STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

That the Board of Directors approve the attached “Memorandum of Understanding between the City of Coalinga Groundwater Sustainability Agency[1] and the Pleasant Valley Groundwater Sustainability Agency[2] with Respect to Implementation of the Sustainable Groundwater Management Act” (the “MOU”).  The purpose of the MOU is to enable the City GSA and the Pleasant Valley GSA to cooperate to comply with the Sustainable Groundwater Management Act (“SGMA”).

The City has previously formed the City GSA to enable the City to comply with SGMA by having a GSA, which covers the territorial jurisdiction of the City.  The MOU is intended to set out the basis for cooperation between the City’s GSA and the Pleasant Valley GSA.  A similar MOU exists between Fresno County and the Pleasant Valley GSA.  The parties anticipate that one Groundwater Sustainability Plan (“GSP”) will be prepared for the entire Pleasant Valley Subbasin, and that the Pleasant Valley GSA will prepare that GSP using grant funding.  The MOU provides that the City GSA may provide staff support in applying for grant funding and providing information.  The MOU allows the City GSA to avoid the expense of preparing its own GSP.

The City GSA can prepare a GSP for applicability within its city limits and perform all the requirements of SGMA separately.  Complying with SGMA separately would be administratively burdensome for the City compared to the alternative for SGMA compliance to be achieved under the proposed MOU with the Pleasant Valley GSA.

The fiscal impact to the City of Coalinga water enterprise should be minor.  Some staff time will be used in providing the cooperation and coordination with the Pleasant Valley GSA in applying for grant funding and preparing the GSP.  Most of this work is anticipated to involve providing information.