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
• btain 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

Provost & Pritchard Consulting Group

Fee Category Fee Amount Applicable Parties

Base Filing Fee $300 per well All extractors required to report Unmanaged Area Rate $10 per acre-foot, if metered $25 per acre-foot, if unmetered Extractors in unmanaged areas 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

State Intervention

Provost & Pritchard Consulting Group

• 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

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?

Provost & Pritchard Consulting Group Land Use Category Area (acres) % of Total Count of 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

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

Provost & Pritchard Consulting Group

• How much to charge?

Approved 2016/17 Approved 2017/18 Approved 2018/19 Proposed 2019/20 Proposed 2020/21 Proposed 2021/22 Legal Services $20,000 $100,000 $80,000 $60,000 $60,000 $60,000 Technical Services 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

Alternatives

Provost & Pritchard Consulting Group

• How to charge?
• 1. Equal Per Acre
• 2. Fixed Minimum plus Extra for Irrigated Ag
• 3. Sliding Scale

Alt #1 - Equal per Acre

Provost & Pritchard Consulting Group

• 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

Alt #2 - Fixed Minimum plus Extra for Irrigated Ag

Provost & Pritchard Consulting Group

– 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

Target Scenario Ratio All ($/Acre) Irrigated Ag ($/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

Alt #3 - Sliding Scale

Provost & Pritchard Consulting Group

– 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

Target Rate Ratio All ($/Acre) Irrigated Ag ($/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

Comparison of Alternatives

Provost & Pritchard Consulting Group

Comparison of Alternatives

Provost & Pritchard Consulting Group

• $750,000 Target
• $300,000 Target

Option Fee ($/Ac) All (Subtotal) Irrigated Ag Additional (Subtotal) Grand Total 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 $750,000 Option Fee ($/Ac) All (Subtotal) Irrigated Ag Additional (Subtotal) Grand Total 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

Comparison of Alternatives

Provost & Pritchard Consulting Group

• $750,000 Target
• $300,000 Target

Option Fee ($/Ac) All (Subtotal) Irrigated Ag Additional (Subtotal) Grand Total 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 $750,000 Option Fee ($/Ac) All (Subtotal) Irrigated Ag Additional (Subtotal) Grand Total 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

Billing Procedures

Provost & Pritchard Consulting Group

• Member GSAs to choose:
• 1. County property tax bill to individual; or
• 2. GSA member agency billed directly

Next Steps

Provost & Pritchard Consulting Group

**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.

Task Date Send Informational Mailer March 29, 2019 Public Outreach Meeting #1 (North County) Early April Public Outreach Meeting #2 (South County) Late April Finalize Rate Study Late April Board Meeting to Adopt Rate Study and Notice Public Hearing Early May Majority Protest** Public Hearing and Fee Approval June 21,2019 Submit for inclusion on tax bill August 16, 2019

Project to Model Demand Reduction

Merced Subbasin GSA Governing Board– April 11, 2019

• 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

Dem Demand nd reduct eductio ion c cons nside ideratio ions f for r the he Mer erce ced S d Subba ubbasin GSA

Merced Subbasin GSA Governing Board– April 11, 2019

Implementation Period

24

Current Applied Water (AF/YR) ~470,00 2040 ~270,00 Sustainable (w/o supply projects)

1 3

Unsustainable Demand Reduction

2

GSP Section Review Schedule

GSP Development:

Sections Review Schedule

# Section Admin Review Draft Sent Out Deadline for Consolidated Comments (2 wks) SC and CC Review Period Relevant Mtg for Discussion Final Public Draft Deadline (June mtg on 6/24)

1Plan Area and Authority

29-Jun-18 20-Jul-18 N/A 24-Jun-2019

2Basin Setting

(in sections, see below) 24-Jun-2019 2.1Hydrogeologic Conceptual Model 6-Nov-18 30-Nov-18 N/A 2.2 Current and Historical Groundwater Conditions 15-Mar-19 29-Mar-19 15-Apr - 29-Apr-19 22-Apr-19 2.3Water Budget Information 5-Mar-19 19-Mar-19 26-Mar - 9-Apr-19 2.4Climate Change Analysis 22-Apr-19 6-May-19 13-May - 27-May-19 27-May-19

3Sustainable Management Criteria

15-Apr-19 29-Apr-19 6-May - 20-May-19 22-Apr-19 24-Jun-2019

4DMS

15-Mar-19 29-Mar-19 15-Apr - 29-Apr-19 22-Apr-19 24-Jun-2019

5Water Allocation Framework

29-Apr-19 13-May-19 27-May - 10-Jun-19 24-Jun-19 24-Jun-2019

6 Projects and Management Actions to Achieve Sustainability Goal

15-Apr-19 29-Apr-19 6-May - 20-May-19 27-May-19 24-Jun-2019

7Plan Implementation

6-May-19 20-May-19 27-May - 10-Jun-19 24-Jun-19 24-Jun-2019

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