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HomeMy WebLinkAboutStaff Report 5.A 05/01/2017Agenda Item #5.A zs5$ DATE: May 1, 2017 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works and Utilities Leah Walker, P.E. — Environmental Services Manager SUBJECT: Resolution to Approve Joint Exercise of Powers Agreement Creating the Petaluma Valley Groundwater Sustainability Agency and Appoint a Primary Director and Alternate Director to Groundwater Sustainability Agency Board RECOMMENDATION It is recommended that the City Council adopt a Resolution Approving a Joint Exercise of Powers Agreement (JPA) Creating the Petaluma Valley Groundwater Sustainability Agency (GSA) and Appoint a Primary Director and Alternate Director to the GSA Board. BACKGROUND At Council meetings and workshops on November 2, 2015, November 14, 2016, and December 19, 2016, the City Council expressed interest in participating in the formation of a Groundwater Sustainability Agency and cooperating with other agencies towards the responsible, long -term and sustainable management of the Petaluma Valley Groundwater Basin. The attachments to this report provide background on the Sustainable Groundwater Management Act (SGMA), and the steps taken with other agencies in Sonoma County to meet SGMA requirements. The GSA - eligible entities in the Petaluma Valley Basin [Sonoma County Water Agency (SCWA), Sonoma County, City of Petaluma, North Bay Water District (NBWD), and Sonoma Resource Conservation District (SRCD)] have collectively developed a JPA to create a single basin -wide GSA for the Petaluma Valley groundwater basin, and the governing board or council of each entity is being asked to approve the JPA. The staff report also provides an alternative resolution setting a public workshop to consider authorizing the City of Petaluma to become a Groundwater Sustainability Agency (GSA) over that portion of the Petaluma Valley Groundwater Basin that lies within the City limits of the City of Petaluma, in the event the City Council believes exercising an option different from the staff recommendation is warranted. DISCUSSION Summary of Prol4ress Since Last Workshop: Since the Council last discussed GSA formation in December 2016, the primary issues of concern have been addressed. The voting structure in the JPA maintains the requirement that the City and the County must vote in the affirmative for any supermajority item such as budget, fees, and regulations. The Alternate Director may be an elected council member or executive staff, whereas the Primary Director must be an elected. The indemnity clause has been revised as requested by the City. The startup costs for the GSA have been reduced and the initial funding allocation, presented herein, is considerably lower than previously reported for either GSA option. The proposed JPA has been reviewed in detail by staff and City Attorney to assure that the City's interests are met. Furthermore, a detailed staffing plan has been developed utilizing existing Member Agency's staff to provide administrative, technical, outreach and grant services to allow the Basin -wide GSA to begin fiinctioning upon approval of the JPA by members. A loan from the County Treasurer was investigated as a source of initial start-up funding, but has since determined not to be feasible. Consequently, the GSA - eligible entities within the basin would be required to contribute start -up resources as outlined in the JPA and presented herein. All Member Agencies are currently planning to review the JPA for adoption by May 1. Attachment 1 is a resolution for Council adoption for approval of the JPA and appointment of the Primary and Alternate Directors of the GSA Board. Attachment 2 is an alternative resolution setting June 5, 2017, for a public workshop on the City GSA option. Attachment 3 is a technical memorandum that provides a detailed background of SGMA, including details on the basin -wide and City GSA options. Basin -wide Petaluma Valley GSA: The GSA formation committee, comprised of staff representatives from the five GSA - eligible agencies in the Petaluma Valley Groundwater Basin, developed the proposed JPA to create a basin -wide GSA as included in Attachment 4. Key elements of the JPA include: Governance: • The GSA governing board will be comprised of one representative, with one vote each, from each of the five GSA - eligible entities in the basin. • The GSA board will establish a meeting schedule. For purposes of first year budgeting, it is anticipated that the GSA board will meet six times per year. • The JPA provides for the admittance of new members if an entity is GSA eligible, agrees to the terms of the JPA, and pays any applicable financial obligations. • Each JPA member shall appoint a Primary Director from the elected or appointed officials of the member's governing body, and an Alternate Director from the same members or from the executive staff of the member agency. • Routine business of the GSA would be approved by simple majority vote of the Board while a two - thirds super - majority would be required for approval of critical items such as Groundwater Sustainability Plan (GSP) adoption, modification or alteration; assessments, charges and fees; regulations and ordinances; annual budget; and appointment of a Fiscal Agent and Treasurer. 2 • The vote of the Directors for the City and County are required to approve a super - majority item, giving City or County effective veto power to any critical issue. • A unanimous vote of the Directors is required to impose financial contributions on members. This is intended to ensure that no member is assessed a financial contribution without its consent. • The JPA enumerates the powers of the GSA as specifically granted by SGMA. In addition, the JPA expressly states that nothing in the JPA is intended to limit the powers of the member agencies. The GSA should, to the extent possible, coordinate with the other GSAs within the County for administration, public communication and outreach, and frameworks to support groundwater management. The JPA requires the GSA to hold public meetings periodically to review the JPA and discuss whether any changes are necessary or advisable. • The JPA authorizes the Board to appoint an Administrator, who would handle day -to -day activities of the GSA. The Administrator may be an employee of one of the member agencies. The JPA designates the SRCD as the initial Interim Administrator. • The JPA requires the Board to designate a Plan Manager to oversee the development and implementation of the GSP. The proposed staffing plan envisions the technical staff of SCWA assuming this role. • The Sonoma County Treasurer shall serve as the initial Treasurer for the GSA. The Fiscal Agent shall be appointed by the Board. • A member may be terminated for breach of the JPA subject to unanimous consent of the remaining Board directors. A member's voting privileges may be suspended for failure of Director or Alternate to attend three consecutive meetings. Advisory Committee: • An advisory committee (AC) of 10 members will provide input to the GSA board on GSP development, implementation of GSA policies, regulations, and other matters. • The meeting schedule of the AC is not spelled out in the JPA; six AC meetings are included in the first year budget. • Each GSA member will appoint one AC member, and the GSA board will collectively appoint the remaining five members to represent special interests in environment, rural residential well owners, business community, agricultural, and at -large community interest. Advisory Committee members must live in the GSA basin or represent an organization with a presence in the GSA basin. • Advisory Committee members serve a two -year term with no term limits. Funding: Initial start -up funding for the GSA is needed until a rate and fee structure is implemented, and the GSA begins to collect fees from property owners within the GSA boundaries. This finding would be provided by member agencies based on the commitment levels as shown below. Any expended commitments by a member may be reimbursed by the GSA in the future to the extent other funding sources, including fees, are available and to the extent permitted by law. 3 TABLE: Member Agencv Financial Commitments for Year 1 Member Total Initial Commitment Due by July 31, 2017 Remainder provided as services, or billed by the GSA as needed Sonoma Resource Conservation District $ 20,000 0 $ 20,000 North Bay Water District $ 20,000 $ 6,600 $ 13,400 City of Petaluma $143,333 $43,000 $100,333 County of Sonoma $143,333 1 $43,000 1 $100,333 Sonoma County Water Agency $143,333 1 $43,000 1 $100,333 • On -going funding will rely on future rate structure based on property - related fees established in accordance with Propositions 218 and 26 requirements. All properties in the GSA boundary may pay an annual fee based on a flat rate per parcel, plus a rate based on the size of a parcel and groundwater use per parcel, or a combination of these or other parameters. The formula for fair cost allocation to all constituents has not been determined and would be among the first order of business for the new GSA Board. It is proposed that three GSAs in the County coordinate on the future rate studies and legal analysis. • The GSA will determine how domestic wells are treated within the basin. Domestic wells are referred to as "de minimis users" in SGMA, which use less than 2 acre -feet per year for domestic purposes. The GSA will decide whether to regulate and whether to assess fees, but the GSA cannot require metering of de minimis users. Furthermore, SGMA prohibits the imposition of fees on de minimis users unless they are regulated by the GSA. Thus, the GSA may not be able to assess fees on a potentially large number of parcels within the basin until it adopts regulations, which not occur until the GSP is completed in several years. This could impact the ability of the GSA to timely generate sufficient revenues. • State grant funding is expected to be available for some portion of the costs to develop the GSP and implementation projects. The Sonoma County GSA - eligible agencies have already received state funding for meeting facilitation and development of a uniform groundwater data system. All three GSAs in the County would work cooperatively to better compete for future grants and funding opportunities. • Cost Estimate: The latest cost analysis prepared by the GSA formation workgroup and City staff is detailed in Attachment 6. The initial Basin -Wide GSA costs for Year 1 are $470,000 and for Year 2 are $560,000, for administrative /operational activities, advisory body coordination, public involvement, GSP preparation, ongoing monitoring, and the rate study. Estimated costs are lower than previous estimates to reflect fewer board meetings per year and later start of GSP development. The City's share of the first year GSA start -up costs is $143,333 as shown in the table above. This estimate does not include City cost to support and participate in GSA activities, which would include an estimated $27,000 per year in staff time. In the firture, the GSA rates are expected to be sufficient to reimburse the start -up costs, however that cannot be guaranteed. • Staffing Plan: The cost estimates for startup of the GSA have been reduced and uncertainties clarified since the December workshop because SRCD has offered to serve 4 as the Interim Administrator for up to one year and also to provide well monitoring services. SCWA has agreed to provide services for technical support, grant administration, and outreach. Draft scopes of work for these activities are included in Attachment 6. It is anticipated that the GSA board would approve interagency service agreements with these member agencies at its first meeting to assure uninterrupted startup of the new agency. City GSA Alternative: Due to the required timing of the alternative to the recommended action, an additional resolution is presented with this staff report. As an alternative, the Council may choose to form a City GSA only for those parts of the Petaluma Valley Basin that are within City limits. If the Council chooses this option, a public workshop must be held, as addressed in the alternate resolution (Attachment 2). It is proposed that the date for a public workshop be June 5, 2017. After the public workshop, the City would submit required documents to DWR by the SGMA deadline of June 30, 2017. A City GSA would not include the entire City because portions of the City lie outside the Petaluma Valley Groundwater Basin. SCWA, Sonoma County, and SRCD may also be eligible entities under the City GSA option because their boundaries encompass the City; however, it is uncertain as to whether they would opt to participate formally in that role. If the Council opts to pursue a City GSA, there are strong arguments in favor of recognizing a City GSA, because within Petaluma City limits, of all the GSA eligible entities in the Petaluma basin, only the City of Petaluma possesses the power to regulate land use, and the City possesses the broadest police powers, and is the sole retail water supplier. Depending on how other Member Agencies choose to file, DWR may require the City to begin a 90 -day process to negotiate with other proposed GSAs that boundaries that overlap with City boundaries. The associated milestones and schedule for this option are shown in Attachment 5. The City GSA option would involve the following key elements: • City Council serves as GSA board, with or without additional members representing other GSA - eligible agencies. • The City Council would appoint a Groundwater Sustainability Advisory Committee (GSAC) to represent the interests of all beneficial uses and users of groundwater within the GSA boundary. Members should represent commercial and industrial well owners, agricultural and institutional well owners, the City's well field operators, environmental interests, economic development interests, residential including irrigation well interests, and an at -large community interest. A recommendation for the GSAC make up would be developed after the City has held a public workshop on formation of a City GSA. • City would continue to work cooperatively with the other GSAs, including their members' agencies, as it has always done on regional water resources matters, on the GSP, grants, MOUs for operational elements such as monitoring and GSP management, and other cost sharing agreements. • City commits to participate in the planning process to create a Petaluma Valley Basin - wide GSP, including paying the fair share of the expenses attributed to the City GSA and approving the final document. The City's share of the expenses for the GSP would be negotiated with the rural GSA, and incorporated into the new GSP's fee structure. • City commits to participate in information and resource sharing with other GSAs in the County as described with the Basin -wide GSA option. City commits to coordinated administration and enforcement of the GSP after adoption by both GSAs in the Petaluma Valley Basin. Administrative formation steps include publishing a public notice of the intent to form a GSA; holding a public hearing; and adopting a resolution of formation, by -laws, ordinances, and new authorities for the new GSA, as needed. Refer to milestone schedule in Attachment 5 for formation steps and timeline. Cost Estimate: The initial cost estimate for this option was $273,000 per year. The estimate was based on a GSP cost of $850,000 over five years plus a 15% contingency and assuming a 40% City cost share. The annual GSA costs are sensitive to the assumed GSP cost split. At a 25% City cost share for the GSP, the annual GSA costs would be about $244,000 per year and at 50 %, it would be $293,000. The City's share of the GSP would be negotiated once the costs of the GSP and other pumpage data are known. Recommendation and Next Steps: It is recommended that the Council approve the JPA to create a basin -wide GSA for the Petaluma Valley Groundwater Basin to meet the requirements of SGMA. In addition, it is recommended that Council appoint a Primary Director and Alternate Director for the GSA board to represent the City at the first meeting scheduled to be held in June, prior to the SGMA deadline of June 30, 2017 for filing with the Department of Water Resources (DWR). Attachment 1 contains the resolution for this action, and if approved, would initiate the following steps: • Advise Petaluma Valley Basin GSA workgroup of the Council's direction. • Attend initial GSA Board meeting and required public workshop in June 2017. At first GSA meeting, consider approval of interlocal agreements between GSA and SRCD for administration and monitoring services and with SCWA for outreach, grant administration and technical services. Basin -wide GSA submits Notice of Intent (NOI) to DWR by June 30, 2017. Second meeting of GSA Board proposed in August 2017. FINANCIAL IMPACTS As noted, costs associated with the Basin -wide GSA are expected to be $43,000 in current fiscal year and $100,333 in 2017/18. Funds are to be paid from Water Enterprise Fund, account code 6700.67100.54140 and are included in the existing and proposed budgets. ATTACHMENTS 1. Resolution to Approve Joint Exercise of Powers Agreement (JPA) Creating the Petaluma Valley Groundwater Sustainability Agency (GSA) and Appoint a Primary Director and Alternate Director to GSA Board 2. Resolution to Set date of public workshop for the purpose of forming a City GSA 3. Joint Exercise of Powers Agreement 4, Technical Memorandum RE: Detailed Background Regarding SGMA Compliance and GSA Formation Status 5. GSA Formation Milestone Schedule 6. Cost Summary for GSA Activities Years 1 and 2 7. Proposed Scopes of Work for Initial GSA Activities 6 Attachment 1 RESOLUTION APPROVING JOINT EXERCISE OF POWERS AGREEMENT (JPA) CREATING THE PETALUMA VALLEY GROUNDWATER SUSTAINABILITY AGENCY (GSA) AND APPOINTING A PRIMARY DIRECTOR AND ALTERNATE DIRECTOR TO GSA BOARD WHEREAS, Senate Bills 1168 and 1319, and Assembly Bill 1739, known collectively as the Sustainable Groundwater Management Act of 2014 (SGMA), became law on September 16, 2014; and WHEREAS, SGMA initially became effective on January 1, 2015; and WHEREAS, the stated purpose of SGMA, as set forth in California Water Code section 10720. 1, is to provide for the sustainable management of groundwater basins at a local level by providing local groundwater agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater; and WHEREAS, SGMA gives local agencies including cities, counties and water districts or agencies, authority to sustainably manage groundwater over the long -term; and WHEREAS, SGMA requires the designation of Groundwater Sustainability Agencies ( "GSAs ") for the purpose of achieving groundwater sustainability through the adoption and implementation of Groundwater Sustainability Plans ( "GSPs ") or an alternative plan; and WHEREAS, SGMA gives broad powers to GSAs to achieve sustainability including investigations, registration of groundwater wells, determination of sustainable yield of a basin, measurement and limitation of groundwater extractions, assessment of fees for groundwater management, and enforcement; and WHEREAS, a GSA is required to assess the conditions in its local basin and to adopt a locally -based Groundwater Sustainability Plan (GSP); and WHEREAS, SGMA requires the formation by June 30, 2017 of a new GSA for each medium and high- priority groundwater basin as designated by the California Department of Water Resources (DWR); and WHEREAS, GSPs must be completed by January 31, 2022 and be designed to achieve basin sustainability within 20 years of adoption; and WHEREAS, the Petaluma Valley Groundwater Basin, basin number 2 -01 in DWR Bulletin No. 118, is designated by DWR as medium - priority; and WHEREAS, the Petaluma Valley Groundwater Basin stretches from Penngrove south to the Marin County line and San Pablo Bay, encompassing about 94 of the approximately 146 square miles of the Petaluma River Watershed, and includes approximately 77 percent of the land area within the City of Petaluma; and WHEREAS, The Sonoma County Water Agency and the City of Petaluma are currently engaged in a 3 -year United States Geological Survey study of the Petaluma Valley basin initiated in September 2014, to analyze groundwater use and conditions; and WHEREAS, SGMA defines the entities eligible to act as a GSA as local agencies that have water supply, water management, or land use responsibilities within a groundwater basin; and WHEREAS, the GSA - eligible entities in the Petaluma Valley Groundwater Basin are the City of Petaluma, the County of Sonoma, the Sonoma County Water Agency, the North Bay Water District, and the Sonoma Resource Conservation District; and WHEREAS, the City and other GSA - eligible entities in the Petaluma Valley Groundwater Basin have been working collaboratively since 2015 to form a basin -wide GSA; and WHEREAS, the City Council held meetings and workshops to discuss GSA formation on November 2, 2015, November 14, 2016, and December 19, 2016; and WHEREAS, public workshops have been held in the Petaluma Valley basin by the GSA - eligible entities regarding SOMA and GSA formation on November 9, 2015, August 17, 2016, and March 23, 2017; and WHEREAS, SGMA authorizes a combination of local agencies to form a GSA by entering into a joint powers agreement; and WHEREAS, the GSA - eligible entities in the Petaluma Valley Groundwater Basin, individually and collectively, have the goal of cost effective sustainable groundwater management that considers the interests and concerns of all beneficial uses and users of groundwater; and WHEREAS, the GSA - eligible entities within the Petaluma Valley Groundwater Basin are entities authorized by the Joint Exercise of Powers Act (Chapter 5 of Division 7 of Title 1 of the California Government Code) ( "Act ") to create a GSA for the purpose of jointly exercising those powers granted by the Act and any additional powers which are common among them; and WHEREAS, the GSA - eligible entities within the Petaluma Valley Groundwater Basin have developed a Joint Execution of Powers Agreement for approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 2. The Joint Exercise of Powers Agreement creating the Petaluma Valley Groundwater Sustainability Agency, a draft of which is Attachment 4 to the staff report accompanying this resolution, and which is hereby made a part of this resolution by this reference as if set forth in this resolution in full, is hereby approved, and the Mayor is authorized and directed to execute an agreement substantially in accordance with the draft Joint Exercise of Powers Agreement on behalf of the City. 3. [insert Councilmember name] is hereby appointed as a Primary Director on behalf of the City of Petaluma for the Petaluma Valley Groundwater Sustainability Agency. 4. [insert Councilmember name or title of executive staff]_ is hereby appointed as an Alternate Director on behalf of the City of Petaluma for the Petaluma Valley Groundwater Sustainability Agency. Attachment 2 RESOLUTION SETTING A PUBLIC HEARING TO CONSIDER AUTHORIZING THE CITY OF PETALUMA TO BECOME A GROUNDWATER SUSTAINABILITY AGENCY (GSA) OVER THAT PORTION OF THE PETALUMA VALLEY GROUNDWATER BASIN THAT LIES WITHIN THE CITY LIMITS OF THE CITY OF PETALUMA WHEREAS, Senate Bills 1168 and 1319, and Assembly Bill 1739, known collectively as the Sustainable Groundwater Management Act of 2014 (SGMA), became law on September 16, 2014; and WHEREAS, SGMA initially became effective on January 1, 2015; and WHEREAS, the stated purpose of SGMA, as set forth in California Water Code section 10720. 1, is to provide for the sustainable management of groundwater basins at a local level by providing local groundwater agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater; and WHEREAS, SGMA gives local agencies including cities, counties and water districts or agencies, authority to sustainably manage groundwater over the long -term; and WHEREAS, SGMA requires the designation of Groundwater Sustainability Agencies ( "GSAs ") for the purpose of achieving groundwater sustainability through the adoption and implementation of Groundwater Sustainability Plans ( "GSPs ") or an alternative plan; and WHEREAS, SGMA gives broad powers to GSAs to achieve sustainability including investigations, registration of groundwater wells, determination of sustainable yield of a basin, measurement and limitation of groundwater extractions, assessment of fees for groundwater management, and enforcement; and WHEREAS, a GSA is required to assess the conditions in its local basin and to adopt a locally -based Groundwater Sustainability Plan (GSP); and WHEREAS, SGMA requires the formation by June 30, 2017 of a new GSA for each medium and high - priority groundwater basin as designated by the California Department of Water Resources (DWR); and WHEREAS, GSPs must be completed by January 31, 2022 and be designed to achieve basin sustainability within 20 years of adoption; and WHEREAS, the Petaluma Valley Groundwater Basin, basin number 2 -01 in DWR Bulletin No. 118, is designated by DWR as medium - priority; and WHEREAS, the Petaluma Valley Groundwater Basin stretches from Penngrove south to the Marin County line and San Pablo Bay, encompassing about 94 of the approximately 146 square miles of the Petaluma River Watershed, and includes approximately 77 percent of the land area within the City of Petaluma; and 1 WHEREAS, The Sonoma County Water Agency and the City of Petaluma are currently engaged in a 3 -year United States Geological Survey study of the Petaluma Valley basin initiated in September 2014, to analyze groundwater use and conditions; and WHEREAS, SGMA defines the entities eligible to act as a GSA as local agencies that have water supply, water management, or land use responsibilities within a groundwater basin; and WHEREAS, the City overlies a portion of the Petaluma Valley Groundwater Basin and as the sole local agency with water supply, water management and land use responsibilities within the City's corporate boundaries, is a GSA - eligible entity; and WHEREAS, the City Council held meetings and workshops to discuss GSA formation on November 2, 2015, November 14, 2016, and December 19, 2016; and WHEREAS, public workshops have been held in the Petaluma Valley basin by the GSA - eligible entities regarding SGMA and GSA formation on November 9, 2015, August 17, 2016, and March 23, 2017; and WHEREAS, the City desires to form a GSA to manage groundwater resources in the basin beneath and within the City's jurisdictional boundaries; and WHEREAS, the City intends that its GSA work cooperatively with the other GSA(s) that have formed or will be formed in the Petaluma Valley basin to prepare one or more GSPs by January 2020, so that groundwater resources in the Petaluma Valley basin will be properly managed and sustainable in accordance with the provisions of SGMA; and WHEREAS, SGMA grants GSAs powers and authorities to ensure sustainable groundwater management; and WHEREAS, Establishing a GSA within the City's jurisdictional boundaries will, among other things, satisfy the requirements of SGMA within the City, establish the City as the local groundwater management agency within City limits, permit the City's use of the authority granted by SGMA, in addition to the City's existing powers as a California charter city, including its land use, police and regulatory powers, and its status as a provider of retail water supply within City limits and to users outside the City, to fulfill the purposes of SGMA and provide for the ongoing health and sustainability of the Petaluma Basin, and preserve access to grant funding and other opportunities available to GSAs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 0 2. The City Manager is hereby authorized and directed to give notice that a public hearing and workshop will be held on June 5, 2017, to consider authorizing the City of Petaluma to become a GSA over that portion of the Petaluma Valley Groundwater Basin that lies within the City limits of the City of Petaluma, and to take all other steps necessary and convenient to permit the City of Petaluma to become and assume the powers and obligations of a GSA in accordance with SGMA requirements. r- Attachment 3 Final Draft April 5, 2017 JOINT EXERCISE OF POWERS AGREEMENT creating the PETALUMA V GROUNDWA SUSTAINABILITY_ AG Table of Contents RECITALS........................................................................................................... ............................... 1 AGREEMENTTERMS ....................................................................................... ............................... 2 ArticleI: Definitions ........................................................................................... ............................... 2 Section1.01 —Definitions .................................................................................... ............................... 2 ArticleII: Agency Creation ................................................................................ ............................... 3 Section 2.01 — Creation of the Agency ................................................................. ............................... 3 Section2.02 — Purpose of the Agency .................................................................. ............................... 3 ArticleIII: Term ................................................... ............................... ............. ............................... 3 Section3.01—Term ............................................................................................ ............................... 3 ArticleIV: Powers ...........................................................................................> ............................... 4 Section4.01— Powers ................... ............................... ..................................................................... 4 Section4.02 — Exercise of Powers ........... ............................... ................... ........ ........ .............. 5 Section 4.03 — Water Rights and Consideration of all Beneficial Uses and Users of Groundwater in theBasin ................................................................ ............................... ............................ 6 Section 4.04 — Preservation of Powers ............. ........ .................... ........ .... ............................... 6 ArticleV: Membership .................................................. .....I. ......... ................ ............................... 7 Section5.01— Members ........................ ........ ........ ......... ........ `................ ............................... 7 Section5.02 —New Members ............... ....`... ......... ......... ........................... ............................... 7 Article VI: Directors and Officers .................................................................... ............................... 7 Section 6.01— Board of Directors,.... : .......... ................................ ............................... 7 Section 6.02 — Directors and Alternates .......... ................................................ ............................... 7 Section 6.03 - Officers of the Board ..... ........:.. ............................................... ............................... 8 Section 6.04 —Appointment of Officers of the Board .......................................... ............................... 8 Article VII:: Board Meetings and Actions .......................................................... ............................... 8 Section7.01 — Initial Meeting .... ........................................................................ ............................... 8 Section 7.02 — Regular Meeting Schedule ............................................................ ............................... 8 Section 7.03 — Conduct of Board Meetings .......................................................... ............................... 8 Section7.04 — Quorum ........................................................................................ ............................... 8 Section7.05 —Voting ........................................................................................... ............................... 8 Section 7.06 — Supermajority Voting Requirement .............................................. ............................... 9 Section 7.07 — Unanimous Voting Requirement .................................................. ............................... 9 Article VIII: Board Committees ......................................................................... ............................... 9 Section 8.01 — Committees of the Board .............................................................. ............................... 9 Section 8.02 — Advisory Committee .................................................................... ............................... 9 Article IX: Operations and Management .......................................................... ............................... 10 Section 9.01 — Administrator and Plan Manager ................................................ ............................... 10 Section 9.02 — Legal Counsel and Other Officers .............................................. ............................... 10 i 11 Section 9.03 — Employees and Management ...................... ............................... Section 9.04 — Location of Public Meetings ....................... ............................... Section9.05 — Bylaws ........................................................ ............................... Section 9.06 — Official Seal and Letterhead ....................... ............................... Section 9.07 — Conflict of Interest Code ............................ ............................... Article X: Consideration and Financial Provisions .......... ............................... Section 10.01— Establishment of Funds ............................ ............................... Section 10.02 - Initial Agency Funding Commitments ..... ............................... Section10.03 —Fiscal Year ................................................ ............................... Section 10.04 — Treasurer and Annual Audit ........................... ................:.... Section 10.05 —Funds; Property; Bonds ...................... ......: ......... ....... .. Section10.06 —Budget ................. ............................... ........ ....................... Section 10.07 — Payments To The Agency ................... ......... ...................... Article XI: Relationship of Agency And Its Members........: . ............. ........ Section 11.01 — Separate Entity ................ ............................... ........ ........... Section 11.02 — Liabilities of the Agency Not Liabilities ofMembers............ Section 11.03 — Indemnity and Insurance ......... ........ ........ ............. Section 11.04 — Agreements With Member Agencies. ........ .................... Section 11.05 — Withdrawal of Members ................... ......... ....................... Section 11.06 — Termination of Members ...................... .. ............................... Section 11.07 — Continuing Obligations upon Withdrawal or Termination...... io S e t' 11 08 — Dissolution I .............................. 10 ............................... 10 ............................... 10 ............................... 11 .......I ....................... 11 ............................... 11 .............................1. 11 ............................... 11 ............................... 12 ............................... 12 .......................... 12 ..................... 12 .... ........... 12 ............................... 12 ......................... 12 ............................... 13 ............................... 13 ............................... 13 ............................... 13 ............................... 14 ............................... 14 14 cn ..... .......... .......... ............................................. ............................... Section 11.09 — Disposition of Property Upon Termination of Agency or Board Determination of Surplus............................. ........I ................................................................... ............................... 15 Article XIE Miscellaneous Provisions .............................................................. ............................... 15 Section 12.01 —Agreement Complete ................................................................ ............................... 15 Section12.02 Amendment .............................................................................. ............................... 15 Section 12.03 — Successors and Assigns ............................................................ ............................... 15 Section 12.04 — Dispute Resolution ................................................................... ............................... 16 Section 12.05 — Execution In Parts Or Counterparts .......................................... ............................... 16 Section 12.06 —Member Authorization ............................................................. ............................... 16 Section 12.07 — No Predetermination or Irretrievable Commitment of Resources .......................... 16 Section12.08 — Notices ...................................................................................... ............................... 16 Section 12.09 — Severability And Validity Of Agreement ................................. ............................... 17 Section 12.10 — Singular Includes Plural ........................................................... ............................... 17 SIGNATURELINES ......................................................................... ............................... EXHIBITA ........................................................................................ ............................... ii ....18 ...19 EXHIBITB ................................................................................................... ............................... 20 iii PETALUMA VALLEY GROUNDWATER SUSTAINABILITY AGENCY JOINT EXERCISE OF POWERS AGREEMENT THIS JOINT EXERCISE OF POWERS AGREEMENT ( "Agreement') forming the Petaluma Valley Groundwater Sustainability Agency ( "Agency ") is made and entered into as of Montb/Day/Year ( "Effective Date "), by and among the public agencies listed on the attached Exhibit "A" (collectively "Members" and individually "Member ") for the purpose of forming a Groundwater Sustainable Agency ( "GSA ") and achieving groundwater sustainability in the Petaluma Valley Groundwater Basin. referrer effectii 1 0720. providi necessE ( "GSA implen mediur. Valley Resour than Ju enterin and came action 'el by tance ncies i and )r all [rces; Juma Vater later A by WHEREAS, the Members are authorized by the Joint Exercise of Powers Act (Chapter 5 of Division 7 of Title 1 of the California Government Code) ( "Act ") to create the Agency for the purpose of jointly exercising those powers granted by the Act and any additional powers which are common among them; WHEREAS, the Members, individually and collectively, have the goal of cost effective sustainable groundwater management that considers the interests and concerns of all beneficial uses and users of groundwater; WHEREAS, the Members encourage the Agency, once formed, to consider available measures under SGMA and the SGMA regulations designed to promote sustainability and 1 f� efficient supervision of the Basin, including the potential for the establishment of management areas; WHEREAS, in order to promote efficiency and sharing of resources, the Members, individually and collectively, encourage coordination between and among GSAs in Sonoma County; and WHEREAS, the Members hereby enter into this Agreement to establish this Joint Powers Authority to form a GSA and undertake the management of groundwater resources pursuant to S GMA; AGREEMENT TERMS NOW THEREFORE, in consideration of the in covenants, and conditions set forth in this Agreement, the Section 1.01 —Definitions. As used in this Agreement, unless the terms hereinafter set forth shall be as follows: (a) "Act" shall mean the Joint Division 7 of Title 1 of the California Go amendments thereto. mutual promises, e as follows: of the set forth in Chapter 5 of 6500, et seq., including any (b) "Agreement" means this Petaluma Valley Groundwater Sustainability Agency Joint Exercise of Powers Agreement. (c) "Agency" shall mean the Petaluma Valley Groundwater Sustainability Agency, which is a separate entity created by this Agreement pursuant to the Act. (d) "Basin" shall mean the Petaluma Valley Groundwater Basin which is designated basin number 2 -01 in Department of Water Resources' Bulletin No. 118 and as its boundaries may be modified from time to time through the procedures described in California Water Code section 10722.2 or by the Department of Water Resources under its separate authority. (e) "Board of Directors" or "Board" shall mean the governing body of the Agency as established by Section 6.01 of this Agreement. (� "Bylaws" shall mean the bylaws adopted by the Board of Directors pursuant to Section 9.05 of this Agreement to govern the day -to -day operations of the Agency. (g) "Fiscal Year" shall mean July 1St through June 30th pursuant to Section 10.03 of this Agreement. (h) "Groundwater Sustainability Agency" or "GSA" shall have the meaning set forth in California Water Code section 107210). 2 16 Q "Groundwater Sustainability Plan" or "GSP" shall have the meaning set forth in California Water Code section 10721(k). 0) "Local Agency" or "Local Agencies" shall have the meaning set forth in California Water Code Section 10721(n). (k) ."Member" or "Members" shall mean the local agencies listed in the attached Exhibit "A" that have executed this Agreement, including any new Members that may subsequently join this Agency with the authorization of the Board, pursuant to Section 5.02 of this Agreement. 0) "Plan Manager" shall mean the person df preparation and implementation of the GSP and who has for submitting the GSP, GSP amendments, annual reps serving as the point of contact between the Agency and The Plan Manager shall be a professional engineer, hydrogeologist. (m) "Primary Director" and "Alternate 1 Alternate Director appointed by a Member pursuant rted by the Board to oversee the delegated management authority and five -year assessments and department of Water Resources. Pessional geologist or 'certified hall mean a Primary Director or 6.02 ofthisAvreement. (n) "Sustainable Groundwater Management Act" or "SGMA" shall mean the comprehensive groundwater legislation collectively enacted and referred to as the "Sustainable Groundwater Management Act" ( "SGMA ") as codified in California Water Code Sections 10720 et seq, and as may be amended in the future. Article II:. Agency Creation Section 2.01 Creation of the Agency There is hereby created a joint powers agency known as the Petaluma Valley Groundwater Sustainability Agency ("Agency"). The Agency shall be, to the extent provided by law, a public entity separate from the Members of this Agreement. ..............._....... The purpose of this Agreement, and the creation of the Agency, is to provide for the joint exercise of powers common to the Members, to specifically include powers granted by SGMA, for the purpose of cooperatively carrying out the requirements of SGMA, including, but not limited to, serving as the GSA for the Basin. Article III: Term Section 3.01 — Term. This Agreement shall become operative on the Effective Date provided that at least two of the Members listed in Exhibit A have executed this Agreement by said date. If an eligible agency listed in Exhibit A has not executed this Agreement by May 16, 2017, its membership will be subject to the process for inclusion of new Members set forth in Section 5.02; provided, 3 Cq however, that if an eligible agency is diligently pursuing approval of this Agreement by its governing board and has obtained governing board approval not later than May 26, 2017, then that agency may execute this Agreement and become a Member without complying with Section 5.02. This Agreement shall remain in effect until terminated by the unanimous written consent of all then active Members or until there are less than two Members remaining in the Agency; provided, however, that this Agreement shall remain in effect during the term of any contractual obligation or indebtedness of the Agency that was previously approved by the Board. Article IV: Powers Section 4.01— Powers. The Agency shall possess the ability to exercise those powers specifically granted by the Act and SGMA, subject to the terms of this Agreement. Additionally, the Agency shall possess the ability to exercise the common powers of its Members related to the purposes of the Agency, including, but not limited to, the following, subject to the terms of this Agreement: 4.1.1 To designate itself the GSA for the Basin pursuant to SGMA. 4.1.2 To adopt rules, regulations, policies, bylaws and procedures governing the operation of the Agency and the adoption and implementation of the GSP. 4.1.3 To develop, adopt and implement a GSP for the Basin pursuant to SGMA. 4.1.4 To employ agents and To obtain legal, financial, accounting, technical, engineering, and other services needed to carry out the purposes of this Agreement. 4.1.6 To conduct studies, collect and monitor all data related and beneficial to the development, adoption and implementation of the GSP for the 4.1.7 To perform periodic reviews of the GSP including submittal of annual 4.1.8 To register and monitor wells within the Basin. 4.1.9 To issue revenue bonds or other appropriate public or private debt and incur debts, liabilities or obligations. 4.1.10 To exercise the powers permitted under Government Code section 6504 or any successor statute. 4.1.11 To levy taxes, assessments, charges and fees as provided in SGMA or otherwise provided by law. 4 �l% 4.1.12 To regulate and monitor groundwater extractions as permitted by SGMA, provided that this Agreement does not extend to a Member's operation of its system to distribute water once extracted or otherwise obtained, unless and to the extent required by other laws now in existence or as may otherwise be adopted. 4.1.13 To establish and administer projects and programs for the benefit of the Basin. 4.1.14 To cooperate, act in conjunction and contract with the United States, the State of California, or any agency thereof, counties, municipalities, special districts, groundwater sustainability agencies, public and private corporations of any kind (including without limitation, investor -owned utilities and mutual water companies), and individuals, or any of them, for any and all purposes necessary or convenient for the full exercise of the powers of the Agency. 4.1.15 To accumulate operating and reserve funds and invest the same as allowed by law for the purposes of the Agency and to invest funds pursuant to California Government Code section 6509.5 or other applicable State Law. 4.1.16 To apply for and accept grants, contributions, donations and loans under any federal, state or local programs for assistance in developing or implementing any of its projects or programs in connection with any project untaken in the Agency's name for the purposes of the Agency. 4.1.17 To acquire by negotiation, lease, and purchase, and to construct, hold, manage, maintain, operate and dispose of any buildings, property, water rights, works or, improvements within and without the respective boundaries of the Members necessary to accomplish the purposes describe herein. 4.1.18 To sue or be sued in its own name. sued To exercise any additional powers conferred under SGMA or the Act or under applicable law, insofar as such powers are needed to accomplish the purposes of SGMA, including all powers granted to the Agency under Article 4 of the Act which are in addition to the common powers of the Members, including the power to issue bonds or otherwise incur debts, liabilities or obligations to the extent authorized by the Act or any other applicable provision of law and to pledge any property or revenues of the rights thereto as security for such bonds and other indebtedness. 4.1.20 To exercise any power necessary or incidental to the foregoing powers in the manner and according to the procedures provided for under the law applicable to the Members to this Agreement and to perform all other acts necessary or proper to fully carry out the purposes of this Agreement. Section 4.02 — Exercise of Powers. �t In accordance with California Government Code section 6509, the foregoing powers shall be subject to the restrictions upon the manner of exercising such powers pertaining to the County of Sonoma. Section 4.03 — Water Rights and Consideration of all Beneficial Uses and Users of Groundwater in the Basin. As set forth in California Water Code section 10723.2, and any future amendments to SGMA, the GSA shall consider the interests of all beneficial uses and users of groundwater in the Basin, as well as those responsible for implementing the GSP. Additionally, as set forth in California Water Code section 10720.5(a), and any future amendments to SGMA, any GSP adopted pursuant to this Agreement shall be consistent with Section 2 of Article X of the California Constitution and nothing in this Agreement modifies the rights or priorities to use or store groundwater consistent with Section 2 of Article X of the California Constitution, with the exception that no extraction of groundwater between January 1, 2015 and the date the GSP is adopted may be used as evidence of, or to establish or defend against, any claim of prescription. Likewise, as set forth in California Water Code section 10720.5(b), and any future amendments to SGMA, nothing in this Agreement or any GSP adopted pursuant to this Agreement determines or alters surface water rights or groundwater rights under common law or any provision of law that determines or grants surface water rights. Nothing set forth in this Agreement is intended to abrogate the powers of any Member, independent of the Agency, including but not limited to the Members' police power, as applicable. The adopted GSP shall not authorize any water' supply augmentation to the Basin with groundwater extracted from another groundwater basin within the jurisdiction of a Member without the express consent of that Member. Section 4.05 — Coordination between Basins. In order to maintain consistency and the efficient use of resources, to the extent feasible, the Agency shall endeavor to coordinate between and among the other Sonoma County GSAs for administration, matters involving public communication and outreach, and for developing frameworks to support groundwater management, which may include agreement to certain areas of coordination, provided that the Agency shall retain its own authority and that such recommendations are ratified by the Board. The Agency may clarify and acknowledge coordination among the other GSAs through a document or agreement if deemed appropriate. Section 4.06 — Public Meeting for Periodic Review of Agreement. To ensure that the Agency's governance structure addresses the interests and concerns of those affected by its activities, the Board shall conduct a public meeting at the following milestones to review the terms and conditions of this Agreement and discuss whether any amendments to this Agreement are necessary or advisable: • Upon completion of the initial fee study • Within three years of submittal of the GSP to DWR • At least once every ten years after adoption of the GSP At such public meeting the Administrator and Agency Counsel shall make a report to the 6- Board recommending any amendments to the Agreement, and if directed by the Board shall draft proposed amendments to this Agreement for consideration by the governing boards of each Member. This section shall not preclude the Members from making amendments of this Agreement at other times as deemed necessary or appropriate by the Members, in accordance with Section 12.02 of this Agreement. Article V: Membership Section 5.01— Members. The Members of the Agency shall be the local agencies listed on the attached Exhibit "A ", so long as their Membership has not been withdrawn or terminated pursuant to the provisions of Article XI of this Agreement. Section 5.02 — New Members. Upon submittal of an application for membership, new Members shall be admitted to the Agency so long as: 1) the new Member is located or has jurisdictional boundaries within the Basin; 2) the new Member is a local public agency or another entity authorized by SGMA that is qualified to join the Agency under the provisions of SGMA and the Act; and 3) the new Member agrees to the terms of this Agreement, including applicable financial obligations, which may be an equal share of the unreimbursed Funding Commitments of the other Members pursuant to Section 10.02 or as established pursuant to Section 10.07. Once an application is accepted by the Board of Directors, this Agreement is executed by an authorized representative of the new Member, and the new Member satisfies any applicable financial obligations of the new Member, the attached Exhibit "A" shall be amended to reflect the new Member, and such action by the Board shall not be subject to the requirements of Section 12.02. The Agency shall governed and administered by a Board of Directors ( "Board ") which is hereby established and which shall be composed of one voting seat per Member. The governing board shall be known as the "Board of Directors of the Petaluma Valley Groundwater Sustainability Agency." All voting power shall reside in the Board. Section 6.02 — Directors and Alternates. Each Member shall appoint one Primary Director and one Alternate Director. The Alternate Director shall serve and assume the rights and duties of the Primary Director when the Primary Director is unable to attend a Board meeting. The Primary Director shall be an elected or appointed official of the Member's governing body. The Alternate Director shall be an elected or appointed official of the Member's governing body or executive staff of the Member agency. Primary Directors and Alternate Directors shall serve at the pleasure of the Member appointing them and they may be removed at any time, with or without cause, in the sole discretion of their governing body. Each Primary Director and Alternate Director shall hold office until their 7' successor is selected by their governing body and the Agency has been notified of the succession. In the event that a Primary or Alternate Director ceases to be an official of the Member's governing body or executive staff of the Member, that Director position shall become vacant and that Member shall appoint a new Director. Section 6.03 — Officers of the Board. Officers of the Agency's Board shall consist of a Chairperson and Vice - Chairperson. The Chairperson shall preside at all meetings of the Board, while the Vice - Chairperson shall perform the duties of the Chairperson in the absence or disability of the Chairperson. The Chairperson and Vice - Chairperson shall exercise and perform such other powers and duties as may be assigned by the Board. The Board shall annually elect the Officers of Officers of the Board shall hold office for a term of one and every calendar year and they may serve for multiple may be removed and replaced at any time, with or with that an Officer of the Board loses their position as a Pril position shall become vacant and Board shall elect a ne to serve the remaining Officer term. from the Primary Directors. nencing on January 1 of each .......... _........... e terms. Officers of the Board by a Board vote. In the event ;tor, that Officer of the Board From existina Board members The initial meeting ofthe Board, which shall be held for purpose of meeting the requirements of California Water Code Section 10723, including decision of the Agency to serve as the GSA for the Basin, shall be held no later than June 30, 2017. Section 7.02 — Regular MeetinLy Schedule. The Board shall establish by ordinance, resolution, bylaws, or other procedure a regular meeting time and place at the initial meeting of the Board. The Board may vote to change the regular meeting time and place provided that the new location remains at a place overlying the Basin. Meetings of the Board of Directors shall be noticed, held, and conducted in accordance with the provisions of The Brown Act (California Government Code sections 54950, et seq.). Section 7.04 — Ouorum. A quorum of the Board shall consist of a majority of the Board of Directors representing the then current Members. Section 7.05 — Voting. Each Director shall have one vote. A majority vote of the Board is needed for the adoption 8 of any action, except those which require a super majority two - thirds vote or a unanimous vote. Section 7.06 — Supermaiority Voting Requirement. A supermajority vote is two - thirds of the Board, including the Directors representing the City of Petaluma and the County of Sonoma. Items that require a supermajority vote to pass are the following: • GSP adoption, modification or alteration • Adoption of assessments, charges and fees • Adoption of regulations and ordinances • Adoption or modification of annual budget • Appointment of Treasurer, subject to the provisions of Section 9.03 and /or Section 10.04 • Modifications to the composition and number of Advisory Committee members Section 7.07 — Unanimous Voting Requirement. Items that require a unanimous vote of the Board to pass include the following which may be amended from time to time by unanimous approval of the Members: • Financial commitments imposed on Members, whether through the budget approval process or otherwise. The Board of Directors may ;from time to time establish one or more advisory committees or establish standing or ad hoc committees to assist in carrying out the purposes and objects of the Agency. The Board shall determine the purpose and need for such committees and the necessary qualifications for individuals appointed to them. The Board shall establish an Advisory Committee. Meetings of the Advisory Committee shall be noticed, held, and conducted in accordance with the provisions of The Brown Act (California Government Code sections 54950, et seq.). Through the use of the Advisory Committee, the Board shall ensure that the development of the GSP includes the meaningful participation of all beneficial uses and users of groundwater and other interested parties in the Basin. Composition of the Advisory Committee is intended to represent the beneficial uses and users of groundwater identified in SGMA. Committee members may not serve concurrently on the GSA Board. Members must live or work within the Basin. A Committee member's participation shall not violate the California Political Reform Act of 1974 (Gov. Code, § 81000 et seq.), the provisions of California Government Code section 1090 et seq., or any other applicable law. The Advisory Committee's purpose and membership is described in Exhibit `B." 9 6 Article IX: Operations and Management Section 9.01 — Administrator and Plan Manager. 9.01.01 Administrator: The Sonoma Resource Conservation District shall serve as the initial Interim Administrator for a period of up to one year, which may be extended by agreement in accordance with Sections 9.03 and 11.04. Subsequent to formation of the Agency, the Board may appoint an Administrator, from time -to -time as and when it deems appropriate. The appointed Administrator may be an employee of one of the Members, in accordance with Sections 9.03 and 11.04. If appointed, the Administrator shall serve at the pleasure of the Board of Directors and his/her duties and responsibilities shall be set forth by a vote of the Board. 9.01.02 Plan Manager: The Board shall designate a Plan Manager. The Administrator and Plan Manager may be the same individual. The Plan Manager shall serve at the pleasure of the Board of Directors and his/her duties and responsibilities shall be set forth by the Board. Section 9.02 — Legal Counsel and Other Officers. The Agency may appoint General Legal Counsel who shall serve at the pleasure of the Board. Subject to the limits of the Agency's approved budget, the Board shall also have the power to appoint and contract by a vote of the Board for the services of other officers, consultants, advisers and independent contractors as it may deem necessary or convenient for the business of the Agency, all of whom shall serve at the pleasure_ of the Board. The appointed General Legal Counsel and/or other appointed officers of the Agency may be employees or contractors of one of the Members, in accordance with Sections 9.03 and 11.04. Appointment of a General Legal Counsel from among Member employees' or contractors shall be subject to all applicable Rules of Professional Responsibility, and notwithstanding anything to the contrary in this Agreement, each of the Members expressly reserve and do not waive their rights to approve or disapprove of potential conflicts of Agency General Legal Counsel. In addition to, of in lieu of, hiring employees, the Agency may engage one or more Members to manage any or all of the business of the Agency on terms and conditions acceptable to the Board of Directors and the Member(s) -to be so engaged. Any Member so engaged shall have such responsibilities as are set forth in the contract for such Member's services which shall be approved by a majority vote of the Directors representing the non - contracting Member(s). Section 9.04 — Location of Public Meetings. At the initial meeting of the Board, the Board shall establish a location or locations for public meetings of the Agency that complies with the requirements of the Ralph M. Brown Act, including, but not limited to, Government Code section 54954. Section 9.05 — Bylaws. The Board shall adopt Bylaws governing the conduct of meetings and the day -to -day operations of the Agency on or before the first anniversary of the Effective Date of this Agreement. 10 �6 Section 9.06 — Official Seal and Letterhead. The Board may adopt, and /or amend, an official seal and letterhead for the Agency by a vote of the Directors. Section 9.07 — Conflict of Interest Code. At the initial meeting of Board, the Board shall begin the process for adoption and filing of a Conflict of Interest Code pursuant to the provisions of the Political Reform Act of 1974. Section 10.01 — Establishment of Funds. The Board shall establish and maintain such fund! generally accepted public agency accounting practices accountability of all funds and report all receipts and dis than a quarterly basis. ,counts as may be required by Agency shall maintain strict ants of the AL enev on no less In order to initially fund and operate the Agency, the Members shall each provide the funding commitment amounts listed in the table below ( "Funding Commitment "), with the Funding Commitment to be paid by the specified due dates below. Such Funding Commitments may be made by payment to the Agency, providing services to the Agency through an agreement with the Agency, or a combination of both. If any portion of a Member's Funding Commitment is to be provided through a services agreement, the Agency and such Member shall strive to enter into a services agreement by the initial due date. The timeframe for payment of any remainder amounts shall be determined by the Board of Directors based on the funding and operational needs of the Agency, and shall be due and payable within thirty (30) days of issuance of an Agency invoice. Member Total Initial Due by July Remainder to Commitment 31, 2017 be met as provided for in a services agreement, or billed by the Agency as needed Sonoma Resource Conservation $ 20,000 0 $ 20,000 District North Bay Water District $ 20,000 $ 6,600 $ 13,400 City of Petaluma $143,333 $43,000 $100,333 County of Sonoma $143,333 $43,000 $100,333 Sonoma County Water Agency $143,333 $43,000 $100,333 11 21 To the extent the Agency is able to secure other funding sources in the future, and to the extent permitted by law, the Agency shall reimburse the initial commitments on a proportionate basis. Section 10.03 — Fiscal Year. The Fiscal Year of the Agency shall be July 1 through June 30. Section 10.04 - Treasurer and Annual Audit. The Sonoma County Auditor - Controller- Treasurer -Tax Collector shall act as the initial Treasurer for the Agency. The Treasurer shall perform all usual and customary duties of his or her office for the Agency, including but not limited to receiving all deposits, issuing warrants per direction, and other duties specified in Government Code section 6505.5. The Board may transfer the responsibilities of the Treasurer, by two - thirds supermajority vote -,of the Board in accordance with Section 7.06, to any other person or entity as the law may permit at the time (see e.g., Government Code section 6505.5). The Board shall cause an independent annual audit to be made by a certified public accountant, or public accountant, in compliance with Government Code section 6505 The Board may from time to time designate the officers and persons, in addition to those specified in Section 10.04 above, who shall have charge of, handle, or have access to any funds and /or property of the Agency. Pursuant to California Government Code section 6505.1, each such officer and person shall file a bond in an amount designated by the Board. Section 10.06 - Budget. By a date no later than sixty (60) days before the end of each Fiscal Year, the Board shall adopt a budget for the Agency for the ensuing Fiscal Year. The Board may authorize mid -year budget adiustments. as needed. All fees, costs and expenses incurred by the Agency may be funded from: (i) voluntary contributions from third parties, such as grants; (ii) advances or loans from the Members or other sources; (iii) bond revenue; (iv) taxes, assessments, fees and/or charges levied by the Agency under the provisions of SGMA or otherwise provided by law; and, (v) subject to the unanimous vote of the Board in accordance with Section 7.07, assessments on the Members to carry out the activities of the Agency generally applicable to all Members. Article XI: Relationship of Agency And Its Members Section 11.01— Separate Entity. In accordance with California Government Code Sections 6506 and 6507, the Agency shall be a public entity separate and apart from the parties to this Agreement. 12 .1:Jq Section 11.02 — Liabilities of the Agency Not Liabilities of Members. In accordance with California Government Code section 6508.1, the debt, liabilities and obligations of the Agency shall be the debts, liabilities and obligations of the Agency alone and not of its Members. To the maximum extent permitted by law, including, but not limited to, California Government Code Section 895.2 and following, as such statutes may be amended or supplemented, and notwithstanding any contrary provision in this Agreement, the Members do not intend hereby to be obligated either jointly or severally for the debts, liabilities or obligations of the Agency. Section 11.03 — Indemnity and Insurance. 11.03.01. Indemnity. Funds of the Agency may be used to defend, indemnify, and hold harmless the Agency, each Member, each Director, and any officers, agents and employees of the Agency for their actions taken within the course and scope of their duties while acting on behalf of the Agency. To the fullest extent permitted by law, the Agency agrees to save, indemnify, defend and hold harmless each Member, each Director, and any officers, agents and employees of the Agency from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees, where the same arise out of, or are attributable in whole or in part to the conduct, activities, operations, acts, and omissions of the Agency. 11.03.02. Insurance. The Agency insurance program in which one or more Any and all insurance coverages provide joined by the Agency, shall name each ai arising out of or in connection with the o performance of this Agreement. Minims be set by the Agency in its ordinary cour contractors and subcontractors to have in coverages and provisions of the insuranc to the approval of Agency Counsel. hall be required to obtain insurance, or join a self - f the Members participate, appropriate for its operations. by the Agency, and /or any self - insurance programs l every Member as an additional insured for all liability ,rations by or on behalf of the named insured in the i levels of the insurance or self- insurance program shall of business. The Agency shall also require all of its trance appropriate for their operations. All amounts policies identified in this Section 11.03B shall be subject ..... ......_ The Board may approve agreements with one or more Members that agree to undertake activities to benefit the Agency and further its purposes by a majority vote of the Directors representing the non - contracting Members. Section 11.05 — Withdrawal of Members. Any Member shall the have the ability to withdraw by providing ninety (90) days written notice of its intention to withdraw. Said notice shall be given to the Board and to each of the other Members. A Member shall not be fiscally liable for an adopted budget provided that the Member provides written notice ninety (90) days prior to the adoption of the budget. In the event of a withdrawal, this Agreement shall continue in full force and effect among the remaining members as set forth in Section 11.07 below. 13 0.9 Section 11.06 — Termination of Members. Any Member's failure to meet its funding obligations pursuant to Sections 10.02 or 10.07 of this Agreement may be treated as a breach of this Agreement and the Board may'vote to terminate such Member. Such termination shall be approved by unanimous consent of all Directors except the Director of the Member proposed to be terminated. In lieu of termination, the Board may in its discretion vote to suspend a Member's voting privileges for failure to meet its funding obligations pursuant to Section 10.02 or 10.07 until the Member has satisfied its funding obligations. Such suspension of voting privileges shall be approved by a supermajority vote, as defined in Section 7.06 above but excepting the Director of the Member proposed to have its voting privileges suspended. In the event a Member's voting privileges are suspended, that Member shall not be counted for purposes of determining a majority or supermajority vote in accordance with Sections 7.05 and 7.06. In the event of termination of a Member, this Agreement shall continue in full force and effect among the remaining members as set forth in Section 11.07 below, and such action by the Board shall not be subject to the requirements of Section 12.02. Before terminating a Member for breach pursuant to this section, the Board must satisfy the meet and confer requirements under Section 12.04. As part of the meet and confer process, the Board and the Member proposed to be terminated may conduct mediation in accordance with Section 12.04. Any Member's failure to be represented by a Director or Alternate Director of the Member for three consecutive meetings (regular or special); of the Board may be considered a breach of this Agreement for which the Board may vote to suspend a Member's voting privileges for up to an equivalent number of meetings missed. Such suspension of voting privileges shall be approved by a supermajority vote, as defined in Section 7.06 above but excepting the Director of the Member proposed to have its voting privileges suspended. In the event a Member's voting privileges are suspended, that Member shall not be counted as a member of the Board for purposes of determining a majority or supermajority vote in accordance with Sections 7.05 and 7.06. Suspension of a Member's voting privileges under this section shall not excuse that Member from its obligations under this Agreement, including but not limited to, continuing financial commitments to the Agency and attendance at Board meetings. Except as provided for -in Section 11.05, any withdrawal or termination of a Member, shall not relieve the withdrawing or terminating Member of its financial obligations arising under this Agreement prior to the effective date of the withdrawal or termination, including but not limited to financial obligations or guarantees for loans provided by individual Members, if applicable. The withdrawal or termination of one or more Members shall not terminate this Agreement or result in the dissolution of the Agency. This Agreement shall remain in full force and effect among the remaining members, following the withdrawal or termination of any Member, and the Agency shall remain in operation provided that there are at least two Members remaining in this Agreement. Section 11.08 — Dissolution. The Agency may be dissolved at any time upon the unanimous vote of the Board and 14 _?O approval of the Members' governing boards. However, the Agency shall not be dissolved until all debts and liabilities of the Agency have been eliminated. Upon Dissolution of the Agency, each Member shall receive its proportionate share (in proportion to the contributions made by each Member) of any remaining assets after all Agency liabilities and obligations have been paid in full. The distribution of remaining assets may be made "in kind" or assets may be sold and the proceeds thereof distributed to the Members. This distribution shall occur within a reasonable time after dissolution. No former member which previously withdrew or was terminated shall be entitled to a distribution upon dissolution. Section 11.09 — Disposition of Property Upon Termination of Agency or Board Determination of Surplus. Upon termination of this Agreement or upon determine money is on hand, such surplus money shall be returned to the contributed such monies in proportion to their contribution,, applied to a Board designated reserve account. The Board shat works, rights and interests of the Agency for sale to the indivi based on highest bid. If no such sale is consummated, tl properties, works, rights and interests of the Agency for sale in Jon by the Board that any surplus then Members of the Agency that or such surplus money may be any governmental agency, private entity or persons for good and The foregoing constitutes Agreement supersedes all prior related to the subject matter of thi This Agreement may be Members, acting through their g writing signed by each Member. offer any surplus properties, Zember and the sale shall be and shall offer the surplus lance with applicable law to and complete Agreement of the Members. This Ls and understandings, whether in writing or oral, :nt that are not set forth in writing herein. from time to time by the unanimous consent of the bodies. Such amendments shall be in the form of a The rights and duties of the Members may not be assigned or delegated without the written consent of all other Members. Any attempt to assign or delegate such rights or duties in contravention of this Agreement shall be null and void. Any assignment or delegation permitted under the terms of this Agreement shall be consistent with the terms of any contracts, resolutions or indentures of the Agency then in effect. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Members hereto. This section does not prohibit a Member from entering into an independent agreement with another agency regarding the financing of that Member's contributions to the Agency or the disposition of proceeds, which that Member receives under this Agreement so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Agency or the Members under this Agreement. 15 �I Section 12.04 — Dispute Resolution. In the event there are disputes and /or controversies relating to the interpretation, construction, performance, termination, breach of, withdrawal from or other issue related to this Agreement, the Members that are party to the dispute (the "Disputing Parties ") agree to meet and confer in a good faith attempt to resolve the dispute. On the request of any Disputing Party to meet and confer, the other Disputing Parties agree to provide available dates within 21 days of the meet and confer request. The Disputing Parties may agree to schedule additional meet and confer sessions. If the Disputing Parties are unable to resolve the dispute by meeting and conferring, they shall mediate the dispute. The cost of any such mediation will be borne equally by the Disputing Parties. If the Disputing Parties cannot agree on a mediator, they may select a mediator by alternately striking names from a list of available mediators from JAMS or a similar mediation service provider. The Disputing Parties will provide all other Members written notice of any scheduled mediation and the issues subject to mediation at least 10 business days prior to the mediation. One representative for each Member not party to the dispute and one Agency staff representative may attend any mediation under this section to represent the Members' and the Agency's interests related to the mediation. The cost of such representatives' attendance shall be borne by the Members and the Agency so represented. The mediator may, in the mediator's sole discretion limit the participation of representatives of Members not party to the dispute and /or any Agency representative in the interest of successfully mediating the dispute. No settlement of a dispute subject to this section will bind the Agency or any Members not party to the dispute except to the extent the settlement is approved by the Agency Board by unanimous vote of the Directors of the non - disputing Members. This Agreement may be executed in parts or counterparts, each part or counterpart being an exact duplicate of all other parts or counterparts, and all parts or counterparts shall be considered as constituting one complete original and may be attached together when executed by the Members hereto. Facsimile or electronic signatures shall be binding. The governing bodies of the Members have each authorized execution of this Agreement, as evidenced by the signatures of their respective authorized representatives, below. Nothing herein shall constitute a determination by the Agency or any of Members that any action shall be undertaken or that any unconditional or irretrievable commitment of resources shall be made, until such time as the required compliance with all local, state, or federal laws, including without limitation the California Environmental Quality Act, National Environmental Policy Act, or permit requirements, as applicable, have been completed. Section 12.08 — Notices. Notices authorized or required to be given pursuant to this Agreement shall be in writing and shall be deemed to have been given when mailed, postage prepaid, or delivered during 16 working hours to the addresses set forth for each of the Members hereto on Exhibit "A" of this Agreement, or to such other changed addresses communicated to the Agency and the Members in writing. Section 12.09 — Severability And Validity Of Agreement. Should the participation of any Member to this Agreement, or any part, term or provision of this Agreement be decided by the courts or the legislature to be illegal, in excess of that Member's authority, in conflict with any law of the State of California, or otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms or provisions of this Agreement shall not be affected thereby and each Member hereby agrees it would have entered into this Agreement upon the same remaining terms as provided herein. Section 12.10 — SinLular Includes Plural. Whenever used in this Agreement, the singular form of any term includes the plural form and the plural form includes the singular form. 17 IN WITNESS WHEREOF, the Members hereto, pursuant to resolutions duly and regularly adopted by their respective Board of Directors or governing board, have caused their names to be affixed by their proper and respective officers as of the day and year first above - written. SIGNATURE LINES 18 EXHIBIT A MEMBERS City of Petaluma County of Sonoma MG, EXHIBIT B Advisory Committee to the Agency Board of Directors The advisory committee will have ten (10) members based on the interest group and member agency designations described below: Members shall each appoint one (1) at -large member. Five (5) interest -based appointees shall be appointed by;the Board: 1. Environmental representative (from an organization with a presence in the Basin) 2. Rural residential well owner 3. Business community 4. Agricultural interest (surface water or groundwater user) 5. At -large community representative (preference for disadvantaged community interest)) The Board will appoint members to fill the interest -based seats. Interested individuals from the community or local , organizations may apply to the Board, designating in the application the seat that the applicant would intend to fill. Each Member's governing body will appoint its at -large seat. Panel members may not serve concurrently on the GSA governing board. Members must live or work within or represent an organization with a presence in the Petaluma Valley Groundwater Basin, identified by the Department of Water Resources current Bulletin 118. The Board encourages interest groups ''to work together to recommend a single candidate to fill that interest's seat. The Board will give strong consideration to appointing, candidates that have the backing of multiple organizations or individuals within that interest group and familiarity with groundwater and its management. The Board will also give preference to applicants with experience working with diverse community -based groups. For the at- large community representative, the Board will give strong preference to a representative who lives or works within a Disadvantaged Community (as defined in SGMA), and will in any case give preference to appointees that can represent the interests of disadvantaged populations or interests that are otherwise under - represented on the Advisory Committee. The Board will determine if alternates are necessary, and if so, the appointment process. The Board will establish a timeline and process for appointment of the initial advisory committee following Agency formation. The initial Advisory Committee appointments will include five seats with three -year terms (interest -based categories) and five two -year terms (at- large). Following initial committee appointment, all terms will be 20 M_ two years. Appointees are not term- limited; however, they must apply for each term. If a vacancy occurs for an interest -based seat before the end of the term, the Board will appoint a new individual to complete the term. At -large vacancies shall be filled by the appointing Member. By supermajority vote, the Board may add one or more additional interest -based appointee positions to the Advisory Committee. The Board can remove an interest -based committee member by vote if member is not performing his or her responsibilities. The purpose of the committee is to advise the Board on groundwater sustainability plan development and implementation and Agency_ policies. The intent of the committee is to provide community perspective and participation in the Agency. The Advisory Committee will review and /or provide recommendations to the Board on groundwater - related issues that may include: • Development, adoption or amendment of the GSP • Sustainability goals and objectives • Technical and Reporting Standards, including Best management and reporting • Monitoring programs • Annual Work Plans and Reports (including mandat • Modeling scenarios • Inter -basin coordination activities • Project and management actions to achieve sustain ■ Grant funding proposals ■ Community outreach ■ Local regulations to implement SGMA ■ Fee nronosals ■ General advisory data milestone reports) )ry Committee will not be involved in Agency budgets or day -to -day personnel staffing or contracting. Pursuant to Board direction, Agency staff will develop the annual work plan and schedule for committee meetings. The Advisory Committee will adopt a charter and will appoint a chair and vice - chair. To inform Board decision making, the Advisory Committee will provide written recommendations in reports. The recommendation reports will identify areas of agreement and disagreement. The committee will strive for consensus when possible, but reaching consensus is not necessary. Consensus means that everyone can at least "live with it." When unable to reach consensus on recommendations, the committee will outline the areas in which it does not agree, providing some explanation to inform Board decision - making. The committee may request that one or more committee members present its recommendations to the Board, including areas of agreement and disagreement, 21 ,9_1 consistent with committee deliberations. The Board will consider advisory committee recommendations when making decisions. If the Board does not agree with the recommendations of the Advisory Committee, the Board shall state the reasons for its decision. All Advisory Panel meetings are subject to the Brown Act and will be open to the public. The GSA will announce panel meetings on its web site and through its regular communication channels. 22 0 Attachment 4 CITY OF PETALUMA, CALIFORNIA TECHNICAL MEMORANDUM Public Works & Utilities Department 202 N. McDowell Boulevard, Petaluma, CA 94954 (707) 778-4546, Fax (707) 778 -4508 DATE: December 1, 2016 TO: SGMA Compliance and GSA Formation File FROM: Dan St. John, KASCE — Director, Public Works and Utilities Leah Walker, P.E. — Environmental Services Manager SUBJECT: Detailed Background Regarding SGMA Compliance and GSA Formation Status BACKGROUND In September 2014, Governor Brown signed historic legislation, called the Sustainable Groundwater Management Act (SGMA), which gives local agencies, including cities, counties and water resources agencies, authority to manage groundwater sustainably over the long - tern. SGMA requires the formation of a GSA for each medium and high - priority groundwater basin as designated by the California Department of Water Resources (DWR) by June 30, 2017. Three of Sonoma County's 14 groundwater basins, Santa Rosa Plain, Sonoma Valley and Petaluma Valley, are designated as medium - priority and none of them is high - priority. A countywide map showing these basins is included as Attachment 2. Under SGMA, the eligible member agencies for a basin -wide Petaluma Valley GSA, besides the City, are Sonoma County (County), Sonoma County Water Agency (SCWA), Sonoma Resource Conservation District (SRCD), and North Bay Water District (NBWD). A map of the Petaluma Valley Basin with the boundaries of the City and NBWD are shown in Attachment 3. As an alternative to a basin -wide GSA, SGMA allows the City to form its own GSA within City limits. The Petaluma Valley Groundwater Basin stretches from Penngrove south to the Marin County line and San Pablo Bay, encompassing about 94 of the approximately 146 square miles of the Petaluma River Watershed, as shown in Attachment 3. Financed by SCWA and the City, the United States Geological Survey is conducting a study of the Petaluma Valley Basin to analyze groundwater use and hydrogeological conditions using data from about 600 wells to define the basin lithology. Preliminary geochemistry results indicates poor water quality in some portions of the basin, including arsenic, confined to shallow alluviums with some elevated nitrate levels, possibly from septic systems or historic agricultural activities. There are indicators of salt -water intrusion, although not to significant levels. A digital groundwater model is under development, which can be used to project sustainable yields and simulate effects of droughts and management options, such as groundwater curtailments or groundwater recharge. Determining the effects of continued groundwater use, and identifying efficient strategies for groundwater management are �1 necessary to complete the requisite SGMA planning requirements and to assure that groundwater continues to be a reliable back -up water supply for the City under its conjunctive use strategy. Any local public agency or a combination of local agencies that has water supply, water management, or land use responsibilities within a groundwater basin may elect to be a member of the relevant GSA or form its own GSA. If multiple entities form a GSA, the organization must be documented through a joint powers authority (JPA) or a memorandum of agreement (MOA). The County would become the default GSA in any basin or portion of a basin where no other entity steps forward by June 30, 2017. If the County declines to become the GSA, the State Water Resources Control Board (SWRCB) will step in. Multiple agencies may request to be designated as a GSA within a single basin. Each GSA must serve a discrete part of the basin with no overlap with parts of the basin claimed by another GSA. If two or more GSAs are formed within a single basin, then the GSAs must adopt one GSP, or coordinate on multiple GSPs through a formal agreement. In Sonoma County, several public agencies are eligible to be a member of two or three of the proposed GSAs. The County, SCWA, and SRCD can be in all three while the North Bay Water District, whose boundaries are in the southern part of the County, could participate in the proposed, basin -wide Petaluma Valley and Sonoma Valley GSAs. The City Council held a workshop on GSA formation on November 2, 2015, and two public workshops conducted by the GSA formation committee were held at the Community Center on November 9, 2015 and August 17, 2016. As discussed at these events, the function of a GSA is to assess the conditions in its local basin and to adopt a locally based Groundwater Sustainability Plan (GSP) by January 31, 2022. The GSP is designed to achieve groundwater sustainability in the basin within 20 years in which groundwater is managed to acceptable sustainable yield over a long period of time. The sustainable yield is the amount of groundwater that can be withdrawn annually without causing the following undesirable results: chronically lowering groundwater levels, seawater intrusion, degrading water quality, land subsidence or depletion of interconnected surface water including creeks and rivers. If these milestones are not met, the SWRCB may intervene, which could lead to loss of local control, possible curtailment of water use or state - imposed fees. SGMA empowers GSAs to use new management tools to achieve sustainability and lays out specific goals and powers. GSAs may conduct investigations, require registration of groundwater wells, determine the sustainable yield of a basin, measure and limit groundwater extractions, construct and operate special projects, and make and enforce regulations based on the results of a GSP. To accomplish this, the GSA may assess and collect rates and fees for groundwater management in a manner consistent with State Proposition 218. SGMA requires coordination between water supply agencies and land use planning agencies, and GSAs must consider land use assumptions contained in local general plans when preparing the GSP. Conversely, the responsible land -use planning agency is required to take into consideration findings and recommendations of the relevant GSPs prior to any amendments to a general plan, which must be referred to the local GSAs for review. The GSA will provide the local land use - planning agency with groundwater impacts anticipated from any proposed land -use plan amendment, including impacts to implementation of the GSP. GSAs can provide review and comment on well construction applications, but counties will maintain permitting authority unless specifically Ir delegated to the GSA. Nothing in SGMA or a GSP may supersede the land use authority of cities and counties, including their general plans, as applicable within a basin. DISCUSSION Two fundamental alternatives to meet the requirements of SGWA are detailed herein, namely: 1. Continue participation in a Basin -wide effort, with four other entities, to form and manage the Petaluma Valley GSA. 2. Form a City GSA only for those parts of the Petaluma Valley Basin that are within City limits, and coordinate with a "rural GSA" made up of the other GSA eligible entities to establish and implement one Groundwater Sustainability Plan (GSP) for the basin. The following sections describe the alternatives. Basin -wide Petaluma Valley GSA Options: Since April 2015, a workgroup of GSA - eligible agencies, the GSA formation committee, has been collaborating to implement SGMA and form the proposed three basin -wide GSAs in the County. For Petaluma Valley, eleven meetings have been held since August 2015 and included representatives from all five GSA - eligible agencies. Topics discussed included ongoing facilitation needs, outreach, implementation costs and GSA formation issues such as governance format, representation, funding, and stakeholder involvement. The workgroup has developed an initial strategy for implementation of SGMA as detailed in Attachment 3. The key recommendations of the formation committee are summarized below. Governance: • The Petaluma Valley GSA governing board would be comprised of one representative from each GSA - eligible entity, consisting of SCWA, County, City, NBWD, and SRCD. • The primary representative for each entity would be a board or council member from the GSA - eligible entity. • The alternate representative would be a board or council member or an executive -level staff person. • Each GSA board member would have one equally weighted vote. • Routine business of the GSA would be approved by simple majority vote of 3 out of 5 members. • A super- majority consisting of 4 out of 5 members would be required for approval of critical items such as adoption of bylaws, GSP including amendments, annual budget, regulations, assessment of rates and fees, and appointment of a fiscal agent and treasurer. • Affirmative vote of both the City and the County would be required for approval of a super- majority motion, giving City or County an effective veto power to any critical issue. The SRCD board has recently expressed its opposition to this effective veto provision as stated in a letter from SRCD to the City on November 30, 2016. Financing: • "Gap" funding for the first several years of GSA operation until a rate and fee structure is implemented would be identified before GSA formation. "Gap" funding would be needed 0 to "stand -up" the GSA, pay staff and consultants, develop and adopt a rate and fee schedule, and begin development of the GSP. Initial funding could be provided by some or all of the member agencies as cash contribution, services -in -lieu of cash, loans, or loan guarantees. A loan from the County treasury to the GSA for "gap" funding, guaranteed by one or more member agencies, is being considered. The loan would be paid off once the GSA rate structure is implemented, though it is not clear when or how the repayment would occur. While estimates are in progress, the loan could be $500,000 to $1,000,000 or more. • The rate structure would be established based on proportionate benefit so that all water users would pay an annual fee based on size of acreage, number of parcels, or groundwater use, or a combination of these or other parameters. Advisory Committee: • An advisory body would be created to provide input to the GSA Board on GSP development, implementation of GSA policies, and other matters. • Advisory committee would have 10 members. • The five GSA member agencies would appoint one member each. • GSA board collectively would appoint five additional members to represent the following special interests: environmental, rural residential well owner, business community, agricultural, and an at -large community representative. • Members would live in the GSA basin or represent an organization with a presence in the GSA basin. • Members would serve a two -year term with no term limits, but must be reappointed after each term to continue. • Protocols for application for membership, meetings, and decision - malting would be developed. GSA Structure: One GSA with one GSP is proposed per basin, and each would develop its own legal agreement and voting structure. Each GSA would be responsible to implement SGMA in its specific groundwater basin, exercise all GSA authorities, and develop and implement the GSP. In developing the proposed structure, three governance options were considered: One countywide GSA; Separate GSAs for each basin, or the recommended "Hybrid Model" where three separate GSAs would be formed but they would share countywide resources and coordinate on management and regulatory decisions. Close coordination of all three GSAs would include sharing of technical and management resources to help control costs. Information and resource sharing between basins would include sharing of contracts for necessary professional services and legal research, and would involve all major activities and policies to support groundwater management, e.g. data management systems, new well registration requirements and approach to rate - making. However, each GSA would retain its own authorities and adopt its own regulations developed through coordination with the other GSAs. More detailed information on the GSA - eligible local agencies in each basin, a Decision - Making Framework, Agreements and Considerations for Forming Groundwater Sustainability Agencies in Sonoma County is included in Attachment 4. Draft principles for developing governance options are included as Attachment 5. Financing: Funding is needed to support the GSA for administration, GSP development, operations including enforcement, and any special projects. Per SGMA, user fees and rates would come from assessments, charges and fees levied by the GSA upon properties within the basin. The makeup of these rates and fees will be addressed in a future rate study. Some State funding may be available for GSP development and for future projects, but is expected to be very limited. Collaboration between GSAs will improve competition for funding as a region based on input from DWR. SCWA recently submitted a funding request for additional facilitation services to assist in the development of GSAs and previously received a $250,000 grant from DWR on behalf of the GSA eligible agencies to develop the database needed for SGMA implementation. Outreach: SGMA requires strong public engagement. The GSA outreach subcommittee formed to coordinate communication and public involvement during the GSA formation process will continue a robust outreach effort after the GSAs are formed. Accomplishments include rollout of a website devoted to SGMA in Sonoma County, public workshops to provide background on SGMA and GSA development progress to the public and stakeholders, and development of educational materials for use by all GSA - eligible entities. Monthly updates to interested stakeholders announce recent developments and opportunities for engagement. Future outreach will include public hearings as required by SGMA, paid ads, flee media, website and social media posts, and regular newsletters to interested parties. Next Steps and Timeline: The following schedule is proposed in order to meet the June 30, 2017, GSA - formation deadline: October - November Continue to refine start-up cost estimates and start-up funding proposals. Develop GSA staffing plans, coordination with other basins, and outreach November - December Draft JPA agreements based on input from councils, boards and the public March 2017 Hold third series of public workshops on final governance and start-up funding proposals February -March Draft final JPA documents and initiate interagency loan. April Public hearing on GSA formation May Notify DWR of GSA formation June 30, 2017 GSA is formed City GSA Option: The option would involve designating the City as the GSA with the Council serving as the GSA board. SCWA is also a Citywide GSA eligible agency, though it is uncertain whether they would opt to formally participate in that role. For a City only GSA, the City is the most appropriate GSA entity due to its land use regulatory authority within City limits. The City GSA option would likely involve the following key attributes: City Council serves as the Citywide GSA board. The City Council would appoint a Groundwater Sustainability Advisory Committee to represent the interests of all beneficial uses and users of groundwater within the GSA 43 boundary. Members should represent commercial and industrial well owners, agricultural and recreational well owners, the City's well field operations, environmental interests, economic development interests, residential well interests, and at large. While a seven member GSAC was discussed at the latest workshop, a recommendation for the GSAC make up would be developed after the City has held a Public Hearing on the City GSA option. • A nexus exists between the GSA and the City's Water System. The formation and operation of a Citywide GSA will assure groundwater availability to support the City's conjunctive use water supply strategy. Therefore, there exists a nexus between the cost of the GSA and the cost of providing reliable potable water supply to the City's customers. The costs of a City GSA would be included as a fixed cost in the City's water rate analysis, and shared equitably between all customer classes based on its mutual benefits. By including the GSA related costs in the current rate study and rate setting process, the City would remain compliant with the requirements of State Proposition 218. • Commitment to participate in the planning process to create a Petaluma Valley Basin - wide GSP, including paying the City's fair share of the expenses. The City's share of the expenses for the GSP would be negotiated with the rural GSA. • Commitment to participate in information and resource sharing as described with the Basin -wide GSA option. • City commits to coordinated administration and enforcement of the GSP after adoption by both GSAs in the Petaluma Valley Basin. • Commitment to a robust outreach program utilizing the City's existing outreach capabilities including websites, social media, workshops, and customer mailers. May also include sharing services with the Countywide GSAs Outreach program where appropriate, and media placements. • Develop and maintain list of interested parties and describe how interests of all beneficial uses and users of groundwater will be considered in the development and operation of the GSA and development and implementation of the GSP. • Administrative formation steps including publishing public notice of GSA formation, holding a public hearing, adopting resolution of formation, and adoption of by -laws, ordinances, and new authorities for the new GSA. It would be expected that the City would hold a public hearing in January or February and then return to Council with a resolution to form a Citywide GSA in February or March. The City would submit its notice of intent to form a GSA within 30 days of the approval of the resolution. 44 Attachment 5 CITY OF PETALUMA, CALIFORNIA MEMORANDUM Public Works & Utilities Department 202 N. McDowell Boulevard, Petaluma, CA 94954 (707) 778 -4546 Fax (707) 778 - 4508 E -mail. PUBLICWORKS@ci petaluma. ca. us DATE: March 28, 2017 TO: John Brown, City Manager FROM: Dan St. John, F.ASCE, Director SUBJECT: GSA Implementation Schedule 46 ATTACHMENT 6 Preliminary DRAFT - For Discussion Purposes Only Estimated Level of Effort for Staffing GSA Activities - Annual for Years 1 and 2 Petaluma Valley - Delayed GSP Tasks Estimated Cost Year 1 $ 474,893 Estimated Cost Year 2 $ 559,851 Notes: (1) It is anticipated that all member agencies will be involved in and have input on many, if not all, listed tasks in relation to the member agencies particular interests. Task leads are identified for member agencies that would be leading or performing the tasks on behalf of the GSA (either as reimbursable work or work conducted as part of that agencies financial contribution to the GSA). Total Cost Shared Across Basins Task Lead (1) GSA Board Meeting Activities Prepare and notice meeting agendas and staffing for 6 meetings per year; Election of Officers; Appoint Treasurer, Attorney; Establish Bylaws; Administer Advisory Body Appointments; Develop Staffing Plan for Board consideration; Develop Draft Budget for Board consideration; Solicitation and Contracting for Financing Options Consultant RCD Year 1 Activity /Task Total $ 102,434 Year 2 Activity /Task Total $ 59,826 Advisory Body Meetings Prepare and notice meeting agendas /staffing of 6 meetings per year; Meeting Facilitation of 6 meetings per year RCD Year 1 Activity /Task Total $ 51,340 Year 2 Activity /Task Total $ 51,340 Community /Stakeholder Engagement Website update and maintenance; Media advisories; Public Workshops (as needed) SCWA Year 1 Activity /Task Total $ 22,370 Year 2 Activity /Task Total $ 22,370 Financing Options Study Legal Options Study; Engineering study; Initial Rate Study x RCD Year 1 Activity /Task Total $ 130,932 Year 2 Activity /Task Total $ 130,932 Ongoing Monitoring Activities Existing Groundwater Level Monitoring; Existing Streamflow /Seepage Monitoring; SCWA, PRMD, RCD, City Year 1 Activity /Task Total $ 21,645 Year 2 Activity /Task Total $ 21,645 Initial GSP development tasks Technical Consultant(s) -- solicitation, selection & contracting; Work Plan for GSP Development x SCWA, City to participate Year 1 Activity /Task Total $ 80,640 Year 2 Activity /Task Total $ 223,000 Grant Applications /Administration Proposition 1 Sustainable Groundwater Management Grant Application; Others /review potential opportunities x SCWA, RCD, City to participate Year 1 Activity /Task Total $ 16,160 Year 2 Activity /Task Total $ 1,365 Miscellaneous Industry training, workshops, professional assocations; Legislative Advocacy; Fiscal Agent; Treasurer; General Administration (15 %) x I SCWA, NBWD, City to participate Year 1 Activity /Task Total $ 49,373 Year 2 Activity /Task Total $ 49,373 Estimated Cost Year 1 $ 474,893 Estimated Cost Year 2 $ 559,851 Notes: (1) It is anticipated that all member agencies will be involved in and have input on many, if not all, listed tasks in relation to the member agencies particular interests. Task leads are identified for member agencies that would be leading or performing the tasks on behalf of the GSA (either as reimbursable work or work conducted as part of that agencies financial contribution to the GSA). Attachment 7 Proposed Scopes of Work for Initial GSA Activities By Member Agencies 41 Sonoma Resource Conservation District Proposed Scope of Work for Administrative Services for the Petaluma Valley Groundwater Sustainability Agency "f� DRAFT— For Discussion Purposes Only RESOURCE CONSERVATION DISTRICT 1221 Farmers Lane, Suite F 707.569.1448 Santa Rosa, CA 95405 www.SonomaRCD.org March 23, 2017 Subject: Scope ofWork for Interim Administrator, Petaluma Valley Groundwater Sustainability Agency The Interim Administrator will perform the following duties, in consultation with the working group comprised of staff from each GSA Member. GSA Board Meeting Activities — In consultation with the Board Chair and Plan Manager, prepare agendas for 6 Board meetings per year — Notice all meetings in accordance with the Brown Act — Staff all meetings and record minutes — Establish and maintain list of Directors and Alternate Directors, and records of required trainings and disclosures — Work with Legal Counsel to draft Bylaws and Conflict of Interest Code for Board consideration — Establish process for advisory body appointments and facilitate Board review of applications — With member agency staff, develop Staffing Plan for Board consideration — Develop Draft Budget for Board consideration Advisory Committee Meeting Activities - Prepare agendas for 6 Advisory Committee meetings per year — Notice all meetings in accordance with the Brown Act — Staff all meetings and record minutes — In consultation with Advisory Committee Chair, develop written recommendation reports for the Board, — Pursuant Board direction, develop annual workplan and schedule for Advisory Committee meetings — Establish and maintain list of Advisory Committee members, including terms Contracting /Financing Options Study — Solicit and prepare contracts for Board consideration for GSA - related professional services including but not limited to meeting facilitator, auditor, and consultants for finance options study and rate study. This does not include technical consulting services related to Groundwater Sustainability Plan preparation, which would be solicited /prepared by the Plan Manager and reviewed by the Administrator prior to Board consideration. Miscellaneous — Participate in Public Workshops as needed — Maintain all official records of the Agency and respond to Public Records Act requests as needed — Serve as Fiscal Agent, including accounts payable and receivable, financial reporting to Board, and facilitating the audit — Obtain insurance for the Agency — Develop seal /letterhead for Agency — Coordinate legislative advocacy activities as needed — Participate in industry training, workshops, and professional associations as needed — Communicate as needed with Administrators from other Sonoma County basins Budget Description Unit Rate Total GSA Board Meeting Activities Administrator 310 $110 $34,100.00 Administrative Assistant 237 $85 $20,145.00 Other Support Staff 62 $85 $5,270.00 subtotal $59,515.00 Advisory Body Meeting Activities Administrator 80 $110 $8,800.00 Administrative Assistant 80 $85 $6,800.00 subtotal $15,600.00 Contracting /Financing Options Study Administrator 80 $110 $8,800.00 Administrative Assistant 16 $85 $1,360.00 subtotal $10,160.00 Miscellaneous Administrator 67 $110 $7,370.00 Administrative Assistant 262 $85 $22,270.00 subtotal $29,640.00 Total $114,915.00 0 Sonoma Resource Conservation District Proposed Scope of Work for Groundwater Monitoring for the Petaluma Valley Groundwater Sustainability Agency DRAFT — For Discussion Purposes Only RESOURCE CONSERVATION DISTRICT 1221 Farmers Lane, Suite F 707.569.1448 Santa Rosa, CA 95405 www.SonomaRCD.org March 27, 2017 Subject: Scope of Work for Groundwater Elevation Monitoring in the Petaluma Valley Groundwater Basin Existing CASGEM Well Network in the Petaluma Valley Groundwater Basin The existing well network for the California Statewide Groundwater Elevation Monitoring ( CASGEM) program, currently managed by the City of Petaluma, is comprised of nine wells. Five are former public supply wells that are located within the City's boundaries. The remaining four wells in the monitoring network are privately owned. One private well is located in the north part of the basin between Penngrove and Cotati. There are two private wells in east Petaluma, one just east of the City limits on Adobe Road, the other in the hills to the east of the wastewater treatment plant on Lakeville Highway. The fourth private well is southeast of Petaluma at the Sonoma Raceway near Highway 37. Table 1- Existing Groundwater Monitoring Well Network in the Petaluma Valley Basin IMMA Screen R.P. G.S. Internal Well ID Elev. Elev. Latitude Longitude Last Read Depth Depth(s) 1- Station 1441 39 38.5 38.2648 122.6443 11/6/2014 562 52 -253, 280 -538 2- Tahola 47 46 38.2562 122.6259 11/6/2014 425 305 -385 3- Garfield 59 58 38.2581 122.6168 11/6/2014 360 220-320, 340 -360 90 -180, 4- Miwok 21 18 38.2357 122.6094 11/6/2014 460 300 -380, 440 -460 5- Casa De 20.5 18 38.2341 122.6031 11/6/2014 229 89 -149, Arroyo 209 -229 6- Sears Point 122.5 121 38.1531 122.4876 11/25/2014 276 75 -95, 135 275 40 -250, 7- PG&E 110 108 38.1503 122.3451 1/27/2015 426 320 -338, 406 -426 118 -138, 8- St. John 310.5 310 38.3096 122.7098 6/12/2015 419 238 -258, 388 -418 9- Cardinaux 241.5 240 38.2342 122.5525 05/05/2015 370 30 -370 IMMA Data Gaps: The network does not include wells in the northwest part of the basin, nor in the southwest part of the basin closer to the Petaluma River. The SRCD will plan to outreach to existing DWR- monitored wells, and to landowners it has worked with in the past, including landowners near the southern reach of the Petaluma River where there is currently a data gap. After the first year, the need for installing permanent monitoring wells in key areas throughout the basin will be evaluated. Figure 1 - Actively Monitored Wells for the CASGEM Program in the Petaluma Valley Groundwater Basin DWR- Monitored (green), City -Owned (orange), and City - Monitored (blue) S § ƒ E / § « >- e CL 0 2 G \ CL * f 3 2 / \ / k 0 e 0 5 e 2 * e ) § o > c' t E / m / ° C) E _0 § S / } k j § \ \ E \ f / / u 3 / \ § f / / § 3 / R / G / / 4-1 / E E E bn E u / � / � k 41 E o ® = E e a s ) / tw j / a) �; / § 2 G k \ E § \ > / / \ 2 ( t /' / . c / 0 / e Ln ® a f § ƒ ƒ \ & c �� / \ \ \ j \ ) Ln / $ \ ) / / 5 3 t t * e o 7 e ° } \ E s » / / E is = 2 � ° * 0 % c E y ° k = \ ®/ / e 2 < f\ E = 4 ( \ / to f k \ / — § 1 M � / 2 / \ / E \ / \ % E f S \ y \ / k E p E k 2 a I Scope of Work Groundwater Elevation Monitoring in the Petaluma Valley Groundwater Basin for the Groundwater Sustainability Agency FY 2017- 2018 TASK 1: Groundwater Elevation Monitoring and Outreach - Outreach and secure new participants for the Petaluma Valley GSA Groundwater Elevation Monitoring Program.(PVGEMP). Conduct initial site visits to the new wells before fall 2017 and gather available information on new participant wells including well depth, screened interval, ground surface and reference point elevations, and latitude /longitude coordinates. - Obtain new landowner access agreements for all new and existing GM program participants. - Call and coordinate with all participants and the City of Petaluma to schedule two rounds of semi - annual monitoring visits. - Conduct groundwater elevation monitoring and collect data on all participating wells except for the City of Petaluma wells for fall of 2017 and spring of 2018. TASK 2: Contract Management and Data Reporting Draft quarterly contract progress reports and invoices. Process, digitize, map, and submit data to the Sonoma County Water Agency and the Petaluma Valley Groundwater Sustainability Agency by May 31" each year for spring measurements and November 30th each year for fall measurements. Draft a final report of groundwater monitoring data findings and present to the GSA governing board with input from SCWA and the City of Petaluma, by June 2018. �6 Sonoma County Water Agency Proposed Scope of Work for Grant Application and Management Services, Outreach and Communication Services, and Technical Services for the Petaluma Valley Groundwater Sustainability Agency zip DRAFT— For Discussion Purposes Only Scopes of Work for Services by Sonoma County Water Agency Staff Year 1 Fiscal Year 2017/2018 Petaluma Valley Groundwater Sustainability Agency Total Estimated Costs: $181,500 (including optional services of $22,000) Scope A: Grant Application & Management Services: $17,500 Task A -1: Grant Application Water Agency staff will monitor and report on funding opportunities related to DWR's Sustainable Ground Water Planning Grant Program (next opportunity tentatively scheduled for summer of 2017). If the Groundwater Sustainability Agency chooses to pursue funding opportunity, staff will coordinate, prepare, and submit a grant proposal in compliance with the grant program guidelines and specific proposal solicitation package requirements. Tasks will include the following: • Assemble team of technical, administrative, and financial staff. • Prepare templates, make assignments, and create schedule to ensure application is submitted on time. • Prepare drafts of project narrative, budget, and schedule; circulate to appropriate staff for review and comment. • Collect supplemental documents required to be submitted with application, such as letters of support, resolution from governing board, maps, studies, or reports. • Finalize and submit application according to DWR requirements. Task A -2: Grant Management If the grant is awarded, Water Agency staff will provide grant administration and management for Groundwater Sustainability Agency. • Act as primary contact with grant agency to prepare grant agreement, including scope, schedule, and budget. • Assist in meeting grant compliance requirements, including standard terms and conditions, and project deliverables. • Monitor grant schedule and budget. • Coordinate with Groundwater Sustainability Agency members and sub - recipients to implement grant project in a timely manner. • Prepare quarterly progress reports for grant agency. • Prepare and process invoices for match and reimbursement • Coordinate and submit all deliverables required under grant agreement. • Oversee grant closeout process. 61 DRAFT— For Discussion Purposes Only Scope B: Outreach and Communication Services: $34,000 (Including Optional Services of $12,000) Task B -1: Ongoing Outreach: $22,000 Water Agency staff will continue existing outreach and communications program during the initial GSA formation period, working in coordination with the Interim Administrators and the SGMA outreach working group. Tasks will include the following: Scheduling and coordination of community meetings, including: • Finding location; date; time • Drafting agendas in coordination with Interim Administrators • Advertising meeting • Preparing materials and presentations • Coordinating note taking and feedback o Setting up and breaking down meetings • Issuing monthly updates on activities to the Interested Parties list. • Maintaining the Interested Party List, including ensuring that the Interested Parties list can be targeted to each basin (if targeted emails are needed). • Updating website on a monthly basis (minimum). • Developing content, graphics and place paid advertisements to publicize for GSA Board and Advisory Committee meetings in community and regional newspapers, including the Argus- Courier, the Sonoma Index - Tribune and The Press Democrat. • Developing content for, and coordinating approval and issuance of press releases. • Coordinating social media messaging with all GSA member agencies. Task B -2: Optional Direct Mail Outreach: $12,000 If funding is available, developing, printing and mailing an informational flyer to all well owners in the Bulletin 118 Basin. N DRAFT — For Discussion Purposes Only Scope C: Technical Services: $130,000 (Including Optional Services of $10,000) Task C -1: Initiate GSP Preparation: $90,000 Water Agency staff will provide technical services related to initiating the Groundwater Sustainability Plan (GSP) for the Petaluma Valley Groundwater Basin in Year 1. Services are anticipated to include the following: • Serve as primary contact with DWR and interface with USGS and other State and Federal agencies for technical matters related to development of the GSP. • Prepare and present background information, summarizing current understanding of groundwater conditions based on findings of USGS study and other relevant studies and monitoring activities, to Advisory Committee and GSA Board. • Develop a Work Plan for GSP development, which will include a proposed scope of work, schedule, and estimated budget, in consultation with working group comprised of staff from each GSA member. • Develop outline and template for Work Plan in consultation with inter -basin coordination group from other Sonoma County medium - priority basins. • Develop Draft Work Plan for Petaluma Valley Groundwater Basin and present to Advisory Committee. • Address any Advisory Committee input /recommendations and revise Draft Work Plan, as necessary. • Present Draft Work Plan to GSA Board for consideration. • Address any GSA Board input /recommendation, as necessary and prepare Final Work Plan. Solicit technical consultant(s), as needed, for assistance in developing GSP. • Assess need(s) for technical consultant(s) for developing GSP or components of GSP. • Pending assessment of need(s) and in consultation with staff from each GSA member agency and inter -basin coordination group, develop solicitation for technical services, coordinate review of solicitation responses, and prepare contract with selected firm for Board consideration. Initiate development of Basin Setting for GSP (consistent with Subarticle 2, sections 354.14 through 354.18 of GSP Regulations) utilizing information from the USGS study and other available sources. Present information and draft materials to Advisory Committee and GSA Board for background and input. Initial activities proposed for Year 1 include preliminary evaluation and preparation of draft materials related to: • Hydrogeologic Conceptual Model (description of principal aquifers and aquitards, general water quality conditions, principal uses of each aquifer, hydrogeologic cross - sections, surficial geology and soils, description and assessment of basin boundaries, data gaps and uncertainty analysis, delineation of recharge and discharge areas, imported water supplies) • Groundwater Conditions (description of groundwater elevation trends over time, groundwater elevation hydrographs and contour maps, groundwater quality issues) 6 DRAFT — For Discussion Purposes Only o Water Budget (summary of historical water budget and future scenarios from USGS study /model, identify data gaps in historical and ongoing data collection) Task C -2: Ongoing Monitoring Coordination: $15,000 Water Agency staff will provide technical services to support ongoing and expanded monitoring within the Petaluma Valley Groundwater Basin, including: Prepare and present background information to the GSA for consideration in assuming the role of Monitoring Entity for the California Statewide Groundwater Elevation Monitoring (CASGEM) Program (currently performed by the City of Petaluma) Should the GSA Board elect to assume the role of Monitoring Entity for CASGEM, Water Agency staff will coordinate the collection, compilation and reporting of groundwater -level data to DWR pursuant to CASGEM requirements, including development of a revised CASGEM Work Plan for submittal to DWR, in coordination with monitoring outreach activities performed by the Sonoma RCD and the City of Petaluma. Develop and present proposals for the expansion and refinement of monitoring networks compliant with requirements for monitoring networks described in the GSP Regulations to the Advisory Committee and GSA Board for consideration. This will include defining objectives of the monitoring network to monitor groundwater and surface water conditions. Perform an assessment of current monitoring protocols with those required by GSP regulations Task C -3: Technical Support for Financing Options Study: $15,000 Water Agency staff will provide technical services, as- necessary, to support development of a financing options study in consultation with staff of GSA members, inter -basin coordination group and consultant(s). Such services may include: Refined estimates of groundwater demands by water -use sector based on data from available information, studies and computer models. Processing of computer model output from groundwater flow model of water budget estimates for Bulletin 118 basin portion of model domain. Task C -4: Optional As- Needed Technical Support to the GSA Board: $10,000 Water Agency staff will provide as- needed technical support to the GSA Board pursuant to GSA Board priorities and direction. Such services may include: Pending the timing of future Basin Boundary Modification request periods established by DWR and upon request by the GSA Board, Water Agency staff would compile and present technical information to the Advisory Committee and GSA Board for consideration in determining whether to pursue any basin boundary modification requests from DWR. �0