3 Insurance. The Agency shall procure appropriate policies of insurance providing
coverage to the Agency and its Directors, officers and employees for general liability, errors and
omissions, property, workers compensation, and any other coverage the Board deems
appropriate. Such policies shall name the Members as additional insureds.
15.4 Termination of Agency. This Agreement may be rescinded and the Agency
terminated by either Member effective upon ninety (90) days written notice to the other Member,
except during the outstanding term of any Agency indebtedness. Upon termination of this
Agreement, each Member and each Participant shall remain obligated to pay its share of all
debts, liabilities and obligations of the Agency required of the Member or Participant pursuant to
the terms of this Agreement and the participant agreements, and that were incurred or accrued
prior to the effective date of such termination.
15.4 Return of Contribution. Upon termination of this Agreement, any surplus money
on-hand shall be returned to the Members and Participants in proportion to their contributions
made. The Board of Directors shall first offer any property, works, rights and interest of the
Agency for sale to the Members and Participants on terms and conditions determined by the
Board of Directors. If no such sale to the Members or Participants is consummated, the Board of
Directors shall offer the property, works, rights and interest of the Agency for sale to any non-
Member and non-Participant for good and adequate consideration. The net proceeds from any
sale shall be distributed among the Members and Participants in proportion to their contributions
made.
ARTICLE 16
MISCELLANEOUS PROVISIONS
16.1 Opinions and Determinations. Where the terms of this Agreement provide for
action to be based upon judgment, approval, review or determination of either Member hereto,
such terms are not intended to and shall never be construed as permitting such opinion,
judgment, approval, review or determination to be arbitrary, capricious or unreasonable.
16.2 Notices. Notices to a Director or Member or hereunder shall be sufficient if
delivered to the respective Director or clerk of the Member agency addressed to the Director or
clerk of the Member agency. Delivery may be accomplished by U.S. Postal Service, private mail
service or electronic mail.
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16.3 Amendment. This Agreement may be amended or modified at any time only by
subsequent written agreement approved and executed by all of the Members.
16.4 Entire Agreement. The foregoing constitutes the full and complete Agreement of
the Members. This Agreement supersedes all prior agreements and understandings, whether in
writing or oral, related to the subject matter of this Agreement that are not set forth in writing
herein.
16.5 Severability. If any provision of this Agreement is determined to be invalid or
unenforceable, the remaining provisions will remain in force and unaffected to the fullest extent
permitted by law and regulation.
16.6 Assignment. The rights and duties of a Member may not be assigned or delegated
without the written consent of the other Member. Any attempt to assign or delegate such rights
or duties in contravention of this Agreement shall be null and void.
16.7 Member Authorization. The legislative bodies of the Members have each
authorized execution of this Agreement, as evidenced by their respective signatures below.
IN WITNESS WHEREOF, the Members hereto have executed this Agreement by
authorized officials thereof on the dates indicated below.
COUNTY OF SAN LUIS OBISPO
By: ________________________ Date: ________________________
Chairperson of the Board of Supervisors
ATTEST:
By: ________________________ Date: ________________________
County Clerk of the Board of Supervisors,
County of San Luis Obispo,
State of California
APPROVED AS TO FORM AND LEGAL EFFECT:
RITA L. NEAL
County Counsel
By: ________________________ Date: ________________________
Deputy County Counsel
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CITY OF SAN LUIS OBISPO
By: ________________________ Date: ________________________
Title: ______________________
APPROVED AS TO FORM AND LEGAL EFFECT
By: ________________________ Date: ________________________
Title: ______________________
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EXHIBIT A
POTENTIAL PARTICIPANTS AS OF THE EFFECTIVE DATE
Agricultural MWC Group:
Edna Valley Growers Mutual Water Company
Residential MWC Group:
Varian Ranch Mutual Water Company
Edna Ranch Mutual Water Company
PUC Regulated Group:
Golden State Water Company
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EXHIBIT B
DRAFT PARTICIPANT AGREEMENT TEMPLATE
PARTICIPANT AGREEMENT
This Participant Agreement (“Agreement”) is made and entered into on this ____ day of
____________, 2017 by and between the San Luis Obispo Valley Groundwater Sustainability
Agency (“Agency”), a joint exercise of powers agency formed under Government Code Sections
6500 et seq. (“Joint Exercise of Powers Act” or “JEPA”), and _______________, a
__________________________ (“Utility”) (referred to individually as “Party” and collectively
as “Parties”).
RECITALS
A. WHEREAS, the Sustainable Groundwater Management Act (Water Code §§
10720 et seq.) (“SGMA”) requires the establishment of a groundwater sustainability agency
(“GSA”) for all basins designated as medium- or high-priority by the Department of Water
Resources (“DWR”) on or before June 30, 2017; and
B. WHEREAS, SGMA further requires the adoption of a groundwater sustainability
plan (“GSP”) for all basins designated as medium- or high-priority by DWR and not subject to
critical conditions of overdraft on or before January 1, 2022; and
C. WHEREAS, DWR has designated the San Luis Obispo Valley Groundwater
Basin (Basin Number 3-9) (“Basin”) as a medium-priority basin; and
D. WHEREAS, the County of San Luis Obispo (“County”) and the City of San Luis
Obispo (“City”) (also referred to individually as a “Member” and collectively as “Members”),
each a local agency, as defined in SGMA, have entered into that certain Joint Exercise of Powers
Agreement of the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability
Agency dated as of __________________ (“Joint Powers Agreement”) to form the Agency
pursuant to the authority provided in the JEPA and in SGMA; and
E. WHEREAS, the Agency has elected to be the GSA within the Basin; and
F. WHEREAS, Water Code Section 10723.6(b) permits water corporations
regulated by the Public Utilities Commission (“PUC”) and mutual water companies to participate
in a GSA through a memorandum of agreement or other legal agreement; and
G. WHEREAS, Utility is a ___________________ within the Basin; and
H. WHEREAS, the Joint Powers Agreement authorizes the Agency to enter into an
agreement with certain water corporations regulated by the PUC and certain mutual water
companies; and
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I. WHEREAS, Utility desires to become a participant under the Joint Powers
Agreement pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the promises, terms, conditions and covenants
contained herein, the Parties to this Agreement hereby agree as follows:
ARTICLE 1
DEFINITIONS
Capitalized terms used but not separately defined in this Agreement shall have the
meaning assigned to such terms in the Joint Powers Agreement.
ARTICLE 2
TERM
This Agreement shall become effective on the date that the last Party executes this
Agreement and shall remain in effect throughout the term of the Joint Powers Agreement or until
terminated pursuant to the provisions of Article 8 of this Agreement. Utility acknowledges that
either Member may terminate the Joint Powers Agreement on ninety (90) days written notice to
the other Member, except during the term of any Agency indebtedness.
ARTICLE 3
PARTICIPATION ON AGENCY BOARD OF DIRECTORS
In accordance with the provisions of the Joint Powers Agreement, the Utility shall have
the right to jointly nominate one (1) representative and (1) alternate representative to the Board
of Directors with the other Participants (if any) of the ________ Group for appointment by the
County Board of Supervisors. Said joint nomination(s) shall be provided to the Board of
Supervisors within sixty (60) days of the Effective Date of this Agreement and within sixty (60)
days of any vacancy. The representative for the _______ Group shall be eligible to serve as an
officer of the Agency, and, subject to the limitations set forth in Article 4 of this Agreement and
Water Code Section 10723.6(b), shall have all other rights and duties of members of the Board of
Directors permitted by law.
ARTICLE 4
NO CONFERRAL OF ADDITIONAL POWERS
Nothing contained in this Agreement shall confer on Utility the right to individually
exercise any powers of the Authority or any individual powers of its Members.
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ARTICLE 5
PAYMENT OF AGENCY COSTS
5.1 Initial Contributions. In order to provide the necessary capital to fund the Agency
until the Agency is able to secure other funding sources, during Fiscal Year 2017 – 2018, the
Utility, shall provide an initial contribution of $________ to the Agency’s Treasurer no later than
thirty (30) days after the date on which the Agency becomes the exclusive GSA within the
boundaries of the Agency provided that each of the Participants identified in Exhibit A to the
Joint Powers Agreement has executed a participant agreement with the Agency. Utility
acknowledges that if the Agency’s Treasurer does not receive all such contributions within ten
(10) days of the foregoing due date and notwithstanding the noticing period set forth in Section
15.3 of the Joint Powers Agreement, either Member may terminate the Joint Powers Agreement
upon ten (10) days written notice to the other Member.
5.2 Return of Initial Contributions. To the extent the Agency is able to secure other
funding sources, and to the extent permitted by law, the Agency shall reimburse Utility for the
initial contribution set forth in Section 5.1 in an amount proportionate to the initial contributions
of the Members and other Participants.
5.3 Subsequent Contributions. It is anticipated that the Agency will secure other
funding sources to fund the Agency during Fiscal Year 2018 – 2019 and in subsequent Fiscal
Years. In the event that such other funding sources are not secured, the Board shall adopt a
resolution requesting each of the Members and the Participants, including Utility, to consider
additional funding and demonstrating in detail both the need for the funding and the purposes for
which the additional funding will be utilized, provided that nothing contained in this Section 5.3
shall be construed as requiring Utility to agree to any subsequent contributions. Utility
acknowledges that for Fiscal Year 2018 – 2019 and following, both the budget and any cost
sharing agreement shall be determined prior to any financial expenditures or incurrence of any
financial obligations or liability by the Board.
ARTICLE 6
LIABILITY
As set forth in Section 15.1 of the Joint Powers Agreement, to the fullest extent permitted
by law, the Agency shall indemnify, defend and save harmless the Director nominated by the
___ Group from and against any and all claims and losses whatsoever, occurring or resulting to
persons, firms or corporations supplying work, services, materials or supplies to the Agency in
connection with the performance of the Joint Powers Agreement, and, except as expressly
provided by law, from any and all claims and losses accruing or resulting to any persons, firms
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or corporations, for damage, injury or death arising out of or connected with the Agency’s
performance of its obligations under the Joint Powers Agreement.
ARTICLE 7
RESERVATION OF RIGHTS
As set forth in Water Code Section 10720.5(a), any GSP adopted by the Agency shall be
consistent with Section 2 of Article X of the California Constitution and nothing in this
Agreement modifies the rights or priorities to use or store groundwater consistent with Section 2
of Article X of the California Constitution, with the exception that no extraction of groundwater
between January 1, 2015 and the date the GSP is adopted may be used as evidence of, or to
establish or defend against, any claim of prescription. Likewise, as set forth in Water Code
Section 10720.5(b), nothing in this Agreement or any GSP adopted by the Agency determines or
alters surface water rights or groundwater rights under common law or any provision of law that
determines or grants surface water rights.
ARTICLE 8
TERMINATION
8.1 Termination of Agreement. Utility may terminate this Agreement for any reason
or no reason, effective upon ninety (90) days prior written notice to Agency and each Member,
except during the outstanding term of any Agency indebtedness. Upon termination, Utility shall
remain responsible for its share of expenses and obligations of the Authority under this
Agreement prior to the effective date of such termination. If the Utility is the only member of
the ____ Group, the Director and Alternate Director representing the Group shall be deemed to
have resigned from the Board of Directors concurrent with termination of this Agreement and the
____ Group shall no longer be entitled to have a representative on the Board of Directors. If
there is more than one member of the ______ Group and the Director or Alternate Director
representing the _____ Group is from the Utility, the Director or Alternate Director shall be
deemed to have resigned from the Board, and the remaining member(s) of the Group shall
nominate a new Director and Alternate Director. Utility acknowledges that if a withdrawing
Participant is the only member of a Group, the Members will need to amend the Joint Powers
Agreement to reflect the new composition of the Board of Directors.
8.2 Termination of Agreement due to Termination of Joint Powers Agreement. As
set forth in Section 15.4 of the Joint Powers Agreement, upon termination of this Agreement due
to Termination of the Joint Powers Agreement, any surplus money on-hand shall be returned to
the Members and Participants, including Utility, in proportion to their contributions made. The
Board of Directors shall first offer any property, works, rights and interest of the Agency for sale
to the Members and Participants on terms and conditions determined by the Board of Directors.
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If no such sale to the Members or Participants is consummated, the Board of Directors shall offer
the property, works, rights and interest of the Agency for sale to any non-Member and non-
Participant for good and adequate consideration. The net proceeds from any sale shall be
distributed among the Members and Participants in proportion to their contributions made.
ARTICLE 9
PRIMACY OF JOINT POWERS AGREEMENT
The obligations of the Agency under this Agreement shall be subject to the provisions of
the Joint Powers Agreement. On advice of counsel, Utility has reviewed the Joint Powers
Agreement and determined that the terms of the Joint Powers Agreement do not conflict with the
terms of this Agreement or with Utility’s obligations hereunder.
ARTICLE 10
MISCELLANEOUS PROVISIONS
10.1 Notices. All communications or notices in connection with this Agreement shall
be in writing and either hand-delivered or sent by U.S. first class mail, postage prepaid, or
electronic mail followed by written notice sent by U.S. mail and addressed to the Parties as
follows:
San Luis Obispo Valley GSA County of San Luis Obispo
_________________________ ________________________
_________________________ ________________________
_________________________ _________________________
_________________________ City of San Luis Obispo
_________________________ _________________________
_________________________ _________________________
_________________________ _________________________
10.2 Amendment. This Agreement may be amended or modified at any time only by
subsequent written agreement approved and executed by both Parties.
10.3 Entire Agreement. The foregoing constitutes the full and complete Agreement of
the Parties. This Agreement supersedes all prior agreements and understandings, whether in
writing or oral, related to the subject matter of this Agreement that are not set forth in writing
herein.
10.4 Severability. If any provision of this Agreement is determined to be invalid or
unenforceable, the remaining provisions will remain in force and affected to the fullest extent
permitted by law.
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10.5 Assignment. The rights and duties of a Party may not be assigned to delegated
without the written consent of the other Party. Any attempt to assign or delegate such rights or
duties in contravention of this Agreement shall be null and void.
10.6 Authorization. Each signatory represents and warrants that he or she has the
appropriate authorization to enter into this Agreement on behalf of the Party for whom he or she
signs.
10.7 Construction and Interpretation. The Parties agree and acknowledge that the
terms of this Agreement have been negotiated by the Parties and the language used in this
Agreement shall be deemed to be the language chosen by the Parties to express their mutual
intent. The Agreement shall be construed without regard to any presumption or rule requiring
construction against the Party causing such instrument to be drafted, or in favor of the Party
receiving a particular benefit under this Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by
authorized officials thereof on the dates indicated below.
AGENCY
By: ________________________ Date: ________________________
Title: ______________________
APPROVED AS TO FORM AND LEGAL EFFECT
By: ________________________ Date: ________________________
Title: ______________________
UTILITY
By: ________________________ Date: ________________________
Title: ______________________
APPROVED AS TO FORM AND LEGAL EFFECT
By: ________________________ Date: ________________________
Title: ______________________
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PARTICIPANT AGREEMENT
This Participant Agreement (“Agreement”) is made and entered into on this ____ day of
____________, 2017 by and between the San Luis Obispo Valley Groundwater Sustainability
Agency (“Agency”), a joint exercise of powers agency formed under Government Code Sections
6500 et seq. (“Joint Exercise of Powers Act”), and _______________, a
__________________________ (“Utility”) (referred to individually as “Party” and collectively
as “Parties”).
RECITALS
A. WHEREAS, the Sustainable Groundwater Management Act (Water Code §§
10720 et seq.) (“SGMA”) requires the establishment of a groundwater sustainability agency
(“GSA”) for all basins designated as medium- or high-priority by the Department of Water
Resources (“DWR”) on or before June 30, 2017; and
B. WHEREAS, SGMA further requires the adoption of a groundwater sustainability
plan (“GSP”) for all basins designated as medium- or high-priority by DWR and not subject to
critical conditions of overdraft on or before January 1, 2022; and
C. WHEREAS, DWR has designated the San Luis Obispo Valley Groundwater
Basin (Basin Number 3-9) (“Basin”) as a medium-priority basin; and
D. WHEREAS, the County of San Luis Obispo (“County”) and the City of San Luis
Obispo (“City”) (also referred to individually as a “Member” and collectively as “Members”),
each a local agency, as defined in SGMA, have entered into that certain Joint Exercise of Powers
Agreement of the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability
Agency dated as of __________________ (“Joint Powers Agreement”) to form the Agency
pursuant to the authority provided in the Joint Exercise of Powers Act (“JEPA”) and in SGMA;
and
E. WHEREAS, the Agency has elected to be the GSA within the Basin; and
F. WHEREAS, Water Code Section 10723.6(b) permits water corporations
regulated by the Public Utilities Commission (“PUC”) and mutual water companies to participate
in a GSA through a memorandum of agreement or other legal agreement; and
G. WHEREAS, Utility is a ___________________ within the Basin; and
H. WHEREAS, the Joint Powers Agreement authorizes the Agency to enter into an
agreement with certain water corporations regulated by the PUC and certain mutual water
companies; and
I. WHEREAS, Utility desires to become a participant under the Joint Powers
Agreement pursuant to the terms of this Agreement.
DRAFT 02 23 17
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NOW, THEREFORE, in consideration of the promises, terms, conditions and covenants
contained herein, the Parties to this Agreement hereby agree as follows:
ARTICLE 1
DEFINITIONS
Capitalized terms used but not separately defined in this Agreement shall have the
meaning assigned to such terms in the Joint Powers Agreement.
ARTICLE 2
TERM
This Agreement shall become effective on the date that the last Party executes this
Agreement and shall remain in effect throughout the term of the Joint Powers Agreement or until
terminated pursuant to the provisions of Article 8 of this Agreement. Utility acknowledges that
either Member may terminate the Joint Powers Agreement on ninety (90) days written notice to
the other Member, except during the term of any Agency indebtedness.
ARTICLE 3
PARTICIPATION ON AGENCY BOARD OF DIRECTORS
In accordance with the provisions of the Joint Powers Agreement, the Utility shall have
the right to jointly nominate one (1) representative and (1) alternate representative to the Board
of Directors with the other Participants (if any) of the ________ Group for appointment by the
County Board of Supervisors. Said joint nomination(s) shall be provided to the Board of
Supervisors within sixty (60) days of the Effective Date of this Agreement and within sixty (60)
days of any vacancy. The representative for the _______ Group shall be eligible to serve as an
officer of the Agency, and, subject to the limitations set forth in Article 4 of this Agreement and
Water Code Section 10723.6(b), shall have all other rights and duties of members of the Board of
Directors permitted by law.
ARTICLE 4
NO CONFERRAL OF ADDITIONAL POWERS
Nothing contained in this Agreement shall confer on Utility the right to individually
exercise any powers of the Authority or any individual powers of its Members.
ARTICLE 5
PAYMENT OF AGENCY COSTS
5.1 Initial Contributions. In order to provide the necessary capital to fund the Agency
until the Agency is able to secure other funding sources, during Fiscal Year 2017-2018, the
Utility, shall provide an initial contribution of $________ to the Agency’s Treasurer no later than
thirty (30) days after the last Participant identified in Section 14.2 of the Joint Powers Agreement
Packet Pg. 101
8
Page 24 of 27
has entered into a participant agreement with the Agency. Utility acknowledges that if the
Agency’s Treasurer does not receive all such contributions on or before _______ and
notwithstanding the noticing period set forth in Section 15.3 of the Joint Powers Agreement,
either Member may terminate the Joint Powers Agreement upon ten (10) days written notice to
the other Member.
5.2 Return of Initial Contributions. To the extent the Agency is able to secure other
funding sources, and to the extent permitted by law, the Agency shall reimburse Utility for the
initial contribution set forth in Section 5.1 in an amount proportionate to the initial contributions
of the Members and other Participants.
5.3 Subsequent Contributions. It is anticipated that the Agency will secure other
funding sources to fund the Agency during Fiscal Year 2018 – 2019 and in subsequent Fiscal
Years. In the event that such other funding sources are not secured, the Board shall adopt a
resolution requesting each of the Members and the Participants, including Utility, to consider
additional funding and demonstrating in detail both the need for the funding and the purposes for
which the additional funding will be utilized, provided that nothing contained in this Section 5.3
shall be construed as requiring Utility to agree to any subsequent contributions. Utility
acknowledges that for Fiscal Year 2018 – 2019 and following, both the budget and any cost
sharing agreement shall be determined prior to any financial expenditures or incurrence of any
financial obligations or liability by the Board.
ARTICLE 6
LIABILITY
As set forth in Section 15.1 of the Joint Powers Agreement, to the fullest extent permitted
by law, the Agency shall indemnify, defend and save harmless the Director nominated by the
___ Group from and against any and all claims and losses whatsoever, occurring or resulting to
persons, firms or corporations supplying work, services, materials or supplies to the Agency in
connection with the performance of the Joint Powers Agreement, and, except as expressly
provided by law, from any and all claims and losses accruing or resulting to any persons, firms
or corporations, for damage, injury or death arising out of or connected with the Agency’s
performance of its obligations under the Joint Powers Agreement.
ARTICLE 7
RESERVATION OF RIGHTS
As set forth in Water Code Section 10720.5(a), any GSP adopted by the Agency shall be
consistent with Section 2 of Article X of the California Constitution and nothing in this
Agreement modifies the rights or priorities to use or store groundwater consistent with Section 2
Packet Pg. 102
8
Page 25 of 27
of Article X of the California Constitution, with the exception that no extraction of groundwater
between January 1, 2015 and the date the GSP is adopted may be used as evidence of, or to
establish or defend against, any claim of prescription. Likewise, as set forth in Water Code
Section 10720.5(b), nothing in this Agreement or any GSP adopted by the Agency determines or
alters surface water rights or groundwater rights under common law or any provision of law that
determines or grants surface water rights.
ARTICLE 8
TERMINATION
8.1 Termination of Agreement. Utility may terminate this Agreement for any reason
or no reason, effective upon ninety (90) days prior written notice to Agency, except during the
outstanding term of any Agency indebtedness. Upon termination, Utility shall remain
responsible for its share of expenses and obligations of the Authority under this Agreement prior
to the effective date of such termination. If the Utility is the only member of the ____ Group, the
Director and Alternate Director representing the Group shall be deemed to have resigned from
the Board of Directors concurrent with termination of this Agreement and the ____ Group shall
no longer be entitled to have a representative on the Board of Directors. If there is more than one
member of the ______ Group and the Director or Alternate Director representing the _____
Group is from the Utility, the Director or Alternate Director shall be deemed to have resigned
from the Board, and the remaining member(s) of the Group shall nominate a new Director and
Alternate Director. Utility acknowledges that if a withdrawing Participant is the only member of
a Group, the Members will need to amend the Joint Powers Agreement to reflect the new
composition of the Board of Directors.
8.2 Termination of Agreement due to Termination of Joint Powers Agreement. As
set forth in Section 15.4 of the Joint Powers Agreement, upon termination of this Agreement due
to Termination of the Joint Powers Agreement, any surplus money on-hand shall be returned to
the Members and Participants, including Utility, in proportion to their contributions made. The
Board of Directors shall first offer any property, works, rights and interest of the Agency for sale
to the Members and Participants on terms and conditions determined by the Board of Directors.
If no such sale to the Members or Participants is consummated, the Board of Directors shall offer
the property, works, rights and interest of the Agency for sale to any non-Member and non-
Participant for good and adequate consideration. The net proceeds from any sale shall be
distributed among the Members and Participants in proportion to their contributions made.
ARTICLE 9
PRIMACY OF JOINT POWERS AGREEMENT
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Page 26 of 27
The obligations of the Agency under this Agreement shall be subject to the provisions of
the Joint Powers Agreement. On advice of counsel, Utility has reviewed the Joint Powers
Agreement and determined that the terms of the Joint Powers Agreement do not conflict with the
terms of this Agreement or with Utility’s obligations hereunder.
ARTICLE 10
MISCELLANEOUS PROVISIONS
10.1 Notices. All communications or notices in connection with this Agreement shall
be in writing and either hand-delivered or sent by U.S. first class mail, postage prepaid, or
electronic mail followed by written notice sent by U.S. mail and addressed to the Parties as
follows:
San Luis Obispo Valley GSA
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
10.2 Amendment. This Agreement may be amended or modified at any time only by
subsequent written agreement approved and executed by both Parties.
10.3 Entire Agreement. The foregoing constitutes the full and complete Agreement of
the Parties. This Agreement supersedes all prior agreements and understandings, whether in
writing or oral, related to the subject matter of this Agreement that are not set forth in writing
herein.
10.4 Severability. If any provision of this Agreement is determined to be invalid or
unenforceable, the remaining provisions will remain in force and affected to the fullest extent
permitted by law.
10.5 Assignment. The rights and duties of a Party may not be assigned to delegated
without the written consent of the other Party. Any attempt to assign or delegate such rights or
duties in contravention of this Agreement shall be null and void.
10.6 Authorization. Each signatory represents and warrants that he or she has the
appropriate authorization to enter into this Agreement on behalf of the Party for whom he or she
signs.
Packet Pg. 104
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Page 27 of 27
10.7 Construction and Interpretation. The Parties agree and acknowledge that the
terms of this Agreement have been negotiated by the Parties and the language used in this
Agreement shall be deemed to be the language chosen by the Parties to express their mutual
intent. The Agreement shall be construed without regard to any presumption or rule requiring
construction against the Party causing such instrument to be drafted, or in favor of the Party
receiving a particular benefit under this Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by
authorized officials thereof on the dates indicated below.
AGENCY
By: ________________________ Date: ________________________
Title: ______________________
APPROVED AS TO FORM AND LEGAL EFFECT
By: ________________________ Date: ________________________
Title: ______________________
UTILITY
By: ________________________ Date: ________________________
Title: ______________________
APPROVED AS TO FORM AND LEGAL EFFECT
By: ________________________ Date: ________________________
Title: ______________________
Packet Pg. 105
8
R ______
RESOLUTION NO. (2017 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE A JOINT EXERCISE OF POWERS AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND THE COUNTY OF
SAN LUIS OBISPO TO FORM THE SAN LUIS OBISPO VALLEY
GROUNDWATER BASIN GROUNDWATER SUSTAINABILITY
AGENCY
WHEREAS, the California Legislature enacted the Sustainable Groundwater
Management Act (SGMA) in September 2014 to take effect on January 1, 2015; and
WHEREAS, SGMA provides statutory authority related to groundwater use and the
creation of groundwater management agencies; and
WHEREAS, The California Department of Water Resources (DWR) is responsible for
prioritizing basins, including the San Luis Obispo (Edna) Valley Basin (medium priority), which
are subject to SGMA compliance; and
WHEREAS, the City overlies part of the San Luis Obispo (Edna) Valley groundwater
basin; and
WHEREAS, the City uses groundwater as part of its multi-source water supply and uses
groundwater for domestic purposes when available; and
WHEREAS, formation of a Groundwater Sustainability Agency (GSA) is required by
SGMA to cover all areas contained within medium priority designated basins; and
WHEREAS, the City Council finds that the most efficient and effective way to comply
with SGMA’s mandates is to form a Joint Powers Authority with the San Luis Obispo County in
order to serve as the GSA for the San Luis Obispo Valley groundwater basin and to carry out the
requirements of SGMA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Action. The City Council does hereby:
1. Approve and authorize the Mayor to execute a Joint Exercise of Powers Agreement
(“Agreement”) between the City of San Luis Obispo and the County of San Luis Obispo in a
form substantially in compliance as set forth in Attachment 1, attached hereto and incorporated
herein.
2. Authorize the City Manager to approve minor modifications to the Agreement.
Packet Pg. 106
8
Resolution No. _______________ (2017 Series) Page 2
R ______
3. Authorize the use of up to $200,000 of Water fund balance as the City of San Luis Obispo’s
portion of initial operating capital for fiscal year 2017/18 for the Groundwater Sustainability
Agency pursuant to the terms and conditions of Article 14 of the Agreement.
4. Authorize the County of San Luis Obispo or, once formed, the San Luis Obispo Valley
Groundwater Basin Groundwater Sustainability Agency, to provide the required notices and
filings as set forth in Article 2 in the Agreement.
5. Authorize the City of San Luis Obispo Utilities Director to take any actions necessary in order
to carry out the approvals set forth herein.
6. Appoints ___________________ as the City’s representative and ___________________ as
the City’s alternate representative to serve on the Board of Directors of the San Luis Obispo
Valley Groundwater Basin Groundwater Sustainability Agency pursuant to the terms of
Article 6 of the Agreement. Such appointment is subject to the successful formation of the
San Luis Obispo Valley Groundwater Basin Groundwater Sustainability Agency.
SECTION 2. Environmental Determination. The City Council finds that adoption of this
Resolution and the formation of a Joint Powers Association to create the San Luis Obispo Valley
Groundwater Basin Groundwater Sustainability Agency is not subject to CEQA. Preparation of an
environmental impact report or negative declaration would be too early in the process to provide
meaningful information for environmental assessments, as described in CEQA Guidelines Section
15004(b).
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________, 2017.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
Packet Pg. 107
8
Resolution No. _______________ (2017 Series) Page 3
R ______
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Carrie Gallagher
City Clerk
Packet Pg. 108
8
Sustainable Groundwater
Management Act
March 7, 2017
JPA GSP GSA
GSP
SGMA
- T,F_1
GSA JPA SGMA GSP
GSA
3/8/2017
g SGMA - Sustainable Groundwater Management Act
* GSA - Groundwater Sustainability Agency
GSP - Groundwater Sustainability Plan
* JPA - Joint Powers Agreement
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r 40% State's use - 60% during dry years
3/8/2017
3
Groundwater Overuse
■ Bigger, Stronger pumps
■ 1-2 million acre feet overdraft statewide
■ Local historical overdraft
■ No groundwater use rules
■ 2014 series of bills evolved into.
a SGMA
Sustainable Groundwater
Management Act
w Into effect January 1, 2015
1. Identify and prioritize groundwater basins
3/8/2017
4
SLO County
DWR Bulletin Ill G—d-11r Besina In Sen Luls Obispo County
dr
Sustainable Groundwater
Management Act
SGMA
LA Into effect January 1, 2015
i
1. Identify and prioritize groundwater basins
2. Sustainability
"the management and use of groundwater in a manner that
can be maintained during the planning and implementation
horizon without causing undesirable results"
;MVV Y o�
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P a
IS 0
3/8/2017
5
Sustainable Groundwater
Sustainable Sustainability suslainable
Yield Goals 4lnnagenlent_
Prevent "undesirable results"
Lowering of Reduction in Seawater Water Land Depletions
Groundwater Groundwater Iuliusjuu Quality of Surface
Levels Storage Degradation Subsidence Water
Sustainable Groundwater
Management Act
■ SGMA
■ Into effect January 1, 2015
1. Identify and prioritize groundwater basins
2. Sustainability �1
Step 1
Step 2
Step 3
3. Create GSAs
Form local
Adopt
GSA a[hleve6
■ More in future...
Groundwater
Groundwater
groundwater
Sustainability
Sustalnabillty
sustalnablllty
Agency (GSA)
Plan (GSP)
goal
June 30, 2017
Jan. 31, 2022
20yaananer
dSPadoption
3/8/2017
R,
Groundwater Sustainability Agency
■ GSA
• Formed by local public agencies with water supply,
management or land use responsibilities
■ Mutual water companies or PUC -regulated water
corporations throuah MOA
GSA Authorities
a By law, the State authorizes GSA to:
R Conduct studies
Register & monitor wells
Set well spacing requirements
■ Require extraction reporting Goal:
Regulate extractions Sustainability
■ Implement capital projects within 20 years
m Required to develop GSP
■ Groundwater Sustainability Plan
■ GSP due 1/31/2022
3/8/2017
7
SLO Groundwater Basin Program Charter
:see•..
r•
t�Y O�
�D
�w+rri ti
3/8/2017
8
• To maximize the SLO Valley Groundwater
VISION
Basin potential in a fair and cost efficient
manner for its users.
• To implement SGMA in partnership with
stakeholders
MISSION
• rhal provides a long-term sustainable basin plan,
lrsw(i on science and best practiccs, in a manner
that achieves an equitable balance among
competing interests.
KEY
• Augmentation
OBJECTIVES
• Innovation n
3/8/2017
8
Joint Powers Agreement
JPA
Five member board
* Common powers of City and County
Director voting structure
w Stakeholder and Technical Advisory Committees
Financial Contributions
3/8/2017
0
\ \, s � •1 Iiy
tr40 1 �,
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1
San Luis Obispo (Edna) Valley Groundwater Basin
Governance Structure
GSA
City of SLO •
County of SLO !PA
t T
r
Supplernental
Agreements
Mutu8l 14f�tual i GSA Staf�.
PUC
Water Water !i Water Co. {
Agriculture Domestic
3/8/2017
10
Stakeholder Engagement
Locei Land
www.slocountywater.org/sgma
SGMA: Schedule
Use
Aut7ifc Warer
Planning
SySIOPMS _
Aganclos
Agricultural
Errfltiils '�
dears
rnordlorino a
'
Holda00 F
overlying
groundwater
r'
rights
Other
�IXnmwril
Dornaafic
Users
Env iranmontal
//Bars of
gronndwalur
www.slocountywater.org/sgma
SGMA: Schedule
Surface
wilier usars Fadoral
(if sowmment
hydroioglc
connection]
Native
American
Vibes
STEP 1: STEP 2: STEP 3:
Form GSA Develop GSP Implement
KEY 1/1/2015: 3/31/16: 6/30/2017: 1/31/2022: Goal:
DATES SGMA Boundary Establish Adopt Achieve
enacted modification GSA GSP sustainability
TODAY
3/8/2017
11
Aut7ifc Warer
---,
SySIOPMS _
'Z
Errfltiils '�
rnordlorino a
rnpwiino on I
groundwater
cfev�lions
Other
�IXnmwril
Interested
Parties
Surface
wilier usars Fadoral
(if sowmment
hydroioglc
connection]
Native
American
Vibes
STEP 1: STEP 2: STEP 3:
Form GSA Develop GSP Implement
KEY 1/1/2015: 3/31/16: 6/30/2017: 1/31/2022: Goal:
DATES SGMA Boundary Establish Adopt Achieve
enacted modification GSA GSP sustainability
TODAY
3/8/2017
11
Questions
Recommendations
1. Approve a Resolution entitled "A Resolution of the City Council of the City of San
Luis Obispo, California, approving and authorizing the Mayor to execute a Joint
Exercise of Powers Agreement between the City of San Luis Obispo and the County
of San Luis Obispo to form the San Luis Obispo Valley Groundwater Basin
Groundwater Sustainability Agency' (Attachment B); and
2. Authorize the City Manager to approve minor modifications to the Joint Exercise of
Powers Agreement; and
3. Authorize the use of up to $200,000 of Water fund balance as the City's portion of
initial operating capital for fiscal year 2017118 for the Groundwater Sustainability
Agency (subject to reimbursement from the Groundwater Sustainability Agency); and
4. Authorize the County of San Luis Obispo to take certain actions relative to the
formation of the San Luis Obispo Valley Groundwater Basin Groundwater
Sustainability Agency; and
5. Appoint one representative from City Council and the Utilities Director as an
alternative representative to serve on the Board of Directors of the San Luis Obispo
Valley Groundwater Basin Groundwater Sustainability Agency.
3/8/2017
12
� 'moi
• j
�
� .
Recommendations
1. Approve a Resolution entitled "A Resolution of the City Council of the City of San
Luis Obispo, California, approving and authorizing the Mayor to execute a Joint
Exercise of Powers Agreement between the City of San Luis Obispo and the County
of San Luis Obispo to form the San Luis Obispo Valley Groundwater Basin
Groundwater Sustainability Agency' (Attachment B); and
2. Authorize the City Manager to approve minor modifications to the Joint Exercise of
Powers Agreement; and
3. Authorize the use of up to $200,000 of Water fund balance as the City's portion of
initial operating capital for fiscal year 2017118 for the Groundwater Sustainability
Agency (subject to reimbursement from the Groundwater Sustainability Agency); and
4. Authorize the County of San Luis Obispo to take certain actions relative to the
formation of the San Luis Obispo Valley Groundwater Basin Groundwater
Sustainability Agency; and
5. Appoint one representative from City Council and the Utilities Director as an
alternative representative to serve on the Board of Directors of the San Luis Obispo
Valley Groundwater Basin Groundwater Sustainability Agency.
3/8/2017
12
Unanimous Director Voting Article 9 in JPA
Only for approval of GSP and amendments
Not typical
Need for collaborative management
Consistent with SGMA — all beneficial interests considered
Super Maiority (415j
Annual budget
Levying of taxes, assessments, or fees
Issuance of indebtedness
Stipulation to resolve litigation concerning groundwater rights
Majority
All else
3/8/2017
13
Alternatives
1. Council could choose to form an independent GSA, isolated to those areas of the San Luis Obispo
(Edna) Valley Basin under the jurisdiction of the City. This is known as the 'coordinated' approach. The
recommendation before City Council is known as the 'collaborative' approach. Regardless of the approach
chosen, all areas of the entire groundwater basin would still need to be covered by a GSA by the June 30,
2017 deadline. Selecting this strategy would likely result in increased management complications and
expenditures as creation of a GSP and all future management would still require collaboration with other
entities in the basin.
2. Gounc.il could choose, not to participate in the formation of a JPA with the County. If the City still chose to
participate in the GSA, not participating in the JPA would cede authorities (such as appointments to the
GSA) to the County; they would be the only agency with the designated authorities and jurisdiction over the
basin.
3. Council could choose to not participate in the GSA. As the GSA will prepare the GSP, which will dictate
groundwater use in the basin, including the portion the City overlies, this alternative would result in the City
having a diminished voice in basin management decisions.
4. Council could choose to appoint both the representative arid alternative representative from Clty Council
to serve on the Board of Directors of the San Luis Obispo Valley Groundwater Basin Groundwater
Sustainability Agency. The selection of the Utilities Director to serve as the alternative representative was
recommended as a consistent resource for the elected official during the initial stages of SGMA and in
particular, during the creation of a Groundwater Sustainability Plan. Actions taken by the GSA will likely
have significant impacts on the City's current and future water portfolio,
Cost
Share
1 A
is
C
D
E
F
G
H
1
21
3
Member Fee
Population
Acreage
AFY
score
%
cost $
4 County
$
155,000
5,000
7000
2000
4200
26%
223,437
5 City
$
20,000
48,000
1500
500
7975
49%
149,948
6 Domestic Mutual $
20,000
205
300
100
186
1%
23,027
7 Golden State
$
20,000
1300
1000
400
745
5%
32,139
8 Edna Growers
$
20,000
50
6000
2100
3158
19%
13!150
9 Total
$
235,000
54,555
15,800
5,100
16263
100% 5
SO4,001)
10
11 Weighted (sum
=100)
11M&P`X'
35%
50%;
1211
13 cost to be shared 5
$ 26%,000
14
3/8/2017
14
t
Local management of groundwater
No uncovered areas
Specific exemptions for Goal:
listed adjUdicated basins Sustainability
within 20
County management option years
State as backstop
CITY OF SH11 Luis O: PO
3/8/2017
15