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
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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
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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).
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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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,
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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.
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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]
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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
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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
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