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CC 2020-06-23_08f Groundwater Sustainability Agreement MOAMEMORANDUM TO: CITY COUNCIL FROM: BILL ROBESON, ACTING CITY MANAGER/PUBLIC WORKS DIRECTOR BY: SHANE TAYLOR, UTILITIES MANAGER SUBJECT: CONSIDERATION OF A MEMORANDUM OF AGREEMENT REGARDING PREPARATION OF A GROUNDWATER SUSTAINABILITY PLAN FOR THE SANTA MARIA RIVER VALLEY – ARROYO GRANDE SUBBASIN DATE: JUNE 23, 2020 SUMMARY OF ACTION: Approval of a Memorandum of Agreement (MOA) for preparing a Groundwater Sustainability Plan (GSP) for the Santa Maria River Valley – Arroyo Grande Subbasin. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no impact to financial resources. Approximately 80 hours of staff time will be required to participate in the GSP preparation. RECOMMENDATION: It is recommended that the City Council approve the MOA regarding preparation of a Groundwater Sustainability Plan for the Santa Maria River Valley – Arroyo Grande Subbasin with the County of San Luis Obispo. BACKGROUND: On March 28, 2017, the City Council adopted 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). The Department of Water Resources (DWR) approved the Arroyo Grande GSA. On February 11, 2019 DWR released the final 2018 Basin Boundary Modifications. The Santa Maria River Valley Basin – Arroyo Grande Subbasin was created which includes the fringe area of the “old basin” that is not adjudicated. The new subbasin has been identified as a very low priority basin. The subbasin, per SGMA does not require a GSP; however, a Proposition 1 Sustainable Groundwater Planning Grant was awarded to the County for GSP development within the “fringe” areas of the old basin. Item 8.f. - Page 1 CITY COUNCIL CONSIDERATION OF A MEMORANDUM OF AGREEMENT REGARDING PREPARATION OF A GROUNDWATER SUSTAINABILITY PLAN FOR THE SANTA MARIA RIVER VALLEY – ARROYO GRANDE SUBBASIN JUNE 23, 2020 PAGE 2 The GSP will provide information necessary for the preparation of the Arroyo Grande Creek Habitat Conservation Plan under development by the San Luis Obispo County Flood Control and Water Conservation District (District). ANALYSIS OF ISSUES: The MOA provides for preparation of a GSP which will be funded by DWR and the District, including the 10% local cost share which the City was slated to fund. The GSP will provide all of the Flood Control District Zone 3 members valuable information. The City negotiated for Zone 3 to fund the 10% match not to exceed $50,000. The MOA allows City staff to participate in all aspects of the GSP preparation. The GSP will include a hydraulic model of the subbasin. This model will be used to understand how Lopez Dam releases effect the subbasin and how water can be sustainably pumped while still providing sufficient water flow for the environment. The information contained in the GSP will help complete the Habitat Conservation Plan (HCP) for the Arroyo Grande Creek, which has been in development for 20 years. The HCP is crucial to operation of Lopez Dam and how downstream releases are managed. ADVANTAGES: Approval of the MOA will provide a cooperative process between San Luis Obispo County GSA and Arroyo Grande GSA to manage the Arroyo Grande Subbasin while the City will maintain management rights of the portion of the subbasin in the City limits. DISADVANTAGES: The preparation of the GSP will require an estimated 80 hours of staff time. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve the MOA; 2. Do not approve the MOA; or 3. Provide direction to staff. ENVIRONMENTAL REVIEW: No environmental review is required for this item. 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. Item 8.f. - Page 2 Page 1 of 7 MEMORANDUM OF AGREEMENT REGARDING PREPARATION OF A GROUNDWATER SUSTAINABILITY PLAN FOR THE SANTA MARIA RIVER VALLEY - ARROYO GRANDE SUBBASIN This Memorandum of Agreement (“MOA”) is entered into by and between the City of Arroyo Grande (“City”) and the County of San Luis Obispo (“County”) (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 Santa Maria River Valley – Arroyo Grande Subbasin. 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 and the adoption of a groundwater management plan (“GSP”) or plans for all basins designated as medium- or high-priority by the California Department of Water Resources (“DWR”) but authorizes such activities within all basins defined in DWR Bulletin No. 118 or as modified by DWR subject to certain enumerated exceptions; and WHEREAS, on February 11, 2019, DWR released the Final 2018 Basin Boundary Modifications, which created two separate subbasins out of the previously identified Santa Maria River Valley Basin (DWR No. 3-012) (“Old Basin”) which included both an adjudicated area (over which SGMA does not apply) and certain “fringe” areas, namely the Santa Maria River Valley – Arroyo Grande Subbasin (DWR No. 3-012.02) (“Subbasin”) and the Santa Maria River Valley – Santa Maria Subbasin (DWR No. 3-012.01); and WHEREAS, although the Old Basin had been designated by DWR as a high-priority basin, the Final SGMA 2019 Basin Prioritization Process and Results Document identifies the Subbasin as a very low-priority basin; and WHEREAS, prior to DWR’s creation of the Subbasin, both Parties decided to become the GSA for the portion of the “fringe” areas of the Old Basin (i.e. those areas outside of the adjudicated area) located within their respective service areas and informed DWR on their decision and intent to undertake sustainable groundwater management therein; and WHEREAS, also prior to DWR’s creation of the Subbasin, the County applied for and was awarded a Proposition 1, Sustainable Groundwater Planning Grant (“Grant”) for GSP development efforts within the “fringe” areas of the Old Basin and within the San Luis Obispo Groundwater Basin; and Item 8.f. - Page 3 Page 2 of 7 WHEREAS, the Grant Agreement between the County and DWR (“Grant Agreement”) allocates $494,975 of the total Grant award to GSP development efforts within the fringe areas of the Old Basin (Component 3) subject to the terms and conditions set forth in the Grant Agreement, including, the condition that the County contribute a local cost share equal to the amount of the Grant allocated to Component 3 (“Local Cost Share”); and WHEREAS, although SGMA likely no longer requires the adoption of a GSP within said areas, the Parties still desire to develop a GSP for the Subbasin given the existence of the Grant (DWR has confirmed that use of Grant funds to fund the development of a GSP within the newly created and prioritized Subbasin is consistent with the Grant and Grant Agreement) and given that the technical analysis resulting from the development of the GSP will likely provide information necessary for the preparation of the Arroyo Grande Creek Habitat Conservation Plan under development by the San Luis Obispo County Flood Control and Water Conservation District (“District”) as well as a better overall understanding of the hydrogeologic processes in the Arroyo Grande Creek Watershed, both of which would assist with effective management of the District’s Zone 3. 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 Parties will coordinate in the development of a single GSP for the Subbasin that will be considered for adoption by the City Council and the County Board of Supervisors and that may be subsequently submitted to DWR for approval. Section 2 Term This MOA shall become effective on the date that the last Party signs (“Effective Date”) and shall remain in effect until terminated in accordance with Section 8.1 below. Section 3 City and County Roles and Responsibilities 3.1 The Parties shall work jointly to meet the objectives of this MOA. 3.2 The Parties 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 Subbasin in accordance with the provisions set forth in Section 4 and Section 6 below. 3.3 The Parties 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). Item 8.f. - Page 4 Page 3 of 7 3.4 The Parties 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. 3.5 The Parties may individually or jointly lead certain Subbasin-wide public outreach and stakeholder involvement to improve development of the GSP in a manner consistent with Section 4 below. Section 4 Public Engagement 4.1 The Parties will collaborate jointly in coordination with the consultant(s) to engage interested and affected stakeholders in the Subbasin regarding the development of the GSP. The public engagement process may entail holding public meetings, workshops, communicating through emails and postal mailings and establishing a web-based communication portal. The City and County staff designated pursuant to Section 3.3 above will provide regular updates to their respective governing bodies on the progress of the GSP development. 4.2 Each draft chapter and/or section of the GSP provided by the consultant(s) will first be internally reviewed by the City and County staff designated pursuant to Section 3.3 above and then subsequently made available for public comment during a specified comment period. Comments received during each such period will be considered prior to compilation and publication of the complete draft GSP which will also be made available for public comment during a specified comment period prior to either Party’s adoption of the GSP. Section 5 Funding 5.1 For each year during the term of this MOA, the City and County staff designated pursuant to Section 3.3 above shall develop an annual budget to implement this MOA. 5.2 Subject to approval of said budget by the County Board of Supervisors, the County agrees to fund all costs included in such approved budget contingent on the prior occurrence of the following: subsequent to recommendation / endorsement by the District Zone 3 Advisory Committee, the District includes in its approved annual budget(s) an amount equal to ten percent (10%) of the Local Cost Share required under the Grant Agreement with respect to Grant funds expended / claimed in connection with Component Item 8.f. - Page 5 Page 4 of 7 3, but not to exceed a total of $50,000, and the District remits said amount to County in accordance with invoices issued by County. Nothing herein shall be construed as requiring the County Board of Supervisors or the District Board of Supervisors to approve any particular budget or budget item in any year. Section 6 Retention of Consultants 6.1 The County agrees to act as the contracting agent to retain the services of a consultant(s) as described in Section 3.2 above. 6.2 Notwithstanding the foregoing, the County agrees that no request for proposals will be circulated until City staff approves the scope of work included therein and that a City staff representative shall be invited to participate in the various subsequent stages of the selection process, including, but not limited to, review of proposals and participation on interview panels. 6.3 All consultant contracts entered into by the County pursuant to this MOA shall include a provision requiring that the consultant name the City as an additional insured and to indemnify and hold the City harmless from damages and costs caused in whole or in part by any negligent or wrongful act, error or commission of consultant. Section 7 Notice 7.1 To provide for consistent and effective communication between the Parties, each Party shall designate a representative as its central point of contact on matters relating to this MOA. 7.2 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 8 Termination 8.1 This MOA may be terminated by either Party upon thirty (30) days written notice to the other Party’s designated address as listed in Exhibit A. Item 8.f. - Page 6 Page 5 of 7 Section 9 Miscellaneous 9.1 This MOA may be amended only in a writing signed by both Parties. 9.2 This MOA may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same agreement. This MOA may be executed and delivered by facsimile or scanned signature by either of the Parties and the receiving Party may rely on the receipt of such document so executed and delivered by facsimile or email as if the original had been received. 9.3 This MOA is made in the State of California, under the Constitution and laws of said State and is to be so construed. 9.4 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. 9.5 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. 9.6 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] Item 8.f. - Page 7 Page 6 of 7 IN WITNESS WHEREOF, the Parties have executed this MOA by authorized officials thereof on the dates indicated below. CITY OF ARROYO GRANDE 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: _______________________ Deputy County Counsel June 3, 2020 Item 8.f. - Page 8 Page 7 of 7 EXHIBIT A PARTY ADDRESS LIST County of San Luis Obispo County Government Center, Room 206 San Luis Obispo, CA 93408 Attention: John Diodati, Interim Public Works Director City of Arroyo Grande Public Works Department 1375 Ash Street Arroyo Grande, CA 93420 Attention: Bill Robeson, Director Item 8.f. - Page 9 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.f. - Page 10