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CC 2017-03-28_10b Groundwater Sustainability Agency Formation MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGEMENT ACT OF 2014 DATE: MARCH 28, 2017 RECOMMENDATION: It is recommended that following the Public Hearing the City Council: 1. Adopt a Resolution directing the formation of a Groundwater Sustainability Agency (GSA) over the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits in compliance with the Sustainable Groundwater Management Act of 2014 (SGMA); 2. Appropriate $15,000 from the Water Fund to secure the services of a consulting firm to assist City staff with the necessary Department of Water Resources requirements to form a GSA; and 3. Direct staff to work with the County of San Luis Obispo and any other GSA’s over the Santa Maria Groundwater Basin Fringe Areas to prepare a Memorandum of Agreement (MOA) for the management of the subject basin. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The financial impacts of complying with SGMA remain largely unknown at this this time. As presented on March 14th, there is a potential for substantial financial impacts for any and all of the options for compliance with this un-funded State of California mandate. The County of San Luis Obispo Public Works Department in a report to the Board of Supervisors on March 7, 2017, estimated the non-County funded expenses for phase I, the formation of the GSA and phase II, the development of a Groundwater Sustainability Plan (GSP) to be approximately $2,317,615. This projected cost is an estimate prepared by the County of San Luis Obispo County Public Works Department based on a comparison with the estimated expenses of the San Luis Obispo/ Edna Valley Groundwater Sustainability Agency. A copy of the cost breakdown for the SLO basin is attached (Attachment 5). County staff used this detailed estimate to extrapolate the potential costs for the Santa Maria Basin Fringe area management. Some of the costs in this breakdown such as the Proposition 218 process would not apply should the City form a GSA. Item 10.b. - Page 1 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 2 The estimated cost set forth above for phases I and II of the GSA development would essentially entail the “start-up costs” for the SGMA compliant agency. Applying a simple allocation of these costs based on area, it could be postulated that cost for the start-up portion to the City of Arroyo Grande would be approximately $122,900. This estimated amount is based on the fact that the part of the non-adjudicated portion of the total Santa Maria Groundwater Basin within the Arroyo Grande City limits is approximately 5.3% of the total area of the subject basin. (See the map on Attachment 1) Phase I and II would be a one-time start-up expense. In addition to this preliminary estimation, City staff would recommend securing a consulting firm to assist the City with the preparation and submittal of all required documents pursuant to California Water Code (CWC) Section 10723.8 and support the City’s effort to become a GSA.   Staff secured a proposal for this service from Water Systems Consulting, Inc. (WSC) an on-call engineering consultant firm to the City of Arroyo Grande (City) as previously authorized by the City Council to prepare a Groundwater Sustainability Agency (GSA) formation notification to inform the California Department of Water Resources (DWR) of the City’s intent to undertake sustainable groundwater management in accordance with SGMA and would prepare the City’s GSA formation notification, which includes maps, a stakeholders list and the City’s Memorandum of Agreement (MOA) with the County of San Luis Obispo (County). The proposed cost for these services would be $12,504 as listed in the attached Proposal. (Attachment 2) The potential and speculative cost for the combined expenses for City start up fees is approximately $135,000. A more definitive cost estimate for Phases I and II could only be provided upon the establishment of a cost allocation arrangement between all of the final GSAs over the SGMA subject portion of the Santa Maria Groundwater Basin Fringe areas and upon securing the final cost for the GSP for the subject area. These costs will not be available until after the final governance model is established and the cost sharing agreements confirmed in an MOA.   Following the initial phases of the GSA, the County Public Works Department is estimating annual operational expenses of approximately $250,000 per year. The estimated proportional cost for the Arroyo Grande GSA would be approximately $13,250 per year should the County become the GSA entity over the City of Arroyo Grande boundaries. This cost is also an estimate based on an assumption of the operational tasks and requirements that can only be determined following the completion of the GSP. City staff does believe that the annual operational costs will be minimal as there are a small number of subject wells located in the GSA area of the City.   Item 10.b. - Page 2 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 3 The cost estimates above are largely hypothetical at this time and a more accurate cost impact can only be determined when the governance model is established and a GSP is prepared that delineates the annual operational and administrative requirements. Any expenditures for a City-run GSA could be funded from the Water Fund; however, since these expenses are not budgeted, a budget appropriation would be required. Additionally, on-going expenses would need to be calculated into a future water rate increase. BACKGROUND: The Sustainable Groundwater Management Act of 2014 was signed by the Governor in September 2014 and became law on January 1, 2015 was amended by SB13 effective January 1, 2016. The law requires that identified medium and high priority groundwater basins within the State of California be managed by one or more GSAs on or before June 30, 2017 or the basin may be subject to regulation by the DWR. Each GSA will need to develop a Groundwater Sustainability Plan (GSP) by January 31, 2022. Groundwater basins may have single or multiple GSA’s and single or multiple GSP’s. SGMA assigns the responsibility for the formation of a GSA, in the absence of any independent GSAs, to the County. As a result, the County of San Luis Obispo Department of Public Works has been actively engaging cities, community services districts, water purveyors, agricultural interests and all other stakeholders in an outreach effort to communicate the requirements of SGMA. The outreach effort included stakeholder forums on September 14, 2016 and March 8, 2017. Landowners, agricultural interests and municipal agency representatives attended and provided comments that were included in findings and recommendations to the County of San Luis Obispo. Based on the findings and recommendations of this outreach effort, the County of San Luis Obispo is moving forward with the formation of a GSA for the non-adjudicated portion of the Santa Maria Groundwater Basin. Three governance models for the management of the fringe areas of the Santa Maria Groundwater Basin have been presented to the affected public agencies by the County of San Luis Obispo. (Attachment 3) The City of Arroyo Grande or any other affected governmental agency must inform the County of San Luis Obispo of their intent to allow the County to manage areas of the GSA within their jurisdiction or to form independent GSAs that would work cooperatively with the County’s GSA. On Monday, February 27, 2017, City staff met with Arroyo Grande property owners or their representatives who have private wells that may be affected by SGMA. The five (5) property owners represented five (5) of the seven (7) private wells within the City’s boundaries that may be affected by SGMA. The property owners and representatives in attendance did not voice a preference for either the City or the County to form the GSA, Item 10.b. - Page 3 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 4 but instead were most concerned about the limiting the ongoing management costs charged to property owners. On Tuesday, March 14, 2017, the City Council following a presentation by staff of the County of San Luis Obispo Public Works Department about the Sustainable Groundwater Management Act of 2014, directed staff to conduct a Public Hearing for the possible formation of a GSA over the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits. ANALYSIS OF ISSUES: The Santa Maria Groundwater basin is one of six groundwater basins in San Luis Obispo County that is considered medium or high priority by the California Department of Water Resources (DWR). The vast majority of the Santa Maria Groundwater Basin is largely exempt from SGMA because it is already managed by the Santa Maria Groundwater Litigation Judgment, however there are several “fringe areas” of the Santa Maria Groundwater Basin shown in the attached map, that are not covered by the adjudication. The Arroyo Grande city limits overlies both the adjudicated and non- adjudicated (i.e. fringe area) portions of the Santa Maria Groundwater Basin. The non- adjudicated portion, which represents approximately 33.1% of the City’s total area, is subject to SGMA. (Attachment 4) The City is a “local agency” as that term is defined by SGMA, and as such is authorized to form a GSA to manage groundwater resources in the fringe area and within its jurisdictional boundaries in accordance with SGMA and other applicable laws and authorities. SGMA provides expansive groundwater management powers and authorities to GSAs as detailed in Attachment 3. These expansive powers include the ability of the GSA to among other powers:  Charge fees, taxes and charges to property owners overlying the subject groundwater basin  Limit or discontinue water extractions from water wells located within the subject groundwater basin The decision by cities or community services districts (CSD) to form an independent GSA or to allow the County of San Luis Obispo to assume that responsibility over their jurisdictional boundaries is influenced by the unique circumstance of each agency. The following San Luis Obispo County cities and CSDs overlying groundwater basins subject to SGMA have chosen to form GSAs over their jurisdictional boundaries:  City of San Luis Obispo  City of Paso Robles  City of Atascadero  Templeton Community Services District Item 10.b. - Page 4 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 5 The other two public agencies listed below overlying portions of the non-adjudicated fringe areas of the Santa Maria Groundwater Basin subject to SGMA have not yet formally chosen to form GSAs, but instead their agency staff has indicated that they will recommend deferring oversight of the fringe area within their jurisdictional boundaries to the County of San Luis Obispo:  City of Pismo Beach  Nipomo Community Services District Based on the review of the optional governance models and of the potential impacts of SGMA and the resulting operational and administrative impacts of the GSA formed to manage the basin, City staff has identified the following three (3) concerns that have led to a recommendation to form a City GSA: 1. Potential limitations on groundwater extractions that the GSA could enforce should groundwater management protection measures dictate. Without having a “seat at the table” through an independent GSA, these extraction limitations could be enforced without City participation. The City has water rights to one of the private agricultural wells located within the basin boundary. 2. All future General Plan Amendments substantially amending the City’s General Plan would require referral to the GSA for a determination that an adequate water supply by the GSA. SGMA specifically addresses the fact that it does not impact a City’s land use authority, however any adverse reports provided by the GSA would need to be addressed through the CEQA process. 3. GSAs will have the authority to impose fees on groundwater extractions. GSAs will also have the ability to levy and collect taxes, assessments and charges as already provided by law. Without a separate GSA, the City may have limited control over limiting or impacting fees and charges to Arroyo Grande property owners affected by SGMA. Should the City Council choose not to form a GSA, the three (3) concerns expressed above may be mitigated to some extent through an advisory role to the GSA that the City of Arroyo Grande would share with other stakeholders. The County envisions the inclusion of an advisory committee, which could be composed of the entities that opt not to create their own GSA, as well as other stakeholders including agricultural and property owner interests. The City would only have voting participation however, if the City formed a separate GSA. If the City Council chooses to form a GSA, there may be an opportunity to dissolve the GSA under two different scenarios. First, the County of San Luis Obispo along with any other GSAs formed will most likely apply for a basin boundary adjustment with the Department of Water Resources (DWR) for consideration in 2018. The basin boundary Item 10.b. - Page 5 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 6 adjustment request will seek to align the DWR 118 boundary of the Santa Maria Groundwater Basin with the boundaries of the adjudicated portion of the basin because a significant majority of the basin is already managed through the court system. The cost and governmental efforts necessary to manage the Fringe areas would have an inconsequential impact on the health of the overall basin. Should a basin boundary adjustment be approved by the DWR, the GSA would be abandoned. Secondly, the GSA may be dissolved and governmental oversight of the GSA be differed to the County of San Luis Obispo upon mutual agreement. In the meantime a governance model must be established. The chart below prepared by the County of San Luis Obispo would serve as a draft governance model for the SGMA compliant management of the non-adjudicated portion of the Santa Maria Groundwater Basin. Staff believes that it is prudent that the City form this GSA because SGMA grants GSAs substantial additional powers and authorities to ensure sustainable ground water management. Acting as the GSA within the City’s jurisdictional boundaries will, among other things, confirm the City’s role as the local groundwater management agency, ensure access to the authority allowed a local entity under SGMA, and preserve the City’s ability to have control over charges or fees that may be imposed by the GSA in accordance with SGMA. The County of San Luis Obispo Board of Supervisors recently revised its policy on the funding for SGMA and will cover the costs for “unrepresented areas” during phases I and Item 10.b. - Page 6 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 7 II of the GSA development. Staff’s understanding of this GSA funding policy is that the on-going and permanent GSA operational costs are not covered by the policy and may be passed along to affected property owners. County staff has previously indicated that the ongoing funding strategy for GSA operational costs would be to charge a per parcel fee for all property owners in the Fringe area. Staff’s concern is that this funding strategy may disproportionally impact Arroyo Grande property owners because of the large number of small parcels in the City as compared to total number of parcels in the total Fringe area. Additionally, there are a small number of wells within the City limits and the estimated costs for annual operational requirements within the City boundaries should be relatively limited. Based on anticipated operational requirements, City staff may be able to include the tasks with existing staff levels supplemented by consultant assistance to submit an annual report. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution approving the formation of a Groundwater Sustainability Agency (GSA) over the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits and allocating $15,000 from the Water Fund to cover the costs to submit the appropriate application and documentation; or 2. Direct staff to prepare a Resolution for consideration that would designate the County of San Luis Obispo as the GSA for the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits; or 3. Take no action. By default, the County of San Luis Obispo would form a GSA that includes the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits. Under this scenario, there would not be any specific protections being afforded to the City. ADVANTAGES: Formation of an independent GSA will allow the City to have a “seat at the table” to have direct control on all of the powers afforded to GSAs under SGMA. Forming a GSA for the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande City limits will provide the City with more control over the potential imposition of fees, taxes and assessments within the City limits. Additionally, by forming a separate GSA and by entering into a Memorandum of Agreement with other GSAs in the subject groundwater basin, the City will be able to share the costs of preparing a single GSP. Item 10.b. - Page 7 CITY COUNCIL CONSIDERATION OF THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGMENT ACT OF 2014 MARCH 28, 2017 PAGE 8 DISADVANTAGES: The City does not currently have the resources including staff time to create and manage a GSA; however, if the County of San Luis Obispo manages the GSA, this would not be a disadvantage. A funding source, including unpopular fees imposed on well owners and possibly other charges may need to be assessed on Arroyo Grande property owners in order to provide funding for the costs of a groundwater sustainability program, including costs of formation, preparation and adoption of a GSP, inspections, compliance assistance, enforcement and program administration. Not forming a GSA would create a circumstance in which the City Council would lose control over the authorities specifically provided to GSA’s under SGMA. ENVIRONMENTAL REVIEW: No environmental review is required for this item at this time. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. ATTACHMENTS 1. Map: Fringe area map of the Santa Maria Groundwater Basin 2. Water Systems Consulting- Staffing Assistance proposal 3. Governance Model options for management of the fringe areas of the Santa Maria Groundwater Basin prepared by the County of San Luis Obispo 4. Map: Non-adjudicated portion of the SMGB in Arroyo Grande City limits 5. San Luis Obispo/Edna Valley GSA detailed cost estimate breakdown Item 10.b. - Page 8 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO ADOPTING AND DIRECTING THE FORMATION OF A GROUNDWATER SUSTAINABILITY AGENCY (GSA) OVER THE NON-ADJUDICATED PORTION OF THE SANTA MARIA GROUNDWATER BASIN WITHIN THE ARROYO GRANDE CITY LIMITS IN COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGEMENT ACT OF 2014 WHEREAS, in 2014 the California Legislature and the Governor passed into law the Sustainable Groundwater Management Act (SGMA) for local management of groundwater resources in California through the formation of Groundwater Sustainability Agencies (GSAs) and through preparation and implementation of Groundwater Sustainability Plans (GSPs); and WHEREAS, the City overlies a portion of the non- adjudicated “fringe area” of the Santa Maria Groundwater Basin, which is subject to SGMA, and thus one or more GSAs must be formed for the Sub-basin by June 30, 2017, or the Sub-basin may be subject to regulation by the State Water Resources Control Board; and WHEREAS, the City is a “local agency” as that term is defined by SGMA, and as such is authorized to form a GSA to manage groundwater resources in the Sub-basin and within the City’s jurisdictional boundaries in accordance with SGMA and other applicable laws and authorities; and WHEREAS, the City desires to form a GSA to manage groundwater resources in the Santa Maria Groundwater Basin beneath and within the City’s jurisdictional boundaries; and WHEREAS, the City intends that its GSA will work cooperatively with the other GSAs that have formed or will be formed in the non- adjudicated “fringe area” of the Santa Maria Groundwater Basin to prepare one or more GSPs by January 2020, so that groundwater resources in the Sub-basin will be properly managed and sustainable in accordance with the provisions of SGMA; and WHEREAS, it is essential that the City form this GSA because SGMA grants GSAs substantial additional powers and authorities to ensure sustainable groundwater management. Acting as the GSA within the City’s jurisdictional boundaries will, among other things, confirm the City’s role as the local groundwater management agency; and. WHEREAS, pursuant to the requirements of SGMA, the City held a public hearing on this date after publication of notice pursuant to California Government Code section 6066 to consider adoption of this Resolution. Item 10.b. - Page 9 RESOLUTION NO. PAGE 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. All of the above recitals are true and correct and incorporated herein by reference. 2. The Mayor is authorized to sign a resolution for the City of Arroyo Grande to become a Groundwater Sustainability Agency in accordance with the Sustainable Groundwater Management Act of 2014 over the portion of the non- adjudicated “fringe area” of the Santa Maria Groundwater Basin which lies under and within the jurisdictional boundaries of the City of Arroyo Grande. On motion of Council Member_________________, seconded by Council Member ___________________, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this ___ day of March, 2017. Item 10.b. - Page 10 RESOLUTION NO. PAGE 3 _____________________________________ JIM HILL, MAYOR ATTEST: _____________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ ROBERT MCFALL, INTERIM CITY MANAGER APPROVED AS TO FORM: _____________________________________ HEATHER K. WHITHAM, CITY ATTORNEY Item 10.b. - Page 11 ATTACHMENT 1 Santa Maria Groundwater Basin Adjudicated and GSA Subject Areas Item 10.b. - Page 12 3/16/2017 Shane Taylor Utilities Manager City of Arroyo Grande 1375 Ash Street Arroyo Grande, CA 93420 SUBJECT: PROPOSAL TO PROVIDE GSA FORMATION SUPPORT SERVICES FOR THE CITY OF ARROYO GRANDE Dear Shane, Water Systems Consulting, Inc. (WSC) is pleased to provide this proposal to the City of Arroyo Grande (City) to prepare a Groundwater Sustainability Agency (GSA) formation notification to inform the California Department of Water Resources (DWR) of the City’s intent to undertake sustainable groundwater management in accordance with the Sustainable Groundwater Management Act (SGMA). WSC will prepare the City’s GSA formation notification, which includes maps, a stakeholders list, the City’s Resolution and Memorandum of Agreement (MOA) with the County of San Luis Obispo (County), and all other requirements listed within this proposal that are pursuant to the California Water Code (CWC) Section 10723.8 and support the City’s decision to become a GSA. This letter outlines WSC’s proposed scope of services and deliverables schedule as well as a cost proposal for this effort: SCOPE OF SERVICES TASK 0.0 PROJECT MANAGEMENT 0.1 Progress Reports Prepare progress reports to be submitted with each monthly invoice 0.2 Data Request & Review Prepare a data request including, but not limited to, the following items: (1) The City’s service boundary area (2) Portion of the basin boundaries the City intends to manage (GSA service area) (3) List of private parties who pump from the groundwater basin within the GSA service area (4) List of stakeholders and interested parties within the GSA service area relevant to the beneficial uses and users of groundwater. (5) Copy of any new bylaws, ordinances, or new authorities adopted by the City’s new GSA. Review requested items and evaluate the need for additional data ATTACHMENT 2 Item 10.b. - Page 13 2 0.3 QA/QC  Perform quality assurance and quality control reviews of all work items being prepared for delivery to the City. 0.4 Meetings  Coordinate meetings to: provide updates on project progress; present interim results; review the data request log; discuss project methodologies; and review draft and final deliverables. The anticipated meetings and expected durations include: (1) Status Update Conference Calls (1 hour). Budget assumes two Status Update Conference Calls. (2) Draft GSA Notification Formation review meeting (2 hours).  Budget includes meeting preparation and travel time. TASK 1.0 RESEARCH AND REGULATORY REVIEW 1.1 California Water Code Regulations  Research and summarize in an email to City staff applicable GSA formation requirements located in the California Water Code (CWC) Division 6, Part 2.74, Ch.4 Section §107223 and any related statutory provisions from SSB1168, AB1739, and SB1319. TASK 2.0 PUBLIC OUTREACH 2.1 Public Meeting  Obtain certified copies of public notice postings. Budget assumes the City will provide public notice postings.  Obtain public hearing documentation. Budget assumes documentation will be provided by the City. 2.2 Adjacent GSA Outreach  Coordinate with the County and other GSAs within the County boundaries to confirm all GSA formations within the Santa Maria Groundwater Basin (SMGB). Scope of work assumes the majority of this effort will be through the development of the MOA described below. TASK 3.0 GSA FORMATION NOTIFICATION REQUIREMENTS 3.1 Prepare GIS Boundary Maps  Prepare GIS boundary maps that identifies the following: (1) The City’s service boundary (PDF and shapefile); (2) GSA service area boundary (PDF and Shapefile); (3) Map overview of all other agencies managing or proposing to manage within the SMGB.  Budget assumes the GIS maps/shape files will be provided by the City. Item 10.b. - Page 14 3 3.2 Identify Interests of Beneficial Uses and Users of Groundwater  Define interested parties and key stakeholders pursuant to CWC §10723.2 with interests that include, but are not limited to, the following: (1) Holders of overlying groundwater rights, including: (a) Agricultural users (b) Domestic Well owners (2) Municipal Well operators (3) Public water systems (4) Local land use planning agencies (5) Environmental users of groundwater (6) Surface water users, if there is a hydrologic connection between surface and groundwater bodies (7) The federal government, including, but not limited to, those served by private domestic wells or small community water systems (8) California Native American Tribes (9) Disadvantaged communities, including, but not limited to, those served by private domestic wells or small community water systems (10) Entities listed in Section 10927 that are monitoring and reporting groundwater elevations in all or part of a groundwater basin managed by the GSA  Identify how those interests listed will be considered by the GSA when developing and implementing the Groundwater Sustainability Plan (GSP).  Budget assumes the City will provide WSC with the list of interested parties. 3.3 Prepare GSA Resolution  Obtain copy of City’s Resolution to form a GSA. Budget assumes the City will provide Resolution to WSC. 3.4 Assist in preparation of the Memorandum of Agreement  Draft MOA through coordination with the County and the City. Due to uncertainty of this task, WSC has allotted up to twenty (20) hours to assist the City in this task. Deliverable: Draft MOA - This draft will be submitted via email in pdf and word format to the City.  It is assumed that the City will provide comments on the Draft MOA within two (2) weeks of the draft submittal date. Deliverable: Final MOA: This draft will be submitted via email in pdf format to the City. Item 10.b. - Page 15 4 TASK 4.0 GSA FORMATION NOTIFICATION 4.1 Complete the Draft GSA Formation Notification by submitting required documents (identified in task 3.0) to DWR.  Prepare Draft GSA Notification Formation that includes: (1) GSA Notice of Intent submittal letter (2) All items identified in Task 3.0  It is assumed that the City will provide comments on the Draft GSA Formation Notification within two (2) weeks of the submittal date. Deliverable: Draft GSA Formation Notification. This draft will be submitted via email in pdf and word format to the City. 4.2 Prepare Final GSA Formation Notification  Prepare Final GSA Formation Notification based on comments received. Deliverable: Final GSA Formation Notification. The Final GSA Formation Notification will be submitted to DWR through the SGMA Portal – GSA Formation Notification System Deliverable Summary and Schedule Task Deliverables Time to Complete N/A Assumed Notice to Proceed N/A 3.4 Draft & Final MOA 8 Weeks 4.1 Draft GSA Formation Notification 2 Weeks 4.2 Final GSA Formation Notification 4 Weeks Total Project Duration: 8 Weeks Item 10.b. - Page 16 5 The attached table shows WSC’s estimated budget for the proposed scope of work. Thanks again for the opportunity to propose on this project. If you have any questions, please contact Dan at (805) 457-8833, ext. 104. Sincerely, Water Systems Consulting, Inc. Daniel Heimel, PE Project Manager Item 10.b. - Page 17 6 Cost Proposal Item 10.b. - Page 18 Page 1 of 1 City of Arroyo Grande Notification of GSA Formation Cost Proposal 3/16/2017 Task No.Task Description Associate Planner I Senior Engineer I Assistant Engineer Project Coordinator Total Labor Hours Total Labor Expenses Fee 0 Project Management 2 13 12 3 30 4,772$ 100$ 4,872$ 0.1 Progress Reports 3 3 6 930$ -$ 930$ 0.2 Data Request and Review 2 4 6 904$ -$ 904$ 0.3 QA/QC 2 2 330$ -$ 330$ 0.4 Meetings 8 8 16 2,608$ 100$ 2,708$ 1 Research and Regulatory Review 0 1 2 0 3 452$ -$ 452$ 1.1 California Water Code Regulations 1 2 3 452$ -$ 452$ 2 Public Outreach 0 2 3 0 5 778$ -$ 778$ 2.1 Public Meeting 1 1 126$ -$ 126$ 2.2 Adjacent GSA Outreach 2 2 4 652$ -$ 652$ 3 GSA Formation Notification Requirements 0 10 17 0 27 4,142$ 100$ 4,242$ 3.1 Prepare GIS Boundary Maps 1 2 3 452$ -$ 452$ 3.2 Identify Interests of Beneficial Uses and Users of Groundwater 1 2 3 452$ -$ 452$ 3.3 Prepare GSA Resolution 1 1 126$ -$ 126$ 3.4 Assist in Preparation of the Memorandum of Agreement 8 12 20 3,112$ 100$ 3,212$ 4 GSA Formation Notification 0 4 10 0 14 2,060$ 100$ 2,160$ 4.1 Prepare Draft GSA Formation Notification 3 6 9 1,356$ 100$ 1,456$ 4.2 Prepare Final GSA Formation Notification 1 4 5 704$ -$ 704$ 2 30 44 3 79 12,204$ 300$ 12,504$ Column Totals Item 10.b. - Page 19 ATTACHMENT 3 Santa Maria Groundwater Basin - Governance Model Options (Prepared by San Luis Obispo County Public Works) Option I- SLO County and SB County as GSA’s under One GSP Option II: Multi-GSA’s with One GSP Item 10.b. - Page 20 Option II: Multi-GSA via JPA A d visory Committee )> Ag rep-esentative(s) )> Local agency representatives )> County depariments {Public Wollls, Planning, and Environmental Health) Mutual water company representative Conservation representative Non·ae representative Item 10.b. - Page 21 ATTACHMENT 4 Santa Maria Groundwater Basin Non-adjudicated portion within the Arroyo Grande City limits Item 10.b. - Page 22 San Luis Obispo Basin Costs and Funding EstimatesSan Luis Obispo Basin Cost Estimate:GSA Startup CostsCategoryActivity Technical 20182017-Q2 2018Source of Funding2018Q3 & Q42019 2020 2021 Total by Line Item NotesCurrently Funded Technical Activities:Q1Q2Q3Q4Q1Q2TotalCostsQ3Q4TotalBasin Characterization (Basin Setting)75,000$ 75,000$ 75,000$ 75,000$ -$ -$ 300,000$ Grant + Water District-$ -$ -$ -$ -$ -$ 300,000$ Funded by Grant and Water DistrictUnfunded Technical Activities (To be performed by Consultant)Unfunded Technical ActivitiesStudies related to GSP Development:Collective contract? Revised sections of work w PSConceptual Model (Groundwater Conditions, Water Budget)50,000$ 50,000$ 100,000$ 200,000$ -$ 300,000$ Rough cost estimates w local consultantDefine Sust. Goals, Undes. Results, Minimum Thresholds-$ -$ -$ 100,000$ 100,000$ -$ 200,000$ Rough cost estimates w local consultantEstablish Measurable Objectives, Interim MilestonesNo Activities in 2017 or Qtr. 1 & Qtr. 2 of 2018-$ -$ -$ -$ 50,000$ 50,000$ tbdMonitoring Network & Plan-$ -$ -$ -$ 50,000$ -$ 50,000$ tbdProjects & Mngmt. ActionsDWR fund Statewide?-$ -$ -$ 100,000$ -$ 100,000$ Rough cost estimates w local consultantDraft GSP, Final GSP-$ -$ -$ -$ 150,000$ 150,000$ 300,000$ Rough cost estimates w local consultantTotal Cost of Technical Activites currently unfunded50,000$ 50,000$ 100,000$ 300,000$ 450,000$ 150,000$ 1,000,000$ Total of all Technical Costs1,300,000$ Subtotal of all technical studies for reference Administration & OperationUnfunded A & OProject Mngmt. for technical Activities-$ -$ -$ -$ 1,512$ 6,799$ 8,311$ -$ 6,799$ 6,799$ 13,599$ 82,500$ 82,500$ 82,500$ 269,410$ Public Process/ Meetings:-$ -$ 10,636$ 12,860$ 19,360$ 32,860$ 75,717$ -$ 14,360$ 12,860$ 27,221$ 91,500$ 91,500$ 91,500$ 377,437$ Grant Program (Consultant Activity)-$ -$ 22,034$ 23,152$ -$ 1,763$ 46,949$ -$ 2,644$ 1,763$ 4,406$ 42,388$ 42,388$ 42,388$ 178,518$ Assume mid to late Prop 1 SGMA Grant roundFinancial Activities/ Audit-$ -$ 1,200$ 1,500$ 3,000$ 1,800$ 7,500$ -$ 1,350$ 2,850$ 4,200$ 25,800$ 25,800$ 25,800$ 89,100$ Administrative Overhead-$ -$ 4,250$ 4,250$ 4,250$ 4,250$ 17,000$ -$ 3,000$ 12,450$ 15,450$ 51,400$ 51,900$ 52,400$ 188,150$ Total Unfunded Administrative and Operating Costs-$ -$ 38,119$ 41,763$ 28,122$ 47,472$ 155,476$ -$ 28,153$ 36,722$ 64,876$ 293,588$ 294,088$ 294,588$ 1,102,615$ Prop 218 Implementation & Funding (Assumes funds available Q4 of 2018)Prop 218/ Funding - GSP Dvpmt.-$ -$ -$ -$ 125,000$ 125,000$ 250,000$ -$ -$ -$ -$ -$ -$ -$ 250,000$ Prop 218/ Funding - Implementation-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 260,000$ 260,000$ Total Unfunded Propisition 218 Costs-$ -$ -$ -$ 125,000$ 125,000$ 250,000$ -$ -$ -$ -$ -$ -$ 260,000$ 510,000$ Total Unfunded SLO Basin Costs-$ -$ 38,119$ 41,763$ 153,122$ 172,472$ 405,476$ 78,153$ 86,722$ 164,876$ 593,588$ 744,088$ 704,588$ 2,612,615$ x = to be determined costsGSA Ongoing Costs2017DRAFT AS OF 3/21/2017ATTACHMENT 5Item 10.b. - Page 23 THIS PAGE INTENTIONALLY LEFT BLANK Item 10.b. - Page 24