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McMullin Area Groundwater Sustainability Agency

Raisin City Water District

Mid Valley Water District

Joint Board of Directors Workshop

Wednesday April 11, 2018

2:00 P.M. Boards Convene

Kerckhoff Park, Scout Hut Building

15061 W. “G” Street

Kerman, CA 93630

MINUTES

1. CALL TO ORDER

The meeting was called to order at 2:05 p.m.

Directors Present:

Don Cameron (Raisin City WD, MAGSA)

Jerry Rai (Raisin City WD, MAGSA)

Matt Abercrombie (Mid-Valley WD, MAGSA)

Brian Pacheco (MAGSA)

Jeevan Singh (Mid-Valley WD, MAGSA)

Gere Gunlund (Raisin City WD)

Doug Moles (Raisin City WD)

Gagan Batth (Raisin City WD)

Bakh Sran (Mid-Valley WD)

Shavinder Sran (Mid-Valley WD)

Ariel Namvar (Mid-Valley WD)

2. PUBLIC COMMENT

There were no public comments.

3. SUSTAINABLE GROUNDWATER MANAGEMENT ACT UPDATE AND WORKSHOP

A. The Boards will receive updates regarding:

a. The Sustainable Groundwater Management Act (SGMA)

Ms. Krattiger presented information regarding SGMA. A copy is provided as a

part of these minutes.

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b. Current Funding Efforts

Mr. Hopkins presented information on the current funding efforts and costs of

state intervention. A copy is provided as a part of these minutes.

B. The Boards will discuss strategies for working collectively on SGMA compliance.

The Boards discussed how projects and programs may be analyzed and funded. In general,

the Boards would like cost to be a primary consideration in selecting projects to analyzed.

It was noted that the GSA should also begin development of policies related to

management actions and groundwater credits.

Several projects and programs were introduced. The consensus was that brief analyses

should be prepared and then a ranking system developed that would identify the projects

that are likely to yield cost-effective results. These rankings could then be presented to the

Boards and the agencies could then better decide which would lead the development.

4. ADJOURNMENT

The meeting was adjourned at 3:16 pm

McMullin Area GSA

Fee Study

April 11, 2018

Alison Lechowicz

Project Manager

Proposition 218 Requirements

▪ Fees must be based on the reasonable cost of

providing service GSA’s annual budget

▪ Fees must proportionally recover costs from

ratepayers (i.e. no subsidies) $/acre fee

▪ Project team reviewed other revenue recovery methods such

as pumping fees ($/AF) and well fees ($/well capacity)

▪ MAGSA does not have detailed pumping data available

▪ Prop 218 procedural requirements

▪ Mail a notice to property owners

▪ Hold a public hearing minimum of 45 days later

▪ Absent majority protest, MAGSA may adopt fees

Fee Calculation

Option 1 Option 2

All parcels

Excludes parcels of

2 acres or less

Estimated Budget $2,175,000 $2,175,000

Acres 114,749 114,475

Fee $18.95 $19.00

($/AF) ($/AF)

Total difference in fee calculation: $0.05/acre

Fee Option Comparison

▪ Difference is $0.05/acre per year

▪ Impacts 274 acres

▪ Parcels 2 acres or less contribute about $5,200 per

year under Option 1 (0.2% of revenue)

▪ As a point of comparison, the budget includes

contingency of 15% or about $284,000 annually

Fee Calculation Notes

▪ Fees in the Prop 218 notice are the max fees that

may be adopted

▪ Board may lower fees without conducting another

Prop 218 notice and hearing process

FY2019 FY2020 FY2021 FY2022 FY2023Budget $2,175,000 $2,175,000 $2,175,000 $2,175,000 $2,175,000 Less Grant ($107,000) ($107,000)Net $2,068,000 $2,068,000 $2,175,000 $2,175,000 $2,175,000

Option 1 $18.02 $18.02 $18.95 $18.95 $18.95 Option 2 $18.07 $18.07 $19.00 $19.00 $19.00

Impacts on Ratepayers

▪ Fees are needed to comply with SGMA and fund the

GSP and basin monitoring activities

▪ Non-compliant GSA could be subject to fees imposed

by the State Water Resources Control Board of up to

$195/acre

▪ Next Steps:

▪ Print and mail Prop 218 notices by April 23

▪ Hold a public hearing on June 6

▪ Tabulate protest votes

▪ Absent a majority protest, MAGSA may adopt the fees

Questions?

McMullin Area GSA

SGMA Workshop

April 11, 2018

Finances

• Draft Budget - $19/ac, $2.18M / year

• Manage and Administer GSA

• Groundwater Sustainability Plan

• Legal Defense

• Project Development

• Monitoring and Data Management

Other Funding Opportunities

• Proposition 1 - $214,000

• USBR Water Smart Grants

• NRCS Regional Conservation Program Partnership

• DWR Integrated Regional Water Management

• USDA Loans

• Other Programs

SWRCB Intervention

Date Trigger

July 1, 2017 Failure to form a GSA.

January 31, 2020 Failure to adopt and/or adequately implement a

groundwater sustainability plan for a basin in a critical

condition of overdraft.

January 31, 2022 Failure to adopt and/or adequately implement a

groundwater sustainability plan in all other high- or

medium-priority basins.

January 31, 2025 There are significant depletions of interconnected

surface waters and the sustainability plan is not being

implemented adequately.

SWRCB Fees

Fee Amount

Base Filing Fee $300/well

Unmanaged Rate $25/AF

Probationary Rate $40/AF

Interim Plan Rate $55/AF

Special Studies As determined

Late Fee 25% per month

SWRCB Fee Example 1

Fee Total Cost Cost / Acre

Unmanaged Area $4,675 $94

Probationary $7,300 $146

Interim Plan $9,925 $199

50 Irrigated Acres

1 Well, Pumping 3.5 AF/ac (175 AF Total)

SWRCB Fee Example 2

Fee Total Cost Cost / Acre

Unmanaged Area $13,725 $92

Probationary $21,600 $144

Interim Plan $29,475 $197

150 Irrigated Acres

2 Wells, Pumping 3.5 AF/ac (525 AF Total)

SWRCB Intervention

• Each pumper will work directly with SWRCB.

• SWRCB is likely to only to curtail pumping.

• SWRCB fees will not build projects.

• SWRCB fees will not acquire surface water

• Issues addressed at the GSA level?

• Issues addressed at the District level?

Projects and Programs

Provost & Pritchard Consulting Group

Potential Project and Program List

Provost & Pritchard Consulting Group

Project MAGSA MVWD RCWD

James ID Excess Water X X X

McMullin Recharge Phase 2 X X

McMullin Recharge Phase 3 X

MVWD Pump Expansion X X

MVWD In-Lieu System X

MVWD On-Farm Recharge X

MVWD Direct Recharge X

Grantland Direct Recharge X

Grantland In-Lieu Recharge X

Grantland On-Farm Recharge X

City of Fresno RWTF Recharge X X

Fresno ID Program X X X

Southwest Banking Participation X X

Consolidated ID Recharge Program X X

Wristen Ditch Direct Recharge X

Stinson-McMullin Canal X X

Big Sandridge Pump Station X X

Regional Water Bank X

Land Banking X

Water Market Development X

Data Management System X

Next Steps

• Create a viable, successful GSA

– Serves the Public’s Interest

• Works with Regional Partners

– Develop Projects and Programs

• Develop Long-Term Strategy

– Water Acquisition

– Infrastructure Development

– Financing

– Pumping Credits

Website: www.mcmullinarea.org

Randy Hopkins

Provost & Pritchard Consulting Group

rhopkins@ppeng.com

McMullin AreaGroundwater Sustainability Agency

McMullin AreaGroundwater Sustainability Agency