Santa Clarita Valley
Groundwater Sustainability Agency
SCV
GSA
October 18, 2022
Gina Natoli
Supervising Planner, Executive Office
Los Angeles County Department of Regional Planning
Transmittal: [email protected]
REGARDING: SCV-GSA Member Agency Annual Contributions
During the SCV-GSA's October 3, 2022, Board Meeting, it considered Item 4.1 (attached) which described the context of the earlier-set $20,000 member agency annual contributions. These contributions were initially set to provide a modest amount of recurring funding to the SCV-GSA to support the newly created agency and preparation of the Groundwater Sustainability Plan. It was programmed for five fiscal years, starting in fiscal year 17/18 and through fiscal year 21/22. Since the SCV-GSA is in its sixth fiscal year, the member agency annual contribution needed to be reevaluated and reapproved.
During the recent regular Board meeting held on October 3, 2022, the Board reevaluated the member agency annual contribution and reached consensus that the member agency contribution should remain set at $20,000 for the next five fiscal years (starting this fiscal year 22/23). It now requests each member agency approach its respective leadership for reapproval of the $20,000 annual member agency contribution starting now in fiscal year 22/23.
Please advise SCV Water when your member agency obtains approval to remit the contribution, and SCV Water will then forward an invoice for processing.
Sincerely,
Rank Verget
Rick Viergutz
Principal Water Resources Planner
SCV Water Agency
attachment
(661) 297-1600 | 27234 Bouquet Canyon Road, Santa Clarita, CA 91350 | SCVGSA.ORG SCV
Santa Clarita Valley
GSA Groundwater Sustainability Agency
Board Memorandum
DATE: September 27, 2022
TO: SCV-GSA Board of Directors
FROM: SCV-GSA Staff
SUBJECT: The Joint Exercise of Powers Agreement (JPA) Member Agency Annual Contributions
OVERVIEW
During the Board meeting held on June 30, 2022, the Board considered the Agency's Fiscal Year 22/23 budget and approved the budget expenditures but did not approve the $20,000 "Annual Member Agency" contributions (member contributions) toward the budget. It was clarified during the meeting that the Joint Exercise of Powers Agreement (JPA) called for revisiting member contributions for FY 22/23.
The JPA forming the SCV-GSA was executed in September 2018. It included a provision that each member agency provides a member contribution to the GSA budget at a level of $20,000 per year for the first five fiscal years, after which the Board would revisit the appropriate level of annual payments.
The first annual payment for FY 17/18 was due in October 2018 one month after execution of the JPA; however, the GSA was already 3 months into FY 18/19 by that point. As a result, two payments were due, and each member contributed the FY 17/18 and 18/19 payments together.
Future $20,000 payments were collected from each member agency in FYs 19/20, 20/21, and 21/22 for a total of five payments.
Traditionally there are three annual revenue sources for the SCV-GSA:
a) Required $20,000 per year member contributions
b) Voluntary member contributions by SCV Water
c) Grant Revenue
REQUIRED $20,000 PER YEAR MEMBER CONTRIBUTIONS
The State's Sustainable Groundwater Management Act called for GAs to strive for membership containing local land use agencies and other entities involved in water resources.
As a result, the GSA was formed with the City of Santa Clarita, Los Angeles County Regional Planning, County Waterworks District No. 36, and SCV Water. These members reached consensus that a $20,000 annual contribution would be reasonable to begin with, recognizing actual costs would be substantially higher.
It is difficult to monetize the benefit each member agency receives from its contribution, but each member agency finds benefit in supporting sustainable groundwater management in this basin.
VOLUNTARY MEMBER CONTRIBUTIONS AND GRANT REVENUE
During drafting the JPA, realizing significant funding would be needed to operate the GSA and develop the GSP, and that it was the largest groundwater pumper on the forming-Board, SCV Water included the option to provide voluntary member contributions above and beyond member contributions. SCV Water has continued to provide these voluntary member contributions.
The County Waterworks District 36 is also a groundwater pumper and member of the JPA but its service area is smaller than the other service areas covered exclusively by SCV Water and relatively speaking is not a large groundwater pumper (extracting approximately 5% as much as SCV Water). Additionally, the remaining two members of the JPA, the City and County of Los Angeles Department of Regional Planning are not groundwater pumpers in the basin.
Between FY 18/19 and FY 21/22 SCV Water's Voluntary Member Contributions have been offset by approximately $1.3M in grant revenue and $320,000 in member contributions. SCV Water has contributed voluntary contributions above the grants and member contributions.
Over the same time frame SCV Water contributed net additional funds ranging from $12,500 to $580,000 each FY between FY 18/19 to FY 21/22, with an average FY contribution of $235,000.
In FY 22/23 and 23/24 SCV Water's expected net additional contribution, given anticipated offsets from member agency contributions at $20,000, and grants (which are $0 at this stage) are estimated to be $595,000 and $422,500 respectively. These SCV Water costs could be reduced to some degree if new grant revenues can be secured.
FISCAL CONSIDERATIONS
The $20,000 member agency contribution is a modest amount of funding from each member agency, and each member agency serves on the Board of Directors and does not get a stipend.
Carrying forward the $20,000 member agency contribution means that the GSA budget remains as proposed in June of this year.
If member agencies reached consensus on modifying the $20,000 member agency contributions either through an increase or decrease, then SCV Water's additional contributions would be reduced, or increased respectively.
PROCEDURAL STEPS
If the GSA Board carries forward the $20,000 member agency contribution, member agencies will determine what their next administrative steps are for their agency's authorization.
CONCLUSIONS
The modest member agency contributions are considered reasonable for the next five FY's. The JPA allows for adjustment to the member agency contribution at any time if warranted via a super majority vote.
RECOMMENDATION
1) Open the item for discussion and reach consensus on setting the member agency contribution at $20,000, or another value, for the next five fiscal years starting in FY 22/23.
2) That each member agency approaches its leadership for approval of the member agency contribution effective for five years starting in FY 22/23