Paso Robles City Council
August 19, 2025

Utilities Department Update
PRAGA Prop 218 Outcome & Next Steps
Christopher Alakel, P.E.

Utilities Director
Paso Robles City Council Update
August 19, 2025
PRAGA Background
 PRAGA formed (March 2025) to facilitate SGMS compliance and GSP implementation. Signatories include City, County, SSJWD, EPCWD.  PRAGA’s initial funding came from contributions from each of the participating GSAs as was outlined in the JPA. Funding was intended to maintain basic functions of the JPA until a groundwater management charge could be implemented to fund the JPA and GSP implementation 3 Review Key Provisions of the Joint Powers Agreement
Key Provisions
 Entity: Paso Robles Area Groundwater Authority, a separate / distinct legal entity with boundaries over the majority of the groundwater basin. The members retain their GSA status, and the Authority only has the powers delegated to it. (Section 4.2)  Purpose of Authority: jointly carry out and fund regulatory and administrative functions under SGMA as well as development and implementation of delegated management actions. (Section 4.4)
 Additional Powers: activities not in plan require super-majority vote and approval by impacted GSA(s) (Section 4.7)
3 4
Review Key Provisions of the Joint Powers Agreement
 Prepare/submit required DWR Reports,
serve as GSP manager.
 Perform outreach as defined in the GSP.
 Address data gaps (e.g. expanded
monitoring network).
 Groundwater demand reduction program
 Adopt an annual budget and fees to fund
GSP implementation.
 Establish rules, regulations, policies,
bylaws, as necessary (e.g. procurement
and purchasing).
 Retain staff / consultants, as necessary.
4 Initial Powers Delegated to Authority
Proposed Groundwater Extraction Fees
 A Draft Cost of Service Study was completed in May of this year. The Groundwater Management Charge targeted Agriculture and other non-de minimis users; rural domestic (de minimis) exempt.
 Aug. 1, 2025: Prop 218 hearing held by PRAGA
 Agricultural: $58.71 → $73.12 per AF over 5 years.
 Non-ag/non-de-minimis: $28.65 → $35.55 per AF over 5 years.

Outcome & Protest Rule
 Majority protest: Over 50% of impacted parcels protested; fees failed to pass.  Under Prop 218, a valid majority protest bars adoption at the hearing.

August 18th PBCC Meeting
Decision was made to fund JPA regulatory and administrative functions with individual GSA contributions through CY 2025 while alternative long-term funding mechanisms are explored.
• Annual Reports
• Data Management Systems
• ET Ag Water Use (Land IQ)
• Contract Staff
• Legal Support
• Admin Costs
• Technical Consultants
• Education and Outreach
• Website Management
Total Baseline Funding Requirement through CY 2025 = $300,000 City of Paso Robles Contribution = $48,000
Future Funding Options
PRAGA alternative revenue options moving forward
 GSA Contributions (through CY 2025 and beyond)
 Quick process w / very low implementation cost
 Not all GSAs have available funding available
 GSA Contributions + Prop 26
 modest implementation costs
 Simplified implementation process (relative to 218)
 Less financial support required of individual GSAs
 Reduced flexibility on project funding – e.g. cant fund CIPs with prop 26 revenue  GSA Contributions + 218
 Longest implementing schedule
 Highest implementation cost
 Significant outreach will be required
 Greatest funding flexibility
Examples of Permissible Uses of Prop 26 Funds
• GSP: Preparing, adopting, and amending the GSP.
• Monitoring & data: well registration, metering/measurement methods, monitoring network O&M, data management,
• Reporting: Annual reports, 5-year plan updates, modeling. • Regulatory administration: permitting, investigations, inspections, compliance assistance, and enforcement actions.
• General administration tied to SGMA: board/committee support, staff time, outreach, audits, and a prudent reserves.
• Legal/regulatory: Costs necessary to implement and enforce SGMA/GSP Additional Consideration
 JPA sunsets Automatic Termination: JPA will automatically terminate on June 30, 2026 if the Authority has not yet established a fee or fees to fund its activities as described in the JPA.

QUESTIONS?