Page 3 - scvwa20180807gsa

The JPA can employ full-time and/or part-time employees and independent contractors to
accomplish the purposes of the SCV-GSA, subject to approval of the Board of Directors. It may
contract with a member, or other entities for services, including those related to finances, purchasing,
risk management, information technology, and human resources. Such contracting requires a written
agreement between the SCV-GSA and the member or entity.

Description of JPA Funding Strategy

The JPA Agreement identifies that, unless otherwise determined by the SCV-GSA Board of
Directors, SCV Water under written agreement with the SCV-GSA will manage the administrative
operations of the SCV-GSA and the development of the Groundwater Sustainability Plan. SCV Water
will provide staff resources to administer the operations of the SCV-GSA and will be authorized to
contract directly with consultants and other parties to carry out the direction of the SCV-GSA Board.
Procurement and purchasing will be in accordance with SCV Water’s policies unless otherwise
specified. The written agreement between SCV Water and SCV-GSA will address costs and
expenses incurred by SCV Water in fulfilling its role. The written agreement will be provided prior to
the Committee meeting.

The funding approach is reflective of SCV Water’s mission to provide responsible water stewardship
to ensure the Santa Clarita Valley has reliable supplies of high quality water at a reasonable cost. We
believe SCV Water is in the best position to provide SCV-GSA administrative services and lead the
GSP development on behalf of the SCV-GSA.

Failing to comply with the SGMA could result in losing local control over groundwater resource
management to the State Water Resources Control Board. One way to ensure ongoing success of
SCV Water’s mission is through SCV Water’s role in the JPA, which allows for more efficient
compliance with SGMA, protecting SCV Water’s ability to be a steward of water resources and to
maintain local control.

Further, SCV Water is the largest groundwater producer in the basin. Among water purveyors, SCV
Water extracts more than 95% of the groundwater. Among all pumpers (agriculture and other
pumping), SCV Water extracts approximately 70% of total groundwater, but this amount is
anticipated to increase to approximately 80% starting in 2030 (2015 UWMP).

Additionally, SGMA allows for a GSA to collect fees from groundwater users to fund development of
a Groundwater Sustainability Plan, however, assessment of such an extraction charge is not
advisable at this time. Such an action would require significant legal and public process, would
require installation of flow meters or other means of assessment, reporting of extractions,
assessment, and collection of fees. Such an action could create legal challenges and delays in the
SCV-GSAs ability to achieve compliance with SGMA.

The JPA Agreement identifies that the SCV-GSA will adopt a Budget within 120 days after the first
meeting of its Board of Directors. Subsequent budgets will be adopted prior to the commencement of
each fiscal year, and in the event a budget is not approved, the previous year’s budget shall be
deemed approved for the ensuing year. An estimated SCV Water budget through Fiscal Year
2020/21 (completion of the GSP) is shown on Table 1, attached.

Each member of the JPA must contribute a non-reimbursable twenty thousand dollars ($20,000)
each fiscal year which is expected to cover general administrative costs. SCV Water’s voluntary
monetary and in-kind contributions to the SCV-GSA are also shown on Table 1.

3

237