DATE: January 31, 2017
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Joint Powers Agreement for Implementation of the Sustainable Groundwater Management Act within the McMullin Area of the Kings Groundwater Subbasin
RECOMMENDED ACTION(S):
TITLE
1. Authorize Chairman to execute proposed Joint Powers Agreement for implementation of the Sustainable Groundwater Management Act within the McMullin Area of the Kings Groundwater Subbasin and designate a Board member and two alternates to serve as a member of the Board of Directors for the McMullin Area Groundwater Sustainability Agency.
2. Authorize the Board’s designated member to select an individual or authorized representative of an entity that owns land that is (1) within the boundaries of the Authority, and (2) outside the service area of Mid-Valley Water District and Raisin City Water District to serve as the County of Fresno’s appointment to the governing Board of Directors for the McMullin Area Groundwater Sustainability Agency.
REPORT
Approval of the recommended action would authorize the County’s execution of a Joint Powers Agreement (JPA) between multiple agencies within the McMullin Area of the Kings Groundwater subbasin. The JPA would form a separate legal entity with a Board of Directors who will in turn vote to file a notice of intent with the California Department of Water Resources to become the exclusive Groundwater Sustainability Agency (GSA) for a portion of the Kings Groundwater subbasin. The GSA would then develop and implement a Groundwater Sustainability Plan (GSP) as required by the Sustainable Groundwater Management Act (SGMA).
ALTERNATIVE ACTION(S):
The Board may determine not to approve the recommended action.
FISCAL IMPACT:
Approval of the recommended action would result in a Net County Cost. The proposed Joint Powers Agreement establishes member contribution rates to the agency. Contribution rates were determined based upon the individual member’s service area, in which case Fresno County’s service area and contribution rate has been determined to be 45.79%. The agency’s budget for FY 2016-17 is estimated to be $100,000, of which the County’s contribution is estimated to be $45,790. This amount will be absorbed within the Department’s FY 2016-17 Adopted Budget in Public Works and Planning Org 43601250 but the Department anticipates returning to the Board to request an additional resource allocation. It is the intent of the member agencies to seek Proposition 1 grant funds established for the development and implementation of the SGMA to offset a portion of this and future costs.
DISCUSSION:
The Sustainable Groundwater Management Act (SGMA), signed into law in September of 2014, established a new structure for managing California’s groundwater resources at the local level by local agencies. The SGMA allows the formation of locally controlled Groundwater Sustainability Agencies (GSAs) in the State’s higher priority groundwater basins by June 30, 2017. Each GSA is then required to develop and implement a Groundwater Sustainability Plan (GSP) to meet a sustainability goal of the basin that ensures that it is operated within a sustainable yield without causing undesirable results. Failure to timely form a GSA and implement a GSP in a groundwater basin could result in the State Water Resources Control Board asserting its power to manage local groundwater resources.
On August 11, 2015 the Board authorized the execution of a Memorandum of Understanding (MOU) between the County and several Irrigation Districts, Community Service District, Mutual Water Companies and other water providers within the western portion of the Kings Groundwater subbasin. The intent of the MOU was to explore, study, evaluate, develop and implement approaches and strategies for implementing the SGMA. Subsequently, efforts within this portion of the Kings Groundwater subbasin where bifurcated with the southern portion forming a Special Act District through SB 564 (Canella). This left Raisin City Water District, Mid-Valley Water District and a large unmanaged area to represent the northern portion. Department staff initiated efforts with the Raisin City Water District and the Mid-Valley Water District to explore options for GSA formation and through that effort received letters from each District requesting the County to participate in a multi-agency GSA. As a result of these collaborative efforts it was determined that the participating agencies would develop a Joint Powers Agreement (JPA) and work together to form a GSA for a portion of the Kings Groundwater subbasin.
It is the intent that the JPA before the Board today will be signed by each of the participating local agencies to form a separate legal entity with a Board of Directors that will file to become the exclusive GSA for a portion of the Kings groundwater subbasin (see Exhibit A). The JPA establishes powers given to a GSA as described in SGMA which includes the requirement to develop and implement a GSP, the monitoring and regulation of groundwater extraction, the assessment of fees, coordination with adjacent GSAs within the Kings subbasin and surrounding subbasins and the reporting of information and data to the State Department of Water Resources.
The JPA forms a five member governing Board with one appointment each coming from the County of Fresno and the Mid-Valley Water District. Two appointments would come from the Raisin City Water District. The fifth appointment would be made by the County of Fresno and would be required to be an individual, or authorized representative of an entity that owns land that is (1) within the boundaries of the Authority, and (2) outside the service area of Mid-Valley Water District and Raisin City Water District. Terms for each appointment will be for two (2) years.
The JPA stipulates that Directors shall be appointed by their respective boards to serve on the Authority’s Board of Directors. The JPA provides that up to two alternates may serve on the Director’s behalf and that alternates need not be elected officials.
The JPA also establishes member contribution rates for the first three years with the intent to have a GSP completed and adopted within the timeframe. Contribution rates were determined based upon the individual member’s service area, in which case Fresno County’s service area and contribution rate has been determined to be 45.79% (see Exhibit “B”). The agency’s budget for FY 2016-17 is estimated to be $100,000, of which the County’s contribution is estimated to be $45,790. It is the intent of the member agencies to seek Proposition 1 grant funds established for the development and implementation of the SGMA to offset a portion of future costs.
On March 10, 2015, the Board of Supervisors endorsed concepts for a Governance Agreement intended to guide implementation of the SGMA for all participants. Staff has evaluated the proposed JPA and finds it to be consistent with the Governance Agreement concepts. As a result, staff recommends approval and execution of the proposed JPA. The Raisin City Water District and the Mid-Valley Water District have executed the proposed JPA.
REFERENCE MATERIAL:
BAI # 8 March 10, 2015
BAI # 52 November 17, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
Exhibit A - B
On file with Clerk - Joint Powers Agreement
CAO ANALYST:
John Hays