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HomeMy WebLinkAboutAgreement A-16-073 Sustainable Groundwater Management Act.pdf 1731682v3 / 6217.0354 -1- Exhibit “A” MEMORANDUM OF UNDERSTANDING FOR IMPLEMENTATION OF THE SUSTAINABLE GROUNDWATER MANAGEMENT ACT IN THE KINGS GROUNDWATER BASIN BY SUPPORTING FORMATION OF A KINGS RIVER EAST GROUNDWATER SUSTAINABILITY AGENCY THIS MEMORANDUM OF UNDERSTANDING (the “MOU”) is made and effective as of the earlier of (i) the date on which all of the member agencies listed below have executed this MOU, or (ii) March 1, 2016 (on which date this MOU will be binding upon and inure to the benefit of only those member agencies signatory hereto), by and between the County of Tulare, the County of Fresno, the City of Orange Cove, the City of Reedley, the City of Dinuba, Orange Cove Irrigation District, Alta Irrigation District, Hills Valley Irrigation District, Tri-Valley Water District, Cutler Public Utility District, East Orosi Community Services District, London Community Services District, Orosi Public Utility District and Sultana Community Services District. Representatives of entities and organizations that are not public agencies will form an advisory committee to consult with the signatories of this MOU with respect to implementing the goals expressed herein (each entity that has executed this MOU on or before the Effective Date being hereinafter referred to individually as a “Party” and collectively as the “Parties”), with reference to the following facts: A. The State of California has enacted the Sustainable Groundwater Management Act (contained in SB 1168, AB 1739 and SB 1319), referred to in this MOU as the “Act,” pursuant to which certain local agencies and parties to a memorandum of understanding or other legal agreements may become “groundwater sustainability agencies” and adopt “groundwater sustainability plans” in order to manage and regulate groundwater in underlying groundwater basins. (The Act defines “basin” as a basin or subbasin identified and defined in California Department of Water Resources Bulletin 118.) Some of the Parties are local agencies qualified to become a groundwater sustainability agency and adopt a groundwater sustainability plan under the Act, but prefer to establish a separate authority, which will become a groundwater sustainability agency operating in accordance with the Act. B. Multiple local agencies overlying a single groundwater basin or subbasin may adopt individual groundwater sustainability plans if those plans are coordinated, or may join together to adopt a single plan. The Parties all overlie portions of the Kings Subbasin as it is currently defined by the California Department of Water Resources (the “Basin”) and wish to participate in the implementation of the Act specifically within the Basin or specific portions thereof. As a result, coordination and cooperation between them is necessary in order to determine their respective roles and the manner in which they will implement the Act. In addition, other agencies that are qualified to become groundwater sustainability agencies overlie the Basin and have expressed interest in implementation of the Act in the Basin, and the Parties acknowledge the importance of involving those other agencies in the management of groundwater resources in the Basin under the Act. The Parties desire to enter into an agreement that will facilitate the creation of a Groundwater Sustainability Agency; namely the Kings River East Groundwater Sustainability Agency ("GSA"), which would adopt a Groundwater 1731682v3 / 6217.0354 -2- Sustainability Plan ("GSP") that would consider the interests of all beneficial uses and users of groundwater within the boundaries of the GSA. C. The Parties wish to establish an agreement and framework for cooperative efforts relative to formation of a GSA in order to implement the Act in the Basin, both with each other and with agencies both current and future, in the Basin interested in implementing the Act, to help ensure that the Act is implemented in the Basin effectively, efficiently, fairly, and at the lowest reasonable cost. THEREFORE, in consideration of the mutual promises set forth below and to implement the goals described above, the Parties hereto agree as follows: 1. Purposes of MOU. The primary purposes of this MOU are to (i) facilitate a cooperative and ongoing working relationship among the Parties and other stakeholders and water users in an effort to establish a GSA in order to develop and implement mutually beneficial approaches and strategies for implementing the Act in the Basin; and (ii) facilitate contacts with other agencies, both current and prospective, overlying the Basin so that they can coordinate with the GSA to implement the GSP and to satisfy the requirements of the Act. 2. Intent to Advocate the Formation of the GSA; Implementation of the GSP. The Parties intend that this MOU is to express the intent of the Parties on or before January 1, 2017 to establish either a joint powers authority or a special act district to act as the GSA (hereinafter referred to specifically as the "GSA") to prepare for approval the GSP for the area located east of the Kings River and under the jurisdiction of one or more of the Parties in order to implement the GSP applicable to that area. The Parties shall regularly confer with regard to those efforts 3. Outreach to Other Agencies. In recognition of the importance of involving all interested agencies in the Basin that are or will be involved in efforts to establish the GSA and the GSP under the Act in the management of the Basin in coordination with other agencies in the Basin, as an initial activity under this MOU, the Parties shall develop and implement an outreach plan pursuant to which the Parties will contact other agencies within or near their respective boundaries that may become groundwater sustainability agencies and adopt groundwater sustainability plans under the Act, to invite their participation in activities undertaken in connection herewith. 1731682v3 / 6217.0354 -3- 4. Initial Administrative Costs. Each Party shall bear all costs it incurs with respect to its activities under this MOU, including without limitation, costs relative to the formation of the GSA and activities in which that Party wishes to participate. The Parties estimate that initial administrative costs incurred in connection with this MOU for the joint benefit of all Parties, including, legal and other professional services concerning, among other things, issues with respect to funding and formation ("Initial Administrative Costs"), will be approximately Fifteen Thousand Dollars ($15,000) as estimated in Table I, attached hereto (see “Table I, MOU Initial Administrative Cost”). The Initial Administrative Costs shall be borne in the following proportions: Alta 20% County of Tulare 20% County of Fresno 20% Cities (as defined below) collectively 20% Irrigation Districts (as defined below) collectively 20% Alta shall act as the fiscal agent ("Fiscal Agent") for the Parties to receive funds and have the authority to determine and pay the Initial Administrative Costs. Upon execution hereof, Alta, the County of Tulare, the County of Fresno, the Cities collectively and the Irrigation Districts collectively shall pay to the Fiscal Agent as a deposit to be held for the account of those Parties the cash sum of Three Thousand Dollars ($3,000.00) each. Any additional costs and expenses may be authorized only by all the Parties. If so authorized, upon request of the Fiscal Agent along with an accounting of those additional costs for which the Fiscal Agent seeks payment, the Parties listed above shall promptly contribute their respective shares of those additional costs in the proportions specified above. 5. Definitions. Unless otherwise indicated by their context, the definitions set forth in this article govern the interpretation of this MOU. 5.1 “Actively and primarily engaged in production of agriculture” means that a person derives at least 75 percent of his or her annual income from production agriculture. 5.2 “Alta” means the Alta Irrigation District. 5.3 “Aquifer” means a geologic formation or structure that transmits water in sufficient quantities to supply pumping wells or springs. 5.4 “Basin” has the same meaning as defined in Section 10721 of the Water Code. 5.5 “Board” means the board of directors of the GSA, as more particularly described in Section 6 below. 5.6 “Cities” means the Cities of Dinuba, Orange Cove, and Reedley. 5.7 “Coordination agreement” has the same meaning as defined in Section 10721 of the Water Code. 5.8 “County” means either the County of Fresno or the County of Tulare, as the context requires. “Counties” means the County of Fresno and the County of Tulare. 1731682v3 / 6217.0354 -4- 5.9 “Extraction” means the act of obtaining groundwater by pumping or other controlled means. 5.10 “Groundwater” has the same meaning as defined in Section 10721 of the Water Code. 5.11 “Groundwater management activities” means programs, measures, or actions taken to preserve, protect, and enhance groundwater resources within the territory of the GSA. 5.12 “Kings Subbasin” means the San Joaquin Valley Basin Kings Subbasin as described in Section 9 below. 5.13 “Member agency” means Alta, the Counties, the Cities, and the special districts entitled to representation on the GSA’s board of directors as specified in Section 6 below. 5.14 “Operator” has the same meaning as defined in Section 10721 of the Water Code. 5.15 “Person” includes any state or local governmental agency, private corporation, firm, partnership, limited liability company, individual, group of individuals, or, to the extent authorized by law, any federal agency. 5.16 “Plan” means a groundwater sustainability plan prepared by the GSA pursuant to this MOU. 5.17 “Supplemental water” means surface water or groundwater lawfully imported from outside the watershed or watersheds of the basin or aquifer and flood waters that are conserved and saved within the watershed or watersheds that would otherwise have been lost or would not have reached the basin or aquifer. 6. The Proposed GSA Governing Body. (a) The Parties intend to support and advocate for establishment of the GSA to be governed by a board of directors that shall consist of seven (7) members, as follows: (i) One member shall be chosen by Alta. (ii) One member shall be chosen by the County of Fresno. (iii) One member shall be chosen by the County of Tulare. (iv) One member shall be chosen by the Cities. This member shall be chosen from the members of the city councils of the Cities whose territory, at least in part, overlies the territory of the GSA. This member shall be chosen at a public meeting where each city is represented by its mayor. (v) One member shall be chosen from the members of the governing boards of the following special districts that are not governed by the board of supervisors of either county, are engaged in water activities, and whose territory, at least in part, overlies the territory of the GSA: (A) Hills Valley Irrigation District. (B) Orange Cove Irrigation District. 1731682v3 / 6217.0354 -5- (C) Tri-Valley Water District. (vi) One member shall be chosen from the members of the governing boards of the following special districts that provide drinking water within the territory of the GSA: (A) Cutler Public Utility District. (B) East Orosi Community Services District. (C) London Community Services District. (D) Orosi Public Utility District. (E) Sultana Community Services District (vii) One member shall be chosen by at least four of the other six board members to represent agricultural interests within the territory of the GSA. This member shall reside and be actively and primarily engaged in production of agriculture within the territory of the GSA. This member shall be selected from a list of nominations submitted from the Fresno County Farm Bureau, the Tulare County Farm Bureau, and California Citrus Mutual, but the nominees need not be members of any of those organizations. (b) The board members described in paragraphs (i), (ii), and (iii) of subdivision (a) above shall be chosen by their respective governing boards from their board members whose districts or divisions overlie, at least in part, the territory of the GSA. (c) The board members described in paragraphs (v) and (vi) of subdivision (a) above shall be chosen at a public meeting where each special district is represented by the president or chair of its governing board. (d) There shall be an alternate for each board member, chosen in the same manner and by the same entity as the board member. The alternate member shall act in place of the board member for whom he or she is an alternate in case of that board member’s absence or inability to act. (e) The members described in paragraphs (i) to (vi), inclusive, of subdivision (a) of this Section 6 shall serve for a four-year term of office, or until the member is no longer an eligible official of the member agency. These members may serve for more than one term of office. (f) The member described in paragraph (vii) of subdivision (a) above shall serve a four-year term of office. 7. Acts and Actions of the Proposed GSA Board. The Parties intend to support and advocate for the GSA whose board would have, among others set forth in the Act, the authorities and obligations, and follow the procedures, set forth below: (a) The board would adopt actions for the purpose of regulating, conserving, managing, and controlling the use and extraction of groundwater within the territory of the GSA. 1731682v3 / 6217.0354 -6- (b) An action adopted by the board would become effective 30 days from the date of its passage. (c) All actions would be adopted at noticed public hearings by a majority vote of the board. No ordinance would be adopted by the board except at a public hearing. Notice of the hearing would be published in a newspaper of general circulation in the manner provided in and pursuant to Section 6066 of the Government Code. (d) The board would provide notice of the adoption of all actions. (e) The GSA would have the authority to contract with either County or Alta for staff and other services. The GSA may hire contractors and consultants as it considers appropriate. (f) The GSA would have the authority to enter into a coordination agreement with other local agencies for purposes of coordinating the GSA’s plan with other agencies or groundwater sustainability plans within the basin. 8. Studies and Investigations by the Proposed GSA. The Parties intend to support and advocate for the GSA that would have the authorities and obligations set forth below: (a) The GSA would collect data and conduct technical and other investigations of all kinds in order to carry out the provisions of the Act. All hydrological investigations and studies carried out by or on behalf of the GSA would be constructed by or under the supervision of licensed engineers or other persons qualified in groundwater geology or hydrology. (b) The GSA would recommend and encourage water recycling and other water development projects, where those projects will enhance and contribute to the responsible management of groundwater resources, as part of its annual plan for implementation of groundwater management objectives. 9. Proposed GSA Boundaries. The Parties intend to support and advocate for the GSA that would have the boundaries described below by means of actions set forth below: (a) The boundaries of the GSA would include all land located within the exterior perimeter boundaries of Alta Irrigation District within the Counties of Fresno and Tulare, the Orange Cove Irrigation District, the Hills Valley Irrigation District, and the Tri- Valley Water District overlying the San Joaquin Valley Basin Kings Subbasin as described in the report by the Department of Water Resources entitled “California’s Groundwater: Bulletin 118” updated in 2003, as it may be subsequently updated or revised in accordance with Section 12924 of the Water Code. 1731682v3 / 6217.0354 -7- (b) The GSA’s initial boundaries shall be established by the boards of supervisors of the Counties of Fresno and Tulare after a noticed public hearing. The boundaries shall be depicted on a map that shall be adopted by the boards of supervisors of those counties and thereafter recorded in the office of the county recorder of each county. (c) The boards of supervisors of the Counties of Fresno and Tulare may adjust the boundaries of the GSA in the same manner prescribed for establishment of the initial boundaries if the boundaries of the basin are revised, including the establishment of new subbasins. 10. Proposed GSA Sustainable Groundwater Management Powers. The Parties intend to support and advocate for the GSA whose board would have the intentions, authorities and obligations set forth below: (a) The GSA shall elect to be a groundwater sustainability agency pursuant to Chapter 4 (commencing with Section 10723) of Part 2.74 of Division 6 of the Water Code for that portion of the Kings Subbasin that lies within the boundaries of the GSA. (b) The GSA shall develop and implement a groundwater sustainability plan pursuant to Chapter 6 (commencing with 38 Section 10727) of Part 2.74 of Division 6 of the Water Code to achieve sustainable groundwater management within the territory of the GSA. (c) The GSA may exercise any of the powers described in Chapter 5 (commencing with Section 10725) of Part 2.74 of Division 6 of the Water Code and the enforcement powers described in Chapter 9 (commencing with Section 10732) of Part 2.74 of Division 6 of the Water Code. (d) The availability of supplemental water to any operator shall not subject that operator to regulations that are more restrictive than those imposed on other operators. 11. Proposed GSA Fee Authority. The Parties intend to support and advocate for the GSA whose board would have the authorities and obligations set forth below: Pursuant to Chapter 8 (commencing with Section 10730) of Part 2.74 of Division 6 of the Water Code, the GSA may impose fees, including, but not limited to, permit fees and fees on groundwater extraction or other regulated activity, to fund the costs of a groundwater sustainability program, that include, but are not limited to, the preparation, adoption, and amendment of a groundwater sustainability plan, investigations, inspections, compliance assistance, enforcement, and program administration, including a prudent reserve. 12. Other Alternatives. Nothing in this MOU shall preclude any Party from pursuing implementation of the Act on its own or with third parties consistent with this MOU. Further, while the Parties intend to diligently implement activities in which all of them participate, nothing in this MOU shall preclude any of the Parties from pursuing such activities with fewer than all or with none of the other Parties. In the event any Party chooses to pursue such activities, that Party shall promptly notify all other Parties of those activities. 1731682v3 / 6217.0354 -8- 13. Ongoing Cooperation. The Parties acknowledge that activities under this MOU will require the frequent interaction between them in order to exploit opportunities and resolve issues that arise. The Parties shall work cooperatively and in good faith. The goal of the Parties shall be to preserve flexibility with respect to the establishment of the GSA and implementation of the GSP in order to maximize the benefits of that GSP to all beneficial uses and users of groundwater within the GSA. Notwithstanding the foregoing, nothing in this MOU shall be interpreted to require the Parties jointly to establish the GSA. If the GSA is formed, it shall implement a GSP that complies with the requirement set forth in the Act (Water Code Section 10727.6) that it be coordinated with other GSP's in the Basin. The Parties intend to consult with all stakeholders and beneficial users of groundwater within the GSA. 14. Staff; Notices. (a) Each Party shall designate a principal contact person for that Party, who may be changed from time to time, and such other appropriate staff members and consultants to participate on such Party’s behalf in activities undertaken pursuant to this MOU. The principal contact person for each Party shall be responsible for coordinating meetings and other activities under this MOU with the principal contact person for the other Parties. Meetings shall occur as the principal contacts determine are necessary, and each Party shall make its expertise and resources reasonably available for activities under this MOU. (b) Any formal notice or other formal communication given under the terms of this MOU shall be in writing and shall be given personally, by facsimile or by certified mail, postage prepaid and return receipt requested. Any notice shall be delivered or addressed to the parties at the addresses or facsimile numbers set forth below or at such other address or facsimile numbers as shall be designated by notice in writing in accordance with the terms of this Agreement. The date of receipt of the notice shall be the date of actual personal service or confirmed facsimile transmission, or three days after the postmark on certified mail. If notice is given to the Alta Irrigation District, it shall be given at the following address and facsimile number: Alta Irrigation District Post Office Box 715 Dinuba, CA 93618 Attn: General Manager Facsimile No.: 559-591-5190 If notice is given to the County of Fresno, it shall be given at the following address and facsimile number: County of Fresno 2220 Tulare Street, 6th floor Fresno California 93721 Attn: Director of Public Works and Planning Facsimile No.: 559-600-4537 1731682v3 / 6217.0354 -9- If notice is given to the County of Tulare, it shall be given at the following address and facsimile number: County of Tulare 2800 W. Burrel Visalia, CA 93291 Attn: County Administrative Officer Facsimile No.: 559-733-6318 If notice is given to the City of Orange Cove, it shall be given at the following address and facsimile number: City of Orange Cove 633 Sixth Street Orange Cove, California 93646 Attn: City Manager Facsimile No.: 559-626-4653 If notice is given to the City of Reedley, it shall be given at the following address and facsimile number: City of Reedley 1717 9th Street Reedley, CA 93654 Attn: City Manager Facsimile No.: 559-638-1093 If notice is to be given to the City of Dinuba, it shall be given at the following address and facsimile number: City of Dinuba 405 E. El Monte Way Dinuba, CA 93618 Attn: City Manager Facsimile No.: 559-591-5902 If notice is to be given to the Hills Valley Irrigation District, it shall be given at the following address and facsimile number: Hills Valley Irrigation District P.O. Box 911 Visalia, CA 93279 Attn: Dennis Keller Facsimile No.: 559-732-7937 1731682v3 / 6217.0354 -10- If notice is to be given to the Tri-Valley Water District, it shall be given at the following address and facsimile number: Tri-Valley Water District P.O. Box 911 Visalia, CA 93279 Attn: Dennis Keller Facsimile No.: 559-732-7937 If notice is to be given to the Orange Cove Irrigation District, it shall be given at the following address and facsimile number: Orange Cove Irrigation District 1130 Park Blvd Orange Cove, CA 93646 Attn: Fergus Morrissey Facsimile No.: 559-626-4463 If notice is to be given to the Cutler Public Utility District, it shall be given at the following address and phone number: Cutler Public Utility District 40526 Orosi Drive Cutler, CA 93615 Attn: Martha Lowrey Phone: (559) 528-3859 If notice is to be given to the East Orosi Community Services District, it shall be given at the following address and phone number: East Orosi Community Services District 41842 Ione Rd Orosi, CA 93647 Attn: Katie Icho Phone No.: 559-(559) 528-2726 If notice is to be given to the London Community Services District, it shall be given at the following address and facsimile number: London Community Services District 37835 Kate Rd. Dinuba CA 93618 Attn: Jim Wegley Facsimile No.: 559-591-0976 1731682v3 / 6217.0354 -11- If notice is to be given to the Orosi Public Utility District, it shall be given at the following address and phone number: Orosi Public Utility District 12488 Ave 416 Orosi, CA 93647 Attn: Maria Elena Vidana Phone No.: 559-528-4262 If notice is to be given to the Sultana Community Services District, it shall be given at the following address and phone number: Sultana Community Services District P.O. Box 168 Sultana, CA 93666 Attn: Michael Prado Sr. Phone No.: 559- 859-7330 (c) Alta shall make all reasonable efforts to post on its website the minutes of all meetings among the Parties, as well as summaries of all non-privileged memorandums and reports received by the Parties with respect to their activities concerning formation of the GSA, its powers and authorities and its sources of funding. 15. Entire Agreement. This MOU incorporates the entire and exclusive agreement of the Parties with respect to the matters described herein and supersedes all prior negotiations and agreements (written, oral or otherwise) related thereto. This MOU may be amended (including without limitation to add new Parties) only in a writing executed by all of the Parties. 16. Termination. (a) This MOU shall remain in effect unless terminated by the mutual written consent of the Parties, or upon 30 days written notice of termination delivered by one Party to the others that is not withdrawn prior to the specified termination date; provided, that upon termination by one Party, the remaining Parties may by mutual written agreement continue this MOU in effect as between the non-terminating Parties. No Party shall be liable to any other if it elects to terminate this MOU. (b) Anything to the contrary herein notwithstanding, this MOU shall terminate automatically upon the occurrence of the earlier of either: (i) Enactment and the effective date of a statute that forms a special act district to be the GSA or the formation of a joint powers authority or (ii) July 1, 2017, if by that date the GSA is not designated under the Act to be the groundwater sustainability agency for the area described in Paragraph 10 above. 17. Severability. Should any provision of this MOU be determined by a court of competent jurisdiction to be void, in excess of a Party's authority, or otherwise unenforceable, the validity of the remaining provisions of this MOU shall not be affected thereby. 18. Assignment. No rights and duties of any of the Parties under this MOU may be assigned or delegated without the express prior written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties without such consent shall be null and void. IN WITNESS WHEREOF, the Parties have executed this MOU as of the date first above written. County of Fresno: By: £.____:r ~ ~ Ernest Buddy Mendes, hairman Board of Supervisors Approved as to Legal Form: Daniel Cederborg Fresno County Counsel Approved as to Accounting Form: Vicki Crow, C.P .A Auditor Controller/Treasure Tax-Collector By: GJk i~ Attest: Bernice E. Seidel Clerk to the Board of Supervisors 1731682v3/6217.0354 -12- 1731682v3 / 6217.0354 -13- Table I Kings River East Planning Group MOU Initial Administrative Costs Task Hours/Units Blended Rate/Cost Total Funding Implementation, Legal Opinion Prop. 26 33 $260.00 $8,580.00 Monitoring and GSP Budgetary Cost Estimate 12 $300.00 $3,600.00 GSA Decision Documents 4 $260.00 $1,040.00 Communication and Outreach 10.83 $72.00 $779.76 Miscellaneous/Materials 1 $1,000.00 $1,000.00 Total Initial Administrative Cost $14,999.76