_____________________________________________________________________________________

BOARD OF DIRECTORS REGULAR MEETINGAGENDA

FEBRUARY 13, 20203:00 PM

CITY HALL ROTUNDA, 200 LINCOLN AVENUE SALINAS, CALIFORNIA 93901IN KEEPING WITH GOVERNMENT CODE SECTION 54953, BOARD DIRECTOR ALEJO WILL

APPEAR BY TELECONFERENCE FROM 7237 S. 40TH LANE, PHOENIX, AZ 85041

1. Pledge of Allegiance

2. Call to Order

3. Roll Call

4. Closed SessionReceive public comments on closed session items; public comments are limited to two minutes.

It is estimated that the Board will reconvene in public session between 3:30 p.m. and 4 p.m., however, theactual time may be earlier or later than the approximated time.

4.a Conference with legal counsel - existing litigation: Pursuant to Government Code Section 54956.9 (d )(1),the Board will meet in closed session to discuss existing litigation, City of Marina, et al. v. County ofMonterey et al., Superior Court of Monterey County Case No. 19CV005720

4.b Conference with legal counsel - anticipated litigation: (i) pursuant to Government Code section 54956.9 (d)(2), the Board will meet in closed session to discuss two matters of significant exposure to litigation; and (ii)pursuant to Government Code section 54956.9 (d) (4) the Board will meet in closed session to discuss onepotential initiation of litigation. 1

5. General Public CommentMembers of the public may comment on matters within the jurisdiction of the agency that are not on theagenda. Comments on agenda items should be held until the items are reached. Public comments generallyare limited to two (2) minutes per speaker; the Chair may further limit the time for public commentsdepending on theagenda schedule. To be respectful of all speakers and avoid disruption of the meeting, please refrain fromapplauding or jeering speakers.

6. Consent ItemsAll matters listed under the Consent Agenda may be enacted by one motion unless a member of the Board,audience, or staff requests discussion or a separate vote.

6.a Approve January 30, 2020 special meeting minutes2020-01-30 Board Minutes.pdf

6.b Approve December 2019 Financial Claims Report6.b - Staff Report - Dec 2019 Financial Report.pdf6.b1 Dec 2019 Statement of Revenues & Expenses.pdf6.b.2 Dec 2019 Balance Sheet.pdf6.b.3 Dec 2019 Payment and Disbursement Report.pdf

7. Scheduled Items

7.a Adopt RESOLUTION approving Amendment to Agreement with Regional Government Services2-13-20 RGS Staff Report 7.a.1.pdf7.a.2 RGS -SVBGSA agreement amendment 3.pdf7.a.3 RGS_Agreement Resolution .pdf

7.b Approve Two Year Work Plan and Planning Process

2-13-20 2-year plan Staff Report.pdfTwo year plan Remaining GSPs and Implementation.pdf

7.c Approve Mid-Year Budget Adjustments7.c_-_Staff_Report_-_Mid-Year_Budget_Adjustments_FY_2019-20__final_ (3).pdf2019-20 Mid-Year Budget Adjustments.pdf

7.d Update and discussion on Round 3 Department of Water Resources Groundwater Planning Grant toinclude Arroyo Seco Groundwater Sustainability Plan

7.d. 2-13-20 Round 3 DWR Grant update.pdf

8. General Manager’s Report 2

9. Directors’ Reports

10. Future Agenda Items

Proclamations, Commendations

Recognition of SVBGSA General Manager Gary Petersen's outstanding service in development of theGroundwater Sustainability Plan for the 180-400 Foot Subbasin

11. Adjournment

Accommodation, Meeting Viewing, Agenda PostingDisability-related modification or accommodation, including auxiliary aids or services, may be requested byany person with a disability who requires modification or accommodation in order to participate in themeeting. Requests should be referred to Ann Camel, Clerk of the Board at camela@svbgsa.org or831-471-7519 as soon as possible, but by no later than 5 p.m. two business days prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the Agency by dialing 711 for theCalifornia Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

VIEWING MEETINGSLive meetings are televised at www.youtube.com/thesalinaschannel . The recorded meeting schedule maybe viewed at http://tinyurl.com/salinas25

AGENDA POSTING The meeting agenda was posted at the Salinas City Clerk’s Office and City Hall Rotunda,Monterey County Offices at 1441 Schilling Place, Salinas, CA on February 7, 2020.

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Page 1 of 3 January 30, 2020

Salinas Valley Basin Groundwater Sustainability Agency

UNOFFICIAL MEETING MINUTES BOARD OF DIRECTORS SPECIAL MEETING

COUNCIL ROTUNDA, 200 LINCOLN AVENUE, SALINAS, CA TELECONFERENCE FROM 7237 S. 40TH LANE, PHOENIX, AZ

JANUARY 30, 2020

1. Pledge of Allegiance

2. Call to OrderChairperson Stefani called the meeting to order at 3 p.m..

3. Roll CallPresent:Director Tom AdcockDirector Luis Alejo (by teleconference)Director Janet BrennanDirector Caroline Chapin HodgesDirector Joseph GunterDirector Bill LipeDirector Michael McHattenDirector Steve McIntyreDirector Colby PereiraDirector Adam SecondoChairperson Ron Stefani

SVBGSA: Gary Petersen, Donna Meyers, Special Legal Counsel Dustin Cooper, Ann Camel

4. Closed SessionThe Board recessed to closed session at 3:05 p.m. pursuant to Government Code Section 54956.9to discuss existing litigation, City of Marina, et al. v. County of Monterey et al., Superior Court ofMonterey County Case No. 19CV005720.

The Board reconvened in the Rotunda at 3:40 p.m. There were no reportable actions.

5. Scheduled Items

5.a. The Board voted to approve the January 9, 2020 regular meeting minutes.AYES: Directors Adcock, Alejo, Brennan, Chapin Hodges, Gunter, Lipe, Pereira, McHatten,McIntyre, Secondo, and Chair Stefani. NOES: None ABSTAIN: None ABSENT: None

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Page 2 of 3 January 30, 2020

5.b. Consider adopting RESOLUTION approving and authorizing execution of the CooperationAgreement between the SVBGSA and the County of Monterey for the approximately 400-acre parcel within the 180/400 Foot Aquifer Subbasin currently owned by RMC Pacific Materials, LLC known as the CEMEX site

Gary Petersen announced that Agency Counsel Les Girard is not present at today’s meeting because he has a conflict of interest. Mr. Petersen reported that the Monterey County GSA adopted the cooperation agreement on January 28, 2020, continued the public hearing for a ninety day comment period, and requested the SVBGSA to include the Cemex site in the Agency’s GSP.

Dustin Cooper, Agency special legal counsel, reviewed the proposed agreement including the last two sentences of Article 5.2 stating the Board agrees to schedule special meetings to consider adoption actions and to assist Monterey County in developing responses to comments.

Robert Rathie, representing Marina and Marina GSA, stated they oppose both the cooperation agreement and GSP adoption because they both impermissibly interfere with Marina’s efforts under SGMA. The SVBGSA lacks the jurisdiction to adopt the GSP for Marina because it submitted a boundary modification to exclude the area. Monterey County is attempting to circumvent the SGMA notice requirements.

Norm Groot, Farm Bureau, supports adoption of the cooperation agreement. Marina filed late and is at fault. The GSP was developed over two years to meet tomorrow’s deadline.

Director Pereira stated that she favored tabling action on January 9, until after Monterey County had opportunity for the full discussion and dialogue that now has been had.

Director Pereira moved to adopt RESOLUTION 2020-02 approving and authorizing execution of the Cooperation Agreement between the SVBGSA and the County of Monterey for the approximately 400-acre parcel within the 180/400 Foot Aquifer Subbasin currently owned by RMC Pacific Materials, LLC known as the CEMEX site. The motion was seconded by Director Secondo and passed. AYES: Directors Adcock, Alejo, Brennan, Chapin Hodges, Gunter, McHatten, McIntyre, Pereira, Secondo, and Chair Stefani. NOES: None. ABSTAIN: Director Lipe. ABSENT: None.

5.b. Consider adopting RESOLUTION approving the Groundwater Sustainability Plan for the approximately 400-acre parcel within the 180/400 Foot Aquifer Subbasin currently owned by RMC Pacific Materials, LLC known as the CEMEX site.

Dustin Cooper noted the Cooperation Agreement has been signed by Chair Stefani and fully executed. Monterey County has requested the SVBGSA to adopt the Plan for the Cemex site. The GSP encompasses the entirety of the Basin and the Agency’s January 9, 2019 action limited language in the resolution but did not change the Plan. In response to Director Lipe, Mr. Cooper confirmed that the Agency has the authority to adopt the Plan even though it is not the exclusive GSA for this site.

Mayor Stefani opened and closed the public hearing as there was no one wishing to speak on this item.

Director McIntyre moved to adopt RESOLUTION 2020-03 approving the Groundwater

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Page 3 of 3 January 30, 2020

Sustainability Plan for the approximately 400-acre parcel within the 180/400 Foot Aquifer Subbasin currently owned by RMC Pacific Materials, LLC known as the CEMEX site. The motion was seconded by Director Gunter and passed. AYES: Directors Adcock, Alejo, Brennan, Chapin Hodges, Gunter, McHatten, McIntyre, Pereira, Secondo, and Chair Stefani. NOES: None. ABSTAIN: Director Lipe. ABSENT: None.

Adjournment

The meeting adjourned at 4 p.m..

Approved:

__________________________________ Chairperson Ron Stefani

Attest:

__________________________________ Ann Camel, Clerk of the Board

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT MEETING DATE: February 13, 2020 AGENDA ITEM: 6.b SUBJECT: Receive December 2019 Financial Reports RECOMMENDATION: Staff recommends approval of the December 2019 financial reports. BACKGROUND: Section 10.2 of the Joint Exercise of Powers Agreement forming the Salinas Valley Basin Groundwater Sustainability Agency (“Agency”) states “The Agency shall maintain strict accountability of all funds and report all receipts and disbursements of the agency on no less than a quarterly basis.” Reports are being presented monthly. DISCUSSION: Attached are the following financial statements for the Agency through December 31, 2019:

• Statement of Revenue & Expense - Budget vs. Actual – December YTD expenses were $746,277 with YTD Revenue of $1,210,292 creating a YTD surplus of $464,015. During December the Agency received the first payment of GSA fees collected by the County Treasurer/Tax Collector of $763,792.

• Balance Sheet – shows $904,001 in cash, with $39,456 in accounts payable. The Accounts Receivable of $547,081 includes $533,760 due from the DWR Prop 1 Grant of which $406,966 should be received by February 13. The Balance Sheet now also shows a prior year comparison.

• Payment & Disbursement Report – shows the detail of deposits and disbursements for the month of December with a net increase in cash of $605,443.

FISCAL IMPACT: None. ATTACHMENT(S): Financial Statements as stated above PREPARED BY: Roberto Moreno, RGS Senior Advisor

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Salinas Valley Basin Groundwater Sustainability AgencyStatement of Revenues and Expenses Budget vs. ActualJuly 2019 through December 2019

December Year-to-Date Budget$ Over Budget

% of Budget

Revenue

440000 · Member Contributions

440100 · GSA Fee 763,792 799,213 1,200,000 -400,787 67%

444000 · Interest Income 724 4,112 1,000 3,112 411%

451000 · Prop 1 DWR Grant 406,967 406,967 960,988 -554,021 42%

Total Revenue 1,171,483 1,210,292 2,161,988 -951,696 56%

Expense

520000 · Administrative Services 37,532 255,600 624,000 -368,400 41%

530000 · Groundwater Sustainability Plan 406,367 1,043,144 -636,777 39%

530500 · Legal Services 1,496 19,055 60,000 -40,945 32%

532300 · Grant Management Services (RGS 656 5,371 20,000 -14,629 27%

540100 · Agency Financing Plan 25,000 -25,000

540200 · Facilitation Services 800 30,000 -29,200 3%

540300 · Grant Writing / Lobbying 31,557 20,000 11,557 158%

540400 · Outside Specialty Legal Svcs 40,000 -40,000

540500 · Communications Consultant (RGS) 20,000 -20,000

550200 · Conferences / Training 188 7,100 -6,912 3%

550300 · Dues and Subscriptions 904 3,000 -2,096 30%

550400 · External Audit 4,500 5,500 -1,000 82%

550500 · Auditor-Controller Collection 3,000 -3,000

550600 · Insurance Premium 740 3,000 -2,260 25%

550700 · Legal Notices & Ads 1,050 10,000 -8,950 11%

550800 · Office Supplies 664 4,500 -3,836 15%

550900 · Postage and Delivery 308 463 3,000 -2,537 15%

551000 · Printing and Reproduction 2,068 10,300 -8,232 20%

551100 · Office Rent 250 1,500 3,000 -1,500 50%

551200 · Technology 1,616 6,841 40,000 -33,159 17%

551220 · Website Upgrade 236 2,000 -1,764 12%

551250 · Agenda Management Software 3,700 -3,700

551300 · Travel Expense -209 2,123 20,000 -17,877 11%

551400 · Bank Service Charges 25 156 500 -344 31%

551500 · Recruitments 2,000 -2,000

551800 · Meals and Meeting Expenses 236 2,500 -2,264 9%

551810 · Mileage Reimbursement 1,000 -1,000

551900 · Board Stipends 1,117 5,858 26,400 -20,542 22%

599000 · Contingency 60,000 -60,000

Total Expense 42,791 746,277 2,092,644 -1,346,367 36%

Net Income 1,128,692 464,015 69,344 394,671 669%

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Salinas Valley Basin Groundwater Sustainability AgencyBalance SheetAs of December 31, 2019

Dec 31, 19 Dec 31, 18

ASSETS

Current Assets

Checking/Savings

100100 · Rabobank Checking 6,862 3,014

100200 · Rabobank Money Market -25 215,359

100300 · CalTrust Medium Term Funds 87,139 887,783

100400 · Community Bank of the Bay Chkg 7,030

100500 · Community Bank of the Bay MMkt 802,995

Total Checking/Savings 904,001 1,106,156

Accounts Receivable110000 · Accounts Receivable 547,081

Total Accounts Receivable 547,081

Other Current Assets120005 · Prepaid Expense 2,551 3,255

Total Other Current Assets 2,551 3,255

Total Current Assets 1,453,633 1,109,411

TOTAL ASSETS 1,453,633 1,109,411

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable200000 · Accounts Payable 39,456 188,200

Total Accounts Payable 39,456 188,200

Other Current Liabilities210000 · Deferred Revenue 375,880

Total Other Current Liabilities 375,880

Total Current Liabilities 415,336 188,200

Total Liabilities 415,336 188,200

Equity

320000 · Fund Balance 574,283 462,251

Net Income 464,015 458,961

Total Equity 1,038,298 921,212

TOTAL LIABILITIES & EQUITY 1,453,634 1,109,412

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Salinas Valley Basin Groundwater Sustainability AgencyPayment & Disbursement ReportDecember 2019

Type Date Num Name Memo Amount

Deposit 12/24/2019 Deposit 763,791.99

Bill Pmt -Check 12/24/2019 12000 Adam Secondo Board Stipends- 11-14 BOD meeting -100.00

Bill Pmt -Check 12/24/2019 12001 Caroline Dawn Hodges Board Stipends- 11-14 BOD meeting -100.00

Bill Pmt -Check 12/24/2019 12002 County of Monterey December SVBGSA Rent- 1441 Schilling Place, South Building, 1st Fl -250.00

Bill Pmt -Check 12/24/2019 12003 Grant Cremers Board Stipends- 11-14 BOD meeting -100.00

Bill Pmt -Check 12/24/2019 12004 J. Harrison April 2019 Printing, postage, mailing for water systems -307.94

Bill Pmt -Check 12/24/2019 12005 Janet Brennan Board Stipends- 11-14 BOD meeting plus milage -122.04

Bill Pmt -Check 12/24/2019 12006 Joe Gunter Board Stipends- 11-14 BOD meeting -100.00

Bill Pmt -Check 12/24/2019 12007 Minasian,Meith,Soares,Sexton,Cooper, LLP Ouside legal counsel November Services -2,287.40

Bill Pmt -Check 12/24/2019 12008 Montgomery & Associates Inc.GSP review, Prop 68 Grant Assistance, EK1 Grant, Data Compliation & Basin characterization -108,292.06

Bill Pmt -Check 12/24/2019 12009 Office of the County Counsel of Monterey Legal representation -4,034.72

Bill Pmt -Check 12/24/2019 12010 Regional Government Servies Administrative services and expenses -41,700.25

Bill Pmt -Check 12/24/2019 12011 Ronald J. Stefani Board Stipends- 11-14 BOD meeting plus milage -111.60

Bill Pmt -Check 12/24/2019 12012 U.S. Bank - CalCard RingCentral, Verizon, Google Suites, calendar pulg in for website -1,255.66

General Journal 12/31/2019 101 Maintenance Fee RaboBank MMK -25.00

Deposit 12/31/2019 Interest 0.17

Deposit 12/31/2019 Interest 438.18

605,443.67

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT

MEETING DATE: February 13, 2019

AGENDA ITEM: 7.a.

SUBJECT: Approve Amendment No. 3 to Regional Government Services (RGS) Agreement for FY 2019-20 adding a Senior Advisor to Organizational Structure

RECOMMENDATION: Recommend approval of Amendment No. 3 to RGS Agreement making changes to organizational structure of GSA management services.

BACKGROUND: On August 1, 2017 the Agency entered into a management services agreement with RGS to provide full management services for the Agency. On June 14, 2018 the Board approved Amendment No. 1, continuing the management services for FY 2018-19 On June 10, 2019 The Agency approved Amendment No.2 providing services through June 2020 and adding the services of a Deputy General Manager.

DISCUSSION: The RGS agreement ends on June 30, 2020 and is subject to renewal at that time. However, staff has identified the immediate need for a new Senior Advisor position that would support the implementation of the Groundwater Sustainability Plan (GSP) for the 180/400 Foot Aquifer. The Senior Advisor role effectively adds a new staff member to the GSA organization. Attached is a document that articulates the proposed change in organizational structure and begins to identify task assignments and responsibilities within the organization This amendment will be an increase in the RGS cost of services for FY 2019-20 as the Senior Advisor-Plan Implementation is expected to spend considerable time in developing projects and working groups for the existing GSP. The General Manager and Deputy General Manager will be attending many more meetings needing administrative support as the Agency moves forward with the GSP’s for the remaining five aquifers and focuses on grant acquisition. The decision on the annual extension for the RGS agreement will advance with the annual budget for fiscal year 2020/21.

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FISCAL IMPACT: Funding exists within the current budget to fund this additional service, with the full cost for the Senior Advisor services for next fiscal year being included in the annual budget.

ATTACHMENT(S): Amendment No. 3 to Management and Administrative Services Agreement

PREPARED BY: Gary Petersen General Manager

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AMENDMENT NO. 3 TO MANAGEMENT AND ADMINISTRATIVE SERVICES AGREEMENT

This third amendment to the Management and Administrative Services Agreement between the SALINAS VALLEY BASIN GROUND WATER SUSTAINABILITY AGENCY” (“SVBGSA” or “Agency”) and Regional Government Services Authority (“RGS”) is made and entered into this 13th day of February 2020.

RECITALS

WHEREAS, The Agency and RGS (collectively, the “Parties”) entered into an Agreement for Services (“Agreement”) dated August 1, 2017; and,

WHEREAS, the Agreement has been amended twice previously; and,

WHEREAS, the Parties desire to further amend the agreement to provide for additional services and personnel to be provided to the Agency; NOW, THEREFORE,

For good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

A. Effective April 1, 2020, the table attached hereto as Attachment 1, labeled “RGS STAFFRATE TABLE 2019/20” shall replace that table included in Exhibit A to the Agreement,labeled “RGS STAFF RATE TABLE 2019/20.”

B. Except as specifically amended, all other terms and conditions of the Agreement shallremain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Additional Services Amendment to be executed on the date first above written by their respective officers duly authorized in that behalf.

Dated: Dated:

SVBGSA RGS

Richard H. Averett, Executive Director Ron Stefani , SVBGSA Board Chair

APPROVED AS TO FORM

______________________________ Leslie J. Girard Agency Counsel

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Salinas Valley Basin Groundwater Sustainability Agency Amendment #3 — Attachment #1

RGS STAFF RATE TABLE 2019/20

CLASSIFICATION HOURLY RATE* Agency Administration/General Manager $131TO $221

Deputy General Manager $139 to $161 Senior Advisor $115 to $190

Clerk of the Board $77 to $95 Deputy Clerk of the Board/Administrative Specialist $61 to $83

Grant Administrator $82 to $118 Accounting/Payroll/Benefits Specialists $67-$73

Accounting Manager $132 Senior Finance Advisor $118 to $142

Land Use Planners $118 to $154 Public Information Officer $154 to $179

Graphics Designer/GIS Mapping Technician $82-132 Outreach Specialist $82 to $118

*The Hourly Rate does not include direct external costs which will be invoiced to Agency with no markup.

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Before the Board of Directors of the Salinas Valley Basin Sustainable Groundwater Management Agency

Resolution No. 2020- ) Approving Amendment No. 3 to Management ) and Administrative Services Agreement with ) Regional Government Services )

BE IT RESOLVED by the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency that the attached Amendment No. 3 to Management and Administrative Services Agreement with Regional Government Services is hereby approved and that changes to the GSA organizational structure are also hereby approved. PASSED AND ADOPTED on this 13th day of February 2020, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: I, Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Directors duly made and entered in the minutes thereof Dated: Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin

Groundwater Sustainability Agency, County of Monterey, State of California

_____________________________________

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS STAFF REPORT

MEETING DATE: February 13, 2020

AGENDA ITEM: 7.b.

SUBJECT: Approve Two Year Work Plan for Development of Five Groundwater Sustainability Plans (GSP’S) and the Integrated Sustainability Plan, and Implementation of the GSP for the 180/400 Foot Aquifer.

RECOMMENDATION: Recommend approval of a plan that will provide for the simultaneous development of five GSP’s for the remaining SVBGSA subbasins and the ISP, while implementing the GSP for the 180/400-foot aquifer.

BACKGROUND: With the approval of the first GSP for the 180/400-Foot Aquifer Subbasin on January 9th, 2020 the Agency has entered into a new phase of planning that requires GSP development for the remaining five subbasins. Additionally, elements of the GSP for the 180/400-foot aquifer must be implemented to ensure that the agency stays on track to achieve sustainability in that subbasin.

While these activities are underway, staff will also be working to secure funding for projects, programs and plans and further developing agency and community partnerships. Staff will also continue to work diligently on a number of policy decisions that will be required in order to advance the planning work while satisfying Board requests for policy review. Additionally, agency staff will continue to work with partners and stakeholders to ensure that the robust public comments received from the first plan are addressed as well as extensive stakeholder outreach processes for the new plans.

DISCUSSION: The two-year plan described in this document was developed through close cooperation between Montgomery and Associates staff and GSA staff. The work plan identifies activities that generally fall into the three work areas that include policy, planning, and implementation, and are organized into six different tracks of work.

Utilizing this framework supports what staff believes is the direction required to succeed in developing the remaining five GSP’s and the ISP by 2022 while implementing the plan for the 180/400-foot aquifer. GSA staff continues to focus on delivery of the 180/400-aquifer plan while keeping costs manageable and staffing to a minimum. Work with multiple agency and nongovernmental partners to join and support their efforts will be the key to success of this process.

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The planning track summary is as follows:

2-Year Planning Tracks

Tracks: To organize the planning process, we combined the tasks into six main “tracks.”

• GSP Development/Revision (5 Subbasin GSPs, 2-year 180/400 GSP Update, and Integrated Sustainability Plan (ISP)): This track includes drafting the 5 subbasin GSPs, drafting the 2-year update for the 180/400-Foot Aquifer Subbasin, and completing the ISP. This track additionally includes activities that support these tasks, including SVIHM review, subbasin planning committees and stakeholder outreach, analysis of integration between subbasin plans, and Board discussions and guidance on specific issues. This track will also include developing additional funding resources through grants primarily from the State but also by partnering with academic partners and science agencies including USGS.

• GSP Implementation: This track includes developing the water charges framework and financing mechanisms. It also includes several activities regarding projects and management actions, including refining project designs, developing partnerships, and deciding which projects and actions to implement, a timeline for those actions, and how to finance them. While only implementation for the 180/400-Foot Aquifer Subbasin needs to begin immediately, we have taken a Valley-wide approach and plan on continuing to move projects and management actions for the entire Salinas Valley forward in an integrated manner.

• Seawater Intrusion Working Group (SWI Working Group): This track includes initiating and conducting working group meetings, modeling seawater intrusion, generating support to address seawater intrusion, and modeling actions to address seawater intrusion.

• Outreach and Disadvantaged Communities Strategic Dialogue: This track includes outreach to subbasin stakeholders and the initiating a strategic dialogue with DACs to better understand their challenges with respect to drinking water quality.

• Data & Reporting Gaps (180/400-Foot Aquifer Subbasin): This track includes ongoing monitoring and updating of the Data Management System (DMS), filling data gaps, expanding monitoring networks, and annual reporting for the 180/400-Foot Aquifer Subbasin.

The full two-year plan is attached for your review.

FISCAL IMPACT: The full cost of implementation and planning is not known at this time. However, funding exists within the current budget to fund most of the planning which will include funding from grants for the five GSP’s expected to be awarded in late February 2020. Staff will diligently pursue other grants and sources of funding to implement the GSP in the 180/400. Projects will be funded individually when implemented or in partnership with

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other agencies.

ATTACHMENT(S): Two-Year Work Plan PREPARED BY: Gary Petersen General Manager

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2-Year Plan

I. OVERVIEW Many activities must be initiated by the SVBGSA over the next two to three years. Most of these activities revolve around:

• Drafting and submitting the five remaining Subbasin GSPs

• Reviewing the SVIHM

• Modifying the 180/400-Foot Aquifer Subbasin GSP

• Implementing the 180/400-Foot Aquifer Subbasin GSP

• Finishing the Integrated Sustainability Plan (ISP)

• Filling data gaps

• Expanding monitoring networks in the 180/400-Foot Aquifer Subbasin

• Annual reporting for the 180/400-Foot Aquifer Subbasin

• Convening a Seawater Intrusion Working Group

• Undertaking Outreach and a Disadvantaged Community (“DAC”) Strategic Dialogue

• Facilitating Board discussion on key topics

• Continuing ongoing tasks (update DMS) The sections below describe these key tasks, organize them into “tracks”, and propose a schedule to move forward on them over the next two years.

II. DESCRIPTION OF KEY TASKS 1) Draft 5 Remaining Subbasin GSPs

Overview: We have two years to draft and submit the five remaining subbasin GSPs. We propose drafting all five GSPs simultaneously. One difficulty will be obtaining informed and clear feedback on all five GSPs in a timely manner. We have developed a drafting and feedback structure, presented below, that begins to address this concern. A second difficulty will be working around the USGS’s schedule. The USGS is not scheduled to finish the SVIHM until spring of 2020, so to avoid duplication of tasks, we should wait until July to present Chapter 5 (Water Budgets). The suggested timing below groups chapters together, recognizing that subbasin meetings will be time-intensive, subbasin stakeholders will need time to understand and

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review chapters, and we will need to avoid meeting fatigue by the Board.

Governance Structure/Decision Tree:

Board of Directors

Current members Provide direction to subbasin committees, approve chapter drafts (incl policy decisions)

Advisory Committee

Current members Review Subbasin and ISP recommendations, Deliberate, Provide Recommendation to the BOD

ISP Valley Integration Committee (virtual technical review committee?)

MCWRA, ASGSA, MCWD/EKI Evaluate how subbasin plans fit together, Provide technical analysis to AC

Subbasin Committees

Representative, interested stakeholders Provide info and stakeholder preferences, Deliberate, Provide Subbasin Recommendation on GSP Chapters

ISP Valley Integration Committee

Monterey Subbasin Committee

Langley Subbasin Committee

Forebay Subbasin Committee

Upper Valley Subbasin Committee

Eastside Subbasin Committee

AC BOD

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Structure, Timing, & Funding for Drafting and Obtaining Review:

• Group chapters into 5 groups: [1,2,3,4], [5,6], [7,8], [9,10], [11], according to the current chapter subjects

• Present each group of chapters over a three-month period (with slight overlap) –

o Month 0 – present group of chapters in 2 subbasins,

o Month 1 - present a group of chapters in 2 subbasins,

o Month 2 – present group of chapters in 1 subbasins (beginning of month), have the way the chapters fit together reviewed by ISP Valley Integration Committee, and present chapters for all 5 subbasins at Advisory Committee Meeting,

o Month 3 – present group of chapters for all 5 subbasins at Board Meeting and present next group of chapters in first two subbasins;

• Leave 4 months for public process and approval and one-month flexibility

• Funding for the Eastside, Langley, Forebay, and Upper Valley Subbasins is included in the DWR Round 3 SGM Planning Grant application. Funding for the Corral de Tierra Area of the Monterey Subbasin is included in the DWR Round 3 SGM Planning Grant application submitted by MCWD.

2) Review the SVIHM

Overview: The USGS anticipates making the Salinas Valley Integrated Hydrologic Model (SVIHM) available to the SVBGSA in spring 2020. Prior to using the SVIHM to draft GSP chapters, Montgomery &Associates (“M&A”) needs to review the model and prepare it for SGMA use. Timing & Funding: The SVIHM should be reviewed as soon as it is available because GSP development and comparison of projects and management actions are dependent on it. Funding for review of the SVIHM is included in the Round 3 SGM Planning Grant application.

3) Modify the 180/400-Foot Aquifer Subbasin GSP

Overview: The 180/400-Foot Aquifer Subbasin GSP will need to be updated with results from the SVIHM, any new data made available or derived from filling data gaps, and any changes to

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projects and actions agreed to while drafting the other five GSPs. The update will include revisions needed to harmonize subbasin GSPs and revisions necessitated by Board decisions, such as on Groundwater Dependent Ecosystems (“GDEs”).

Timing & Funding: M&A will obtain water budget information for the 180/400-Foot Aquifer Subbasin when it runs the SVIHM, alongside the other subbasins. The GSP should be modified in parallel with GSP chapter development for the remaining subbasins to ensure they are integrated. The Round 3 SGM Planning Grant application includes funding to present the 2-year update to the Advisory Committee and Board; however, it does not include chapter-by-chapter updates that parallel the subbasin committees. Funding sources in addition to the SGM Planning Grant may be needed to hold 180/400-Foot Aquifer Subbasin committee meetings, and coordinate the update with other GSPs in the Valley.

4) Begin Implementing the 180/400-Foot Aquifer Subbasin GSP

Overview: The SVBGSA needs to begin implementing the 180/400-Foot Aquifer Subbasin GSP. Implementation includes refining projects and management actions, timeline and priorities for actions, and developing the water charges framework. These will entail close coordination with MCWRA, more detailed design and comparison of projects and management actions, and stakeholder consultations. It will also include applying for Department of Water Resources implementation grants as they become available. GSP implementation for the 180/400-Foot Aquifer Subbasin will be coordinated with the other Salinas Valley subbasins and related efforts, such as the development of a Habitat Conservation Plan.

Timing & Funding: GSP implementation is not included in the Round 3 SGM Planning Grant application; however, DWR anticipates releasing a Project Proposal Solicitation for implementation grants by late spring 2020. The SVBGSA has begun consultations and planning on projects and management actions with MCWRA and other key stakeholders in order to be ready to apply for these funding opportunities.

5) Finish the Integrated Sustainability Plan (ISP)

Overview: The SVBGSA initiated subbasin GSPs with the understanding that the subbasin plans were parts of an Integrated Sustainability Plan. As the subbasins are hydrologically connected; and subbasin actions need to be integrated. The ISP provides that connection and is important to show stakeholders how the Salinas Valley Groundwater Basin operates as a whole. Chapters 1-8 of the ISP have been started, but will need updating to align with the new subbasin GSPs.

Timing & Funding: The ISP should be completed as subbasin GSP chapters are developed and compared. Comparison involves integration between the chapters to ensure they operate as a

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whole. Therefore, it will be most efficient to write the ISP chapters as the GSPs are drafted to ensure that discrepancies between subbasin GSPs are not discovered too late. The ISP is not covered under the Round 3 SGM Planning Grant application. Funding sources in addition to the SGM Planning Grant will be needed to complete the ISP.

6) Fill Data Gaps Identified in the 180/400-Foot Aquifer Subbasin GSP

Overview: The 180/400-Foot Aquifer Subbasin GSP identified data gaps related to the hydrogeologic conceptual model that need to be filled. In particular, data gaps include:

• Aquifer properties. The values and distribution of aquifer properties in the Subbasin have not been well characterized and documented. There are very few measured aquifer parameters in the overall Salinas Valley Groundwater Basin.

• Hydrostratigraphy of the Deep Aquifers. Vertical and horizontal extents, and potential recharge areas of the Deep Aquifers are poorly known. Only one hydrograph is available from wells completed in the Deep Aquifers.

To address the hydrostratigraphy of the Deep Aquifers, on April 24, 2018, the MCWRA Board of Supervisors directed MCWRA to conduct a comprehensive investigation of the Deep Aquifers of the Salinas Valley Groundwater Basin. The SVBGSA will adopt the findings of this investigation into its updated hydrologic conceptual model.

• Areas of Salinas River recharge and discharge. Specific river recharge and discharge areas have not been mapped. The SVIHM will be used, when it becomes available, to develop estimates of Salinas River recharge and discharge reaches.

Results of the aquifer properties assessment, Deep Aquifers investigation, and Salinas River recharge and discharge mapping will be incorporated into the GSP 2-year update.

Timing & Funding: The Deep Aquifers Investigation will be carried out by MCWRA and subject to their funding and timeline. Mapping of Salinas River recharge and discharge is included above under the 180/400-Foot Aquifer Subbasin 2-year update. The Aquifer Properties Assessment is not included in the Round 3 DWR SGM Planning Grant application. Funding sources in addition to the SGM Planning Grant will be needed to fund the Aquifer Properties

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Assessment.

7) Expand monitoring networks in the 180/400-Foot Aquifer Subbasin

Overview: Part of GSP implementation in the 180/400-Foot Aquifer Subbasin is expanding monitoring networks. This includes:

• Groundwater level monitoring network – filling gaps in the CASGEM well system identified in Chapter 7.

• Groundwater storage monitoring network – working with MCWRA to expand existing well metering system to collect additional groundwater pumping information.

• Seawater intrusion monitoring network - MCWRA publishes estimates of the extent of seawater intrusion every 2 years. However, those maps are based in part on confidential information obtained from private wells. The seawater intrusion monitoring network will include only wells where the data can be made publicly available, which are sufficient in the 180-Foot and the 400-Foot Aquifers. The distribution of wells in the Deep Aquifers is inadequate and considered a data gap, but it may be filled in response to Monterey County Urgency Ordinance 5302.

• Water quality monitoring network - the SVBGSA will track and review the ILRP monitoring network for Ag Order 4.0 and also identify any new small public system water supply monitoring network wells to add to the current network. During implementation, the SVBGSA will obtain any missing well information, select wells to include in monitoring network, and finalize the water quality network.

• Interconnected surface water monitoring network – identifying existing shallow wells adjacent to the Salinas River or installing up to two new shallow wells along the Salinas River to establish the level of interconnection. If existing shallow wells are identified and deemed adequate based on an inspection, an agreement will be secured with the well owner to incorporate the well into the investigation and report data from the well. If existing wells cannot be identified or accessed, then SVBGSA may consider drilling new monitoring wells.

Timing & Funding: These activities are not included in the Round 3 DWR SGMA Planning Grant application, aside from $13,000 for the Groundwater Level Monitoring Network. Funding sources in addition to the SGM Planning Grant will be needed to expand the groundwater storage, seawater intrusion, water quality, and interconnected surface water monitoring networks. If undertaken early during the implementation period, the SVBGSA may be able to access DWR technical support funds for some of these activities. The data will help refine the GSP.

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8) Annual Reporting of the 180/400-Foot Aquifer Subbasin GSP

Overview: Annual reports are due on April 1st of every year. These are data-intensive and require months to coordinate with MCWRA, collect data, analyze data, and develop the report.

Timing & Funding: The Annual Reports are included in the round 3 SGM Planning Grant application as cost-share.

9) Form a Seawater Intrusion Working Group

Overview: SVBGSA will develop and coordinate a working group to address the issues associated with seawater intrusion. The working group will develop consensus on the current understanding of seawater intrusion in the subbasins subject to seawater intrusion, identify data gaps, and develop a broad-based plan for controlling seawater intrusion. The working group will include local agencies, landowners, stakeholders, and technical experts. The preliminary goal of the working group will be to develop consensus on the science of seawater intrusion in the Salinas Valley Groundwater Basin. The ultimate goal of the working group is to develop a comprehensive set of projects and management actions that control seawater intrusion while providing cost effective water supplies for the region. The working group progress will be reported to the Board incrementally by GSA staff to keep the Board apprised of the focus of the Working Group.

Timing & Funding: The Working Group should be established in the early stages of implementation. Funding for meetings is included in the Round 3 SGM Planning Grant application, but not for modeling or management of the group. Some modeling for the Monterey Subbasin is included in the MCWD SGM Planning Grant application, and it will be completed during 2021, after MCWD completes the Monterey Subbasin model.

10) Conduct Outreach/DAC Strategic Dialogue

Overview: As the SVBGSA begins development of GSPs in the 5 subbasins, it will need to conduct outreach to local stakeholders and establish subbasin committees. In addition, the SVBGSA is planning to begin a DAC Strategic Dialogue that will focus conversations on DAC challenges, especially with respect to drinking water quality. The Strategic Dialogue is envisioned to feed into a Board discussion and direction on water quality.

Timing & Funding: Outreach activities will be scoped in the next 30-60 days and will begin immediately thereafter. Subbasin committees need to be established to begin review of GSP chapters. Additional outreach when the subbasin GSPs are going through public review is also important. The Round 3 SGM Planning Grant application includes consultant costs and

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SVBGSA cost share for one subbasin committee meeting per subbasin each month. It also includes $10,400 and $12,000 cost-share for the DAC Strategic Dialogue, some of which has already been used to develop the DAC appendix in the 180/400-Foot Aquifer Subbasin GSP. The DAC strategic dialogue will take place in spring 2020, so as to feed into Board direction on water quality prior to development of SMCs. If DACs continue to want to meet after that point, meetings will take place in a less intensive manner.

11) Initiate Board Discussions on Key Topics

Overview: During the review of the 180/400-Foot Aquifer Subbasin GSP, the SVBGSA Board indicated that it wanted to engage in substantive discussions on key topics, including water quality, DACs, groundwater dependent ecosystems, and vegetation management. These topics will be tracked for Board discussion in the context of implementation and planning.

Timing & Funding: These are incorporated into the schedule below at points when there is time to discuss them and/or the relevant information to discuss them is available. Generally, topics will be discussed prior to when subbasin GSPs address the topics so that the Board can offer direction to guide GSP development across all subbasins.

12) Ongoing Tasks

Overview: The SVBGSA has some ongoing tasks that will continue during the next two years, such as updating the Data Management System, budgeting, and updating its webpage.

Timing & Funding: The SVBGSA and M&A have an existing contract that includes funding for the Data Management System updates until the end of January 2022. The SVBGSA operational fee covers SVBGSA staffing, budgeting, and webpage maintenance.

III. REVISED PLANNING APPROACH

Tracks: To organize the planning process, we combined the tasks above into six main “tracks.” The schedule below and Gantt chart organize the tasks according to these tracks:

• GSP Development/Revision (5 Subbasin GSPs, 2-year 180/400 GSP Update, and ISP): This track includes drafting the 5 subbasin GSPs, drafting the 2-year update for the 180/400-Foot Aquifer Subbasin, and completing the ISP. This track additionally includes activities that support these tasks, including SVIHM review, analysis of integration between subbasin plans, and Board discussions and guidance on specific issues.

• GSP Implementation: This track includes developing the water charges framework and financing mechanisms. It also includes several activities regarding projects and

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management actions, including: refining project designs, developing partnerships, and deciding which projects and actions to implement and how to finance them. While only implementation for the 180/400-Foot Aquifer Subbasin needs to begin immediately, we have taken a Valley-wide approach and plan on continuing to move projects and management actions for the entire Salinas Valley forward in an integrated manner.

• SWI Working Group: This track includes initiating and conducting working group meetings, modeling seawater intrusion, generating support to address seawater intrusion, and modeling actions to address seawater intrusion.

• Outreach and DAC Strategic Dialogue: This track includes outreach to subbasin stakeholders and the initiating a strategic dialogue with DACs to better understand their challenges with respect to drinking water quality.

• Data & Reporting Gaps (180/400-Foot Aquifer Subbasin): This track includes ongoing monitoring and updating of the DMS, filling data gaps, expanding monitoring networks, and annual reporting for the 180/400-Foot Aquifer Subbasin.

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Schedule and Chart:

To help with visualization of the schedule and pace of the next two years, the chart shown below is organized by month (columns) and weeks within the month (rows). Key meetings are indicated, and the section below details their specific agenda items/goals. Data & Reporting are outlined by month.

Jan 2020 – Jan 2022:

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT MEETING DATE: February 6, 2020 AGENDA ITEM: 7.c SUBJECT: Mid-Year Budget Adjustments for FY 2019-20 RECOMMENDATION: Approve Mid-Year Budget Adjustments. BACKGROUND: Half-way through the fiscal year most agencies will review the status of their budget and make any recommended budget changes to ensure they can meet all their obligations. Furthermore, by December 31, 2019 most agencies have completed the audit of the previous fiscal year and use this opportunity to discuss what do with any audited surpluses from the previous year. DISCUSSION: FY 2019-20 Budget Adjustments The budget has enough appropriations (spending authority) to cover total expenses for the fiscal year, however some realignment between accounts is recommended as follows:

• Increase $30,000 in appropriations for Grant Writing/Lobbying. These funds are for assistance in obtaining a $2.5 million grant and other types of funding available from the State for development of the remaining GSPs and implementation projects.

• Increase $60,000 in appropriations for Outside Specialty Legal Services. These funds are to ensure that there is sufficient funding for legal services.

• Increase $5,000 in appropriations for GSA Fee appeals to be issued a refund. • Decrease $13,000 from Communications Consultant to pay for the above items. • Decrease $60,000 from Contingency account to pay for the above items. • The remaining balance in appropriations will be funded with $3,000 from increased

investment earnings and $19,000 from the operating surplus for the year. Succession Planning Changes As part of the succession planning for the Agency management it is anticipated that the Deputy/Assistant General Manager will transition to the General Manager position effective April 1, 2020. At that time the General Manager will transition to a Senior Advisor role. Staff is planning on hiring the new Deputy/Assistant General Manager around March 1, 2020. These positions will be necessary to assist with all the public outreach meetings that will take place as

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part of the development of the remaining five GSPs as well as future funding solicitation and project implementation assessment with partners. An organizational chart showing the position is attached for clarification. There is sufficient funding within the current Administrative Services budget to cover the cost of these personnel changes for March thru June 2020. The attached Mid-Year Budget Adjustment worksheet shows the impact of the aforementioned adjustments. FISCAL IMPACT: At December 31, 2019, the FY 2019-20 budget is projected to have a year-end surplus of $69,344. The recommended budget adjustments result in a decrease of $19,000 in the surplus, leaving an estimated operating surplus of $50,344 from current year operations. The June 30, 2019 ending fund balance was $574,283. With these adjustments the ending balance at June 30, 2020 is expected to be $624,627. ATTACHMENT(S): Mid-Year Budget Adjustment FY 2019-20 PREPARED BY: Roberto Moreno, RGS Senior Advisor

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Salinas Valley Basin Groundwater Sustainability Agency

Mid-Year Budget AdjustmentsFY 2019-20

Jul-Dec Year to Date Budget

$ Over Budget

Budget Adjustments

Revised Budget

Revenue

440000 ꞏ Member Contributions

440100 ꞏ GSA Fee 799,213 1,200,000 -400,787 0 1,200,000

444000 ꞏ Interest Income 4,112 1,000 3,112 3,000 4,000

451000 ꞏ Prop 1 DWR Grant 406,967 960,988 -554,021 0 960,988

Total Revenue 1,210,292 2,161,988 -951,696 3,000 2,164,988

Expense

520000 ꞏ Administrative Services 255,600 624,000 -368,400 0 624,000

530000 ꞏ Groundwater Sustainability Plan 406,367 1,043,144 -636,777 0 1,043,144

530500 ꞏ Legal Services 19,055 60,000 -40,945 0 60,000

532300 ꞏ Grant Management Services (RGS 5,371 20,000 -14,629 0 20,000

540100 ꞏ Agency Financing Plan 25,000 -25,000 0 25,000

540200 ꞏ Facilitation Services 800 30,000 -29,200 0 30,000

540300 ꞏ Grant Writing / Lobbying 31,557 20,000 11,557 30,000 50,000

540400 ꞏ Outside Specialty Legal Svcs 40,000 -40,000 60,000 100,000

540500 ꞏ Communications Consultant (RGS) 20,000 -20,000 -13,000 7,000

550200 ꞏ Conferences / Training 188 7,100 -6,912 0 7,100

550300 ꞏ Dues and Subscriptions 904 3,000 -2,096 0 3,000

550400 ꞏ External Audit 4,500 5,500 -1,000 0 5,500

550500 ꞏ Auditor-Controller Collection 3,000 -3,000 0 3,000

550500 ꞏ GSA Fee Appeal Refunds 0 0 5,000 5,000

550600 ꞏ Insurance Premium 740 3,000 -2,260 0 3,000

550700 ꞏ Legal Notices & Ads 1,050 10,000 -8,950 0 10,000

550800 ꞏ Office Supplies 664 4,500 -3,836 0 4,500

550900 ꞏ Postage and Delivery 463 3,000 -2,537 0 3,000

551000 ꞏ Printing and Reproduction 2,068 10,300 -8,232 0 10,300

551100 ꞏ Office Rent 1,500 3,000 -1,500 0 3,000

551200 ꞏ Technology 6,841 40,000 -33,159 0 40,000

551220 ꞏ Website Upgrade 236 2,000 -1,764 0 2,000

551250 ꞏ Agenda Management Software 3,700 -3,700 0 3,700

551300 ꞏ Travel Expense 2,123 20,000 -17,877 0 20,000

551400 ꞏ Bank Service Charges 156 500 -344 0 500

551500 ꞏ Recruitments 2,000 -2,000 0 2,000

551800 ꞏ Meals and Meeting Expenses 236 2,500 -2,264 0 2,500

551810 ꞏ Mileage Reimbursement 1,000 -1,000 0 1,000

551900 ꞏ Board Stipends 5,858 26,400 -20,542 0 26,400

599000 ꞏ Contingency 60,000 -60,000 -60,000 0

Total Expense 746,277 2,092,644 -1,346,367 22,000 2,114,644

Operating Surplus (Deficit) 464,015 69,344 394,671 -19,000 50,344

X0AOX0AOX0AOX0AO

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT

MEETING DATE: February 13, 2020

AGENDA ITEM: 7.d

SUBJECT: Update and discussion on Round 3 DWR Groundwater Planning Grant to include Arroyo Seco GSP

RECOMMENDATION: Provide Board input on grant acceptance for Round 3 DWR Groundwater Planning Grant, and discussion of cooperation framework and timeline from working with ASGSA.

BACKGROUND: Upon notice of availability of new Sustainable Groundwater Management Program Grant funds, and notification by DWR that proposals would not be accepted for overlap areas within GSPs, the General Manager and Deputy General Manager met with ASGSA General Manager and an ASGSA Advisory Board member on October 23, 2019 to outline an approach on submitting a single grant and including funds for the ASGSA to complete their GSP and SVBGSA to complete the Forebay subbasin GSP. SVBGSA prepared grant language and a budget for review and consideration by ASGSA in an attempt to be in compliance with the DWR proposal guidelines. At a subsequent meeting on November 4, 2019 ASGSA informed SVBGSA that they would be submitting their own grant. On January 13, 2020 SVBGSA was contacted by DWR requesting SVBGSA consider joining grant proposals with ASGSA in order to be in compliance with grant submittal guidelines. On January 15, 2020 SVBGSA and ASGA submitted a joint letter to DWR confirming intent to combine grant proposals for consideration of Round 3 funds. On January 24, SVBGSA was notified by the Department of Water Resources that SVBGSA and ASGSA’s combined Round 3 grant submittal to the Sustainable Groundwater Management Grant Program for $3,533,000 for planning for the next four SVBGSA subbasins the ASGSA GSP was recommended for funding.

DISCUSSION: With notification of the pending grant award, SVBGSA and ASGSA held a conference call on January 30, 2020 to review the two existing grant proposals and prepare for submitting a revised joint grant proposal at SVBGSA’s cost. Issues have been identified in the ASGSA original grant proposal that raise concerns for SVBGSA in completing a joint grant and planning outcome, as well as being the fiscal manager of the grant. These include possible additional match obligations of up to 25% and an unclear path to

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cooperative planning and agreement with ASGSA based on existing negotiations to date. Staff has been working with DWR to eliminate the additional 25% match requirement. Considering these possible concerns SVBGSA has two options for the Board to consider moving ahead. These are described below: 1. Move ahead with the joint grant proposal and anticipated approved grant award with

ASGSA with a joint budget and delivery of 4 subbasin plans by SVBGSA and a GSP for Arroyo Seco. SVBGSA would receive the grant contract in the amount of $3,533,000 and would be obligated to meet all grant deliverables as well as conduct grant administration. This approach would provide $187,000 additional grant funds to SVBGSA to use for the four GSPs needed to be completed by 2022. This would require the completion of a cooperation agreement to be completed in the near term with ASGSA. It is suggested that the Boards of ASGSA and SVBGSA immediately outline a cooperation framework under which they will jointly work on grant deliverables and expedite a completed Cooperation Agreement in the near term.

2. Work with DWR to remove the Forebay subbasin from the SVBGSA planning grant,

thus eliminating the “overlap” issue between the ASGSA and the Forebay subbasin, and prepare the Forebay subbasin GSP with SVBGSA funds thus eliminating the obligation with ASGSA on overlap ineligibility for grant funds. This would retain SVBGSA’s ability to complete the GSP for the Forebay subbasin but would require additional funding from the Agency’s budget. The resulting decrease in the grant funds awarded to SVBGSA would be $500,000 by not using grant funds for the Forebay subbasin planning. A variety of funding mechanisms could be developed to offset the loss of funding including an adjustment to the regulatory fee for property owners in the Forebay.

FISCAL IMPACT: The decision on how to accept the grant funding from DWR could result in loss of funding for the Forebay subbasin GSP thereby requiring Agency funding for plan completion. The lost grant funding would be $500,000.

ATTACHMENT(S): None PREPARED BY: Gary Petersen General Manager

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