Principal Office: 2 Civic Center Drive, Scotts Valley, CA 95066 Website: www.smgwa.org

Santa Margarita Groundwater Agency Board of Directors Meeting Agenda

Date: April 23, 2020 Time: 5:30 p.m. Location: Remote Only

Due to the ongoing circumstances surrounding the COVID-19 outbreak, the County of Santa Cruz and the State Governor have issued shelter-in-place orders that will be in effect during the time of our regularly scheduled meeting. In accordance with these orders, the Santa Margarita Groundwater Agency will be

conducting its April Board of Directors meeting in an exclusively remote-access format.

Those wishing to participate in this meeting may do so by following the instructions posted below. Recommended guidelines for teleconferencing are also available at www.smgwa.org.

The meeting may be accessed from a computer, tablet or smartphone. https://global.gotomeeting.com/join/280604245

Phone call-in is available by dialing: +1 (669) 224-3412

Access Code: 280-604-245

Remote access will open 15 minutes before the start of the meeting.

1. CONVENE MEETING

1.1 Call to Order and Roll Call

1.2 Additions/Deletions to the Agenda

1.3 Oral Communications on matters not on the Agenda

2. ADMINISTRATIVE

2.1 Approval of Minutes – March 26, 2020 Board Meeting

2.2 Board Mid-Process Surveys Report (oral, Dave Ceppos)

3. CONSENT

None

4. GENERAL

4.1 FY 2021 Proposed Budget

Recommendation: Receive information and provide input

4.2 Informational Session – Groundwater Sustainability Plan (GSP) Elements

4.2.1 GSP Roadmap – April 23, 2020

4.2.2 Sustainable Management Criteria: Groundwater Levels – Georgina King (Montgomery and Associates), and Dave Ceppos (California State University, Sacramento)

Presentation slides and supplemental materials for these items will be made available at www.smgwa.org.

- Basin Groundwater Level Conditions

- Significant and Unreasonable Chronic Lowering of Groundwater Levels

Recommendation: Receive information and provide input.

5. STAFF REPORTS

- Legal Counsel (oral, Terry Rein)

- Administrative (oral, Piret Harmon)

- Financial Report January 1 – March 31, 2020 (Stephanie Hill)

- Communications and Outreach Quarterly Report (Bill Maxfield)

6. DIRECTOR’S REPORTS

6.1 Individual Directors’ Reports (oral) - Travel/Training - Meetings

6.2 Board Compliance

7. FUTURE ITEMS

- Fiscal Year 2021 Budget (May/June)

- Records Retention Policy

- Financial Controls for Borrowing Money

Informational Sessions

- Groundwater Sustainability Plan Elements

8. INFORMATIONAL ITEMS

- None

9. EVENTS CALENDAR

- Third Annual GRA Summit – Groundwater Resources Association of California, June 10 – June 11, 2020 Virtual Event

- 2020 ACWA Spring Conference and Exhibition, July 28 – July 31, 2020 Monterey, CA

10. ADJOURNMENT

The next scheduled Board of Directors meeting will be at 5:30 p.m. on May 28, 2020.

PURSUANT TO TITLE II OF THE AMERICANS WITH DISABILITIES ACT OF 1990, THE SANTA MARGARITA GROUNDWATER AGENCY

REQUESTS THAT ANY PERSON IN NEED OF ANY TYPE OF SPECIAL EQUIPMENT, ASSISTANCE OR ACCOMMODATION(S) IN ORDER TOEFFECTIVELY COMMUNICATE AT THE AGENCY’S PUBLIC MEETING PLEASE MAKE SUCH A REQUEST TO THE SANTA MARGARITA

GROUNDWATER AGENCY AT 2 CIVIC CENTER DRIVE, SCOTTS VALLEY, CA 95066, OR BY CALLING (831) 438-2363 A MINIMUM OF THREE (3) WORKING DAYS PRIOR TO THE SCHEDULED MEETING. ADVANCE NOTIFICATION WITHIN THIS GUIDELINE WILL ENABLE THE DISTRICT TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY.

Principal Office: 2 Civic Center Drive, Scotts Valley, CA 95066 Website: www.smgwa.org

Santa Margarita Groundwater Agency Board of Directors Meeting Minutes

Date: March 26, 2020 Time: 5:30 p.m. Location: Remote Access Only

The County of Santa Cruz and the State Governor had issued shelter-in-place orders that were in effect during the time of this meeting. In accordance with these orders, the Santa Margarita Groundwater Agency

conducted its March Board of Directors meeting in an exclusively remote-access format.

1. CONVENE MEETING

1.1 Call to Order and Roll Call Chair Perri called the meeting to order at 5:30 p.m.

Directors (Alternates acting as voting Directors shown in italics): E. Cassidy, J. Dilles, D. Engfer, L. Farris, A. Franklin, J. Leopold, B. McPherson, D. Pollock, R. Stiles, L. Henry, C. Perri

Alternates (Present as non-voting observers): B. Ekwall, R. Moran, J. Koopman, D. Lind

Staff: C. Blanchard, P. Harmon, K. Krotcov, R. Menard, J. Ricker, R. Rogers, S. Ryan, N. Wallace

Others: G. King, J. Murray, T. Rein

1.2 Additions/Deletions to the Agenda None

1.3 Oral communications on items not on the Agenda None

2. ADMINISTRATIVE BUSINESS

2.1 Approval of Minutes – February 27, 2020 Board Meeting MOTION: Leopold/Engfer to approve February 27, 2020 Board of Directors meeting minutes. AYES: E. Cassidy, J. Dilles, D. Engfer, L. Farris, A. Franklin, J. Leopold, B. McPherson, D. Pollock, L.

Henry, C. Perri NOES: None ABSTAIN: R. Stiles ABSENT: None

2.2 Acknowledgement of the appointment of Bill Ekwall from the Scotts Valley Water District as Alternate Director of the Santa Margarita Groundwater Agency Board

2.1-1

The Board Chair acknowledged Director Ekwall’s appointment and welcomed him to the Agency.

3. CONSENT AGENDA

None

4. GENERAL BUSINESS

4.1 Groundwater Sustainability Plan (GSP) Technical Consultant Contract Amendment Recommendation: Approve and authorize staff to execute the contract amendment with Montgomery & Associates (M&A) for expanding the Santa Margarita Groundwater Model Updates and Modification task. P. Harmon and J. Ricker presented information on the proposed contract amendment and responded to questions from the Board. MOTION: McPherson/Cassidy to approve and authorize Staff to execute the contract amendment with

Montgomery & Associates (M&A) for expanding the Santa Margarita Groundwater Model Updates and Modification task.

AYES: E. Cassidy, J. Dilles, D. Engfer, L. Farris, A. Franklin, J. Leopold, B. McPherson, D. Pollock, R. Stiles, L. Henry, C. Perri

NOES: None ABSTAIN: None ABSENT: None

4.2 Informational Session – Groundwater Sustainability Plan (GSP) Elements

4.2.1 GSP Roadmap – March 26, 2020 4.2.2 Sustainable Management Criteria: Groundwater Levels and Groundwater Quality – Georgina

King (Montgomery & Associates), and Piret Harmon (Scotts Valley Water District) - Water Demand Forecasting - Draft Statement of Significant and Unreasonable Degraded Groundwater Quality

- Degraded Groundwater Quality Proposed Minimum Thresholds and Measurable Objective Approaches

D. Ceppos provided administrative guidelines to the Board and Public regarding the procedures for comments and questions.

P. Harmon and G. King presented information to the Board on Water Demand Forecasting. D. Ceppos facilitated a discussion among the Board and P. Harmon responded to questions from the Board and staff.

G. King presented to the Board the proposed draft statement of significant and unreasonable conditions for degraded groundwater quality. The Board and staff made recommendations for improving the proposed statement. G. King presented information on measurable objectives and undesirable results for water quality D. Ceppos facilitated a discussion among the Board and staff. P. Harmon, G. King, R. Menard, and J. Ricker responded to questions from the Board.

2.1-2

The Board provided feedback and requested that proposed measurable objectives be plotted on the charts. Directors were asked to send requests for specific water quality data to N. Wallace no later than Friday, April 3rd.

5. STAFF REPORTS

Legal Counsel (oral, T. Rein) T. Rein provided an update on Alternate Director participation at Board meetings as it relates to Brown Act requirements and reported on the status of a request for opinion from the California Attorney General on that matter. Administrative (oral, P. Harmon) P. Harmon reported updates on conference and training rescheduling and designated N. Wallace as the point of contact for travel and training arrangements. She also reported on the timeline for the Sustainable Groundwater Management (SGM) Round 3 Grant, and that it would be issued under an amended agreement for Round 2 Grant.

S. Ryan provided an update on GSA Summit, reporting that the event would be exclusively digital and there were no changes to fees.

6. DIRECTORS REPORTS

6.1 Individual Directors’ Reports - Travel/Training None

- Meetings None

R. Stiles reported on a webinar of PFAS “Forever” chemicals. She reported on the content of that webinar and that it is available for anyone wishing to view it.

6.2 Board Compliance The information was accepted without comment.

7. FUTURE ITEMS

- Fiscal Year 2021 Budget (April/May)

- Records Retention Policy

- Financial Controls for Borrowing Money

Informational Sessions

- Groundwater Sustainability Plan Elements

8. INFORMATIONAL ITEMS

- None

9. EVENTS CALENDAR

- Third Annual GSA Summit – Groundwater Resources Association of California, June 10 – June 11, 2020 Sacramento, CA

- 2020 ACWA Spring Conference and Exhibition, New Dates July 28 – July 31, 2020 Monterey, CA

2.1-3

D. Ceppos reported an upcoming webinar on facilitating smooth remote meetings hosted by the Groundwater Resources Association of California. The date of this event will be April 8, 2020.

10. ADJOURNMENT

MOTION: Cassidy/Stiles to adjourn the meeting at 8:10 p.m.

AYES: E. Cassidy, J. Dilles, D. Engfer, L. Farris, A. Franklin, J. Leopold, B. McPherson, D. Pollock, R. Stiles, L. Henry, C. Perri

NOES: None ABSTAIN: None ABSENT: None

APPROVED BY: Chris Perri, Chair Date ATTEST: Angela Franklin, Secretary Date

2.1-4

Santa Margarita Groundwater Agency Board of Directors Agenda Report

__________________________________________________________________________

To: Board of Directors

Date: April 23, 2020

Item: General 4.1

Subject: FY 2021 Proposed Budget

SUMMARY

Recommendation: Receive information and provide input.

Fiscal Impact: Total proposed budget is $1,184,900. The reserves will cover $90,857 and $700,000 is anticipated to be received in grant disbursements. The rest will be funded by 3 member agencies contributing proportional shares of 60% from Scotts Valley Water District ($295,821), 30% from San Lorenzo Valley Water District ($145,470) and 10% from the County of Santa Cruz ($48,490).

BACKGROUND

On May 23, 2019, the Board of Directors approved the FY 2020 budget.

DISCUSSION

From the inception of the Agency in 2017 through January 2022, the main objective of the Santa Margarita Groundwater Agency has been and will be to develop the Groundwater Sustainability Plan (GSP). The mandate from California Department of Water Resources to develop a GSP for a basin is decided based on the following factors: total basin area, population served by the basin, number of public and private groundwater wells, size of irrigated land, total pumping from the basin, streamflow and habitat linkage. Some parts of the basin being in overdraft has minimal relevance on the requirement for developing the plan.

The budget is driven in large part by the work plan submitted with the Sustainable Groundwater Management Grant Round 2 and Round 3 applications. Both grants require a matching contribution (50% and 25% respectively) from local sources, meaning that to utilize the $1.644 million awarded, the Agency will need to spend at least an additional $1.22 million on relevant tasks through 2022. FY 2021 budget anticipates approximately 40% of the total grant budget to be disbursed in this year.

The budget for FY 2021 and overall anticipated costs for the period through January 2022 are associated with the plan (GSP) development. The FY 2021 cost allocation of 60%-30%-10% between the member agencies is strictly for plan development and does not set any precedent for any future cost allocations for implementation. The expenses are comprised of the

4.1-1

estimated costs for outside professional/technical services, administrative/financial support services provided by member agencies and various administrative fees, services and supplies.

The revenue source for the grant match is contributions from the three member agencies. The cost allocation distribution represents each agency’s general proportional share in the factors that determined the need for plan development (total pumping in the whole basin, population, size of the basin, etc). The allocation is expected to remain the same over the course of the next 3 years or until the GSP development work is completed. The cost share allocation for plan development - 60% from Scotts Valley Water District, 30% from San Lorenzo Valley Water District and 10% from County of Santa Cruz - is not based on the impacts on the basin nor probable benefits received. The eventual implementation costs of the plan including the funding structure and cost allocations will have a much stronger relationship to impact and benefits as determined by the plan (GSP).

By approximate estimation, the total cost of the plan development phase is $3.2 million. This figure was increased from last year’s projection of $2.3 million by adding $0.8 million for groundwater model improvements and monitoring network installation, and $0.1 million for facilitation and community engagement. 75% of the additional expenditures is funded from the Round 3 Grant proceeds. After the grant disbursement, the expected contributions over the remaining two-year period (FY 2021-2022) from Scotts Valley Water District, San Lorenzo Valley Water District and County of Santa Cruz are $268,885, $134,442 and $41,814 respectively.

Submitted by,

Piret Harmon General Manager Scotts Valley Water District

Attached: FY 2021 Draft Budget FY 2018-2022 Expense Projections

4.1-2

FY 2021 Draft BudgetSanta Margarita Groundwater Agency FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Est. Actual BudgetRevenue

SVWD $95,000 $291,256 $295,821 $290,940SLVWD $70,000 $145,627 $147,911 $145,470County $15,000 $48,543 $49,304 $48,490Prop 1 GSP Grant $0 $0 $200,000 $700,000From/To Reserves -$77,219 -$74,932 $90,857 $0

Total Revenue $102,781 $410,494 $783,893 $1,184,900Cost allocation (GSP development period 2018-2022)

SVWD 60%SLVWD 30%COUNTY 10%

Expenses51000 Administrative Services

51100 Administrative Coordination $51,071 $49,051 $38,000 $40,00051200 Treasurer Services $7,415 $7,611 $10,000 $10,00051300 Grant Administration $0 $10,604 $10,000 $15,000

52000 Professional Contract Services52100 Legal Services $12,949 $18,551 $24,000 $30,00052200 Outreach Services $0 $68,101 $43,000 $66,00052300 Facilitation Services $8,768 $54,977 $35,000 $50,00052400 Audit Services $0 $8,625 $7,500 $7,50052500 Technical Services $20,234 $181,816 $606,348 $645,000

53000 General Administrative Expenses53100 Insurance $1,003 $1,385 $920 $1,10053200 Membership Fees $219 $1,638 $2,275 $2,10053300 Supplies & Equipment $1,110 $147 $250 $2,00053400 Software & Licences $0 $0 $2,400 $2,50053500 Meetings $0 $4,975 $500 $5,00053600 Travel & Trainings $0 $2,959 $3,000 $7,50053700 Banking Fees $0 $18 $200 $20053800 Other Business Expenses $12 $35 $500 $1,000

54000 Capital Outlay54100 Monitoring Network $0 $0 $0 $300,000

Total Expenses $102,781 $410,494 $783,893 $1,184,900

4.1-3

FY 2018-2022 ProjectionsSanta Margarita Groundwater Agency FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 18-22

Actual Actual Est. Actual Budget Projections Total Total GrantExpenses51000 Administrative Services $58,486 $67,266 $58,000 $65,000 $69,000 $317,752

51100 Administrative Coordination GE $51,071 $49,051 $38,000 $40,000 $44,000 $222,122 $213,500 $50,00051200 Treasurer Services NG $7,415 $7,611 $10,000 $10,000 $10,000 $45,02651300 Grant Administration GE $10,604 $10,000 $15,000 $15,000 $50,604 $40,000

52000 Professional Contract Services $41,951 $332,071 $715,848 $798,500 $274,961 $2,163,33152100 Legal Services NG $12,949 $18,551 $24,000 $30,000 $30,000 $115,50052200 Outreach Services GE $68,101 $43,000 $66,000 $41,000 $218,101 $177,500 $50,000

Communication Services $68,101 $35,000 $40,000 $35,000 $178,101Other Special Activities $4,000 $20,000 $24,000

Youth Outreach Internship $4,000 $6,000 $6,000 $16,00052300 Facilitation Services GE $8,768 $54,977 $35,000 $50,000 $39,423 $188,168 $177,500 $50,00052400 Audit Services NG $8,625 $7,500 $7,500 $7,500 $31,12552500 Technical Services GE $20,234 $181,816 $606,348 $645,000 $157,038 $1,610,436 $1,545,000 $850,000

Model Evaluation $20,234 $38,603 $58,837GSP Development $93,652 $576,348 $585,000 $127,038 $1,382,038

Stream and Well Data Collection $49,562 $30,000 $60,000 $30,000 $169,56253000 General Administrative Expenses $2,344 $11,157 $10,045 $21,400 $14,075 $59,021

53100 Insurance NG $1,003 $1,385 $920 $1,100 $1,100 $5,50853200 Membership Fees NG $219 $1,638 $2,275 $2,100 $2,275 $8,50753300 Supplies & Equipment NG $1,110 $147 $250 $2,000 $1,250 $4,75753400 Software & Licences NG $2,400 $2,500 $750 $5,65053500 Meetings $4,975 $500 $5,000 $10,47553600 Travel & Trainings NG $2,959 $3,000 $7,500 $7,500 $20,95953700 Banking Fees NG $18 $200 $200 $200 $61853800 Other Business Expenses NG $12 $35 $500 $1,000 $1,000 $2,547

54000 Capital Outlay $0 $0 $0 $300,000 $410,700 $710,70054100 Monitoring Network GE $300,000 $410,700 $710,700 $710,700 $644,200

Total Expenses $102,781 $410,494 $783,893 $1,184,900 $768,736 $3,250,804 $2,864,200 $1,644,200

Grant Eligible Expenses GENot Grant Eligible Expenses NG

Grant Budget FY 18-22

4.1-4

4.2.1 GSP Roadmap - April 23, 2020Year Month

Technical Consultant (M&A) Tasks

Board Meeting Topics Board ReviewsBoard Action

(Y/N)Work

Progress (%)Staff & Editorial Reviewers Tasks

Sep - GSP Road Map, HCM, background on basin GWLs Y

Oct Introduction

Model basics and update on model improvementsIntroduce Sections of the GSPBasics of Section 1Management Areas

- N 90

Section 1, excluding Estimated Cost of Implementing the GSP subsection (Oct - Nov)

NovBasin SettingModel Update

no meeting Section 1 N 40

Section 1, excluding Estimated Cost of Implementing the GSP subsection (Oct - Nov)

DecBasin SettingModel Update

Climate change - N 50 -

Jan

Model UpdateDMSBasin SettingProjects & Management Actions

Model update statusProjects & Management Actions

- N 60 -

FebBasin SettingDMS Analysis

Process for developing SMCsGWQ#1 - Background on Groundwater QualityDegraded GWQ statement of significant and unreasonable, and approach for SMCs

summary of Groundwater Quality in Santa Margarita BasinExample Statements of Significant and Unreasonable GWQ

Y - Statement of Significant &

Unreasonable GWQ

Mar

Develop approaches for GWQ SMCBasin SettingModel UpdateMonitoring Network

GWQ #2 - draft MT and MOFuture Water Demand Forecasting

Draft Statement of significant and unreasonable degradation of water quailtyProposed GWQ MT and MO

Y - Approach for WQ MT and MO

Apr

Develop Predictive ModelPrepare GWQ SMCModel updateMonitoring Network

GWL #1 - Background on Groundwater Level (GWL), GWL draft statement of significant and unreasonableProposed GWL MT and MO approaches

Proposed GWL MT and MO

Y - Statement of Signifcant and Unreasonable

GWL

Section 2, excluding future water budget, SY, and Communication & Engagement Plan (Apr-May)

<May

Model UpdateDraft MT and MO for GWLModel Calibration

GWL #2 - draft MT and MOPrioritization of Projects & Management Actions and timing of implementation to be included in predictive modeling

Draft GWL MT and MOY - GWL MT and

MO

Section 2, excluding future water budget, SY, and Communication & Engagement Plan (Apr-May)

JunModel UpdateDraft MT and MO for DWSModel Calibration

DSW #1 - background on DSW, proposed approaches for MT and MO, and potential RMPs

Summary of Interconnected Surface Water in the Santa Margarita BasinExample statement of Significant and Unreasonable for DSW

Y - Statement of Significant &

Unreasonable DSW

Groundwater Model Update and Improvements Report (May - June). To be included in the GSP as an Appendix

Jul Draft MT and MO for DWS DSW #2 - proposed DSW MT and MO Proposed DSW MT and MO N

Groundwater Model Update and Improvements Report (May - June). To be included in the GSP as an Appendix

Aug Draft MT and MO for DWS DSW #3 - extra meeting if needed Revisions to DSW MT and MO N

SepDraft MT and MO for Depleted SW

DSW #4 - draft MT and MOGW Stor #1 - background on GW Stor, proposed approaches of MT and MO, and potential RMPs

Approval of draft DSW MT and MOExample GW Stor statements of Significant and Unreasonable

Y - DWS MT and MO, Statement of Significant & Unreasonable

GW Stor

OctModeling of Projects and Management Actions

Present predicted impacts to groundwater conditions based on projects and management actions. Compare against draft MT and MO for all SI

Recommended adjustments to MT and MO for all SI

N

NovDraft MT and MO for Storage, including future water budget and SY

GW Stor #2 - draft GW stor MT and MO Draft GW Stor MT and MOY - GW Stor MT

and MO

Section 3 (Jan-Feb)Section 2 future water budgets and SY subsections (Jan-Feb)

Dec - no meeting none -

Jan Finalize all MT and MO for all SIs Final Sustainability Goal, and MT and MO for all SIsApproval of final Sustainability Goal and MT and MO for all SI

Section 4 (Jan-Feb)

Feb - -Approval of final Sustainability Goal and MT and MO for all SI

Mar Plan Implementation - - Section 5 (Mar - Apr)Apr - Miller Maxfield - draft C & E Plan -

May - Additional meeting if needed -Section 2 Communication & Engagement Plan subsection (May)

JunCompile draft GSP, including executive summary

- Complete draft GSP (Jun)

Jul Draft GSP Out for Public Review - Approve Draft GSP for Public Review

Aug - - -

Sep Receive comments on draft GSP - -

Oct Address comments Possible meeting to discuss comments -Nov Prepare final GSP - Approve Final GSPDec Upload GSP to DWR Portal - -

2022 Jan >>>GSP Due<<< - -

Additions in Bold-Italics - Deletions Struck-Through

2019

2020

2021

Page 1 of 24.2-1

ACWA-JPIA ACWA Joint Powers Insurance AuthorityAF Acre FootAFY Acre Foot per YearBMP Best Management PracticesCD Certificate of DepositCEQA California Environmental Quality ActDHS Department of Health ServicesDMS Data Management SystemDSW Depletion of Interconnected Surface WaterDWR Department of Water ResourcesEIR Environmental Impact ReportGASB Governmental Accounting Standards BoardGSP Groundwater Sustainability PlanGWL Chronic Lowering of Groundwater LevelsGWQ Degraded Groundwater QualityGWS Reduction of Groundwater StorageIRWM Integrated Regional Water ManagementJPA Joint Powers AgreementLAFCO Local Agency Formation CommissionLID Low Impact DevelopmentMGD Million Gallons per DayMGY Million Gallons per YearMO Measurable ObjectivesMT Minimum ThresholdsO&M Operations and MaintenancePHG Public Health GoalPPB Parts Per BillionRFP Request for ProposalsRMP Representative Monitoring PointRWMF Regional Water Management FoundationRWQCB Regional Water Quality Control BoardSCWD Sant Cruz Water DepartmentSDWA Safe Drinking Water ActSGMA Sustainable Groundwater Management ActSI Sustainability IndicatorSLVWD San Lorenzo Valley Water DistrictSMC Sustainability Management CriteriaSMGWA Santa Margarita Groundwater AgencySqCWD Soquel Creek Water DistrictSVWD Scotts Valley Water DistrictSW Surface WaterSWRCB State Water Resources Control BoardSY Sustainable Yield

Common Acronyms

4.2-2

Santa Margarita Groundwater Agency Board of Directors Agenda Report

__________________________________________________________________________

To:

Date:

Item:

Subject:

Board of Directors

April 23, 2020

General 4.2.2

Sustainable Managment Criteria: Groundwater Levels

SUMMARY

Recommendation: Receive information and provide input.

Fiscal Impact: None from this action.

DISCUSSION

Dave Ceppos (California State University, Sacramento) and Georgina King (Montgomery & Associates) will lead a presentation and discussion on Basin groundwater level conditions and significant and unreasonable chronic lowering of groundwater levels.

1. Introduction and Session Review (5 minutes)

2. Basin Groundwater Level Conditions (45 minutes)

3. Discussion of Significant and Unreasonable Chronic Lowering of Groundwater levels (30minutes)

Submitted by,

Piret Harmon

General Manager

Scotts Valley Water District

Attachments: Presentation slides will be made available on our website’s homepage at www.smgwa.org.

4.2-3

Santa Margarita Groundwater Agency Board of Directors Staff Report __________________________________________________________________________

To: Board of Directors

Date: April 23, 2020

Item: Staff Reports

Subject: Financial Report for the Period of January 1, 2020 to March 31, 2020

SUMMARY

Recommendation: It is recommended the Board receive the financial report covering the period of January – March 2020 (Q3).

Fiscal Impact: None from this action.

BACKGROUND

Attached is the Treasurer’s Report. Below itemizes the attached reports and gives a brief description.

• Statement of Revenue & Expenses – reflects revenue invoiced to the participating members and expenses incurred during the stated time period

• Statement of Net Position – reflects the cash balance with Santa Cruz County Bank, any revenue still owed from participating members as Accounts Receivable (A/R), any monies still owed to vendors as Accounts Payable (A/P) and the resulting net income from the Statement of Revenue & Expenses

• Accounts Payable Aging Summary – reflects current expenses that have yet to be paid • Bill List – reflects all payments made by the SMGWA, typically by check • Budget vs. Actuals – New report, reflecting the actual expenses compared to the full

year budgeted amount. • Credit Card Summary – New report, provides the YTD credit card summary for the year.

And then the on-going future monthly detail.

DISCUSSION

This is an informational report only. Given the more simplistic nature of the Agency, there will typically be contributions from the participating members and expenses related to Agency activity. New is the fact we are doing this report quarterly. Additionally, the last page has a new report reflecting a budget versus actual expense comparison.

Submitted by,

5.3-1

Stephanie Hill

Treasurer, Santa Margarita Groundwater Agency

Director of Finance & Business Services, San Lorenzo Valley Water District

Attachments: Financial Management Report for the Period Ended March 31, 2020

5.3-2

For management use only

Financial Management ReportSanta Margarita Groundwater AgencyFor the period ended March 31, 2020

Prepared on

April 16, 2020

5.3-3

2/7

Table of Contents

Statement of Revenues and Expenses .................................................................................................................3

Statement of Net Position ......................................................................................................................................4

A/P Aging Summary ..............................................................................................................................................5

Checking Account Activity .....................................................................................................................................6

5.3-4

Santa Margarita Groundwater Agency 3/7

Statement of Revenues and ExpensesJanuary - March, 2020

Total

INCOME

Services 246,517.50

Total Income 246,517.50

GROSS PROFIT 246,517.50

EXPENSES

51000 Administrative Services

51300 Grant Administration 2,706.36

Total 51000 Administrative Services 2,706.36

52000 Professional Contract Services

52100 Legal Services 4,342.50

52200 Outreach Services 3,875.00

52500 Technical Services 63,105.15

Total 52000 Professional Contract Services 71,322.65

53000 General Administrative Expenses

53200 Membership Fees 1,027.81

53400 Software & Licenses 1,400.00

53500 Meetings 429.37

53600 Travel, Training & Seminars 385.00

53800 Other Business Expenses 14.99

Total 53000 General Administrative Expenses 3,257.17

Total Expenses 77,286.18

NET OPERATING INCOME 169,231.32

NET INCOME $169,231.32

5.3-5

Santa Margarita Groundwater Agency 4/7

Statement of Net PositionAs of March 31, 2020

Total

ASSETS

Current Assets

Bank Accounts

Checking 203,932.78

Total Bank Accounts 203,932.78

Accounts Receivable

Accounts Receivable (A/R) 24,651.75

Total Accounts Receivable 24,651.75

Total Current Assets 228,584.53

TOTAL ASSETS $228,584.53

LIABILITIES AND EQUITY

Liabilities

Total Liabilities

Equity

Retained Earnings 152,151.60

Net Income 76,432.93

Total Equity 228,584.53

TOTAL LIABILITIES AND EQUITY $228,584.53

5.3-6

Santa Margarita Groundwater Agency 5/7

A/P Aging SummaryAs of March 31, 2020

Current 1 - 30 31 - 60 61 - 90 91 and over Total

TOTAL $0.00

5.3-7

Santa Margarita Groundwater Agency 6/7

Checking Account ActivityJanuary - March, 2020

Date Transaction Type Num Name Memo/Description Amount

Checking

Beginning Balance

01/10/2020 Expense 01.2020 Card Service Center January CC -290.00

01/14/2020 Bill Payment (Check) 1108 Miller MaxfieldPublic Outreach Services - December 2019 -862.50

01/14/2020 Bill Payment (Check) 1106 Fedak & Brown LLPProfessional audit services December 2019 -800.00

01/14/2020 Bill Payment (Check) 1107Errol L Montgomery & Associates Inc.

November GSP Development Services -28,625.00

01/14/2020 Bill Payment (Check) 1105 Rein & Rein, APC Services through 11/30/19 -472.50

02/13/2020 Bill Payment (Check) 1110 Miller MaxfieldPublic Outreach Services - January 2020 -1,812.50

02/13/2020 Bill Payment (Check) 1109 ACWA 2020 Affiliate Support -1,027.81

02/13/2020 Bill Payment (Check) 1111 Rein & Rein, APC Services through 12/31/19 -675.00

02/27/2020 Bill Payment (Check) 1113Errol L Montgomery & Associates Inc. December GSP Development -63,700.56

02/27/2020 Bill Payment (Check) 1112 SVWDFirst Half FY1920 Admin Expense -18,278.00

02/28/2020 Expense 02.2020 Card Service Center February 2020 CC -971.73

03/02/2020 Payment 28539 Scotts Valley Water District 147,910.50

03/02/2020 Payment 018830San Lorenzo Valley Water District 73,955.25

03/02/2020 Bill Payment (Check) 1114 Rein & Rein, APC January Legal Expenses -1,530.00

03/02/2020 Payment 00241010 County of Santa Cruz 24,651.75

5.3-8

Santa Margarita Groundwater Agency 7/7

Date Transaction Type Num Name Memo/Description Amount

03/10/2020 Bill Payment (Check) 1115 Stephanie Hill2019 Quickbooks reimbursement -645.00

03/10/2020 Bill Payment (Check) 1116Errol L Montgomery & Associates Inc.

January GSP Development Services -40,730.61

03/10/2020 Bill Payment (Check) 1117Regional Water Management Foundation

Grant administration 7/1/19-9/30/19 -2,706.36

03/30/2020 Bill Payment (Check) 1119 Rein & Rein, APCFebruary 2020 Legal Expenses -2,812.50

03/30/2020 Bill Payment (Check) 1118Errol L Montgomery & Associates Inc.

February GSP Development Services -22,374.54

03/30/2020 Bill Payment (Check) 1120 Miller MaxfieldPublic Outreach Services - February 2020 -2,062.50

03/31/2020 Expense 03.31.2020 Card Service Center March 2020 CC -322.63

Total for Checking $55,817.76

TOTAL $55,817.76

5.3-9

FY 2020 Approved Budget - Expenses

Santa Margarita Groundwater Agency

FY 2020 YTD Actuals

Expenses Budget 3/31/2020

51000 Administrative Services 79,000$ 20,984$ Billed more periodically by member agencies

Administrative Staff (SVWD) 51100 Administrative Coordination GE 54,000$ 18,278$

Treasurer (SLVWD) 51200 Treasurer Services NG 10,000$ -$

Grant Administration 51300 Grant Administration GE 15,000$ 2,706$

52000 Professional Contract Services 744,500$ 387,629$

General Counsel 52100 Legal Services NG 30,000$ 13,691$

GSP Counsel 52100 Legal Services

Communication Services 52200 Outreach Services GE 55,000$ 26,441$

Community Outreach & Education 52200 Outreach Services

Facilitation Services 52300 Facilitation Services GE 40,000$ 9,944$

Audit 52400 Audit Services NG 7,500$ 6,570$

Review Model 52500 Technical Services GE 612,000$ 330,982$

Update Model 52500 Technical Services

Stream discharge stations 52500 Technical Services

Additional flow monitoring 52500 Technical Services

Well measurements 52500 Technical Services

Data collection and management 52500 Technical Services

Technical Consultant 52500 Technical Services

53000 General Administrative Expenses 14,075$ 7,989$

Insurance Premiums 53100 Insurance NG 1,100$ 920$

Membership Fees 53200 Membership Fees NG 2,275$ 1,028$

Computer Equipment/Software 53300 Supplies & Equipment NG1,250$ 101$

Dropbox had more licenses, and now hits in Software

& Licenses

53400 Software & Licenses NG 750$ 3,043$ See above

53500 Meetings 1,713$ Assumed to be originally budgeted within 53600

Training and Travel 53600 Travel & Trainings NG 7,500$ 1,152$

Banking Fees 53700 Banking Fees NG 200$ -$

Miscellaneous Admin 53800 Other Business Expenses NG 1,000$ 32$

837,575$ 416,602$

Grant Eligible Expenses GE

Not Grant Eligible Expenses NG

5.3-10

YTD SUMMARY OF PAST CREDIT CARD EXPENDITURES

Jul‐19 Aug‐19 Sep‐19 Oct‐19 Nov‐19 Dec‐19 Jan‐20 Feb‐20 Mar‐20 YTD 52200 Outreach Services  191.19$     191.19$    

52200 DescriptionSystem Tour

 53100 Insurance  ‐$          53100 Description

 53200 Membership Fees  ‐$          53200 Description

 53300 Supplies & Equipment  31.43$        31.43$      53300 Description Misc.

 53400 Software & Licenses  82.85$        359.95$      1,200.00$  755.00$       2,397.80$

53400 Description Drop BoxDocusign & Movavi Dropbox

2020 Quickbooks

 53500 Meetings  217.50$     406.74$     175.29$      185.55$     148.11$      201.74$       227.63$           1,562.56$53500 Description Catering Catering Catering Catering Catering Catering Catering

 53600 Travel, Training & Seminars  300.00$      290.00$          95.00$              685.00$     

53600 DescriptionGRAC 

SeminarACWA 

SymposiumCR $240 

ACWA, GRAC 53700 Banking Fees  ‐$          53700 Description

 53800 Other Business Exp  17.30$       14.99$          32.29$      53800 Description Postage 1099 forms

 TOTAL  82.85$        217.50$     615.23$     566.67$      485.55$     1,348.11$  290.00$         971.73$       322.63$           4,900.27$

5.3-11

03.2020 Credit Card Statement Detail

Transaction

Date

Posting

Date Transaction Detail Amount Description Account

3/8/2020 3/8/2020 AUTOMATIC PAYMENT - THANK YOU (971.73)

TOTAL 5590613762704943 $971.73-

3/6/2020 3/8/2020 ASSOCIATION OF CALIFOR 91644145 CREDIT (240.00) CR from prior month ACWA Seminar 53600

2/27/2020 2/28/2020 ERIKS DELICAFE - SCOTT SCOTTS VALLEYCA 227.63 Catering 53500

3/3/2020 3/4/2020 GRAC.ORG SACRAMENTO CA 335.00 T. Rein GRAC Seminar 53600

TOTAL 322.63$

5.3-12

Santa Margarita Groundwater Agency Board of Directors Staff Report

_____________________________________________________________________

To: Board of Directors

Date: April 23, 2020

Item: Staff Reports

Subject: Communications & Public Outreach Quarterly Report

SUMMARY

The following activities took place between January 1, 2020, and March 31, 2020, as per the SMGWA Miller Maxfield Communication Work Plan specific elements:

GSP Communications & Engagement (C&E) Plan

Continued edits to the draft plan; collaboration with Montgomery & Associates and SMGWA Working Group.

C&E Plan Complete: 65%

SMGWA Board Meeting Recap doc

Concept, development and execution of new SMGWA Meeting Recap doc; doc distributed to water agencies, with additional posting/distribution planned for website and social media.

Social Media

SMGWA Facebook page content creation and execution, as well as page promotion, including approximately 2-3 posts per week.

Local Media Outreach

Pitching and coordination of interview with SMGWA staff representatives on KBCZ-radio. Interview postponed due to COVID-19.

Meetings & Collaboration

Attendance, participation and strategic counsel at monthly Working Group meetings; Board meeting attendance; collaboration with K. Krotcov, SMGWA youth outreach intern.

Submitted by,

Bill Maxfield

Miller Maxfield, Inc.

5.4-1

NameForm 700

Annual Filing 2019

AB: 1234 Ethics Current

AB:1234 Ethics Due

Code of Conduct Guiding Principles

Board Members Edan Cassidy 03/22/20 02/04/20 02/04/22 01/16/18 02/12/19Jack Dilles 01/07/20 01/19/19 01/19/21 12/15/17 01/31/19Doug Engfer 03/10/20 08/09/18 08/09/20 12/16/17 03/13/19Angela Franklin 04/07/20 01/30/20 01/30/22 12/15/17 01/31/19Lois Henry 02/07/20 12/14/18 12/14/20 12/14/18 01/31/19John Leopold 03/27/20 09/13/19 09/13/21 12/15/17 02/01/19Bruce McPherson 03/12/20 12/31/19 12/31/21 08/28/18 05/21/19Chris Perri 02/05/20 03/19/19 03/19/21 12/16/17 01/31/19Dale Pollock 03/24/20 03/16/19 03/16/21 12/18/17 01/31/19Ruth Stiles 03/30/20 02/05/19 02/05/21 12/15/17 02/08/19Lew Farris 02/27/20 05/28/19 05/28/21 06/12/19 06/12/19Alternates David Baskin 03/04/20 07/07/18 07/07/20 01/23/18 01/31/19Bill Ekwall 03/24/20 02/05/19 02/05/21 03/24/20 03/24/20J.M. Brown 03/18/20 03/28/19 03/28/21 07/09/18 02/01/19Rick Moran 03/27/20 09/10/19 09/10/21 09/09/19 09/09/19Bryan Hayes 01/29/20 10/30/19 10/30/21 12/18/17 08/06/19Jeff Koopman 04/03/20 05/09/19 05/09/21 05/02/19 05/02/19Donna Lind 02/28/20 10/08/19 10/08/21 12/15/17 02/01/19

AB 1234: Public Officials Ethics Training

Code of Conduct

Guiding Principles

California Law requires that local officials who receive compensation, salary, stipends, or expense reimbursements complete a public official’s ethics laws and principles training relevant to public service within six months of taking office and repeated every two years. District retains original certificates of completion for five years.

The Board understands the importance and value of a positive and constructive culture to the overall performance of the Agency. In order for the Board to function in an effective manner, it is important that the Directors acknowledge their respective roles and the level of performance necessary to carry out the duties of a Director. All Directors shall agree in writing to follow the Guiding Principles of the Agency set forth in Appendix B of the Bylaws.

The Board understands the importance and value of a positive and constructive culture to the overall performance of the Agency. In order for the Board to function in an effective manner, it is important that the Directors acknowledge their respective roles and the level of performance necessary to carry out the duties of a Director. All Directors shall agree in writing to follow the Guiding Principles of the Agency set forth in Appendix A of the Bylaws.

Santa Margarita Groundwater AgencyBoard of Directors Compliace Status

6.2-1