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HomeMy WebLinkAboutAgreement A-24-087 Memorandum of Agreement - SLDMWA.pdf 23-1368 Agreement No. 24-087 MEMORANDUM OF AGREEMENT AMONG THE DELTA-MENDOTA SUBBASIN GROUNDWATER SUSTAINABILITY AGENCIES THIS MEMORANDUM OF AGREEMENT (this "MOA") is entered into and shall be effective as of the date of full execution below (the "Effective Date"), by and among the groundwater sustainability agencies within the Delta-Mendota Subbasin listed in Exhibit "A" (each a "Party" and collectively the "Parties") and the San Luis & Delta-Mendota Water Authority, which would be executing not as a Party, and is made with reference to the following facts: RECITALS A. 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"); and B. WHEREAS, SGMA requires all groundwater subbasins designated as high- or medium-priority by the California Department of Water Resources ("DWR") to manage groundwater in a sustainable manner; and C. WHEREAS, the Delta-Mendota Subbasin(Basin Number 5-22.07, DWR Bulletin 118) within the San Joaquin Valley Groundwater Basin ("Subbasin"), has been designated as a high-priority, critically overdrafted basin by DWR; and D. WHEREAS, the Subbasin includes multiple groundwater sustainability agencies (each a "GSA" and collectively, the "GSAs") that initially managed the Subbasin through the development and implementation of six different groundwater sustainability plans; and E. WHEREAS,pursuant to the requirements of SGMA(Wat. Code §§ 10720,et seq.) and DWR's SGMA regulations (23 Cal. Code Regs., §§ 350, et seq.), and in recognition of the need to sustainably manage the groundwater within the Subbasin, the Parties entered into that certain Delta-Mendota Subbasin Coordination Agreement effective December 12, 2018 ("Coordination Agreement"), to outline the Parties' obligations and responsibilities regarding SGMA coordination in the Subbasin among the multiple GSAs and multiple groundwater sustainability plans; and F. WHEREAS, after an approximately two-year review, DWR determined that the coordinated groundwater sustainability plans in the Subbasin were "incomplete" on January 21, 2022, and required that the groundwater sustainability plans be revised to address certain corrective actions by July 20, 2022; and G. WHEREAS, the Parties did so timely revise and re-submit the amended groundwater sustainability plans to DWR; however, those groundwater sustainability plans, even after revision, were deemed"inadequate"under SGMA by DWR on March 2, 2023; and 3349571v9/21603.0005 1 H. WHEREAS, the Parties understand that upon DWR's determination that a groundwater sustainability plan is inadequate, SGMA authorizes the State Water Resources Control Board ("State Water Board") to seek to intervene and exercise jurisdiction over the affected subbasin; and I. WHEREAS, the Parties would like to be able to continue to manage the Subbasin locally in lieu of intervention by the State Water Board if possible; and J. WHEREAS, in order to efficiently coordinate among the large number of GSAs in the Subbasin, the GSAs now desire to adopt one groundwater sustainability plan ("GSP") for the Subbasin; and K. WHEREAS, if there is only one GSP for the Subbasin, then the GSAs no longer need the Coordination Agreement, as defined by SGMA; and L. WHEREAS, the GSAs desire to enter into this MOA to coordinate the work and management of the Subbasin and clarify responsibilities of the respective GSAs, in accordance with SGMA; and M. WHEREAS, the Coordination Agreement shall remain binding and in effect until all Parties have approved a single GSP for the Subbasin,at which time the Coordination Agreement shall automatically terminate, and this MOA shall become operative as provided in Section 12.2. NOW,THEREFORE,in consideration of the Recitals,which are deemed true and correct and incorporated herein, and of the covenants, terms and conditions set forth herein, the Parties hereto agree as follows: ARTICLE I—DEFINITIONS 1.1 "Coordination Committee" shall mean the committee of GSA Representatives or GSA Group Representatives established pursuant to this MOA. 1.2 "Coordinated Plan Expenses" are those Subbasin-wide Activities expenses that are shared equally amongst the Coordination Committee members, in accordance with the Participation Percentages. 1.3 "DWR" shall mean the California Department of Water Resources. 1.4 "Effective Date" shall be as set forth in the Preamble. 1.5 "GSA" shall mean a groundwater sustainability agency established in accordance with SGMA and its associated regulations, and "GSAs" shall mean more than one such groundwater sustainability agency. Each Party is a GSA. 1.6 "GSA Representative" shall refer to the representative of a single GSA that holds a single seat on the Coordination Committee. 3349571v9/21603.0005 2 1.7 "GSA Group Representative"shall refer to the representative of a group of GSAs that share a single seat on the Coordination Committee. 1.8 "GSP" shall mean the single Delta-Mendota Subbasin Groundwater Sustainability Plan. 1.9 "MOA" shall mean this Memorandum of Agreement by and among the Parties. 1.10 "Participation Percentages" shall mean that percentage of Coordinated Plan Expenses allocated to each GSA or GSA Group as described on Exhibit `B" to this MOA, which is attached and incorporated by reference herein, as updated from time to time, but not more frequently than annually. 1.11 "Party" or"Parties" shall mean a GSA or in the plural, two or more GSAs within the Subbasin, who are signatories to this MOA. 1.12 "Plan Manager" shall mean an entity or individual, appointed at the pleasure of the Coordination Committee, or as provided in Article III of this MOA, to perform the role of the Plan Manager to serve as the point of contact to DWR and/or the State Water Board. 1.13 "San Luis & Delta-Mendota Water Authority" or "SLDMWA" shall mean the San Luis & Delta-Mendota Water Authority, a California joint powers agency. 1.14 "SGMA" shall mean the Sustainable Groundwater Management Act, as amended from time to time, commencing at Water Code section 10720, together with its implementing regulations applicable to groundwater sustainability plans, set forth at California Code of Regulations, Title 23, Division 2, Chapter 1.5, Subchapter 2. 1.15 "SGMA Definitions" shall mean those SGMA-specific definitions provided by statute or regulation; in the event of any inconsistency between a term defined in this MOA and a SGMA-specific definition, the definition contained in this MOA shall prevail. 1.16 "State Water Board" shall mean the California State Water Resources Control Board. 1.17 "Subbasin" shall mean the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118)within the San Joaquin Valley Groundwater Basin. 1.18 "Subbasin-wide Activities" shall mean those activities or actions that affect the Subbasin as a whole or are otherwise required by SGMA to be determined at the Subbasin level and as defined by a unanimous vote of the Coordination Committee. An initial list of Subbasin- wide Activities is identified in Exhibit"D". 1.19 "Water Year" shall mean the period from October 1 through the following September 30. 3349571v9/21603.0005 3 ARTICLE II—PURPOSE & KEY PRINCIPLES 2.1 Purpose. The Parties shall continue to work together in mutual cooperation to develop the GSP in compliance with SGMA, for the sustainable management of the Subbasin. Each Party hereto shall adopt the GSP and implement its terms and conditions within their respective GSA territories. 2.2 Collaboration. The Parties intend to mutually cooperate to adopt a single GSP for the Subbasin, and to implement the GSP within their respective GSA territories. 2.3 Each Party's Rights. This MOA shall not limit or interfere with any Party's rights or authorities over its own internal matters, including, but not limited to, a Parry's legal rights to surface water supplies and assets, groundwater supplies and assets, facilities, operations, water management and water supply matters. Nothing in this MOA is intended to modify or limit a Parry's police powers,land use authorities,or any other authority,including the authority to pursue a comprehensive groundwater adjudication or other alternative SGMA compliance strategy, should the Party deem it to be in its best interest to do so. 2.4 Participation Percentage. Each Party shall pay its proportionate share of the Participation Percentage, to cover coordinated Subbasin-wide Activities, set forth on Exhibit`B," as said Exhibit`B"may be modified from time to time in accordance with Section 4.6(b). Participation Percentage financial contributions shall be treated in accordance with the provisions of Article III. 2.5 Management and GSP Implementation. It is the responsibility and obligation of each Party to this MOA, and any applicable separate agreements, to manage its own GSA and implement the GSP within its GSA's boundaries. It is further the responsibility and obligation of each Party to pay its proportionate share of the Participation Percentage and other payments required as part of implementation of SGMA Subbasin-wide Activities, as may arise from time to time. ARTICLE III—ROLE OF SLDMWA 3.1 Agreement to Serve. By executing this MOA,not as a Party, SLDMWA agrees to carry out the functions described in this Article III and its subparts consistent with the terms of this Article and under the direction and supervision of the Coordination Committee, subject to the reimbursement and the termination provisions contained in this Article. (a) Secretary. SLDMWA agrees to perform the obligations of the Secretary described in this MOA, by delegation to one or more of its employees or to a consultant under contract to the SLDMWA. (b) Plan Manager. SLDMWA agrees to perform the obligations of the Plan Manager described in this MOA, by delegation to one or more of its employees or to a consultant under contract to SLDMWA. 3.2 Fiscal Management by SLDMWA and Reimbursement to SLDMWA. SLDMWA will provide necessary financial and administrative support services contemplated by 3349571v9/21603.0005 4 this MOA, including, but not limited to: holding financial contributions made in accordance with the Participation Percentages,accounting for funds held by SLDMWA,reports as requested by the Coordination Committee members concerning funds held,and disbursing said funds for authorized purposes. (a) Coordination Committee members shall make Participation Percentage contributions required pursuant to this MOA directly to SLDMWA. (b) SLDMWA shall maintain a strict accountability of all funds contributed pursuant to this MOA. SLDMWA shall establish and maintain such accounts to provide for segregation of funds as may be required by good accounting practice. The books and records of SLDMWA pertaining to funds held and expended pursuant to this MOA shall be open to inspection at reasonable times by any entity that has made a contribution. SLDMWA shall provide an unaudited report of all financial activities for each fiscal year to each Party that has made a contribution during that fiscal year within 60 days after the close of each fiscal year. (c) SLDMWA shall be authorized to expend funds upon authorization of the Coordination Committee, as provided for in this MOA. (d) Upon mutual agreement of SLDMWA and each entity obligated to contribute funds pursuant to the Participation Percentages, SLDMWA and the Parties may execute a further agreement concerning fiscal responsibilities not inconsistent with the terms described herein. 3.3 Termination of SLDMWA's Services. Either the Parties acting through the Coordination Committee or SLDMWA, at any time, may terminate the services being provided by SLDMWA pursuant to this MOA upon thirty (30) days' written notice, if from SLDMWA, to the Coordination Committee; and if from the Coordination Committee,to SLDMWA. ARTICLE IV—COORDINATION COMMITTEE 4.1 Coordination Committee. (a) The Parties agree to establish a Coordination Committee to perform the functions set forth in this Section 4 in accordance with the voting procedures and requirements set forth herein. Recommendations from the Coordination Committee that require approval or action of each GSA within the Subbasin shall be provided to each Party's respective governing boards for adoption, approval or other recommended action. (b) The Coordination Committee will consist of a total of seven (7) voting members to represent the Subbasin and shall be comprised of the representative of a GSA ("GSA Representative") or a group of GSAs (a "GSA Group Representative"), as identified on Exhibit `B." Each GSA Representative or GSA Group Representative shall have one Alternate Representative authorized to vote in the absence of the GSA Representative or GSA Group Representative, as applicable. 3349571v9/21603.0005 5 (c) Individuals serving on the Coordination Committee as a GSA Representative or GSA Group Representative shall be selected by each respective GSA or GSA Group at the discretion of that particular GSA or GSA Group, and such appointments shall be effective upon providing written notice to the Secretary. (d) The Coordination Committee will recognize each GSA Representative or GSA Group Representative and their applicable Alternative Representatives until such time as the Secretary is provided written notice of removal and replacement of said Representative. (e) Minutes of the Coordination Committee will be prepared and maintained by the Secretary as set forth in Article 4.4(b). 4.2 Representation. Each Party understands its participation, as more fully set forth in Article IV of this MOA, is based on representation on the Coordination Committee. It is the responsibility and obligation of each Party under this MOA to develop its manner of selecting its respective Coordination Committee Representative and Alternate Representative. For purposes of this MOA, it is assumed that each Coordination Committee Representative has been authorized by the Parties in their respective GSA or GSA Group to participate as described herein. 4.3 Non-Entity Status. The Parties acknowledge and agree that the Coordination Committee created by this MOA does not create a legal entity with power to sue or be sued, to enter into contracts, to enjoy the benefits or accept the obligations of a legal entity, or to exercise any legal authority. The Coordination Committee is not a GSA. 4.4 Coordination Committee Officers. The Officers of the Coordination Committee will include a Chair, Vice Chair, and the Secretary. Except where the Parties have named such Officer in Article III of this MOA, Officers shall be selected at the initial meeting of the Coordination Committee or as soon thereafter as reasonably can be accomplished. (a) Chair and Vice Chair. Any GSA Representative or GSA Group Representative may serve as the Chair. The Vice Chair, who shall also be a GSA Representative or GSA Group Representative, shall serve in the absence of the Chair. In the absence of both the Chair and Vice Chair, a meeting may be led by an Acting Chair, selected on an ad hoc basis, who is a member of the Coordination Committee. The positions of Chair and Vice Chair shall rotate among the GSA Representative and GSA Group Representatives on the Coordination Committee on an annual basis according to alphabetical order,by name of the GSA or GSA Group,with the first rotation beginning on the date the first Chair is selected. The schedule for annual rotation of Chair and Vice Chair will be set at the first meeting after the Chair is appointed and reviewed and rotated annually at the first meeting of the Water Year. Any GSA Representative or GSA Group Representative may waive designation as Chair. In such a case, the office of Chair would rotate to the next designated entity. (b) Secretary. By a simple majority vote, the Coordination Committee shall select a Secretary to carry out the functions described in this Article 4.4(b), to serve at the 3349571v9/21603.0005 6 pleasure of the Coordination Committee. The Secretary may, but need not, be a Party to this MOA. Notwithstanding the requirement for a majority vote of the Coordination Committee to appoint a Secretary, SLDMWA is hereby designated to serve as the initial Secretary. Termination of SLDMWA's services is subject to Article 3.3. The Secretary shall select an appointee (who may be SLDMWA staff or a consultant contracting with SLDMWA)to implement the Secretary's responsibilities under this MOA, for example, to coordinate meetings; prepare agendas; circulate notices and agendas; provide written notice to all Parties that the Coordination Committee has made a recommendation requiring approval by the Parties; prepare and maintain minutes of meetings of the Coordination Committee; receive notices on behalf of the Coordination Committee and call to the Coordination Committee's attention the need for responding; and provide such other assistance in coordination as may be appropriate. The Secretary shall assume primary responsibility for Ralph M. Brown Act compliance, including without limitation, the responsibility to prepare an agenda and notices, publicly post and distribute agendas to all Coordination Committee Representatives and Alternate Representatives, the Parties, and any other person who requests, in writing, such notices. The agenda shall be of adequate detail to inform the public and the Parties of the meeting and the matters to be transacted or discussed and shall be posted in a public location and distributed to each of the Parties to this MOA in compliance with the noticing requirements of the Ralph M. Brown Act. 4.5 Plan Manager. By a simple majority vote of Coordination Committee members present, the Coordination Committee shall select a Plan Manager, who may be a consultant hired by the Secretary, as directed by the action of the Coordination Committee pursuant to this MOA, the representative of an entity that has been selected as Secretary, or a public agency serving as or participating in a GSA that is a Party to this MOA, and who shall serve as the point of contact for DWR as specified by SGMA. Notwithstanding the requirement for a majority vote of the Coordination Committee to appoint a Plan Manager, SLDMWA is hereby designated as the initial Plan Manager, to serve at the pleasure and direction of the Coordination Committee, pursuant to Article III above. The Plan Manager shall carry out the duties of a "plan manager" as provided in Title 23, division 2, Chapter 1.5, Subchapter 2, California Code of Regulations. The Plan Manager has no authority to make policy decisions or represent the Coordination Committee without the specific direction of the Coordination Committee. The Plan Manager is obligated to disclose all substantive communications he/she transmits and receives in his/her capacity as Plan Manager to the Coordination Committee. 4.6 Coordination Committee Authorized Actions. The Coordination Committee is authorized to act upon the following enumerated items: (a) By a simple majority vote of Coordination Committee members present at a regular or special meeting, the Coordination Committee shall review and approve: 3349571v9/21603.0005 7 (i) recommendation(s) to the GSAs for approving any technical analyses; (ii) updating of technical analyses as needed; (iii) developing budgets for Subbasin-wide Activities; (iv) providing assistance with grants and with coordinated projects and programs; (v) assigning work to subcommittees and workgroups as needed,providing guidance and feedback, and ensuring that subcommittees and workgroups prepare work products in a timely manner; and (vi) providing direction to its Officers concerning other administrative and ministerial issues necessary for the fulfillment of the above-enumerated tasks. (b) By a unanimous vote of Coordination Committee members present at a regular or special meeting, the Coordination Committee shall review and approve: (i) determination of Subbasin-wide Activities,which are initially described in Exhibit "D", but may be modified by the Coordination Committee from time to time; (ii) submittal of annual reports; (iii) a representative monitoring network; (iv) final budgets; (v) submittal of five-year updates; (vi) revisions to this MOA; (vii) adding new Parties to this MOA; (viii) work plans; (ix) annual estimates of Coordinated Plan Expenses presented by the Secretary and any updates to such estimates, in accordance with the budgetary requirements of the respective Parties; provided, that such estimates or updates with supporting documentation shall be circulated to all Parties for comment at least thirty (30) days in advance of the meeting at which the Coordination Committee will consider approval of the annual estimate; (x) directing the Plan Manager in the performance of its duties under SGMA; and (xi) the hiring of consultants for Subbasin-wide Activities, providing direction to and supervision over consultants engaged to assist in acquiring and processing technical data, conducting monitoring and reporting, and all other activities in support of Subbasin-wide Activities. 3349571v9/21603.0005 8 4.7 Coordination Committee Limitations. When the terms of this MOA or applicable law require the approval of a GSA (such as approval of the GSP, acceptance of an annual report, or approval of a five-year update),that approval shall be required and evidenced as indicated in Article V of this MOA. The Coordination Committee is not a separate GSA and shall not be responsible for approving the GSP, any annual report, or any five-year update thereto; each GSA retains responsibility for such approvals. The Coordination Committee may make recommendations to the Parties for approval of the GSP, an annual report, or any five-year update of the GSP. 4.8 Subcommittees and Workgroups. The Coordination Committee may appoint ad hoc or standing subcommittees, workgroups, or otherwise direct staff made available by the Parties. Such subcommittees or workgroups may include qualified individuals possessing the knowledge and expertise to advance the goals of the GSP on the topics being addressed by the subcommittee, whether or not such individuals are GSA Representatives, GSA Group Representatives or Alternate Representatives. 4.9 Coordination Committee Meetings. (a) Timing and Notice. The Chair of the Coordination Committee, any two GSA Representatives or GSA Group Representatives, or the Secretary may call meetings of the Coordination Committee as needed to carry out the activities described in this MOA. The Coordination Committee may, but is not required to, set a date for regular meetings for the purposes described in this MOA. All Coordination Committee meetings shall be held in compliance with the Ralph M. Brown Act(Gov. Code § 54950 et seq.). (b) Quorum. A majority of the Coordination Committee members, as listed on Exhibit `B", shall constitute a quorum of the Coordination Committee for purposes of holding a meeting. The Alternate Representative of each GSA or GSA Group shall be counted towards a quorum and as the voting representative(s) in absence of the Coordination Committee GSA Representative or GSA Group Representative for which the Alternate Representative was appointed. If less than a quorum is present,no action may be taken. (c) Open Attendance. Members of the public,stakeholders,and representatives of the Parties who are not appointed as a GSA Representative or GSA Group Representative on the Coordination Committee may attend all Coordination Committee meetings and shall be provided with an opportunity to comment on matters on the meeting agenda, but shall have no vote. (d) Minutes. The Secretary's appointee shall keep and prepare minutes of all Coordination Committee meetings. Notes of subcommittee and workgroup meetings shall be kept by the Secretary's appointee or an assistant to the appointee. All minutes and subcommittee and workgroup meeting notes shall be maintained by the Secretary as Subbasin records and shall be available to the Parties and the public upon request. 3349571v9/21603.0005 9 4.10 Voting by Coordination Committee. (a) Each GSA Representative or GSA Group Representative that is a member of the Coordination Committee shall be entitled to one (1) vote at the Coordination Committee meetings. For GSAs represented by a GSA Group Representative, it shall be up to the Parties in that GSA Group to determine how the GSA Group vote will be cast. The Coordination Committee shall not be obligated to honor the vote of an individual Party and will only accept the vote of the GSA Representative or GSA Group Representative or Alternate Representative, as identified on Exhibit`B". (b) Except as expressly set forth in Articles 4.6 above and 4.11 and 11.1 below, the vote of a majority of a quorum present at a regular or special meeting of the Coordination Committee shall be required for all other matters on which the Coordination Committee is authorized to act. 4.11 Voting Procedures to Address Lack of Unanimity. When it appears likely that the Coordination Committee will not be able to come to a unanimous decision of Coordination Committee members present at a meeting on any matter for which a unanimous decision of those present is required, upon a majority vote of a quorum of the Coordination Committee, the matter may be subjected to any or all of the following additional procedures. (a) Straw Polls. Straw poll votes may be taken for the purpose of refining ideas and providing guidance to the Coordination Committee, subcommittees, or both. (b) Provisional Voting. Provisional votes may occur prior to final votes. This will be done when an initial vote is needed to refine a proposal, but the GSA Representatives or GSA Group Representatives wish to consult with their respective GSA or GSA Group(s)before making a final vote. (c) A vote shall be delayed if any GSA Representative or GSA Group Representative declares its intention to propose an alternative or modified recommended action,to be proposed at the next meeting, or as soon thereafter as the GSA Representative or GSA Group Representative can obtain any further information or clarifying direction from its GSA Group or governing body, or both, as needed to propose its alternative or modified recommended action. (d) If the process outlined in Article 4.11(a)-(c)fails to result in a unanimous vote of the GSA Representatives and GSA Group Representatives present at a meeting, any GSA Representative or GSA Group Representative not voting in favor of the recommended action may request that the vote be delayed so that the Coordination Committee can obtain further information on the recommended action(for example,by directing a subcommittee established under this MOA), so the GSA Representative or GSA Group Representative can obtain clarifying direction from its GSA Group or governing body, or both, as needed. (e) Each Party acknowledges that time is of the essence with respect to SGMA compliance and GSP implementation and agrees to make its best efforts to cooperate 3349571v9/21603.0005 10 through the Coordination Committee in coming to a unanimous vote of representatives present at a regular or special meeting. ARTICLE V—APPROVAL BY INDIVIDUAL PARTIES 5.1 Where law or this MOA require separate written approval by each of the Parties, such approval shall be evidenced in writing by providing the adopted resolution or minutes of the respective GSA's Board of Directors' meeting to the Secretary of the Coordination Committee. ARTICLE VI—POWERS RESERVED TO PARTIES 6.1 Nothing in this MOA shall be interpreted to deprive any Party of its right to: (a) Act as a GSA within its boundaries; (b) Exercise authorities granted to each of the Parties as a GSA under SGMA in a manner consistent with the adopted GSP; (c) Exercise authority to implement SGMA and any GSP adopted pursuant to this MOA consistent with the terms and conditions set forth therein; and (d) Defend, with legal counsel of its own choosing, any challenge to the adoption or implementation of a GSP developed pursuant to this MOA. ARTICLE VII—EXCHANGE OF DATA AND INFORMATION 7.1 Exchange of Data and Information. The Parties acknowledge and recognize pursuant to this MOA that the Parties will need to exchange data and information among and between the Parties. 7.2 Procedure for Exchange of Data and Information. (a) The Parties shall exchange public and non-privileged information through collaboration and/or informal requests made at the Coordination Committee level or through subcommittees designated by the Coordination Committee.However,to the extent it is necessary to make a written request for information to another Party, each Party shall designate a representative to respond to information requests and provide the name and contact information of the designee to the Coordination Committee. Requests may be communicated in writing and transmitted in person or by mail,facsimile,or other electronic means to the appropriate representative as named in this MOA. The designated representative shall respond in a reasonably timely manner. (b) Nothing in this MOA shall be construed to prohibit any Party from voluntarily exchanging information with any other Party by any other mechanism separate from the Coordination Committee. (c) The Parties agree that each GSA shall provide the data required to develop the Subbasin-wide coordinated water budget. 3349571v9/21603.0005 11 (d) To the extent that a court order, subpoena, or the California Public Records Act is applicable to a Party, such Party in responding to a request made pursuant to the California Public Records Act for release of information exchanged from another Party shall timely notify the Coordination Committee in writing of its proposed release of information in order to provide the other Parties with the opportunity to seek a court order preventing such release of information. ARTICLE VIII—MONITORING NETWORK 8.1 In accordance with SGMA,the Parties hereby agree to coordinate the development and maintenance of a monitoring network at a Subbasin level. The Subbasin monitoring network description shall include monitoring objectives,protocols,and data reporting requirements specific to enumerated sustainability indicators. Each GSA is responsible for the following: (a) Operating and maintaining the representative monitoring network within its boundary; (b) Filling data gaps in its GSA on a defined schedule; (c) Collecting data per the approved Subbasin-wide monitoring protocol; (d) Considering developing and maintaining a supplementary network for collecting data in excess of the minimum need, for the purposes of supporting local management decisions (since the level of detail necessary may not be sufficient in a Subbasin level network); and (e) Each GSA shall have a minimum of one representative monitoring well (measuring water level and water quality) from each aquifer (above the Corcoran Clay layer— shallow aquifer, or below the Corcoran Clay layer— deep aquifer) in which it has groundwater pumping either within its GSA boundaries or within the area of influence of the pumping that is occurring, sufficient to meet the recommendations of the Subbasin- wide GSP consultant. 8.2 The minimum monitoring network shall be based on the evaluation performed by the Subbasin-wide GSP consultant and may change from time to time. The Subbasin-wide GSP consultant shall evaluate the monitoring network to ensure: (a) There is a proper spatial and temporal coverage to inform a groundwater model; (b) The level of monitoring is commensurate with the use in an area (e.g., limited monitoring well(s) in areas that do not pump or higher density of survey benchmarks in areas that have numerous deep wells); and (c) The network is balanced,so that should an exceedance occur,it is not biased or weighted as a function of a poorly distributed monitoring network. 3349571v9/21603.0005 12 ARTICLE IX—COORDINATED DATA MANAGEMENT SYSTEM 9.1 The Parties developed and currently maintain a coordinated data management system that is capable of storing and reporting information relevant to the reporting requirements and/or implementation of the GSP and monitoring network of the Subbasin. After providing the Coordination Committee with data from the individual GSAs, the Plan Manager will ensure the data is stored and managed in a coordinated manner throughout the Subbasin and reported to DWR annually as required. ARTICLE X—ADAPTIVE MANAGEMENT PROCESS 10.1 The Coordination Committee established an "Adaptive Management Process" applicable to all GSAs in the Subbasin, which is attached hereto as Exhibit "C" and incorporated herein by this reference. 10.2 If and when required pursuant to Exhibit "C", each Party to this Agreement shall participate in the procedures discussed therein without regard to whether the Party is represented by another entity on the Coordination Committee 10.3 As part of the Adaptive Management Process, each Party commits to continue to evaluate and implement projects and management actions ("P&MAs") within its boundaries to reach sustainability in compliance with SGMA. ARTICLE XI—MODIFICATION OF THIS MOA 11.1 Addition of a Party. A Party may be added to this MOA only upon the unanimous vote of Coordination Committee members present at a regular or special meeting, the Party's execution of a counterpart of this MOA,and its provision of any additional documentation required by this MOA. No Party may be added that is not a GSA within the Subbasin or that fails to share in GSP coordinated expenses. 11.2 Modification or Amendment of this MOA. The Parties hereby agree that this MOA may be supplemented, amended, or modified only by a writing signed by all Parties. 11.3 Amendment for Compliance with Law. Should any provision of this MOA be determined to not be in compliance with legal requirements under circumstances where amendment of the MOA to include a provision addressing the legal requirement will cure the non- compliance, the Parties agree to promptly prepare and shall not unreasonably withhold approval of such amendment. ARTICLE XII—WITHDRAWAL, TERM,AND TERMINATION 12.1 Withdrawal. A Party may unilaterally withdraw from this MOA without causing or requiring termination of this MOA, effective upon one (1) year written notice to the Secretary and all other Parties. The Plan Manager shall report any such withdrawal to DWR and/or the State Water Board within five (5) days of receipt of the written notice. 3349571v9/21603.0005 13 Any Parry who withdraws shall remain obligated for GSP coordinated expenses as provided in a separate Cost Sharing Agreement. If no separate Cost Sharing Agreement is then in effect or enforceable against the withdrawing Party, the Party is obligated to pay its share of all debts,liabilities,and obligations the Party incurred or accrued under the MOA prior to the effective date of such withdrawal, which is one (1) year after providing written notice to the Secretary and all other Parties, and as also may be established under its separate GSA Group agreement, as applicable, concerning such share of obligations. Upon withdrawal, a Party agrees that it has a continuing obligation to comply with SGMA and any coordination guidelines and regulations issued by DWR, which require a coordination agreement if there are multiple groundwater sustainability plans in the Subbasin. This obligation shall survive the withdrawal from this MOA and is for the express benefit of the remaining Parties. 12.2 Term; Termination of Coordination Agreement. This MOA shall take effect on the Effective Date. Provisions requiring compliance with, and implementation of, the GSP, shall become operative and binding upon the adoption of the GSP. Unless modified as provided in Article 11.2 or terminated as provided in Article 12.3, this MOA shall continue for a term that is coterminous with the requirements of SGMA for the existence of the GSP for the Subbasin. At the time the GSP is adopted by all Parties and this MOA is operative and binding upon the Parties,the Coordination Agreement shall automatically terminate. 12.3 Termination. This MOA may be terminated or rescinded by the unanimous written consent of all Parties. Nothing in this MOA shall prevent the Parties from entering into a coordination agreement for coordination with any other subbasin. 12.4 Indemnification. No Parry nor SLDMWA, nor any director, officer or employee of a Party or SLDMWA, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by another Party or SLDMWA under or in connection with this MOA. Each Party shall fully indemnify and hold harmless each other Party and SLDMWA and its agents,directors,officers,employees and contractors from and against all claims,damages, losses,judgments, liabilities, expenses and other costs, including litigation costs and attorney fees, arising out of, resulting from, or in connection with any work delegated to or action taken or omitted to be taken by such Parry pursuant to this MOA. ARTICLE XIII—PROCEDURES FOR RESOLVING CONFLICTS 13.1 In the event of any dispute arising from or relating to this MOA, except for disputes arising from the inability of the Coordination Committee to reach a unanimous decision, the disputing Party shall, within thirty(30) calendar days of discovery of the events giving rise to the dispute, notify all Parties to this MOA in writing of the basis for the dispute. Within thirty (30) calendar days of receipt of said notice, all interested Parties shall meet and confer in a good-faith attempt to informally resolve the dispute. All disputes that are not resolved informally shall be submitted to arbitration. Within ten (10) days following the failed informal proceedings, each interested Party shall nominate and circulate to all other interested Parties the name of one arbitrator. Within ten (10) days following the nominations, the interested Parties shall rank their top three (3) among all nominated arbitrators, awarding three points to the top choice, two points 3349571v9/21603.0005 14 to the second choice, one point to the third choice and zero points to all others. Each interested Party shall forward its tally to the Secretary,who shall tabulate the points and notify the interested Parties of the arbitrator with the highest cumulative score,who shall be the selected arbitrator. The Secretary may also develop procedures for approval by the Parties, for selection in the case of tie votes or in order to replace the selected arbitrator in the event such arbitrator declines to act. The arbitration shall be administered in accordance with the procedures set forth in the California Code of Civil Procedure, section 1280,et seq., and of any state or local rules then in effect for arbitration pursuant to said section. Upon completion of arbitration, if the controversy has not been resolved, any Parry may exercise all rights to bring a legal action relating to the controversy. ARTICLE XIV—GENERAL PROVISIONS 14.1 Authority of Signers. The individuals executing this MOA represent and warrant that they have the authority to enter into this MOA and to legally bind the Party for whom they are signing to the terms and conditions of this MOA. 14.2 Governing Law. The validity and interpretation of this MOA will be governed by the laws of the State of California without giving effect to the principles of conflict of laws,with venue for all purposes to be proper only in the County of Merced, State of California. 14.3 Severability. Except as provided for cure by amendment in Articles 11.2 and 11.3, if any term,provision, covenant, or condition of this MOA is determined to be unenforceable by a court of competent jurisdiction, it is the Parties' intent that the remaining provisions of this MOA will remain in full force and effect and will not be affected, impaired, or invalidated by such a determination. 14.4 Counterparts. This MOA may be executed in any number of counterparts, each of which will be an original, but all of which will constitute one and the same agreement. 14.5 Good Faith. The Parties agree to exercise their best efforts and utmost good faith to effectuate all the terms and conditions of this MOA and to execute such further instruments and documents as are reasonably necessary, appropriate, expedient, or proper to carry out the intent and purposes of this MOA. Signatures on following page 3349571v9/21603.0005 15 IN WITNESS WHEREOF,the Parties have executed this MOA as of the Effective Date. Dated: ALISO WATER DISTRICT Print Name: Print Title: Dated: CENTRAL DELTA-MENDOTA GSA Print Name: Print Title: Dated: CITY OF DOS PALOS GSA Print Name: Print Title: Dated: CITY OF FIREBAUGH GSA Print Name: Print Title: Dated: CITY OF GUSTINE GSA Print Name: Print Title: Dated: CITY OF LOS BANOS GSA Print Name: Print Title: Dated: CITY OF MENDOTA GSA Print Name: Print Title: 3349571v9/21603.0005 16 Dated: CITY OF NEWMAN GSA Print Name: Print Title: Dated: CITY OF PATTERSON GSA Print Name: Print Title: Dated: COUNTY OF MADERA-3 GSA Print Name: Print Title: Dated: COUNTY OF MERCED DELTA-MENDOTA GSA Print Name: Print Title: Dated: DM II GSA Print Name: Print Title: Dated: FARMERS WATER DISTRICT GSA Print Name: Print Title: Dated:— o2 —a20-aoa4 FRESNO COUNTY MANAGEMENT AREA A GSA Print Name: Nathan Magsig Print Title: Chairman of the Board of Supervisors of the County of Fresno ATTEST: BERNICE E.SEIDEL Clerk of the Board of Supervisors County of Fresno,State of alifornia 3349571 v9/21603.0005 By— Deputy 17 Dated: oZ --o2D o2Oo? FRESNO COUNTY MANAGEMENT AREA B ATTEST: GSA BERNICE E.SEIDEL Clerk of the Board of Supervisors County of Fresno,State of California Print Name: Nathan Magsig BY_ �.R/L Deputy Print Title: Chairmen of the Board of Supervisors of the County of Fresno iA Dated: GRASSLAND GSA Print Name: Print Title: Dated: NORTHWESTERN DELTA-MENDOTA GSA Print Name: Print Title: Dated: ORO LOMA WATER DISTRICT GSA Print Name: Print Title: Dated: PATTERSON IRRIGATION DISTRICT GSA Print Name: Print Title: Dated: SAN JOAQUIN RIVER EXCHANGE CONTRACTORS WATER AUTHORITY GSA Print Name: Print Title: Dated: TURNER ISLAND WATER DISTRICT-2 GSA Print Name: Print Title: 3349571 v9/21603.0005 18 Dated: WEST STANISLAUS IRRIGATION DISTRICT GSA 1 Print Name: Print Title: Dated: WIDREN WATER DISTRICT GSA Print Name: Print Title: EXECUTING NOT AS A PARTY: Dated: SAN LUIS & DELTA-MENDOTA WATER AUTHORITY Print Name: Print Title: 3349571v9/21603.0005 19 EXHIBIT "A" Parties to the MOA 1. Aliso Water District GSA 2. Central Delta-Mendota GSA (Includes: San Luis Water District, Panoche Water District, Tranquillity Irrigation District, Fresno Slough Water District, Eagle Field Water District, Pacheco Water District, Santa Nella County Water District, Mercy Springs Water District, County of Merced, and County of Fresno) 3. City of Dos Palos GSA 4. City of Firebaugh GSA 5. City of Gustine GSA 6. City of Los Banos GSA 7. City of Mendota GSA 8. City of Newman GSA 9. City of Patterson GSA 10. County of Madera-3 GSA 11. County of Merced Delta-Mendota GSA 12. DM II GSA 13. Farmers Water District GSA 14. Fresno County Management Area A GSA 15. Fresno County Management Area B GSA 16. Grassland GSA 17. Northwestern Delta-Mendota GSA 18. Oro Loma Water District GSA 19. Patterson Irrigation District GSA 20. San Joaquin River Exchange Contractors GSA (Includes: Central California Irrigation District, San Luis Canal Company, Firebaugh Canal Water District, and Columbia Canal Company) 3349571v9/21603.0005 20 21. Turner Island Water District-2 GSA 22. West Stanislaus Irrigation District GSA 1 23. Widren Water District GSA 3349571v9/21603.0005 21 EXHIBIT "B" Coordination Committee Representatives & Participation Percentages Coordination Committee Representatives Participation Group Contact Agency Percentage 1 Aliso Water District GSA Aliso Water District GSA 1/7 Aliso Water District GSA 2 Farmers Water District GSA Farmers Water District GSA 1/7 Farmers Water District GSA 3 Fresno Group County Management Area A and B GSAs Fresno County 1/7 Fresno County Management Area A GSA Fresno County Management Area B GSA 4 Central Delta-Mendota GSAs Group Central Delta-Mendota GSA 1/7 Central Delta-Mendota GSA Oro Loma Water District GSA Widren Water District GSA 5 Northern Delta-Mendota GSAs Group West Stanislaus Irrigation District 1/7 City of Patterson GSA DM-II GSA Northwestern Delta-Mendota GSA Patterson Irrigation District GSA West Stanislaus Irrigation District GSA 6 Grassland GSAs Group Grassland Water District 1/7 Grassland GSA Merced County Delta-Mendota GSA San Joaquin River Exchange Contractors GSAs San Joaquin River Exchange 7 Group Contractors GSA 1/7 City of Dos Palos GSA City of Firebaugh GSA City of Gustine GSA City of Los Banos GSA City of Mendota GSA City of Newman GSA Madera County GSA Merced County Delta-Mendota GSA San Joaquin River Exchange Contractors GSA Turner Island Water District-2 GSA 3349571v9/21603.0005 22 EXHIBIT "C" ADAPTIVE MANAGEMENT PROCESS FOR THE SUBBASIN The Groundwater Sustainability Agencies ("GSAs") in the Delta-Mendota Subbasin (the "Subbasin") acknowledge that the Sustainable Groundwater Management Act ("SGMA") has a long-term horizon to achieve sustainability and that management of the Subbasin will require an iterative process on the part of the GSAs and the Coordination Committee to review groundwater conditions at least annually and propose revisions to underlying data,methodologies,assumptions, sustainable management criteria, projects, management actions, and other Subbasin-wide coordinated information as necessary to meet changing conditions. Accordingly, the GSAs in the Subbasin establish the following framework for addressing necessary changes to the GSP during the SGMA implementation period: 1. As a Subbasin-wide Activity, the Subbasin-wide GSP Consultant shall initiate a review of Subbasin-wide data within sixty (60) days after that data is due to be submitted by each GSA (the "Review"). As reporting dates vary based upon the Sustainable Management Criteria ("SMC"), this Review will be done on a regular basis and will be a regular agenda item on the Coordination Committee agendas. 2. The Review shall take into account all matters to be considered in the Annual Report pursuant to the DWR Regulations, section 356.2, including, but not limited to, changes in groundwater elevation, groundwater storage, subsidence,water quality and the status of minimum thresholds ("MTs") and interim milestones in the Subbasin GSP. 3. Should GSA activities result in either a) a pattern of data showing a downward trend (towards a MT exceedance), or b) a MT exceedance, the Coordination Committee (at the recommendation of the Plan Manager, a designated subcommittee, or the Subbasin-wide GSP Consultant) shall immediately notify the GSA and add the downward trend or exceedance information to the next Coordination Committee agenda packet. That GSA shall also be provided with a checklist to help evaluate possible causes of the MT downward trend or exceedance. 4. The GSA may request the Subbasin-wide GSP Consultant to coordinate such trend or exceedance information with that GSA's own consultant, as applicable. Within thirty(30) days of said notice, the GSA shall present a plan of action to the Coordination Committee to address how the GSA will mitigate any downward trend or exceedance and in what timeframe. The intent is for the Coordination Committee to discuss the mitigation plan in an effort to provide helpful ideas to the GSA. However, the GSA is solely responsible for the management actions within its boundaries and the costs to remedy the cause of the MT exceedance if it is attributed to activities occurring within such GSA's jurisdictional boundaries and/or that GSA is not operating within its Sustainable Yield (the "Responsible GSA"). At its sole cost and expense, the Responsible GSA may ask the Subbasin-wide GSP Consultant to further determine: (a)what caused the exceedance; (b) whether or not the Responsible GSA has control over the cause of the MT downward trend or exceedance; (c) whether it is an intra-basin impact from another GSA or an inter-basin impact by a neighboring Subbasin; and (d) whether or not the MT exceedance caused injury. 3349571v9/21603.0005 23 5. If there is a determination by the Subbasin-wide GSP Consultant that any MT downward trend or exceedance was caused by intra-basin impacts from another GSA within the Subbasin, such determination will be brought back to the Coordination Committee for further discussion and potential Subbasin-wide action. The Coordination Committee will work with other GSAs to increase existing GSA coordination to remedy the issues causing the downward trend or exceedance and to remedy the responsibility of costs associated with identifying and mitigating the exceedance. 6. If there is a determination that any MT exceedance was caused by a neighboring subbasin, this should be brought back to the Coordination Committee for further discussion and potential Subbasin-wide action. Costs for initial investigation by the Subbasin-wide GSP Consultant of a MT downward trend or exceedance across Subbasin boundary lines(such as water quality issues, subsidence, or depletion of interconnected surface waters) shall be shared amongst the Coordination Committee equally between Coordination Committee members (i.e. 1/7th each). The Coordination Committee will work with other subbasins to expand existing inter-basin coordination to remedy the issues causing the downward trends or exceedances. 7. In the event that the GSA is unable to mitigate or avoid future MT exceedances with its existing projects and management actions("P&MAs")and within the timeframe presented to the Coordination Committee, the GSA may seek assistance from the Coordination Committee. The Coordination Committee may recommend policies or programs to the GSA that the GSA could,in its discretion,adopt to remedy the existence of a MT exceedance and to avoid undesirable results. Furthermore, the Coordination Committee may consider setting triggers in the GSP for GSAs to implement management actions [e.g., sequencing P&MAs] or work on alternative options. 3349571v9/21603.0005 24 The Coordination Ori a r011ing Within 60 days of Committee provides Within 30 days immediate notice to each basis,annual deadline to submit receiving such GSA with a MT information, information,the GSA data and Exceedance&discusses Subbasin-wide with MT Exceedances 1rifOYrilatlOri 1S at the following consultant Reviews presents a mitigation due to the data for MT Coordination Committe plan&timeline to the Subbasin-wide Exceedances& meeting.The GSA is Coordination potential trends in provided with a checklist to Committee COriSUltarit. help evaluate possible said exceedances causes. GSA may decide to have Subbasin consultant do Within timeframe further research, presented by GSA, at its sole cost. GSA presents to Within timeframe Coordination presented by GSA, Committee MT Exceedances mitigation plan that are still occun•ing. is successful. GSA& Coordination GSA and Subbasin- Committee wide GSP Consultant recommend triggers in GSP for determine that MT implementing Exceedance is caused P&MAs by neighboring Coordination GSA& Subbasin GSA(s)or Committee meets oordination intra-basin Subbasin &negotiates with Committee work GSA impacts neighboring on alternative Subbasin GSA options. GSA(s) 334957lv9 21603.0005 EXHIBIT "D" SUBBASIN-WIDE ACTIVITIES (Initial List) • Preparation of and submittal of annual reports • Preparation of annual estimates of Coordinated Plan Expenses presented by the Secretary and any updates to such estimates, in accordance with the budgetary requirements of the respective Parties • Plan Manager costs and expenses for the work directed by the Coordination Committee • Subbasin-wide Consultant costs and expenses, including,but not limited to, collecting information from the Subbasin GSAs,processing technical data, and those identified in Exhibit"C" for the Adaptive Management Process for the Subbasin • Preparation of and submittal of five-year updates to the GSP • Revisions to this MOA • Subbasin-wide outreach • Litigation costs for an attorney coordinating the GSAs for litigation filed against the entire Subbasin • Costs for initial investigation by the Subbasin-wide GSP Consultant of a MT downward trend or MT exceedance across Subbasin boundary lines 3349571v9/21603.0005 26