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HomeMy WebLinkAbout01-16-2018 Item 06 Memorandum of Agreement for Creation of a Groundwater Sustainability Plan Meeting Date: 1/16/2018 FROM: Carrie Mattingly, Utilities Director Prepared By: Aaron Floyd, Utilities Deputy Director - Water SUBJECT: MEMORANDUM OF AGREEMENT FOR CREATION OF A GROUNDWATER SUSTAINABILITY PLAN RECOMMENDATION Authorize the Mayor to sign the Memorandum of Agreement Regarding Preparation of a Groundwater Sustainability Plan for the San Luis Obispo Valley Groundwater Basin. DISCUSSION The Sustainable Groundwater Management Act (SGMA) requires sustainable groundwater management in all high and medium priority basins, including the medium priority San Luis Obispo Valley Groundwater Basin (SLO Basin). SGMA’s first critical deadline required formation of groundwater sustainability agencies (GSAs) by June 30, 2017. The City of San Luis Obispo and the County of San Luis Obispo (County), have completed the GSA formation process, resulting in full coverage of the SLO Basin. The City’s public hearing on this event took place on May 16, 2017 (Attachment A). While GSAs were formed by the two local public agencies, SGMA provides that other entities are eligible to participate in GSAs. Representatives of eligible entities within the SLO Basin, including the Golden State Water Company (GSWC), Edna Ranch Mutual Water Company (ERMWC), Varian Ranch Mutual Water Company (VRMWC), and Edna Valley Growers Mutual Water Company (EVGMWC), have been engaging local stakeholders and developing the governance structure for the SLO Basin since 2015. The City, County and the aforementioned eligible entities (collectively, Participating Parties) collaborated to develop the attached Memorandum of Agreement Regarding Preparation of a Groundwater Sustainability Plan for the San Luis Obispo Valley Groundwater Basin (MOA – Attachment B). All eligible entities have signed the MOA. The County of San Luis Obispo is scheduled to hear and is expected to sign this MOA on January 9, 2018. Key terms of the MOA are described below. GSP Development in the San Luis Obispo Valley Groundwater Basin SGMA’s next critical deadline requires development and adoption of a groundwater sustainability plan (GSP) for the SLO Basin by January 31, 2022. The MOA defines how the City and County will work jointly to meet the objectives of the MOA – namely, to develop a single GSP for the SLO Basin by the statutory deadline in coordination with a Groundwater Sustainability Commission (Commission) created by the MOA (subject to payment of certain contributions by the Participating Parties as described below) and consisting of representatives of the GSAs and the Participating Parties. City and County staff will collaboratively participate in developing a GSP through, among other things, retaining the services of a consultant and Packet Pg 95 6 engaging SLO Basin users and stakeholders. Once developed, the GSP would be considered for adoption by the GSAs (i.e., City Council and County Board of Supervisors) and subsequently submitted to the Department of Water Resources (DWR) for approval. Under the terms of the MOA, neither the City nor the County is required to adopt the GSP developed under the MOA and either can adopt the GSP even if the other declines to do so. The MOA automatically terminates upon approval of the GSP by DWR and either the City or County can terminate the MOA on thirty days’ notice at any time. The following graphic depicts the relationship of the GSAs and the individual Participating Parties: As established under the terms of the MOA and subject to each Participating Party making an annual monetary contribution to defray the costs of administering the Commission (a combined $50,000), the Commission is to be composed of five (5) members representing the City, County, and the Participating Parties (ERMWC and VRMWC are collectively represented by one member as discussed below). It is anticipated that the Commission, in coordination with City and County staff, will be an active participant in the development of a single GSP over the SLO Basin. The MOA provides that the City Council and County Board of Supervisors shall appoint the members and alternate members representing the City and the County (who shall serve at their pleasure), respectively. Each of the Participating Parties shall nominate (or jointly nominate) a member and alternate member to provide representation on the Commission, subject to confirmation by the County Board of Supervisors. These members shall serve at the pleasure of the County Board of Supervisors. Each member of the Commission is entitled to one vote on any matter under consideration. Councilmember Pease and the Utilities Director (as an alternate represent ative) were appointed to serve on the Groundwater Sustainability Commission at the May 16, 2017 City Council Packet Pg 96 6 meeting. County staff recommended, on January 9, 2018, that the County appoint the District 3 Supervisor, Adam Hill, as the Member and District 2 Supervisor, Bruce Gibson, as the Alternate Member representing the County. The Participating Parties’ nominations for their member and alternate member seats are as follows: Position Name Member/Alternate EVGMWC Robert Schiebelhut George Donati Member Alternate ERMWC and VRMWC1 Dennis Fernandez James Lokey Member Alternate GSWC Mark Zimmer Toby Moore Member Alternate County Public Works coordinated with the County Clerk's Office to post the vacancies for appointments in accordance with all Maddy Act requirements. ENVIRONMENTAL REVIEW The adoption of this Memorandum of Agreement is not a "project" under the California Environmental Quality Act (CEQA), because the action does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378. CONCURRENCES Community Development concurs with the environmental review findings. FISCAL IMPACT The MOA also defines how the City and County will jointly fund the costs associated with implementation of the MOA. Within 60 days of the effective date of the MOA and prior to each anniversary of the Effective Date, City and County staff will prepare an annual budget for the GSAs to implement the MOA. Subject to City Council and County Board of Supervisor approval of each annual budget, the City and the County agree to fund the annual budget (less the combined $50,000 contribution paid by the Participating Parties in accordance with the percentage allocations set forth below: 1 The ERMWC and the VRMWC have entered into a separate agreement setting forth the manner in which they will “jointly nominate” a member and alternate member to represent them on the Commission in accordance with the MOA. More specifically, the ERMWC and VRMWC have agreed that the initial nomination will be a representative from ERMWC (nominated by ERMWC) and an alternate representative from VRMWC (nominated by VRMWC) and that two years later the nomination will be a representative from VRWMC and an alternate representative from ERMWC (with nomination authority continuing to alternate every two years). Packet Pg 97 6 County 70% City 30% During the Public Hearing held on May 16, 2017, City Council authorized the City Manager to approve the use of up to $200,000 of water fund working capital for expenditures rel ated to the formation and administration of a groundwater sustainability agency and the development of a groundwater sustainability plan. Within 60 days of the effective date of the MOA and prior to each anniversary of the effective date, City and County staff will prepare an annual budget for the GSAs to implement the MOA. Attachments: a - GSAFormation CAR - Meeting Date 5-16-17 b - San Luis Basin MOA FINAL 09 28 17 Packet Pg 98 6 Meeting Date: 5/16/2017 FROM: Carrie Mattingly, Utilities Director Prepared by: Aaron Floyd, Utilities Deputy Director - Water SUBJECT: FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY RECOMMENDATIONS 1. Rescind all prior approvals and appointments associated with the formation of a Groundwater Sustainability Agency from the March 7, 2017 City Council meeting; and 2. Approve a Resolution (Attachment E) entitled “A Resolution of the City Council of the City of San Luis Obispo, California authorizing the City of San Luis Obispo to become a Groundwater Sustainability Agency for the San Luis Obispo Valley Groundwater Basin for the area that lies beneath and within the jurisdictional boundaries of the City of San Luis Obispo” (Attachment E); and 3. Authorize the City Manager to approve use of up to $200,000 of water fund working capital for expenditures related to the formation and administration of a groundwater sustainability agency and the development of a groundwater sustainability plan; and 4. Authorize the City Manager to execute a letter to the California Department of Water Resources notifying them of the City’s decision to become a Groundwater Sustainability Agency as required by Water Code § 10723.8; and 5. Authorize the City’s Utilities Director to perform any acts necessary under the Sustainable Groundwater Management Act in order to effectuate the purposes and acts authorized herein; and 6. Once formed, appoint Council Member Pease and the Utilities Director as an alternative representative to serve on the to the Groundwater Sustainability Commission. DISCUSSION Background On March 2, 2017, in compliance with the Sustainable Groundwater Management Act (SGMA), the City Council approved and authorized the Mayor to execute a Joint Powers Agreement with the County of San Luis Obispo for the purpose of forming the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability Agency. That staff report is included as Attachment A. Earlier that same day, the County of San Luis Obispo Board of Supervisors took action to amend certain sections of its adopted SGMA policy related to funding. The Board held another public hearing on April 4, 2017 to re-consider that action. At this meeting, the Board maintained the March 7 policy change. The Board’s policy change directs the use of County General Fund money to develop Packet Pg 99 6 groundwater sustainability plans in areas of the County not covered by another Groundwater Sustainability Agency. The Board stated it would not raise fees to support the development of the plans. The Board’s prior SGMA policy stated that it would not fund the development of groundwater sustainability plans through its General Fund. This action effectively removed the ability for the San Luis Obispo Valley Groundwater Basin Groundwater Sustainability Agency to fund itself through basin user fees as required in the Joint Powers Agreement. In short, the Joint Powers Agreement is no longer a viable option for the City and it is recommended the City Council rescind all prior approvals and appointments associated with the action taken on that item. The recommended alternative path forward (Alternative 1 from the City’s March 7, 2017 staff report) is for the City to form its own Groundwater Sustainability Agency (GSA) over its jurisdictional boundaries. The City as the GSA will work in a coordinated approach with the County (who will form its own Groundwater Sustainability Agency over its portion of the San Luis Obispo Valley Groundwater Basin) to develop a Groundwater Sustainability Plan (GSP) that covers the entire San Luis Obispo Valley Groundwater Basin. See Attachment B for map of proposed GSAs. Pursuant to the Sustainable Groundwater Management Act, the deadline to form a Groundwater Sustainability Agency is June 30, 2017. Continuing Efforts / Next Steps The San Luis Obispo Valley Groundwater Basin “eligible entities” as shown in Attachment C, (City, County, Golden State Water Company, Edna Ranch Mutual Water Company-East, Varian Ranch Mutual Water Company, and Edna Valley Growers Mutual Water Company) are all ba ck at the table working collaboratively to comply with SGMA requirements. A draft governance structure of a coordinated approach to managing the groundwater basin is attached (Attachment D). The proposed structure includes a Groundwater Sustainability Commission which is an advisory body to the City Council and the Board of Supervisors. The Commission consists of one City Council Member, one County Supervisor and a representative of each of the water companies identified above. The structure is subject to change. The City, County, and eligible entities are required by SGMA to work together to create Groundwater Sustainability Plans. A draft memorandum of agreement among the parties is under review. City and County staff are working to develop an appropriate cost sharing and decision- making approach to Groundwater Sustainability Plan development by the separate Groundwater Sustainability Agencies. Should the Council approve the formation of the City of San Luis Obispo Groundwater Sustainability Agency, the full program (coordinated approach with the County GSA) will be presented to City Council for its consideration as soon as feasible. Meeting the statutory deadline to form the City GSA is the focus of this report. It should be noted that the County’s modified policy is limited to the development of the Groundwater Sustainability Plan. It is unclear what funding the County will deem appropriate for plan implementation. The City and County have the option in the future to form a Joint Powers Packet Pg 100 6 entity, as originally envisioned, should circumstances justify that approach. SGMA requires the Groundwater Sustainability Plan to be developed by January 31, 2022. ENVIRONMENTAL REVIEW The adoption of this resolution to form a Groundwater Sustainability Agency is not s ubject to CEQA. Preparation of the appropriate environmental findings at this stage is premature given that the process is still in its early stages and adequate information is not available to inform any required analysis as defined in State CEQA Guidelines Section 15004(b). FISCAL IMPACT Costs and efforts associated with SGMA compliance to-date have been borne by the County with in-kind support and stakeholder outreach by the City, Golden State Water Company, Edna Valley Growers Mutual Water Company, Varian Ranch Mutual Water Company, and Edna Ranch - East Mutual Water Company. With the City as the GSA, City staff will incur additional responsibilities related to the administration of this program. In addition, the City must coordinate efforts with the County of San Luis Obispo GSA to create a Groundwater Sustainability Plan. Costs associated with the administration and operation of the City of San Luis Obispo Groundwater Sustainability Agency are estimated at $150,000 annually; however, because this is a cost estimate, authority to use up to $200,000 of working capital is requested. Ultimately how the Agency will be administered and funded has yet to be determined. At this time, funding through water fund working capital is being recommended. The use of fund balance has been taken into consideration of the fund review and the fund is projected to maintain working capital above 20% of the operating expenditures policy reserve. Long-term costs for the San Luis Obispo Valley Groundwater Basin GSAs to impl ement the GSP and manage the entire basin in coordination with one another are unknown at this time. The methodology for collection of funds and share apportionment among the basin’s entities is also unknown at this time. The County of San Luis Obispo Board of Supervisors has not made its intent clear as to how GSP implementation will be paid for in its countywide GSAs. This funding hurdle will need to be resolved in the future. Efforts to minimize costs associated with the GSA include exploration of partnerships with other GSAs in the County to share resources, continue in-kind services where applicable, and pursue grants. The County has already secured funding of $150,000 towards a basin characterization study for the San Luis Obispo Valley Groundwater Basin - a needed work effort for creation of a GSP. 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 Packet Pg 101 6 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. 1. Council could choose not to form a GSA. Doing so would cede authority to the County; its GSA would be the only agency with the designated authorities and jurisdiction over the groundwater basin. The City would have an advisory position comparable to the other eligible entities in the basin. During the creation of the groundwater sustainability plan, there would be some cost to the City (likely under $20,000) in order to have influence on the Groundwater Sustainability Commission shown in the draft governance structure (Attachment C). With this alternative, the County would bear the cost of administering and operating the new GSA and creating a groundwater sustainability plan for the entire San Luis Obispo Valley Groundwater Basin. While current County policy direction on this issue is not clear, at some future point, the GSA would have authority to enact fees and charges over the basin in order to bring it into sustainability. Attachments: a - 3/7/2017 Council Agenda Report - SGMA b - San Luis Obispo Valley Groundwater Basin - GSA Concept c - San Luis Obispo Valley Groundwater Basin - Eligible Entities d - SLOVGB New Governance Structure e - Resolution forming GSA Packet Pg 102 6 Page 1 of 9 MEMORANDUM OF AGREEMENT REGARDING PREPARATION OF A GROUNDWATER SUSTAINABILITY PLAN FOR THE SAN LUIS OBISPO VALLEY GROUNDWATER BASIN This Memorandum of Agreement (“MOA”) is entered into by and between the City of San Luis Obispo (“City”), the County of San Luis Obispo (“County”), the Edna Valley Growers Mutual Water Company (“EVGMWC”), the Varian Ranch Mutual Water Company (“VRMWC”), the Edna Ranch Mutual Water Company (“ERMWC”) and the Golden State Water Company (“GSWC”) (each referred to individually as a “Party” and collectively as the "Parties") for purposes of coordinating preparation of a single groundwater sustainability plan for the San Luis Obispo Valley Groundwater Basin. Recitals WHEREAS, on September 16, 2014, Governor Jerry Brown signed into law Senate Bills 1168 and 1319 and Assembly Bill 1739, known collectively as the Sustainable Groundwater Management Act (“SGMA”), which became effective on January 1, 2015 and which have been and may continue to be amended from time to time; and WHEREAS, SGMA requires the establishment of a groundwater sustainability agency (“GSA”) or agencies for all basins designated as medium- or high-priority by the Department of Water Resources (“DWR”) on or before June 30, 2017; and WHEREAS, SGMA further requires the adoption of a groundwater sustainability plan (“GSP”) or coordinated GSPs for all basins designated by DWR as medium- or high-priority and not subject to critical conditions of overdraft on or before January 31, 2022; and WHEREAS, DWR has designated the San Luis Obispo Valley Groundwater Basin (Basin No. 3-9) (“Basin”) as a medium-priority basin not subject to critical conditions of overdraft; and WHEREAS, the County and the City have each decided to become the GSA within their respective service areas overlying the Basin and have informed DWR of their decision and intent to undertake sustainable groundwater management therein; and WHEREAS, the County and the City desire to collectively develop a single GSP to sustainably manage the Basin; and WHEREAS, the County and the City further desire to include the other Parties to this MOA who each constitute entities eligible to participate in a GSA (sometimes referred to individually as a “Participating Party” or collectively as the “Participating Parties”) in the development of the GSP through the creation of the Groundwater Sustainability Commission. Packet Pg 103 6 Page 2 of 9 NOW, THEREFORE, it is mutually understood and agreed as follows: S ection 1 Purpose This MOA is entered into by the Parties for the purpose of establishing the manner in which the City and the County, with input from the Participating Parties, will coordinate in the development of a single GSP for the Basin that will be considered for adoption by the City Council and the County Board of Supervisors and subsequently submitted to DWR for approval. This MOA may also serve as the basis for continued cooperation among the City and the County in the management of the Basin during the period between adoption of the GSP by the City Council and the County Board of Supervisors and approval of the GSP by DWR. As more specifically set forth in Section 10.3 below, this MOA shall automatically terminate upon DWR’s approval of the GSP for the Basin. Section 2 Term This MOA shall become effective on the date that the last of the six (6) Parties signs (“Effective Date”) and shall remain in effect until terminated in accordance with Section 9.2 or Section 10.3 below. Section 3 City and County Roles and Responsibilities 3.1 The City and the County shall work jointly to meet the objectives of this MOA. 3.2 The City and the County shall retain the services of a consultant(s) to meet the objectives of this MOA, including, but not limited to, preparation of a GSP for the Basin in accordance with the provisions set forth in Section 7 below. 3.3 The City and the County shall each designate a staff person(s) to participate in the development of the GSP and related technical studies through, without limitation, the provision of guidance and available data, in coordination with the consultant(s), and to administer the Groundwater Sustainability Commission (e.g. to, among other things, timely publish all agendas and take minutes). 3.4 The City and the County shall each be responsible for adopting the GSP and implementing the GSP within their respective service areas. Notwithstanding the foregoing, nothing contained in this MOA shall be construed as obligating either the City Council or the County Board of Supervisors to adopt the GSP developed pursuant to this MOA or as preventing either the City Council or the County Board of Supervisors from adopting the GSP developed under this MOA in the event that the other elects not to adopt it or in the event that the Groundwater Sustainability Commission fails to recommend approval. Packet Pg 104 6 Page 3 of 9 3.5 The City and the County may lead certain Basin-wide public outreach and stakeholder involvement to improve development of the GSP. 3.6 The City shall be responsible for taking all legally required actions associated with its appointment of the member and alternate member to the Groundwater Sustainability Commission representing the City as set forth in Section 4.5, including, without limitation, all applicable requirements under the Maddy Act (Government Code §§ 54970 et seq.) and the County shall be responsible for taking all such actions associated with its appointment of the member and alternate member to the Groundwater Sustainability Commission representing the County and its confirmation of the members and alternate members to the Groundwater Sustainability Commission representing the Participating Parties as set forth in Section 4.4 and Section 4.3, respectively. Section 4 Establishment of the Groundwater Sustainability Commission 4.1 The City and the County hereby establish the Groundwater Sustainability Commission to serve as an advisory committee to the City Council and the County Board of Supervisors in connection with preparation of the GSP and interim Basin management actions subject to each Participating Party making its required contributions under Section 6(B). 4.2 The Groundwater Sustainability Commission shall be composed of five (5) members: one (1) member representing the City, one (1) member representing the County, one (1) member representing EVGMWC, one (1) member collectively representing VRMWC and ERMWC and one (1) member representing GSWC. 4.3 Each of the Participating Parties shall nominate a member and an alternate member to represent it on the Groundwater Sustainability Commission subject to confirmation by the County Board of Supervisors with the exception that VRMWC and ERMWC shall jointly nominate a member and an alternate member to represent them subject to confirmation by the County Board of Supervisors. Said members shall serve at the pleasure of the County Board of Supervisors and may be removed at any time provided that the County Board of Supervisors shall have no authority to replace a removed member with an individual who has not been nominated by the relevant Participating Party or collection of Participating Parties. 4.4 The County Board of Supervisors shall appoint the member and alternate member representing the County and said members shall serve at the pleasure of the County Board of Supervisors. 4.5 The City Council shall appoint the member and alternate member representing the City and said members shall serve at the pleasure of the City Council. Packet Pg 105 6 Page 4 of 9 4.6 All meetings of the Groundwater Sustainability Commission shall be conducted in accordance with the Ralph M. Brown Act (Government Code §§ 54950 et seq.). 4.7 A majority of the members of the Groundwater Sustainability Commission shall constitute a quorum for purposes of transacting business, except that less than a quorum may vote to adjourn the meeting. 4.8 Each member of the Groundwater Sustainability Commission shall be entitled to one (1) vote on any matter under consideration by the Groundwater Sustainability Commission. 4.9 All advisory opinions submitted by the Groundwater Sustainability Commission to the City Council and the County Board of Supervisors shall be supported by a majority of the members, except for the recommendation to adopt the GSP or any amendments thereto which shall be supported by at least four (4) of the members. 4.10 The County Board of Supervisors and the City Council may approve or reject any advisory opinion submitted by the Groundwater Sustainability Commission provided that in every case that the County Board of Supervisors or City Council rejects an advisory opinion of the Groundwater Sustainability Commission related to the contents or adoption of the GSP it shall do so only after holding a public hearing, at which time the members of the Groundwater Sustainability Commission shall have the right to appear and address the City Council and the County Board of Supervisors. 4.11 None of the members or alternate members shall be entitled to any compensation from the County or the City for their service on the Groundwater Sustainability Commission. Section 5 Establishment of Additional Advisory Committees The City Council and the County Board of Supervisors may from time to time jointly establish one or more additional advisory committees or establish standing or ad hoc committees to assist in carrying out the purposes and objectives of this MOA. Without limiting the foregoing, it is anticipated that the City Council and the County Board of Supervisors will establish a stakeholder advisory committee to the Groundwater Sustainability Commission to consider the interests of beneficial uses and users not already represented on the Groundwater Sustainability Commission consistent with Water Code Section 10723.2. Packet Pg 106 6 Page 5 of 9 Section 6 Funding The City and the County agree to jointly fund the costs associated with implementation of this MOA in accordance with and subject to the following: A. Within sixty (60) days of the Effective Date and prior to each anniversary of the Effective Date, City and County staff shall prepare an annual budget for the GSAs to implement this MOA for approval by the City Council and the County Board of Supervisors. B. Each of the Participating Parties shall be responsible for contributing the following funds to help defray the costs of the Groundwater Sustainability Commission and in consideration for their participation thereon within thirty (30) days of the Effective Date and within thirty (30) days of each anniversary of the Effective Date: EVGMWC $28,200 VRMWC $4,550 ERMWC $4,550 GSWC $12,700 C. Subject to City Council and County Board of Supervisor approval of the annual budget, the City and County agree to fund the annual budget (less the contributions set forth in Section 6(B)) in accordance with the percentage allocations set forth below. Notwithstanding the foregoing and Section 10.1, the City Council and the County Board of Supervisors may amend said percentage allocations without the agreement of the Participating Parties. County 70% City 30% D. It is anticipated that the vast majority of budgeted costs to be paid by the City and the County will involve costs for consultant services. Consequently, most City and County contributions will be paid in the manner described in Section 7 below. Section 7 Retention of Consultants 7.1 The County agrees to act as the contracting agent to retain the services of a consultant(s) as described in Section 3.2 above. 7.2 Notwithstanding the foregoing, the County agrees that the City and one (1) member of the Groundwater Sustainability Commission not representing the City or the County designated by the Groundwater Sustainability Commission shall be included in the selection of any consultant retained by the County pursuant to this MOA. More specifically, Packet Pg 107 6 Page 6 of 9 a staff representative from the City and the designated member of the Groundwater Sustainability Commission shall be given an opportunity to review and approve all requests for proposals prior to their release and to participate in the various stages of the selection process, including, but not limited to, review of proposals and participation on interview panels. 7.3 All consultant contracts entered into by the County pursuant to this MOA shall include the following: (1) a provision requiring that the consultant name the City as an additional insured, (2) an expected spend plan estimating the amount of the not to exceed contract amount that the consultant expects to invoice each month, and (3) a provision requiring that the consultant calculate both the County and City’s share of each invoice consistent with Section 6(C) and send monthly invoices to both the County and the City showing the foregoing calculation. 7.4 Both the City and the County shall be responsible for remitting payment of their share of each monthly invoice directly to the consultant within thirty (30) days of receipt or within the time frame otherwise set forth in the consultant contract. Section 8 Notice 8.1 To provide for consistent and effective communication among the Parties, each Party shall designate a representative as its central point of contact on matters relating to this MOA. 8.2 All notices, statements, or payments related to this MOA shall be deemed to have been duly given if in writing and delivered electronically, personally or mailed by first- class, registered or certified mail to the Parties at the addresses set forth in Exhibit A. The Parties may update Exhibit A from time to time without formal amendment to this MOA. Section 9 Withdrawal and Termination 9.1 Any Participating Party may unilaterally withdrawal from this MOA without causing or requiring termination of this MOA. Withdrawal shall become effective upon thirty (30) days written notice to the remaining Parties’ designated addresses as listed in Exhibit A. A Participating Party that has withdrawn from this MOA shall remain obligated to pay its allocation of the current annual budget. If a Participating Party withdraws, the Groundwater Sustainability Commission shall automatically be reconstituted to no longer include a member or alternate member representing the withdrawing Participating Party. In addition, the withdrawing Participating Party’s annual contribution as set forth in Section 6(B) for all subsequent years shall be allocated among the remaining Participating Parties on a pro rata basis. Packet Pg 108 6 Page 7 of 9 9.2 This MOA may be terminated by either the City or the County upon thirty (30) days written notice to all Parties’ designated addresses as listed in Exhibit A. Upon termination, any unused portion of the cost contributions described in Section 6(B) and Section 6(C) as of the effective date of termination shall be returned to each Party on a pro rata basis. If the City terminates this MOA, it shall remain obligated to pay its cost share obligation under any existing consultant contract entered into by the County pursuant to this MOA. Section 10 Miscellaneous 10.1 Subject to the exception set forth in Section 6(C), this MOA may be amended only by unanimous written consent of all current Parties. 10.2 This MOA may be executed in counterparts. 10.3 This MOA shall automatically terminate upon DWR’s approval of the adopted GSP. Depending on the content of the GSP, the Parties may decide to enter into a new agreement to coordinate GSP implementation. 10.4 This MOA is made in the State of California, under the Constitution and laws of said State and is to be so construed. 10.5 If any provision of this MOA is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and unaffected to the fullest extent permitted by law and regulation. 10.6 This MOA constitutes the sole, entire, integrated and exclusive agreement between the Parties regarding the contents herein. Any other contracts, agreements, terms, understandings, promises or representations not expressly set forth or referenced in this writing are null and void and of no force and effect. 10.7 The Parties agree and acknowledge that this MOA has been developed through negotiation, and that each Party has had a full and fair opportunity to revise the terms of this MOA. Consequently, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply in construing or interpreting this MOA. [signatures to follow on next page] Packet Pg 109 6 Packet Pg 1106 Page 8 of 9 IN WITNESS WHEREOF, the Parties have executed this MOA by authorized officials thereof on the dates indicated below. CITY OF SAN LUIS OBISPO COUNTY OF SAN LUIS OBISPO By: ________________________ By: ________________________ Its: _________________________ Its: _________________________ Date: _______________________ Date: _______________________ APPROVED AS TO FORM AND APPROVED AS TO FORM AND LEGAL EFFECT: LEGAL EFFECT: By: ________________________ By: ________________________ Its: ________________________ Its: ________________________ Date: _______________________ Date: _______________________ EDNA VALLEY GROWERS VARIAN RANCH MUTUAL MUTUAL WATER COMPANY WATER COMPANY By: ________________________ By: ________________________ Its: _________________________ Its: _________________________ Date: _______________________ Date: _______________________ EDNA RANCH MUTUAL GOLDEN STATE WATER COMPANY WATER COMPANY By: ________________________ By: ________________________ Its: _________________________ Its: _________________________ Date: _______________________ Date: _______________________ Andrew D. Mangano President 1/01/17 Packet Pg 111 6 Packet Pg 1126 Packet Pg 113 6 Packet Pg 1146 Page 9 of 9 EXHIBIT A PARTY ADDRESS LIST County of San Luis Obispo County Government Center, Room 206 San Luis Obispo, CA 93408 Attention: Wade Horton, Public Works Director City of San Luis Obispo Utilities Department 879 Morro Street San Luis Obispo, CA 93401-2710 Attention: Carrie Mattingly, Utilities Director Edna Valley Growers Mutual Water Company 4910 Edna Road San Luis Obispo, CA 93401 Attention: Bob Schiebelhut, President Varian Ranch Mutual Water Company 2060 Varian Circle Arroyo Grande, CA 93420 Attention: James Lokey Edna Ranch Mutual Water Company 5665 Edna Ranch Circle San Luis Obispo, CA 93401 Attention: Andy Mangano Golden State Water Company 2330 A Street, Suite A Santa Maria, CA 93455 Attention: General Manager, Coastal District Packet Pg 115 6 Page intentionally left blank. Packet Pg 116 6