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CC 2017-03-28_10b SGMA Presentation Sustainable Groundwater Management Act of 2014 4/13/2017 1 Sustainable Groundwater Management Act RECOMMENDATION: 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); 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 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. 4/13/2017 2 SGMA: Overview Goal: Sustainability within 20 years 3 SGMA Update to Board of Supervisors 3/7/2017 SGMA Key Deadlines 2015 2016 2017 2020/22 2040/42 KEY LOCAL DATES 2018 WE ARE HERE …… 4 SGMA Update to Board of Supervisors 3/7/2017 Santa Maria Groundwater Basin (SMGB) 4/13/2017 Basin Boundary modification request to DWR in 2018 (Align with DWR 118 boundary) 5 Non-Adjudicated Portion ( Fringe) of the SMGB within the Arroyo Grande City limits 4/13/2017 5.3 % of total Fringe Area of SMGB 6 Non-Adjudicated Portion (Fringe) of the SMGB within the Arroyo Grande City limits 4/13/2017 7 Non-Adjudicated Portion ( Fringe) of the SMGB within the Arroyo Grande City limits 4/13/2017 4 Private wells in Fringe area (1 used for domestic water) No City production wells in Fringe area. 8 SMGB within the Arroyo Grande City limits by % 4/13/2017 32.1%- SGMA 34.6%- COURT 33.3%- NEITHER 9 GSMGB Fringe Areas- Governance Model Options 4/13/2017 Recommended b/c SGMA grants GSAs substantial additonal powers and authorities to ensure sustainable ground water management. City can assume role and access over our jurisdictional area and potentially grant funding or other opportunities that may be ultimately available through the GSA. 10 4/13/2017 1. Potential GSA limitations on groundwater extractions - Limitations on extractions - Limitations on new wells - City has water rights to one of the SGMA subject wells - Staff is investigating drilling a new City well on the east side of town GSA FORMATION CONSIDERATIONS: 11 4/13/2017 2. Review of all future General Plan Amendments - SGMA does not affect land use authority by an agency, however: - Determination of an adequate water supply by the GSA required - Adverse reports by GSA would require additional CEQA review GSA FORMATION CONSIDERATIONS: 12 4/13/2017 3. GSAs have authority to impose fees - Ability to levy and collect taxes, assessments and charges on Arroyo Grande property owners - Potential disproportionate impact on property owners if property based fees imposed. - County reviewing SGMA funding policy for un-represented areas GSA FORMATION CONSIDERATIONS: 13 4/13/2017 Phase I $15,000 GSA Application and submittal to the State Phase II County Estimate $2,317,615 (includes 218 cost) 5.3% could be estimate of City fair share $122,900 $100,000 to $150,000 to be negotiated with other GSA’s Phase III Potential cost for operating expenses estimated at approximately $15,000.00 annually. POTENTIAL COSTS WITH GSA Consultant services $20k 14 4/13/2017 POTENTIAL FUTURE “OFF-RAMPS” DWR BASIN BOUNDARTY ADJUSTMENT EVALUATION OF OPTIONS PRIOR TO INITIATION OF GSP. SGMA allows for a local agency to withdraw from GSA over-sight and deferral to the County No provision provided for a local agency to form a GSA if not initiated by 7/1/2017 GSA FORMATION CONSIDERATIONS: Consultant services $20k 15 Sustainable Groundwater Management Act RECOMMENDATION: 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); 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 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. 4/13/2017 16 4/13/2017 17