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CC 2018-08-28_09e Agreement NCMA Annual Report MEMORANDUM TO: CITY COUNCIL FROM: SHANE TAYLOR, UTILITIES MANAGER SUBJECT: CONSIDERATION OF APPROVAL OF AN AGREEMENT FOR THE NORTHERN CITIES MANAGEMENT AREA ANNUAL REPORT AND MONITORING PROGRAM DATE: AUGUST 28, 2018 SUMMARY OF ACTION: Take action to approve an agreement to produce the 2018 Northern Cities Management Area (NCMA) Annual Report. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The City’s share for the agreement is $60,466, which is within the $60,500 in the FY 2018/19 budget for this service. City staff spends an estimated 250 hours a year on NCMA activities. RECOMMENDATION: Approve and authorize the Mayor to execute an agreement for consultant services with GSI Water Solutions, Inc. BACKGROUND: The City has continued to participate with neighboring jurisdictions in the preparation of required reports and studies concerning management of the Santa Maria Groundwater Basin. Water sampling and preparation of the Annual Report is required by the Court’s decision in the Santa Maria Groundwater Basin Adjudication. The Annual Report is prepared by a mutually secured technical consultant firm that is funded proportionally by all of the participating NCMA agencies. The 2017 NCMA Annual Report was prepared by GSI Water Solutions, Inc. The agreement with GSI Water Solutions, Inc. (GSI) will expire on September 13, 2018. The City has participated with representatives from neighboring jurisdictions to form the Northern Cities Management Area Technical Group (NCMA TG) in order to coordinate these water management activities. The NCMA represents the following agencies with their respective groundwater pumping entitlements: Urban Area Groundwater Allotment Ag Credit Total City of Arroyo Grande 1,202 121 1,323 City of Grover Beach 1,198 209 1,405 City of Pismo Beach 700 0 700 Oceano Community Services Dist. 900 0 900 Item 9.e. - Page 1 CITY COUNCIL CONSIDERATION OF APPROVAL OF AN AGREEMENT FOR THE NCMA ANNUAL REPORT AND MONITORING PROGRAM AUGUST 28, 2018 PAGE 2 ANALYSIS OF ISSUES: The collaborative approach to groundwater management was formalized in the 2002 Management Agreement between the Northern Cities, Northern Landowners, and Other Parties, and incorporated in the 2005 Settlement Stipulation for the Santa Maria Groundwater Basin Adjudication (Stipulation). On June 30, 2005 the Stipulation was agreed upon by numerous parties, including the Northern Cities, referred to as the “Settlement Agreement,” which was reduced to a Judgement in 2008. The Judgment orders the stipulating parties to comply with all terms of the Stipulation, including annual groundwater monitoring and reporting. In July of 2016, a Request for Proposals (RFP) was advertised and distributed to potential engineering firms. GSI was selected from the submitting consultant firms following a proposal rating process. The RFP provided the Northern Cities with an option to award the contract for the 2017 - 2020 NCMA Annual Monitoring Reports to the selected consultant. GSI prepared the 2017 Annual Report and staff has been satisfied with the quality of their work. Therefore, staff recommends exercising the option to award the contract for the 2018 Annual Report to GSI. The scope of work for the 2018 Annual Report is included in the proposed agreement. The consultant services agreement is proposed to be a one-year agreement. Costs are split between all NCMA agencies in accordance with the percentage of each agency’s groundwater allocation. The cost for the 2018 NCMA Annual Report is also proposed to include a 10% contingency amount to cover anticipated enhanced monitoring and testing needs resulting from declining groundwater levels. All NCMA agencies are required by the Court action to participate in the preparation of the annual report. ALTERNATIVES: 1. Approve the Consultant Services Agreement with GSI Water Solutions, Inc. in the amount of $60,500, which includes a 10% contingency, in connection with the annual monitoring report; 2. Do not approve the agreement; or 3. Provide direction to staff. ADVANTAGES: Preparation of the Annual Report satisfies the judgment ordering the parties to perform annual groundwater monitoring and reporting. In addition, implementation of the monitoring and reporting program, which identifies changes in water levels and quality enables the City and its partner jurisdictions to react quickly to any issue affecting the water supply in the groundwater basin. The monitoring program has provided a mechanism allowing all parties to be better informed with regard to the changing condition of the basin, and consequently, has allowed for the opportunity for better collaboration between the City and partner jurisdictions included in the Arroyo Grande Groundwater Basin Management Agreement. Item 9.e. - Page 2 CITY COUNCIL CONSIDERATION OF APPROVAL OF AN AGREEMENT FOR THE NCMA ANNUAL REPORT AND MONITORING PROGRAM AUGUST 28, 2018 PAGE 3 The GSI team includes staff with local experience, a track record of meeting reporting requirements of adjudicated basins, extensive prior involvement with NCMA and is well suited to lead the preparation of the 2018 Annual Groundwater Monitoring Report. DISADVANTAGES: By approving the agreement, the City will need to pay its share of the cost according to the Arroyo Grande Groundwater Basin Management Agreement. 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 9.e. - Page 3 Item 9.e. - Page 4 Item 9.e. - Page 5 Item 9.e. - Page 6 Item 9.e. - Page 7 Item 9.e. - Page 8 Item 9.e. - Page 9 Item 9.e. - Page 10 Item 9.e. - Page 11 Item 9.e. - Page 12 Item 9.e. - Page 13 Item 9.e. - Page 14 Item 9.e. - Page 15 Item 9.e. - Page 16 Item 9.e. - Page 17 Item 9.e. - Page 18 Item 9.e. - Page 19 Item 9.e. - Page 20 Item 9.e. - Page 21 Item 9.e. - Page 22 Item 9.e. - Page 23 Item 9.e. - Page 24 Item 9.e. - Page 25 Item 9.e. - Page 26 Item 9.e. - Page 27 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.e. - Page 28