Merced Subbasin GSA Joint Technical and Advisory Committee Meeting - PowerPoint PPT Presentation

Merced Subbasin GSA Joint Technical and Advisory Committee Meeting April 18, 2019

Water Allocation Framework Update

Water Allocation Unanimous Recommendation  Determine the Sustainable Yield of the Basin  Subtract groundwater originating from Developed Supply to obtain sustainable yield of native groundwater  Allocate sustainable yield of native groundwater to overlying users and appropriative users based on their proportionate historical use. Use 2006 through 2015 as the averaging period for historical use   Appropriative user allocations based on fraction of historical use among appropriators  Allocation to overliers will be based on acreage. All developed and undeveloped acreage (not including federal lands) to receive an allocation initially. GSAs agree that no water supply credits can be exchanged until and unless all three GSAs agree on parameters for trading and key data gaps are filled.  Use framework above to establish total allocations to each GSA. GSAs can modify the implementation and allocations within their GSA Boundary.

Merced Subbasin GSA Proposition 218 – Funding the GSA March 22, 2019 Presented by: Joe Hopkins, PE

Introduction • Introduction • State Intervention • Background • Proposed Budget • Alternatives • Billing Procedures • Next Steps Provost & Pritchard Consulting Group

Introduction • SGMA has created an unfunded administrative burden – If not funded locally, the State will step in • Prop 218 allows local agencies to impose fees • This Prop 218 will fund the functions of this GSA – GSP Development, Staff, monitoring, annual reports, studies • This fee will NOT fund the implementation of projects Provost & Pritchard Consulting Group

State Intervention Fee Category Fee Amount Applicable Parties Base Filing Fee $300 per well All extractors required to report Unmanaged Area Rate $10 per acre-foot, Extractors in unmanaged areas if metered $25 per acre-foot, if unmetered Probationary Basin Rate $40 per acre-foot Extractors in probationary basins Interim Plan Rate $55 per acre-foot Extractors in probationary basins where the Board determines an interim plan is required. De minimis Fee $100 per well Parties that extract, for domestic purposes, two acre-feet or less per year from a probationary basin, If the Board decides the extractions will likely be significant. Late Fee 25% of total fee amount per month late Extractors that do not file reports by the due date. https://www.waterboards.ca.gov/water_issues/programs/gmp/fees.html Provost & Pritchard Consulting Group

State Intervention • Sample Annual Fee Comparison 100 acre irrigated parcel with one well, probationary basin – SWRCB Fees: • 1 well = $300 • 3.5 AF/ac = 350 AF X $40 = $14,000 • TOTAL: $14,300 Provost & Pritchard Consulting Group

Background • A Work Group of GSA Board Members was selected: – Bob Kelley – George Park – Nic Marchini • Consultants were hired: – Woodard & Curran – Data Analysis and Fee Model – Provost & Pritchard – Rate Study and Outreach Provost & Pritchard Consulting Group

Background • Who to charge? Count of Land Use Category Area (acres) % of Total Parcels Grazing 123,390.3 37.9% 595 Farming 82,431.5 25.3% 952 Trees or Vines 76,071.1 23.4% 698 Exempt Govt Owned 28,017.1 8.6% 192 Dairy 6,841.9 2.1% 45 Poultry 3,458.3 1.1% 20 Non-Contract Duck Club 1,593.1 0.5% 7 Vacant 885.4 0.3% 148 Sand and Gravel 734.2 0.2% 2 SF Residential 579.5 0.2% 397 Minor Commercial 552.4 0.2% 40 Assessed Govt Owned 413.2 0.1% 9 Industrial 311.3 0.1% 22 Utility Roll 196.0 0.1% 33 Minor Mult 137.7 0.0% 49 Mobile Home 104.6 0.0% 20 Misc 58.8 0.0% 7 Church 1.5 0.0% 3 Total 325,777.90 100% 3,239.00 Source: Merced County Assessor’s Office Provost & Pritchard Consulting Group

Background • Exemptions – Federal Government owned parcels (15,183 acres) – UC Merced Campus (not all UC land, only the campus, which is served by the City of Merced for water; 630 acres) – All parcels less than 2 acres in size (419 acres) • De minimus users • Total Remaining Acres = 309,546 – Irrigated Ag Acres = 170,396 Provost & Pritchard Consulting Group

Budget • How much to charge? Approved Approved Approved Proposed Proposed Proposed 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Legal Services $20,000 $100,000 $80,000 $60,000 $60,000 $60,000 Technical Services 0 65,000 80,000 200,000 175,000 400,000 Miscellaneous Expenses 128,500 68,500 79,000 153,500 155,500 150,500 Total Operating Expenses $148,500 $233,500 $239,000 $413,500 $390,500 $610,500 Groundwater Sustainability Plan 20,000 100,000 470,000 50,000 130,000 130,000 Total GSA Expenses $168,500 $333,500 $709,000 $463,500 $520,500 $740,500 Provost & Pritchard Consulting Group

Alternatives • How to charge? 1. Equal Per Acre 2. Fixed Minimum plus Extra for Irrigated Ag 3. Sliding Scale Provost & Pritchard Consulting Group

Alt #1 - Equal per Acre • This option recognizes that SGMA applies to all parcels in the GSA and does not differentiate between different land uses or groundwater use. Target All ($/Acre) $750,000 $2.42 $300,000 $0.97 Provost & Pritchard Consulting Group

Alt #2 - Fixed Minimum plus Extra for Irrigated Ag – Charge all a fixed minimum amount – Charge Irrigated Agriculture an additional amount due to the additional impact on the aquifer – In years where the GSA does not collect the maximum budget amount, the ratio of what the Irrigated Agriculture group pays over everyone else becomes significantly less All Irrigated Ag Target Scenario Ratio ($/Acre) ($/Acre) $750,000 $0.50 / +$3.50 1:7 $0.50 $4.00 $300,000 $0.50 / +$0.85 1:1.7 $0.50 $1.35 Provost & Pritchard Consulting Group

Alt #3 - Sliding Scale – Charge all groups a minimal amount – The Irrigated Agriculture group pays an additional amount in a set ratio due to additional impact on the aquifer. – In years where the GSA does not collect the maximum budget amount, the minimum amount for all groups is reduced to keep the largest percentage of the funding burden on the Irrigated Agriculture group – minimum of $3.00/parcel All Target Rate Ratio Irrigated Ag ($/Acre) ($/Acre) $750,000 $0.50/ +$3.50 1:7 $0.50 $4.00 $300,000 $0.20/ +$1.40 1:7 $0.20 $1.60 Provost & Pritchard Consulting Group

Comparison of Alternatives Provost & Pritchard Consulting Group

Comparison of Alternatives • $750,000 Target Irrigated Ag Option Fee ($/Ac) All (Subtotal) Additional Grand Total (Subtotal) Equal Per Acre $2.42 $750,000 $0 $750,000 Fixed Min + Extra $0.50 / +$3.50 $154,773 $595,227 $750,000 Sliding Scale $0.50 / +$3.50 $155,396 $594,631 $750,000 • $300,000 Target Irrigated Ag Option Fee ($/Ac) All (Subtotal) Additional Grand Total (Subtotal) Equal Per Acre $0.97 $300,000 $0 $300,000 Fixed Min + Extra $0.50 / +$0.85 $154,773 $145,227 $300,000 Sliding Scale $0.20 / +$1.40 $61,466 $238,534 $300,000 Provost & Pritchard Consulting Group

Comparison of Alternatives • $750,000 Target Irrigated Ag Option Fee ($/Ac) All (Subtotal) Additional Grand Total (Subtotal) Equal Per Acre $2.42 $750,000 $0 $750,000 Fixed Min + Extra $0.50 / +$3.50 $154,773 $595,227 $750,000 Sliding Scale $0.50 / +$3.50 $155,396 $594,631 $750,000 • $300,000 Target Irrigated Ag Option Fee ($/Ac) All (Subtotal) Additional Grand Total (Subtotal) Equal Per Acre $0.97 $300,000 $0 $300,000 Fixed Min + Extra $0.50 / +$0.85 $154,773 $145,227 $300,000 Sliding Scale $0.20 / +$1.40 $61,466 $238,534 $300,000 Provost & Pritchard Consulting Group

Billing Procedures • Member GSAs to choose: 1. County property tax bill to individual; or 2. GSA member agency billed directly Provost & Pritchard Consulting Group

Next Steps Task Date Send Informational Mailer March 29, 2019 Public Outreach Meeting #1 Early April (North County) Public Outreach Meeting #2 Late April (South County) Finalize Rate Study Late April Board Meeting to Adopt Rate Early May Study and Notice Public Hearing Majority Protest** Public Hearing June 21,2019 and Fee Approval Submit for inclusion on tax bill August 16, 2019 ** Although it is not legally required, the GSA has determined to comply with the requirements of Proposition 218 for imposition of the charge, and will proceed to hold a "majority protest" public hearing. Provost & Pritchard Consulting Group

Project to Model Demand Reduction

Dem Demand nd reduct eductio ion c cons nside ideratio ions f for r the he Mer erce ced S d Subba ubbasin GSA • Important numbers for the GSA • ~ 337,000 total acres • ~ 170,000 irrigated acres • ~ 470,000 acre-feet applied annually • ~270,000 acre-feet of groundwater available • Without additional surface water, need to reduce total applied water by about 200,000 acre-feet by 2040 Merced Subbasin GSA Governing Board– April 11, 2019

Unsustainable ~470,00 0 Applied Water (AF/YR) 1 2 Demand Reduction 3 ~270,00 0 Sustainable Implementation Period (w/o supply projects) Current 2040 24 Merced Subbasin GSA Governing Board– April 11, 2019

GSP Section Review Schedule