_____________________________________________________________________________________

BOARD OF DIRECTORS SPECIAL MEETINGAGENDA

MARCH 12, 20202:30 PM

REVISED BOARD MEETING AGENDA: THE AGENDA IS REVISED TO REFLECT THATDIRECTOR ALEJO WILL JOIN THE MEETING BY TELECONFERENCE FROM 7237 S. 40TH

LANE, PHOENIX, AZ 85041

SALINAS ROTUNDA, 200 LINCOLN AVENUE, SALINASTHE SPECIAL MEETING WILL RECESS TO CLOSED SESSION AT 2:30 P.M. AND

RECONVENE IN OPEN SESSION AT 3 P.M..

1. Call to Order

2. Roll Call

3. Closed SessionReceive public comments on closed session items; public comments are limited to two minutes.

It is estimated that the Board will reconvene in public session at 3 p.m.. The Board Chair will announce anyreportable action from closed session.

3.a Conference with legal counsel - existing litigation: Pursuant to Government Code Section 54956.9 (d )(1),the Board will meet in closed session to discuss existing litigation, City of Marina, et al. v. County ofMonterey et al., Superior Court of Monterey County Case No. 19CV005720

4. Consent Items

4.a Approve February 13, 2020 regular meeting minutes4.a 2020-02-13 Board Minutes.pdf

4.b Approve January 2020 Financial Claims Report4.b - Staff Report - Jan 2020 Financial Report.pdf4.b.1 Jan 2020 Statement of Revenues and Expenses.pdf 1

4.b.2. Jan 2020 Balance Sheet.pdf4.b.3 Jan 2020 Payment and Disbursement Report[238682].pdf

5. Scheduled Items

5.a Proclaim March 8 through March 14, 2020 as National Groundwater Awareness Week5a. Groundwater Awareness Week Proclamation.pdf

5.b Review the Preliminary Budget for FY 2020-21 and provide direction/changes to staff5.b_Staff_Report_-_Preliminary_Budget_for_FY_2020-21.pdf5.b.1 Budget_Message_20-21.pdf

5.c Adopt RESOLUTION for the development of planning committees to provide input and support for thedevelopment of multiple Groundwater Sustainability Plans and direct the General Manager to develop andimplement application forms and process for establishing committees5.c. Staff Report Subcommittees.pdf5.c.1 Subcommittee Application.pdf5.c.2 Sub-Basin Committee Member Responsibilities final.pdf5.c.3 New committees reso final.pdf

5.d Adopt RESOLUTION appointing Donna Meyers as SVBGSA General Manager, Emily Gardner asDeputy General Manager, and Gary Petersen as Senior Advisor

5.d. Staff Report position appointments.pdf5.d.1 Resolution - GM Dep GM and Snr Adv appt..pdf

5.e Consider adopting RESOLUTION approving Montgomery & Associates Professional ServicesAgreement for 2020-2022 Groundwater Sustainability Planning and Plan Preparation

5e Staff_Report_Item_03122020_Montgomery contract.pdf5e1_Amend 3 to Montgomery contract_03122020.pdfExhibit A - Montgomery Contract Cover Letter 2020-2022_20200225.pdfExhibit B - Montgomery Contract SOW 2020-2022_20200225.pdfExhibit C - Montgomery Contract Budget 2020-2022_20200225.pdfExhibit D - Montgomerey Cover Letter_Monterey Subbasin Contract_20200228.pdfExhibit E - Montgomery Budget_Monterey Subbasin Contract_20200228.pdf5e2_Reso Amend 3 to Montgomery contract_03122020.pdf

6. General Manager's Report

7. Board Members' Reports2

8. Future Agenda Items

8.a Future Agenda ItemsFuture Board Agenda Items.pdf

9. Adjournment

10. Accommodation and Agenda PostingDisability-related modification or accommodation, including auxiliary aids or services, may be requested byany person with a disability who requires modification or accommodation in order to participate in themeeting. Requests should be referred to Ann Camel, Clerk of the Board at camela@svbgsa.org or831-471-7519 as soon as possible, but by no later than 5 p.m. two business days prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the Agency by dialing 711 for theCalifornia Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

AGENDA POSTING The revised meeting agenda was posted at the Salinas City Clerk’s Office and CityHall Rotunda and Monterey County Offices at 1441 Schilling Place, Salinas, CA on March 10, 2020.

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Page 1 of 4 February 13, 2020

Salinas Valley Basin Groundwater Sustainability Agency

UNOFFICIAL MEETING MINUTES

BOARD OF DIRECTORS SPECIAL MEETING COUNCIL ROTUNDA, 200 LINCOLN AVENUE, SALINAS, CA

TELECONFERENCE FROM 7237 S. 40TH LANE, PHOENIX, AZ 85041

FEBRUARY 13, 2020

Pledge of Allegiance

Call to Order Chairperson Stefani called the meeting to order at 3 p.m.. Roll Call Present: Director Luis Alejo (by teleconference) Director Janet Brennan Director Brenda Granillo (alternate) Director Joseph Gunter Director Bill Lipe Director Michael McHatten Director Steve McIntyre Director Colby Pereira Director Adam Secondo Chairperson Ron Stefani Absent: Director Caroline Chapin Hodges SVBGSA: Gary Petersen, Donna Meyers, Agency Counsel Les Girard, Ann Camel

Closed Session Agency Counsel Les Girard announced that he would not attend closed session due to a conflict of interest. The Board recessed to closed session at 3:05 p.m. pursuant to: Conference with legal counsel - existing litigation: Pursuant to Government Code Section 54956.9 (d) (1), the Board will meet in closed session to discuss existing litigation, City of Marina, et al. v. County of Monterey et al., Superior Court of Monterey County Case No. 19CV005720 Conference with legal counsel - anticipated litigation: (i) pursuant to Government Code section 54956.9 (d) (2), the Board will meet in closed session to discuss two matters of significant exposure to litigation; and (ii) pursuant to Government Code section 54956.9 (d) (4) the Board will meet in closed session to discuss one potential initiation of litigation.

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Page 2 of 4 February 13, 2020

The Board reconvened in the Rotunda at 3:30 p.m. There were no reportable actions.

Consent Items

The Board voted to approve the Consent Items. AYES: Directors Alejo, Brennan, Granillo, Gunter, Lipe, Pereira, McHatten, McIntyre, Secondo, and Chair Stefani. NOES: None. ABSTAIN: None. ABSENT: Director Chapin Hodges Scheduled Items a. Adopt RESOLUTION approving Amendment to Agreement with Regional Government Services

(RGS) Director McHatten announced he has a conflict of interest as an RGS Board member and left the meeting room. Gary Petersen outlined the need for a Senior Advisor position. He would move to the Senior Advisor position to implement the 180/400 foot aquifer plan including addressing seawater intrusion. The recommendation is to appoint Donna Meyers to the General Manager position and fill the Deputy General Manager vacancy. The Board voted to adopt RESOLUTION 2020-04 approving the amendment to the agreement with Regional Government Services. AYES: Directors Alejo, Brennan, Granillo, Gunter, Lipe, Pereira, McIntyre, Secondo, and Chair Stefani. NOES: None. ABSTAIN: Director McHatten. ABSENT: Director Chapin Hodges. b. Approve Two Year Work Plan and Planning Process Director McHatten returned to the dais. Gary Petersen outlined the five tracks of tasks in the two-year work plan, including a Seawater Intrusion Working Group and outreach to disadvantaged communities. The proposal is to have five committees for the remaining subbasins’ GSPs, including representation on the Integrated Subbasin Plan (ISP) Committee for consistency These committees’ recommendations would be considered by the Advisory Committee, who would make a recommendation to the Board of Directors. Multiple chapters would be reviewed quarterly, including policies. In response to Directors, Mr. Petersen stated the Planning Committee would be subsumed by the ISP. The 180-400 foot Subbasin would also have representation and will be included in the organizational chart. The implementation reference to water charges is tied into the GSP management action but need not be featured in the first sentence. Director Granillo noted the tier charges reference. As a potable water provider, she is concerned that there be allowances. Mr. Peters stated it needs to be part of the water charges conversation. Norm Groot, Farm Bureau, expressed concern that adequate time be allowed for Chapters 9 through 11. Tom Virsik asked what became of the Technical Advisory Committee. The Salinas Valley Integrated Hydrologic Model (SVIHM) requires rigorous review by not only consultants. The Board voted to approve the Two Year Work Plan and Planning Process. AYES: Directors Alejo, Brennan, Granillo, Gunter, Lipe, Pereira, McHatten, McIntyre, Secondo, and Chair Stefani. NOES: None.

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Page 3 of 4 February 13, 2020

ABSTAIN: None. ABSENT: Director Chapin Hodges. c. Mid Year Budget Adjustments Mr. Petersen presented the report. Director Brennan noted that the Budget and Finance Committee recommended approval. The Board approved the recommended mid year budget adjustments. AYES: Directors Alejo, Brennan, Granillo, Gunter, Lipe, Pereira, McHatten, McIntyre, Secondo, and Chair Stefani. NOES: None. ABSTAIN: None. ABSENT: Director Chapin Hodges.

d. Round 3 Department of Water Resources Groundwater Planning Grant to include Arroyo Seco Groundwater Sustainability Plan

Mr. Petersen stated that Arroyo Seco elected to file its own application. The Department of Water Resources (DWR) will only fund one application and urged the SVBGSA and Arroyo Seco to file jointly. Staff recommends submitting the joint grant application and immediately forming the Forebay Committee to negotiate a coordination agreement with the Greenfield GSA, including cost sharing. Director Alejo left the meeting at 4:07 p.m.. In response to Director Pereira, Mr. Petersen stated that the Arroyo Seco cone area would be merged into a plan and become a management area. The Greenfield GSA could adopt the SVBGSA GSP. Director Pereira stated that leaving grant monies on the table would be a disserve to all stakeholders who would be contributing financially to the GSP. In response to Director McIntyre, Mr. Petersen stated that the matching funds would be covered by expenditures for development of the Plans. The following speakers support a joint grant application: Curtis Weeks stated the Arroyo Seco Board has authorized the submittal of the joint grant application. Paul Wood, Greenfield City Manager and Arroyo Seco Board member Nancy Isakson, Salinas Valley Water Coalition and Advisory Committee member John Huerta, Greenfield resident Michael Griva, ASGSA Vice Chair Jerry Lauren Allen Panziera The Board voted to move ahead with the joint grant proposal and anticipated approved grant award with ASGSA with a joint budget and delivery of four subbasin plans by SVBGSA and a GSP for Arroyo Seco. The SVBGSA would receive the grant contract in the amount of $3,533,000 and would be obligated to meet all grant deliverables as well as conduct grant administration, and expedite a completed Cooperation Agreement in the near term. AYES: Directors Alejo, Brennan, Granillo, Gunter, Lipe, Pereira, McHatten, McIntyre, Secondo, and Chair Stefani. NOES: None. ABSTAIN: None. ABSENT: Director Chapin Hodges.

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Page 4 of 4 February 13, 2020

Future Agenda Items Director Secondo requested reports from the Water Resources Agency on their funding issues and ballot item for dam repair. Director Lipe would like to discuss legal services needs. Recognition of General Manager Gary Petersen The Board recognized Mr. Petersen for his outstanding leadership and on the successful completion of the 180-400 foot aquifer GSP. Les Girard thanked Mr. Petersen on behalf of Monterey County. Norm Groot and Nancy Isakson expressed their appreciation. Gary thanked the Board and public for their support.

Adjournment

The meeting adjourned at 4:30 p.m..

Approved: __________________________________ Chairperson Ron Stefani Attest: __________________________________ Ann Camel, Clerk of the Board

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT MEETING DATE: March 12, 2020 AGENDA ITEM: 4.b SUBJECT: Receive January 2020 Financial Reports RECOMMENDATION: Staff recommends approval of the January 2020 financial reports. BACKGROUND: Section 10.2 of the Joint Exercise of Powers Agreement forming the Salinas Valley Basin Groundwater Sustainability Agency (“Agency”) states “The Agency shall maintain strict accountability of all funds and report all receipts and disbursements of the agency on no less than a quarterly basis.” Reports are being presented monthly. DISCUSSION: Attached are the following financial statements for the Agency through January 31, 2020:

• Statement of Revenue & Expense - Budget vs. Actual – January YTD expenses were $956,936 with YTD Revenue of $1,211,676 creating a YTD surplus of $254,740. During January, the Agency expenses were $139,618.

• Balance Sheet – shows $792,941 in cash, with $137,625 in accounts payable. The Accounts Receivable of $547,036 includes $533,760 due from the DWR Prop 1 Grant of which $406,966 was received on March 6. The Balance Sheet now also shows a prior year comparison.

• Payment & Disbursement Report – shows the detail of deposits and disbursements for the month of January with a net increase in cash of $111,855.

FISCAL IMPACT: None. ATTACHMENT(S): Financial Statements as stated above PREPARED BY: Roberto Moreno, RGS Senior Advisor

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Salinas Valley Basin Groundwater Sustainability AgencyStatement of Revenues and Expenses - Budget vs. ActualJuly 2019 through Jan 2020

Jan '20 Jul '19 - Jan '20 Budget $ Over Budget % of Budget

Income

440000 · Member Contributions

440100 · GSA Fee 799,213 1,200,000 -400,787 67%

444000 · Interest Income 1,384 5,496 4,000 1,496 137%

451000 · Prop 1 DWR Grant 406,967 960,988 -554,021 42%

Total Income 1,384 1,211,676 2,164,988 -953,312 56%

Gross Profit 1,384 1,211,676 2,164,988 -953,312 56%

Expense

520000 · Administrative Services 46,920 302,520 624,000 -321,480 48%

530000 · Groundwater Sustainability Plan 59,029 529,849 1,043,144 -513,295 51%

530500 · Legal Services 1,608 18,376 60,000 -41,624 31%

532300 · Grant Management Services (RGS) 10,744 5,371 20,000 -14,629 27%

540100 · Agency Financing Plan 25,000 -25,000

540200 · Facilitation Services 800 30,000 -29,200 3%

540300 · Grant Writing / Lobbying 48,788 50,000 -1,212 98%

540400 · Outside Specialty Legal Svcs 18,759 21,046 100,000 -78,954 21%

540500 · Communications Consultant (RGS) 7,000 -7,000

550200 · Conferences / Training 188 7,100 -6,912 3%

550300 · Dues and Subscriptions 100 1,004 3,000 -1,996 33%

550400 · External Audit 4,500 5,500 -1,000 82%

550500 · Auditor-Controller Collection 3,000 -3,000

550510 · GSA Fee Appeal Refunds 0 5,000 -5,000 0%

550600 · Insurance Premium 740 3,000 -2,260 25%

550700 · Legal Notices & Ads 1,050 10,000 -8,950 11%

550800 · Office Supplies 26 690 4,500 -3,810 15%

550900 · Postage and Delivery 463 3,000 -2,537 15%

551000 · Printing and Reproduction 2,068 10,300 -8,232 20%

551100 · Office Rent 250 1,750 3,000 -1,250 58%

551200 · Technology 459 7,301 40,000 -32,699 18%

551220 · Website Upgrade 26 262 2,000 -1,738 13%

551250 · Agenda Management Software 3,700 -3,700

551300 · Travel Expense 168 2,291 20,000 -17,709 11%

551400 · Bank Service Charges 156 500 -344 31%

551500 · Recruitments 2,000 -2,000

551800 · Meals and Meeting Expenses 236 2,500 -2,264 9%

551810 · Mileage Reimbursement 1,000 -1,000

551900 · Board Stipends 1,529 7,487 26,400 -18,913 28%

Total Expense 139,618 956,936 2,114,644 -1,157,708 45%

Net Income -138,234 254,740 50,344 204,396 506%

Page 1 of 1

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Salinas Valley Basin Groundwater Sustainability AgencyBalance SheetAs of January 31, 2020

Jan 31, 20 Jan 31, 19

ASSETS

Current Assets

Checking/Savings

100100 · Rabobank Checking 6,837 23,702

100200 · Rabobank Money Market 155,382

100300 · CalTrust Medium Term Funds 587,933 739,484

100400 · Community Bank of the Bay Chkg 4,586

100500 · Community Bank of the Bay MMkt 193,585

Total Checking/Savings 792,941 918,568

Accounts Receivable110000 · Accounts Receivable 547,036

Total Accounts Receivable 547,036

Other Current Assets120005 · Prepaid Expense 2,551 2,692

Total Other Current Assets 2,551 2,692

Total Current Assets 1,342,528 921,260

TOTAL ASSETS 1,342,528 921,260

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable200000 · Accounts Payable 137,625 101,195

Total Accounts Payable 137,625 101,195

Other Current Liabilities210000 · Deferred Revenue 375,880

Total Other Current Liabilities 375,880

Total Current Liabilities 513,505 101,195

Total Liabilities 513,505 101,195

Equity

320000 · Fund Balance 574,283 462,251

Net Income 254,740 357,814

Total Equity 829,023 820,065

TOTAL LIABILITIES & EQUITY 1,342,528 921,260

Page 1 of 1

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Salinas Valley Basin Groundwater Sustainability AgencyPayment & Disbursement ReportJanuary 2020

Type Date Num Name Memo Amount

Bill Pmt -Check 01/10/2020 12013 Adam Secondo Board Stipends 12-5 Budget & Finance mtg, 12-12 BOD meeting -200.00

Bill Pmt -Check 01/10/2020 12014 Caroline Dawn Hodges Board Stipend- 12-12 BOD meeting -100.00

Bill Pmt -Check 01/10/2020 12015 County of MontereyJan 2020 SVBGSA Rent- 1441 Schilling Place, South Building, 1st Floor, Salinas, CA -250.00

Bill Pmt -Check 01/10/2020 12016 Hansford Economic SVBGSA Fee Study and Support -989.95

Bill Pmt -Check 01/10/2020 12017 Janet BrennanBoard Stipends 12-5 Budget & Finance mtg, 12-12 BOD meeting plus milage -245.24

Bill Pmt -Check 01/10/2020 12018 Joe Gunter Board Stipends 12-5 Budget & Finance mtg, 12-12 BOD meeting -200.00

Bill Pmt -Check 01/10/2020 12019 Michael McHattenBoard Stipends 12-5 Budget & Finance mtg, 12-12 BOD meeting plus milage -260.32

Bill Pmt -Check 01/10/2020 12020 Ronald J. Stefani Board Stipend 12-12 BOD meeting plus milage -111.60

Bill Pmt -Check 01/25/2020 12021 Luis A. Alejo Board Stipends-12-12 BOD meeting -100.00

Bill Pmt -Check 01/25/2020 12022 Montgomery & Associates Inc. January services -70,940.11

Bill Pmt -Check 01/25/2020 12023 Regional Government Servies December administrative services -38,338.79

Bill Pmt -Check 01/25/2020 12024 U.S. Bank - CalCardGRAC membership,Google G-Suite,Verizon,lodging Central Coast Water presentation,printing -754.08

Deposit 01/27/2020 Deposit - assessments 45.20

Deposit 01/31/2020 Interest 590.00

-111,854.89

Page 1 of 1

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Page 1 of 2

The Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency

Proclaims Groundwater Awareness Week

WHEREAS, only 1 percent of the water on Earth is useable, 99 percent of which is groundwater, and the United States uses 349 billion gallons of freshwater every day, and WHEREAS, Groundwater is 20 to 30 times larger than all U.S. lakes, streams, and rivers combined and Groundwater accounts for 33 percent of all the water used by U.S. municipalities; and WHEREAS, 44 percent of the U.S. population depends on groundwater for its drinking water supply and more than 13.2 million households have their own well, representing 34 million people; and WHEREAS, 53.5 billion gallons of groundwater are used for agricultural irrigation each day and in 1990 that number was 2.2 billion; and WHEREAS, California pumps 10.7 billion gallons of groundwater each day, a third more than the second-highest state, Texas; and WHEREAS, Groundwater is the world’s most extracted raw material with withdrawal rates in the estimated range of 259 trillion gallons per year, and. WHEREAS, the SVBGSA Board of Directors wishes to highlight the importance of Groundwater us to the quality of life in the Salinas Valley. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency in support of the National Groundwater Association proclaims the week of March 8th through March 14th, 2020 as Groundwater Awareness Week in the Salinas Valley.

PASSED AND ADOPTED on this 12th day of March 2020, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN:

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Page 2 of 2

I, Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, State of California, hereby certify that the foregoing is a true copy of an orig.inal order of said Board of Directors duly made and entered in the minutes thereof. Dated: _________________________________________________________ Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency of County of Monterey, State of California

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT MEETING DATE: March 12, 2020 AGENDA ITEM: 5.b SUBJECT: Review Proposed Budget for FY 2020-21 RECOMMENDATION: It is recommended that the Board of Directors review the Proposed Budget for FY 2020-21 and provide direction/changes to the Proposed Budget and schedule it for adoption at the April Board Meeting. The Proposed Budget has been presented to the Budget and Finance Committee and the Executive Committee. Both committees recommend approval. BACKGROUND: The JPA Agreement Section 10.3(b) states: “Beginning for Fiscal year 2019-20, no later than sixty (60) days prior to the end of each Fiscal Year, the Board shall adopt a budget for the Agency for the ensuing Fiscal Year.” DISCUSSION: The attached budget document includes a two-year comparison and a description of the reasons for any major changes. The budget is presented as a preliminary budget so that the Budget and Finance Committee followed by the Executive Committee can provide input which will be incorporated into the final budget document which will be presented to the full Board in March and then adopted in April. The Budget as presented is primarily for the purpose of establishing the GSA Fee for FY 2020-21. Adoption of the FY 2020-21 Budget is predicated upon Board approval of keeping the Groundwater Sustainability Regulatory Fee for 2020-21 at the same rate as 2019-20. The Agency is awaiting award of a $2.5 million DWR grant for development of the next GSPs. When the grant is awarded the budget will be revised. FISCAL IMPACT: The budget as drafted reduces the estimated fund balance at June 30, 2021 by $143,850 down to $480,778. ATTACHMENT(S): FY 2020-21 Proposed Budget PREPARED BY: Roberto Moreno, RGS Senior Advisor

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March 12, 2020 Honorable Chair and Members of the Board of the Salinas Valley Basin Groundwater Sustainability Agency (GSA) We are pleased to present the Proposed Budget for Fiscal Year 2020-21. The operating appropriations of $1,347,850 are funded by $1,200,000 in GSA fees, $4,000 in investment earnings and $143,850 from the existing fund balance. The Fiscal Year 2020-21 Proposed Budget will keep GSA fees at the current level – no increase. This is the fourth fiscal year of the Agency and the second year that the Agency will be funded by Groundwater Sustainability Regulatory Fees. During the fiscal year the Agency will continue to work on the five Groundwater Sustainability Plans (GSPs) which are due January 2022. During this time, we will continue to develop information on which to refine future projections but remain focused on our primary directive of delivering Groundwater Sustainability Plans that are compliant with State of California regulations. Highlights of FY 2020-21 Budget Agency staff continues to work with Department of Water Resources (DWR) staff to close out the $1.5 million Prop 1 grant that was used for the development of the 180/400 aquifer GSP. In addition, staff is working on obtaining a $2.5 grant to fund the next five GSPs. The proposed budget does not account for the future grants. It does keep GSA fees at the current level, relying on the use of $143,850 from the existing fund balance of $574,284. The majority of the work in FY 2020-21 will be on development of the five remaining GSPs and implementation of the GSP for the 180/400 Foot Aquifer. This will require additional personnel. The largest expenditure of $292,650 is in Regional Government Services (RGS) management services contract. The increase is for additional personnel to keep the development of five subbasin GSPs on track. The budget is adding one Senior Advisor position for this purpose. and for implementation of the GSP for the 180/500 Foot Aquifer. The next page has a summary of the Proposed Budget.

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Salinas Valley Basin Groundwater Sustainability AgencyPreliminary BudgetFY 2020-21

Jul-Dec Year to Date

Revised Budget

2020-21 Propose

d

Increase (Decrease)

Percent Change

Revenue

440000 · Member Contributions

440100 · GSA Fee 799,213 1,200,000 1,200,000 0 0.0%

444000 · Interest Income 4,112 4,000 4,000 0 0.0%

451000 · Prop 1 DWR Grant 406,967 960,988 0 -960,988 -100.0%

Total Revenue 1,210,292 2,164,988 1,204,000 -960,988 -44.4%

Expense

520000 · Administrative Services 255,600 624,000 916,650 292,650 46.9%

530000 · Groundwater Sustainability 406,367 1,043,144 41,500 -1,001,644 -96.0%

530500 · Legal Services 19,055 60,000 60,000 0 0.0%

532300 · Grant Management Services 5,371 20,000 20,000 0 0.0%

540100 · Agency Financing Plan 25,000 25,000 0 0.0%

540200 · Facilitation Services 800 30,000 20,000 -10,000 -33.3%

540300 · Grant Writing / Lobbying 31,557 50,000 50,000 0 0.0%

540400 · Outside Specialty Legal Svcs 100,000 70,000 -30,000 -30.0%

540500 · Communications Consultant (RGS) 7,000 10,000 3,000 42.9%

550200 · Conferences / Training 188 7,100 7,100 0 0.0%

550300 · Dues and Subscriptions 904 3,000 3,000 0 0.0%

550400 · External Audit 4,500 5,500 6,000 500 9.1%

550500 · Auditor-Controller Collection 3,000 3,000 0 0.0%

550500 · GSA Fee Appeal Refunds 5,000 5,000 0 0.0%

550600 · Insurance Premium 740 3,000 4,000 1,000 33.3%

550700 · Legal Notices & Ads 1,050 10,000 5,000 -5,000 -50.0%

550800 · Office Supplies 664 4,500 4,500 0 0.0%

550900 · Postage and Delivery 463 3,000 3,000 0 0.0%

551000 · Printing and Reproduction 2,068 10,300 5,000 -5,300 -51.5%

551100 · Office Rent 1,500 3,000 3,000 0 0.0%

551200 · Technology 6,841 40,000 40,000 0 0.0%

551220 · Website Upgrade 236 2,000 2,000 0 0.0%

551250 · Agenda Management Software 3,700 3,700 0 0.0%

551300 · Travel Expense 2,123 20,000 10,000 -10,000 -50.0%

551400 · Bank Service Charges 156 500 500 0 0.0%

551500 · Recruitments 2,000 0 -2,000 -100.0%

551800 · Meals and Meeting Expense 236 2,500 2,500 0 0.0%

551810 · Mileage Reimbursement 1,000 1,000 0 0.0%

551900 · Board Stipends 5,858 26,400 26,400 0 0.0%

Total Expense 746,277 2,114,644 1,347,850 -766,794 -36.3%

Operating Surplus (Deficit) 464,015 50,344 -143,850 -194,194

Beginnig Fund Balance 574,284 624,628

Ending Fund Balance-Estimated 624,628 480,778

X0AOX0AOX0AOX0AO

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ESTIMATED REVENUES Historical Revenues The first two fiscal years of the Agency were funded by member agency contributions of $1,145,000 as shown below.

It is important to note that the agricultural industry provided $250,000 of the Monterey County Contribution each year. Consideration of repayment of all funds will be considered by the GSA Board once all GSPs are completed. Groundwater Sustainability Fee (SBVGSA Regulatory Fee) FY 2020-21 Below is a table of the estimated revenues from the Groundwater Sustainability Fee that the GSA Board approved on March 14, 2019. These fees will have no increase in FY 2020-21.

The complete Fee Study approved by the GSA Board can be found on the SVBGSA website at https://svbgsa.org/wp-content/uploads/2019/02/SVBGSA-Fee-Study-Final-Feb-4-2019.pdf

Agency FY 2017-18 FY 2018-19 TotalCounty of Monterey 670,000$ 670,000$ 1,340,000$ City of Salinas 330,000 330,000 660,000 City of Soledad 35,000 35,000 70,000 City of King 30,000 30,000 60,000 City of Gonzales 20,000 20,000 40,000 Water Resources Agency 20,000 20,000 40,000 Monterey One Water 20,000 20,000 40,000 Castroville CSD 20,000 20,000 40,000

1,145,000$ 1,145,000$ 2,290,000$

Basis Allowance Basis EstimatedCustomer Fee Basis Quantity for errors (3) for Fee Fee Revenue (4)

Agriculture 4.79$ per irrigated acres 250,457 (1) (25,046) 225,411 1,080,000.00$ All Other 2.26$ per service connection ( 58,955 (2) (5,896) 53,059 120,000.00$

1,200,000.00$ Notes:(1) per table 9 - Agricultural Properties, of the GSA Fee Study(2) per table 10 - Water Systems, of the GSA Fees study(3) per table 11 - Regulatory Fee Calculation, of GSA Fee Study(4) rounded to the nearest 1,000

Groundwater Sustainability Fee Calculations

17

EXPENDITURES BUDGET HIGHLIGHTS Administrative Services - $916,650 Management Services provided by RGS account for 68% of the budget. The Agency staff positions make up $886,650 in expenses. The estimated service hours and costs included in the budget for the staff positions are as follow:

Position Estimated Annual Hours RGS Hourly Rate

Estimated Cost

General Manager 1,750 (35 hours per week) $173.00 $ 302,750 Deputy General Mgr. 1,500 (30 hours per week) $150.00 $ 225,000 Senior Advisor to GM 1,500 (30 hours per week) $173.00 $259,500 Senior Advisor Finance 360 (30 hours per month) $142.00 $ 50,400 Clerk of the Board 360 (30 hours per month) $ 94.30 $ 34,000 Deputy Clerk 240 (20 hours per month) $ 61.50 $ 15,000

It should be noted that the above RGS estimated costs pay not only for the full cost of the employees, but also pay for RGS overhead. Unlike a typical government agency, which has escalating unfunded retirement liabilities and post-retirement liabilities for health insurance costs, the RGS billing rate pays all employee costs. Consequently, should the Agency decide to terminate the RGS contract, there will be no unfunded liabilities for the employees. In addition to the assigned agency staffing costs, there is an additional $30,000 in RGS Administrative Support for accounting services, IT support and senior management of Agency staff. Administrative services are budgeted to increase $292,650 in 2020-201. While all staffing costs are budgeted to increase 2.5% per the RGS contract, the majority of the increase is due to the addition of a Senior Advisor. The current Deputy General Manager will transition to General Manager, the current General Manager will transition to a Senior Advisor and a new Deputy General Manager will be hired. All the positions will be needed to support stakeholder and community meetings as we begin to prepare GSPs for five subbasins simultaneously. This position is also necessary for a smooth succession plan while creating organizational capacity to plan for GSP implementation and funding. Ground Water Sustainability Plan (GSP) - $41,500 The appropriations of $41,500 in FY 2020-21 is to pay for potential costs to the Water Resources Agency. Once the Agency is awarded a $2.5 million grant for GSP development, the budget for the development of the GSP will be increased substantially.

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Legal Services - $60,000 The legal services budget for Agency General Counsel will continue to be capped at $60,000 per the agreement with the County. Thus far legal services have fallen well below budget projections however costs could increase at any time given the litigious nature of this work Grant Management Services - $20,000 The grant management services budget pays for grant administration of the existing $1.5 million grant and the anticipated new $2.5 million grant. Agency Financing Plan Consultant - $25,000 This fee is to pay for the annual GSA Fee update that is required to submit the fee annually to the Auditor-Controller for placement on the tax roll. The cost includes GIS work to join Assessor Parcel Numbers with the County GIS data and County’s Small Water Systems Database, as well as accessing data from the Public Water Systems database from State Water Resources Control Board. Once the database is prepared, cross referencing with existing databases will be required to determine any changes that may have occurred. Additional effort will also be required to refine datasets to more accurately assess fees. Facilitation Services - $20,000 This line item will be used to pay the Consensus Building Institute (CBI) or other organizations for facilitation services. It is expected that some level of facilitation services will still be required as the GSA continues work on the GSPs. Grant Writing/Lobbying - $50,000 The GSA has been very successful in obtaining grants to pay for facilitation services and GSP preparation services. The GSA will continue to look for grants in order to minimize the GSA fees that will need to be paid by constituents. In FY 20-21 the Agency is looking to add lobbying efforts at the State level. Outside Specialty Legal Services - $70,000 This line item will be used to pay outside legal services. Technology (GIS Data Management System) - $40,000 Montgomery’s scope of work for developing the GSP includes developing a data management system (DMS) that is capable of storing and reporting information relevant

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to the development or implementation of the GSP. The DMS is also required for submittal of data to the State of California Department of Water Resources (DWR) once DWR develops a suitable platform. Montgomery has developed a DMS that includes a custom database for hydrologic data, such as well information, groundwater levels, and groundwater extraction. This is referred to as the HydroSQL database. Additionally, the DMS includes an EnviroData database for water quality data. The DMS is hosted on Montgomery’s secure web platform and is currently used by Montgomery staff and its project partners to assist with the development of the GSP. In the interest of transparency, the Agency is providing this wealth of information to the public by means of a Public Web Portal on the Agency’s website. The public portal will include all data not covered by confidentiality agreements. The cost to make the data available to the public is $9,000 for the portal setup and training and $29,000 for data updates and hosting over the course of the budget year. Staff considers this an important expenditure as the ability to make this information available to the public will increase our success in the planning efforts. All Other Accounts All other accounts have minimal changes. Fund Balance At June 30, 2019 the Agency had a fund balance of $574,284. The FY 2019-20 anticipates a surplus of $50,344 bringing the fund balance to $624,628. The FY 2020-21 Proposed Budget anticipates using $143,850 from that fund balance leaving a June 30, 2021 fund balance of $480,778. CONCLUSION The budget as presented funds all required operating expenditures. It is anticipated that there will be changes in the budget throughout the year, especially once the Agency receives notification of receiving a $2.5 million grant. The Board of Directors’ approval of this budget will allow the GSA to continue working on the GSPs, the purpose for which the GSA was formed. Respectfully submitted, Gary Petersen Roberto Moreno General Manager Senior Advisor

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT

MEETING DATE: March 12, 2020

AGENDA ITEM: 5.c.

SUBJECT: Adopt Resolution Establishing Sub-Basin Committees for the Development of Multiple Groundwater Sustainability Plans (GSP’s)

RECOMMENDATION: Adopt resolution for the development of planning committees to provide input and support for the development of multiple GSP’s and direct the General Manager to develop and implement application forms and process for establishing committees. BACKGROUND: Section 8.1of the Joint Exercise of Powers Agreement (JPA) that formed the Salinas Valley Basin Groundwater Sustainability Agency (GSA) authorizes the GSA to create various Committees to aid the Board of Directors in its analysis and decision-making processes. Additionally, the Agency’s bylaws adopted to establish operational procedures for the GSA provide for the establishment and membership of specific standing committees without amending the bylaws. With the completion and submittal of the first GSP for the 180/400-foot aquifer, next steps for the GSA include the development of five GSP’s for the remaining subbasins in the Salinas Valley no later than January 31, 2022. In order to achieve the goal of preparing, approving and submitting the additional GSPs, the Board has considered a recommendation to create sub-basin committees, consisting of Directors and stakeholders from each sub-basin, and a committee to address the proposed Integration of these plans. The proposed committee structure would include Directors and stakeholders from throughout the Salinas Valley Groundwater Basin.

DISCUSSION: The proposed sub-basin standing committees would consist of up to 7 members including not more than 2 Directors. Other members would be interested parties and stakeholders within the respective sub-basin. The purpose of the sub-basin committees would be to provide recommendations on the content of each sub-basin plan to the Integrated Sustainability Plan Committee. Agency staff will provide support services to the committees. The proposed Integrated Sustainability Plan standing committee would consist of up to 15 members, including not more than 2 Directors; the other members consisting of interested parties and stakeholders throughout the Salinas Valley Groundwater Basin. It is expected that at least one member of the Integrated Plan Committee would represent

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the Seawater Intrusion Working group to ensure integration from the 180/400-foot aquifer. The Integrated Sustainability Plan Committee will provide advice and recommendations to the Agency’s Advisory Committee regarding the content of the sub-basin plans and the Integrated Sustainability Plan. Agency staff shall provide staff and support services to the committee. The General Manager will develop and implement an application process (see attached) for the non-Director positions on each of the new committees. Applications for the non-Director applicants for each committee will be reviewed by the Executive Committee during the month of March, with recommendations to the full Board in April. The Executive Committee may also choose to interview candidates for non-director positions. The GSA Board will decide on which Directors shall be members of each committee. Staff will return at the at the April 9, 2020, Board Meeting for decisions on the membership of the new committees. The Board at the April 9th, meeting may elect to extend the application process as necessary. Once these committees are in place the Planning Committee will be dissolved.

FISCAL IMPACT: Funding exists within the current budget to develop and implement this planning structure.

ATTACHMENT(S): Sub-Committee Application Sub-Committee Responsibilities Resolution

PREPARED BY: Gary Petersen General Manager

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Salinas Valley Basin Groundwater Sustainability Agency

SUB-COMMITTEE APPLICATION FORM

Full Name: Date: ____________________________________ _______________________________ Address: Phone No.: ______________________________________ _______________________________ Sub-Basin or Committee of Interest: ___________________________________________ Information provided by the applicant is not regarded as confidential except for the addresses and phone numbers of references and the applicant's personal information including home and work addresses, phone numbers and email address.

PLEASE NOTE THAT APPOINTEES MAY BE REQUIRED BY STATE LAW AND COUNTY CONFLICT OF INTEREST CODE TO FILE FINANCIAL DISCLOSURE STATEMENTS.

Current Occupation (within the last twelve (12) months): _________________________________________________________________________

Current License (Professional or Occupational, date of issue/or expiration including status): ________________________________________________________________________________________________________________________________________________________________

Education and Experience (a resume may be attached): ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Other Boards/Commissions/Committees on which you serve/have served: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Name and occupation of spouse within the last 12 months, if married, for Conflict of Interest Purposes: _______________________________________________________________________________

References (at least two (2) list names and contact phone numbers): ________________________________________________________________________________________________________________________________________________________________

Please explain your reasons for wishing to serve and, in your opinion, how you feel you can contribute: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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PERSONAL INFORMATION

The following information is provided in confidence, but may be used by the Agency when making the appointment, or following appointment for purposes of

communicating with the appointee.

Full Name: Email Address:

Home Address: Work Address:

City of Residence State Zip Code City: State: Zip Code

Telephone: Telephone (cell):

Comments

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

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1

Salinas Valley Basin Groundwater Sustainability Agency Sub-Basin Committee Member Responsibilities Charge The purpose of the Sub-Basin Committees (SBC) is to provide information and advice to the Integrated Plan Committee (IPC). The purpose of the IPC is to review and integrate Sub-Basin Planning Committee work into a product that would be provided in the form of recommendations to the Advisory Committee of the of the Salinas Valley Basin Groundwater Sustainability Agency (GSA). The Advisory Committee in turn makes recommendations to Board of Directors of GSA regarding Sub-Basin Groundwater Sustainability Plans (“GSP”). The intent of this Committee structure is to provide community perspective and inclusive participation in the GSA the development of GSPs. The Sub-Basin and Integrated Plan Committees will review and/or provide recommendations on groundwater-related issues that may include:

• Development, adoption or amendment of the GSPs for each Subbasin including:

o Sustainability goals and objectives o Monitoring programs o Annual work plans and reports (including mandatory 5-year

milestone reports) o Modeling scenarios o Inter-basin coordination activities o Implementation framework including feasibility and timeline

Brown Act, Open Process and Conflicts of Interest 1. Committee meetings are subject to the Brown Act. All meetings of the

Committees are open to the public. Committees shall adopt a schedule and location for regular meetings, and meeting agendas shall be posted in compliance with the Brown Act.

2. Members of the Committees are subject to all applicable conflict of interest laws including Government Code section 1090 and the California Political Reform Act. The Board shall adopt a conflict of interest code for the Advisory Committee.

Roles and Responsibilities Committee members represent the diverse interests of GSA-eligible agencies and groundwater users. The criteria for Committee members are to: • Serve as a strong effective advocate • Work collaboratively with others

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2

• Commit time needed for ongoing discussions • Collectively reflect diversity of interests • Maintain Committee size to support focused deliberations

Decision Making To inform the Board’s decision-making, the Committee’s will provide written recommendations on subjects to the IPC and the AC. These recommendations will identify areas of agreement and disagreement. Committees will be consensus seeking. The Committees will strive to reach consensus on recommendations. The definition of consensus spans the range from strong support to neutrality, to abstention, to “I can live with it,” to “I will let this go forward.” When unable to reach consensus on recommendations, the Committees will outline the areas of agreement and areas in which it does not agree, providing explanation to inform the decision-making process. Then, the Committee will forward this summary via the Agency staff to the appropriate committee or Board. To comply with the Brown Act, the position of each Sub-Committee member on the points of consensus or summary will be noted in the Committee’s records. Because meetings are subject to Brown Act requirements, once consensus is arrived it, it will be followed by a motion, second and a majority vote. This decision will determine if a recommendation is forward to the IPC or AC.

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Page 1 of 1

Before the Board of Directors of the Salinas Valley Basin Sustainable Groundwater Management Agency

Resolution No. Creating Sub-Basin Committees and Suspending the Planning Committee

) )

WHEREAS, Section 8.1of the Joint Exercise of Powers Agreement (“Agreement”) forming the Salinas Valley Basin Groundwater Sustainability Agency (“Agency”) authorized the Agency to create various Committees to aid the Board of Directors in its analysis and decision-making process; and, WHEREAS, the Board of Directors of the Agency adopted bylaws on December 14, 2017, in compliance with the Agreement; and, WHEREAS, the Agency’s bylaws provide for the establishment and membership of specific standing committees; and, WHEREAS, the bylaws allow for the Board to create new committees by Board action without amending the bylaws; and, WHEREAS, the Agency has recently approved and submitted to the Department of Water Resources a Groundwater Sustainability Plan (“GSP”) for the 180/400 foot aquifer; and, WHEREAS, the Agency must prepare, approve and submit GSPs for five additional sub-basins no later than January 31, 2022; and, WHEREAS, in order to achieve the goal of preparing, approving and submitting the additional GSPs, the Board has considered a recommendation to create sub-basin committees, consisting of Directors and stakeholders from each sub-basin, and a committee to address the proposed Integrated Sustainability Plan, consisting of Directors and stakeholders from throughout the Salinas Valley Groundwater Basin; and, WHEREAS, if the new committees are created, the work of the existing Planning Committee should be suspended; NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency as follows:

1. The above recitals are true and correct.

2. The following standing committees are created:

a. Forebay Sub-Basin, b. Eastside Sub-Basin, c. Upper Valley Sub-Basin, d. Langley Sub-Basin, e. Monterey Sub-Basin, f. Integrated Sustainability Plan.

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Page 1 of 1

3. The new sub-basin standing committees shall consist of up to 7 members including not more than 2 Directors; the other members consisting of interested parties and stakeholders within the respective sub-basin. The sub-basin committees shall advise and provide recommendations on the content of the respective sub-basin plan to the Integrated Sustainability Plan Committee. Agency staff shall provide staff and support services to the committees.

4. The Integrated Sustainability Plan standing committee shall consist of up to 15 members, including not more than 2 Directors; the other members consisting of interested parties and stakeholders throughout the Salinas Valley Groundwater Basin with at least one member representing the Seawater Intrusion Working Group from the 180/400 aquifer or other group work to implement the GSP developed for that sub-basin. The Integrated Sustainability Plan Committee shall provide advice and recommendations to the Agency’s Advisory Committee regarding the content of the sub-basin plans and the Integrated Sustainability Plan. Agency staff shall provide staff and support services to the committee.

5. The General Manager is hereby authorized and directed to implement an application process for the non-Director positions on each of the new committees, with the applications for non-Director applicants being reviewed or candidates interviewed by the Executive Committee during the month of March, with recommendations to the full Board; the Board reserving to itself the decision on which Directors shall be members of each committee.

6. The General Manager is directed to return to the Board no later than the regular meeting of April, 2020, for decisions on the membership of the new committees.

7. Upon creation of the new committees, the work of the existing Planning Committee is suspended until further action by the Board.

8. The General Manager and Agency Counsel are authorized and directed to take such other and further actions as may be necessary or appropriate to implement the intent and purposes of this Resolution.

PASSED AND ADOPTED on this ___ day of ___________, ______, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: I, Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Directors duly made and entered in the minutes thereof of Minute Book_____ for the meeting on _______________. Dated: Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, County of Monterey, State of California 28

Page 1 of 1

_____________________________________

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS

STAFF REPORT

MEETING DATE: March 12, 2020

AGENDA ITEM: 5.d.

SUBJECT: Adopt Resolution Appointing General Manager, Deputy General Manager, and Senior Advisor

RECOMMENDATION: Adopt resolution appointing positions of General Manager, Deputy General Manager and Senior Advisor BACKGROUND: Section 9.3 of the Joint Exercise of Powers Agreement (“Agreement”) forming the Salinas Valley Basin Groundwater Sustainability Agency (“Agency”) authorized the Agency to appoint an Executive Director/General Manager. Additionally, section 4.1 authorizes the Board to enter into agreements and contracts to provide services to conduct Agency business

To that end on August 21, 2017, the Agency entered into an agreement with Regional Government Services (“RGS”) to act as an independent contractor to provide services to the Agency. The agreement includes the services of an Executive Director/General Manager and other positions as appropriate and approved by the Board as part of the RGS agreement.

In November of 2017 the Board of Directors of the Agency confirmed Gary Petersen, an employee of RGS, as the first General Manager; and, in May of 2019,the Agency amended its agreement with RGS to provide for the services of a Deputy General Manager confirming Donna Meyers, also an employee of RGS, to serve as Deputy General Manager.

Following the submittal of the first Groundwater sustainability Plan for the 180/400 Pressure Area the General Manager, indicated his intent to resign as General Manager effective March 31, 2020, and to continue to provide further service to the Agency in a Senior Advisor capacity. Ms. Meyers has been recommended to the Board as the new General Manager, effective April 1, 2020 and RGS has undergone a recruitment and interview process identifying Emily Gardner as the candidate to be appointed Deputy General Manager.

At its February Board meeting the Board approved an amendment to the agreement with RGS to include for the services of the Senior Advisor, General Manager and Deputy

30

General Manager, all RGS employees

DISCUSSION: Adoption of this resolution would ensure that Donna Meyers is confirmed as General Manager, Emily Gardner is confirmed as Deputy General Manager, and Gary Petersen is confirmed as Senior Advisor. These appointments will ensure a consistent flow of work and effort expended to develop the next five GSP’s while beginning implementation of the GSP in the 180/400 foot Aquiver. The reporting structure is such that the General Manager shall report to and receive direction from the Board of Directors, and that the Deputy General Manager and Senior Advisor shall report to and be supervised by the General Manager.

Compensation for these positions will be provided based on the Staff Rate Table currently in effect as part of the agreement with RGS . FISCAL IMPACT: Funding exists within the current budget to for these position and funding in the next fiscal year is included in the proposed budget.

ATTACHMENT(S):

Resolution

PREPARED BY: Gary Petersen General Manager

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Page 1 of 2

Before the Board of Directors of the Salinas Valley Basin Sustainable Groundwater Management Agency

Resolution No. Appointing a General Manager, Deputy General Manager, and Senior Advisor.

) )

WHEREAS, Section 9.3 of the Joint Exercise of Powers Agreement (“Agreement”) forming the Salinas Valley Basin Groundwater Sustainability Agency (“Agency”) authorized the Agency to appoint an Executive Director/General Manager; and, WHEREAS, on August 21, 2017,the Agency entered into an agreement with Regional Government Services (“RGS”) to act as an independent contractor to provide certain services to the Agency, including the services of an Executive Director/General Manager; and, WHEREAS, in November of 2017 the Board of Directors of the Agency confirmed Gary Petersen, an employee of RGS, as General Manager; and, WHEREAS in May of 2019,the Agency amended its agreement with RGS to provide for the services of a Deputy General Manager and confirmed Donna Meyers, also an employee of RGS, to serve as Deputy General Manager; and, WHEREAS, after meritorious service as General Manager, Mr. Petersen has indicated his intent to resign as General Manager effective March 31, 2020, but also indicated his desire to provide further service to the Agency in a Senior Advisor capacity; and, WHEREAS, Ms. Meyers has been recommended to the Board as the new General Manager, effective April 1, 2020; and, WHEREAS, RGS has undergone a recruitment and interview process to identify a candidate to be appointed Deputy General Manager, said candidate being Emily Gardner who currently serves on the Agency’s Advisory Committee; and, WHEREAS, the Board has approved an amendment to the agreement with RGS to provide for the services of a Senior Advisor; and, WHEREAS, each of the General Manager, Deputy General Manager, and Senior Advisor are employees of RGS, an independent contractor to the Agency, and not employees of the Agency; NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency as follows:

1. The above recitals are true and correct.

2. Effective April 1, 2020:

a. Donna Meyers is confirmed as General Manager, b. Emily Gardner is confirmed as Deputy General Manager, and

32

Page 2 of 2

c. Gary Petersen is confirmed as Senior Advisor.

3. The Agency understands and agrees that the General Manager shall report to and receive direction from the Board of Directors, and that the Deputy General Manager and Senior Advisor shall report to and be supervised by the General Manager, and shall perform such duties as may be assigned by the General Manager.

4. The General Manager, Deputy General Manager, and Senior Advisor shall be compensated pursuant to the Staff Rate Table currently in effect as part of the agreement with RGS, as may be amended from time-to-time.

5. The General Manager and Agency Counsel are authorized and directed to take such other and further actions as may be necessary or appropriate to implement the intent and purposes of this Resolution.

PASSED AND ADOPTED on this ___ day of ___________, ______, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: I, Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Directors duly made and entered in the minutes thereof of Minute Book_____ for the meeting on _______________. Dated: Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, County of Monterey, State of California _____________________________________

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS STAFF REPORT

MEETING DATE: March 12, 2020 AGENDA ITEM: 5e SUBJECT: Amendment No.3 to Errol L. Montgomery and Associates, Inc. Agreement

for Professional Services to Provide Groundwater Sustainability Plan Planning and Preparation Services for 2020-2022

RECOMMENDATION: It is recommended that the Board of Directors adopt a resolution authorizing Amendment No. 3 with Errol L. Montgomery and Associates Inc. in the amount of $2,975,840 to provide Groundwater Sustainability Plan Planning and Preparation Services for 2020-2022. BACKGROUND: The Salinas Valley Basin GSA (SVBGSA) is responsible for developing Groundwater Sustainability Plans (GSPs) in parts or all of six sub-basins in the Salinas Valley. In order to accomplish this, GSA staff applied for and received a $2,500,000 grant from the Department of Water Resources Round 3 Planning Grant Program to develop the remaining GSP’s by 2022. An additional $242,840 in grant funding will be made available for the Corral de Tierra area of the Monterey Subbasin GSP in partnership with Marina Coast GSA. Errol L. Montgomery and Associates Inc. has performed these duties since March 2018 for the GSA and continues to provide excellent and timely services to the GSA. DISCUSSION: Section 15.02 of the existing contract with Montgomery and Associates Inc. reads in part:

Amendment. This Agreement may be amended or modified only by an instrument in writing signed by the GSA and the CONTRACTOR.

On February 25, 2020 and February 28, 2020 SVBGSA received scopes of work and services budgets for the work to complete the remaining five subbasin plans and to update the 180/400-Foot Aquifer GSP by 2022. The scope of work includes services in the amount of $2,732,840 reimburseable from the DWR Round 3 Planning Grants, $210,000 for Annual Report preparation for the 180/400-Foot Aquifer and $33,000 in expenses including travel.

34

FISCAL IMPACT: The scope of services will include $243,000 in nonreimburseable expenses that will need to be expended from Agency funds. The expenses are related to required Annual Reports to be completed and for expenses related to planning work performed by Monterey & Associates during the contract period. The remaining amount of $2,732,840 will be reimburseable from DWR Planning Grants for completion of GSPs. The total not to exceed amount of the contract as amended is $4,813,360. ATTACHMENT(S): Amendment No. 3 to Agreement for Professional Services between the

Salinas Valley Basin Groundwater Sustainability Agency and Errol L. Montgomery & Associates Resolution No. 2020-____ Approving Amendment No. 3 to the Agreement for Professional Services with Errol L. Montgomery & Associates

PREPARED BY: Donna Meyers, Deputy General Manager SVBGSA

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AMENDMENT NO. 3 TO

AGREEMENT FOR PROFESSIONAL SERIVCES

between

THE SALINAS VALLEY BASIN GROUNDWATER SUSTAINABILITY AGENCY

And

ERROL L. MONTGOMERY & ASSOCIATES

WHEREAS, the Salinas Valley Basin Groundwater Sustainability Agency (“SVBGSA”) and HydroMetrics WRI (“HydroMetrics”) entered into an Agreement for Professional Services (“Agreement”) on or about March 8, 2018, wherein HydroMetrics agreed to provide certain professional services to the SVBGSA regarding the preparation of one or more groundwater sustainability plans as required by the California Sustainable Groundwater Management Act; and,

WHEREAS, the SVBGSA approved an amendment No. 1 to and assignment of the Agreement to Errol L. Montgomery & Associates, Inc. (“CONTRACTOR”) effective as of July 1, 2018, and approved amendment No. 2 to the Agreement on May 9, 2019; and,

WHEREAS, the SVBGSA and Montgomery now desire to further amend the Agreement to provide generally for the continued services of Montgomery to finish the groundwater sustainability plans for the remaining subbasins in the Salinas Valley Groundwater Basin that require a groundwater sustainability plan by January 31, 2022, provide updates to and expand the monitoring network for the 180/400 foot aquifer subbasin, prepare the groundwater sustainability plan for the Corral de Tierra area of the Monterey subbasin in cooperation with the Marina Coast Water District Groundwater Sustainability Agency, and assist the SVBGSA in the processing and reporting on the Round 3 of the Sustainable Groundwater Management Act Planning Grant; NOW, THEREFORE,

For good and valuable consideration, the sufficiency of which is hereby acknowledged, the SVBGSA, and Montgomery agree as follows:

1. The above recitals are true and correct.

2. Section 1 of the Agreement is amended to read: 1. SERVICES TO BE PROVIDED. The GSA hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, in addition to the services previously contracted for, the services described in Exhibits A – D in conformity with the terms of this Agreement. The services are generally described as follows: Finish the groundwater sustainability plans for the remaining subbasins in the Salinas

36

Valley Groundwater Basin that require a groundwater sustainability plan by January 31, 2022, provide updates to and expand the monitoring network for the 180/400 foot aquifer subbasin, prepare the groundwater sustainability plan for the Corral de Tierra area of the Monterey subbasin in cooperation with the Marina Coast Water District Groundwater Sustainability Agency, and assist the SVBGSA in the processing and reporting on the Round 3 of the Sustainable Groundwater Management Act Planning Grant.

3. Section 2 of the Agreement is amended to read: 2. PAYMENTS BY GSA. GSA shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit A, subject to the limitations set forth in this Agreement. The total amount payable by GSA to CONTRACTOR under this Agreement shall not exceed the sum of $4,813,360.

4. Section 3 of the Agreement is amended to read: 3. TERM OF AGREEMENT. The term of this Agreement is from the date last executed by one of the parties, which date is March ____, 2020, to approval of Groundwater Sustainability Plans by the California Department of Water Resources for the all subbasins of the Salinas Valley Groundwater Basin that require sustainability plans by January 31, 2022, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both CONTRACTOR and GSA and with GSA signing last, and CONTRACTOR may not commence work before GSA signs this Agreement.

5. Section 4 of the Agreement is amended to read: 4. ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:

Exhibit A Cover Letter dated February 25, 2020 from Errol L. Monterey and Associates to Salinas Valley Basin Groundwater Agency regarding Groundwater Sustainability Planning and Plan Preparation 2020-2022

Exhibit B Scope of Work to Provide Groundwater Sustainability

Planning and Plan Preparation Services 2020-2022 Exhibit C Budget to Provide Groundwater Sustainability Planning

and Plan Preparation Services 2020-2022

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Exhibit D Cover Letter dated February 28, 2020 to Develop the Corral de Tierra Sections of the Monterey Subbasin Groundwater Sustainability Plan

Exhibit E Budget to Develop the Corral de Tierra Sections of the

Monterey Subbasin Groundwater Sustainability Plan

6. Except as specifically set forth herein, all other terms and conditions of the Agreement remain the same.

7. This Amendment No. 3 may be executed in counterparts and shall be effective on the date last signed by any of the parties.

SALINAS VALLEY BASIN GROUNDWATER SUSTAINABILITY AGENCY

By________________________________________

Ron Stefani, Chair of the Board of Directors Dated: March ____, 2020

APPROVED AS TO FORM

__________________________________________

Leslie J. Girard, Agency Counsel

ERROL L. MONTGOMERY & ASSOCIATES, INC.

By________________________________________

Dated: March ____, 2020

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February 25, 2020 Mr. Gary Petersen and Ms. Donna Meyers General Manager and Deputy General Manager Salinas Valley Basin Groundwater Sustainability Agency 1441 Schilling Place Salinas, CA 93901 Subject: 2020-2022 Extension of M&A Agreement to Provide Groundwater Sustainability

Plan Planning and Preparation Services Dear Mr. Petersen and Ms. Meyers: E.L. Montgomery & Associates (M&A) is contracted to prepare a 180/400-Foot Aquifer Subbasin Groundwater Sustainability Plan (GSP) for the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA). The SVBGSA must develop four additional subbasin GSPs for submittal by January 31, 2022, and begin implementing the 180/400-Foot Aquifer Subbasin GSP. To maintain continuity and leverage the existing work already completed, the SVBGSA has requested the assistance of M&A to prepare the remaining GSPs and support GSP implementation. Attached is a proposed Scope of Work and budget for that work. The scope and budget are based on the SVBGSA’s Round 3 Sustainable Groundwater Management Act Planning Grant proposal.

Proposal Objectives

The activities in this SOW are designed to achieve the following objectives:

Developing coordinated, transparent, and technically-robust GSPs for the Eastside, Forebay, Langley, and Upper Valley Subbasins of the Salinas Valley through a collaborative process

Actively involving stakeholders in the development and implementation of GSPs in the Salinas Valley

Updating the 180/400-Foot Subbasin GSP based on the USGS Salinas Valley Integrated Hydrologic Model and stakeholder feedback

Expanding monitoring networks and providing data transparency

The scope of work in this proposed contract extension includes the following general activities.

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TASKS 1-2. SUPPORT GRANT ADMINISTRATION

M&A will support the SVBGSA in its grant administration to ensure that grant activities are completed in a timely and coordinated manner. This includes invoicing and contributing to quarterly and final grant reporting.

TASKS 3-10. STAKEHOLDER ENGAGEMENT/OUTREACH

M&A will support SVBGSA stakeholder outreach and engagement. This includes supporting meetings with the established Board of Directors and Advisory Committee, as well as newly established committees, such as the Seawater Intrusion Working Group and subbasin committees. M&A will help strategize on outreach and integration between the technical and political processes. M&A will develop material for M&A presentations as necessary, attend meetings, present technical information as requested, and help answer questions from the public. M&A will also assist with more in-depth training and feedback sessions, such as on the Salinas Valley Integrated Hydrologic Model.

TASKS 11-17. GSP DEVELOPMENT

A majority of funds will be dedicated to GSP development for the Eastside, Forebay, Langley, and Upper Valley Subbasins. M&A will bring together the input from stakeholder engagement and technical elements to develop these GSPs. GSPs will include a description of the GSP Area, hydrogeologic conceptual model used for GSP development, and current conditions in each of the subbasins. They will also develop historical, current, and future water budgets, taking into consideration projected climate change impacts. GSPs will include an analysis of monitoring networks and data gaps, as well as agreed-upon Sustainable Management Criteria (SMC). Significant attention will be focused on how to meet the SMC, which will be included through projects, management actions, and the water charges framework, as well as plan implementation. Finally, GSP development includes funds for editing and revising GSPs according to public comments, SVBGSA Board of Director and Advisory Committee hearings, and GSP submission. Also under GSP development, M&A will apply the SVIHM Model to the 180/400-Foot Aquifer Subbasin and incorporate results into an update of the 180/400-Foot Aquifer Subbasin GSP. The USGS anticipates releasing the model in spring 2020. To ensure consistency with the other subbasin GSPs, M&A will update the 180/400-Foot Aquifer Subbasin GSP using the SVIHM Model. Additionally, M&A will draft the Integrated Sustainability Plan encompassing all subbasins under the jurisdiction of the SVBGSA.

TASKS 18-22. MONITORING/ASSESSMENT

M&A has set up an online Data Management System to give the public access to groundwater information, and it will continue to develop that and keep it up to date. M&A will also implement the monitoring data from Ag Order 4.0 into all the GSPs, and collaborate with the Monterey County Water Resources Agency (MCWRA) on the expansion of GEMs. Together, these tasks will make for technically robust, coordinated GSPs developed with 40

stakeholder input. Additionally, as identified as a need in the 180/400-Foot Aquifer Subbasin GSP, M&A will evaluate existing wells for inclusion in the 180/400-Foot Aquifer groundwater level monitoring network. Finally, M&A will develop three annual reports for the 180/400-Foot Aquifer Subbasin beginning in 2020.

Professional Fees

Costs to complete Tasks 1-20 have been estimated on the basis of time and reimbursable expenses in accordance with M&A’s 2020 fee schedule. Estimated costs and reimbursable expenses are presented below. Task Description Hours Labor Expenses Total 1 Grant Administration 64 $16,640 $0 $16,640 2 Stakeholder

Engagement/Outreach 2,692 $676,320 $29,550 $705,870

3 GSP Development 8,451 $1,587,840 $101,080 $1,688,920

4 Monitoring/Assessment 700 $319,200 $2,370 $321,570 The 2018-2020 contract kept the original Hydrometrics billing rates throughout the lifetime of the contract. As we extend the contract between the SVBGSA and M&A, we will align our rates with standard M&A practices. New rates take into account inflation, changes in staff responsibilities, and alignment with M&A standard billing rates. M&A revises its Fee Schedule on an annual basis with an annual increase of 3%. Work will be conducted on a time and materials basis and invoiced monthly. If the actual scope of work varies from the described scope of work, actual costs will vary from these estimated costs. However, the total estimated cost of $2,733,000 will not be exceeded without prior authorization by SVBGSA. We continue to be grateful for the opportunity to assist SVBGSA. We would be happy to discuss details or respond to questions regarding this proposal, and we look forward to hearing from you soon.

Sincerely,

Derrik Williams E.L. MONTGOMERY & ASSOCIATES

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SCOPE OF WORK

Salinas Valley Basin Groundwater Sustainability Agency

Scope of Work to support SVBGSA implementation of DWR Sustainable Groundwater Management (SGM) Grant Program

Round 3 Grant

This scope of work (SOW) for Montgomery & Associates (M&A) supports the Salinas Valley Basin Groundwater Sustainability Agency’s (SVBGSA) implementation and completion of the Proposition 68, Round 3 grant. This scope is based on the grant application, and all assumptions in the grant application are included by reference. The SVBGSA may amend this SOW to add new activities as needed.

This scope of work develops GSPs for four subbasins in the Salinas Valley: the Eastside, Forebay, Langley, and Upper Valley Subbasins. In addition, this SOW analyzes the Salinas Valley Hydrologic Model (SVIHM), updates the 180/400-Foot Aquifer Subbasin GSP with the model, and expands monitoring networks in the 180/400-Foot Aquifer Subbasin. The SOW includes support for meetings associated with these efforts and specified monitoring and assessment tasks.

Project Objectives

The activities in this SOW are designed to achieve the following objectives:

Developing coordinated, transparent, and technically robust GSPs for the Eastside, Forebay, Langley, and Upper Valley Subbasins of the Salinas Valley through a collaborative process

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Actively involving stakeholders in the development and implementation of GSPs in the Salinas Valley

Updating the 180/400-Foot Subbasin GSP based on the USGS Salinas Valley Integrated Hydrologic Model and stakeholder feedback

Expanding monitoring networks and providing data transparency

Task 1. Invoicing (Proposition 68 Grant Application Component 1, Task a1)

M&A will track all costs and expenses, and provide monthly invoices to the SVBGSA. Assume 1.25 hours per month for 24 months.

Deliverables: Monthly invoices

Task 2. Quarterly and Final Grant Reporting (Proposition 68 Grant Application, Component 1, Task a3)

M&A will help SVBGSA develop and submit quarterly reports that update DWR on the status of the project implementation. The quarterly reports will be based on the descriptions of work and expenditures reported in monthly invoices. Assume four hours per quarter for eight quarters.

Task 3. Public Outreach on GSP (Proposition 68 Grant Application, Component 2, Task b1)

M&A will support SVBGSA at up to 8 public meetings at crucial junctures or to discuss important technical details. M&A will develop material for M&A presentations as necessary, attend meetings, present technical information as requested, and help answer questions from the public. The SVBGSA will organize meetings, provide notification of all meetings, and keep notes from public meetings. Assume 10 hours per meeting.

Deliverables: Materials developed for M&A presentations.

Task 4. Strategic Partnership Scoping with DACs and SDACs (Proposition 68 Grant Application, Component 2, Task b2)

M&A will support the SVBGSA’s engagement with Disadvantaged Communities and Severely Disadvantaged Communities by accompanying SVBGSA to community meetings, reviewing outreach and educational material, and strategizing on how DAC and SDAC concerns can be incorporated into the GSPs. Assume 40 hours of effort over the two-year contract.

Deliverables: Draft Disadvantaged Communities GSP Appendix. 43

Task 5. Subbasin Committee Meetings (Proposition 68 Grant Application, Component 2, Task b4)

M&A will support the SVBGSA at up to eight Subbasin Committee meetings for each of the four subbasin GSPs developed under this grant. M&A will develop material for M&A presentations, as necessary, attend meetings, present technical information as requested, and help answer questions from the public. Assume 16 hours per meeting, including preparation time, travel, and meeting attendance.

Deliverables: Materials developed for M&A presentations.

Task 6. Coordination with Arroyo Seco Groundwater Sustainability Agency (ASGSA) (Proposition 68 Grant Application, Component 2, Task b6)

During development of the 180/400 Subbasin GSP the SVBGSA continued discussions on coordination and management outcomes with the ASGSA GSP. This task will assist the GSA with coordination between the ASGSA and SVBGSA, including potential stakeholder participation agreed upon by the ASGSA and SVBGSA as the coordination agreement is finalized.

Task 7. Advisory Committee Meetings (Proposition 68 Grant Application, Component 2, Task b5)

M&A will support the SVBGSA at up to 24 Advisory Committee meetings (one per month). M&A will develop material for any M&A presentations, attend meetings, present technical information as requested, and help answer questions from the public. Assume 2 people, 16 hours per meeting each.

Deliverables: Materials developed for M&A presentations.

Task 8. Seawater Intrusion Working Group Meetings (Proposition 68 Grant Application, Component 2, Task b7)

M&A will support the SVBGSA at up to 12 Seawater Intrusion Working Group meetings. M&A will develop material for any M&A presentations, attend meetings, present technical information as requested, and help answer questions from the public. Assume 16 hours per meeting with no substantive preparation, or 5 meetings with more substantive preparation.

Deliverables: Materials developed for M&A presentations.

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Task 9. Board Meetings (Proposition 68 Grant Application, Component 2, Task b8)

M&A will support the SVBGSA at up to 24 Board of Directors meetings (one per month). M&A will develop material for any M&A presentations, attend meetings, present technical information as requested, and help answer questions from the public. Assume 2 people, 16 hours per meeting each.

Deliverables: Materials developed for M&A presentations.

Task 10. SVIHM Stakeholder Training and Feedback (Proposition 68 Grant Application, Component 2, Task b9)

M&A will support the SVBGSA at up to 3 sessions for stakeholder outreach and feedback on the SVIHM Model. M&A will develop material for M&A presentations, attend meetings, present technical information, help answer questions from the public, and take note of feedback from the sessions for GSP chapters. Assume 32 hours per meeting.

Deliverables: Materials developed for M&A presentations.

Task 11. GSP SVBGSA/Consultant Coordination and GSP Project Management (Proposition 68 Grant Application, Component 2, Tasks c1 and c2)

M&A will coordinate closely with the SVBGSA on GSP development in order to integrate the technical components of GSP development with the stakeholder and management processes. M&A will participate in meetings and conference calls as needed, and will coordinate via email. M&A will coordinate its staff, technical experts, and subconsultants to ensure that the GSP development remains on budget and on schedule. This activity will include coordinating between hydrogeologists, groundwater modelers, GIS staff, policy specialists, engineering experts, technical writers, and potentially legal experts, as well as any other necessary staff. This task will include regular updates of the project schedule and budgets, as well as implementing cost control measures where necessary. This task will take place throughout the entire implementation of the grant, and will be focused on completing draft GSP chapters, connecting GSP development with the stakeholder review processes, and coordinating between the GSPs and other SVBGSA. Assume 490 hours total.

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Task 12. Development of GSPs for the Eastside, Forebay, Langley, and Upper Valley Subbasins (Proposition 68 Grant Application Task c3 through c7, c9, and c10)

M&A will draft GSPs for the Eastside, Forebay, Langley, and Upper Valley Subbasins of the Salinas Valley Groundwater Basin. M&A will complete analyses based on available data, draft GSP chapters, and revise chapters according to input from SVBGSA staff, subbasin committees, the Advisory Committee, and the Board of Directors. GSPs will include all components necessary to meet the GSP regulations. Assume the following levels of effort per each of four subbasins for the following components:

Plan area and hydrogeologic conceptual model – 172 hours at appropriate staff levels.

Current conditions – 342 hours at appropriate staff levels.

Water budgets – 196 hours at appropriate staff levels.

Monitoring networks – 120 hours at appropriate staff levels.

Sustainable Management Criteria – 218 hours at appropriate staff levels.

Development of water charges framework, projects and management actions – 432 hours at appropriate staff levels.

Plan implementation – 64 hours at appropriate staff levels.

The SVBGSA is responsible for drafting and revising the Notice & Communication chapters of the GSPs. M&A will integrate all chapters into the draft GSPs.

Deliverables: Draft GSP chapters 1-10 prepared for each subbasin GSP for review by SVBGSA committees and Board. GSP chapters will be delivered in groups: Chapter 1 through 4, Chapters 5 and 6, Chapters 7 and 8, Chapters 9 and 10. This does not include drafting of Chapter 11 for each GSP, nor revisions between committee meetings. One complete draft GSP for each subbasin that incorporates comments from the subbasin committees, public, Advisory Committee, and Board members.

Task 13. Editing and Revising GSPs According to Public Comments (Proposition 68 Grant Application, Component 2, Task c11)

Responding to stakeholder input is a critical step for developing GSPs that reflect local stakeholder input. M&A will review stakeholder comments, determine how to address them, and revise GSPs accordingly. Assume 80 hours senior staff time and 70 hours technical staff time for each of four subbasins.

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Deliverable: One revised, final copy of a GSP for each of the Eastside, Forebay, Langley, and Upper Valley Subbasins, suitable for upload to the DWR website.

Task 14. GSP Submission (Proposition 68 Grant Application, Component 2, Task c12)

Submission requires inclusion of monitoring data and linking references, providing all graphic files, and cross-referencing the entire GSP. M&A will submit the four subbasin GSPs, including migrating CASGEM wells and uploading monitoring network data. Assume 80 hours senior staff time and 160 hours technical staff time.

Deliverable: Copy of adoption resolutions and receipt of GSP submission for Eastside, Forebay, Langley, and Upper Valley Subbasins.

Task 15. Review and Run SVIHM Model for 180/400-Foot Aquifer Subbasin (Proposition 68 Grant Application, Component 2, Task c13)

The USGS is currently working on revising and calibrating a Salinas Valley-wide Integrated Hydrologic Model (SVIHM). The USGS expects to release the SVIHM in spring 2020. M&A will review the model and use it to assess project benefits from the 180/400-Foot Aquifer Subbasin GSP. In addition, during implementation of the 180/400-Foot Aquifer Subbasin GSP, M&A will use the SVIHM Model for the following tasks:

Revisit the historical, current and projected water budgets.

Update the estimated sustainable yield of the Subbasin, as needed.

Develop numerical minimum thresholds for the depletions of interconnected surface water. As soon as the Model is available, current flow depletions will be computed and set as the minimum threshold not to be exceeded during implementation of the GSP.

Add interim milestones for groundwater levels.

More rigorously evaluate benefits of proposed management actions and priority projects.

Evaluate the ASGSA Reservoir Reoperation analysis.

Update the SVIHM if necessary.

The SVIHM will provide a common tool for evaluating projects. Assume 411 hours.

Deliverable: Updated technical analyses and maps for the 180/400-Foot Aquifer Subbasin GSP, developed with SVIHM.

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Task 16. Draft revisions to 180/400-Foot Aquifer Subbasin GSP and Subbasin Integration (Proposition 68 Grant Application, Component 2, Task c14)

After the SVIHM Model is run and the projects and management actions have been finalized for the other four GSPs, M&A will update the 180/400-Foot Aquifer Subbasin GSP chapters, including the figures to be consistent with the other subbasin GSPs. Results of this task will be included in a 2-year Interim Update to the GSP. The update may also include incorporating additional monitoring data, updating the SMC, documenting any projects or management actions that are being implemented, and identifying adaptive management activities. The assessment may include a description of significant new information that has become available to the GSA since GSP adoption, including the results of the SVIHM application, and whether the new information or understanding warrants changes to any aspect of the Plan. The assessment will include evaluation of how the remaining four remaining subbasin GSPs interact with the 180/400-Foot Aquifer Subbasin GSP and any resulting changes needed to make them agree. M&A will develop a draft interim update to be reviewed by stakeholders through a subbasin committee, the Advisory Committee, and Board of Directors. This update is expected to involve significant work given the incorporation of the SVIHM Model and the results from the first two years of implementation.

This task also includes development of the Integrated Sustainability Plan and associated subbasin committee meetings. Assume 412 hours senior staff time and 120 hours technical staff time.

Deliverable: 2-year Update to the 180/400-Foot Aquifer Subbasin GSP. Integrated Sustainability Plan for the Salinas Valley Groundwater Basin.

Task 17. Integration of Management Area into Forebay GSP (Proposition 68 Grant Application, Component 2, Task b8)

This task will involve SVBGSA development of the Management Area components of the Forebay GSP and evaluation of how the Management Area fits with the rest of the Forebay Subbasin GSP. Assume 77 hours of senior staff time.

Task 18. Update Data Management System (Proposition 68 Grant Application, Component 2, Task d1)

In accordance with GSP regulations §352.6, M&A has developed a Data Management System (DMS) for the SVBGSA to store, review, and upload data collected as part of the GSP development and implementation. M&A will update this DMS with new information as it is collected during monitoring and provided by local stakeholders. Assume 50 hours.

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Deliverables: Website link to Data Management System

Task 19. Implement Monitoring Data from Ag Order 4.0 (Proposition 68 Grant Application, Component 2, Task d2)

M&A will track and review the ILRP monitoring network for Ag Order 4.0 and identify if any new small public system water supply monitoring network wells can be added to the current network. This task includes obtaining any missing well information and selecting wells to include in the final groundwater monitoring network. Assumes 40 hours senior staff time and 200 hours technical staff time.

Deliverables: Updated map that includes monitoring data from Ag Order 4.0. Updated lists of representative monitoring sites form Ag Order 4.0

Task 20. Collaborate on Expansion of GEMS (Proposition 68 Grant Application, Component 2, Task d3)

Monterey County Water Resources Agency is planning to expand its Groundwater Extraction Management System (GEMS), which receives groundwater pumping information from 300-plus well operators in the Salinas Valley. As MCWRA continues to implement, oversee, and expand the GEMS pumping database, M&A will work with the SVBGSA to assist them with developing detailed requirements for local pumpers and ensuring GEMS expansion fits with the goals of the SVBGSA. This may include reviewing requirements, participating in meetings, and drafting feedback. Assume 40 hours senior staff time and 120 hours technical staff time.

Deliverables: Updated map of groundwater extractions included in GEMs.

Task 21. Expand groundwater level monitoring network (180/400) (Proposition 68 Grant Application, Component 2, Task d4)

The groundwater elevation monitoring network currently comprises the CASGEM wells monitored by MCWRA. The 180/400-Foot Aquifer Subbasin GSP identifies specific gaps in the groundwater level monitoring network, including insufficient coverage of wells along the boundaries of the Subbasin and near the Salinas River. To expand the monitoring network, M&A will first incorporate existing wells, if possible. To do so, M&A will use MCWRA’s existing well database to identify potential candidate wells in each data gap area. M&A will contact well owners, inspect the wells for adequacy, and secure agreements with well owners to ensure that data can be reported from the wells. Assume 50 hours senior staff time and 200 hours technical staff time. This task does not include installation of any new monitoring wells, should they be required.

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Deliverable: Updated map of groundwater level monitoring sites.

Task 22. Annual Reporting for the 180/400-Foot Aquifer Subbasin GSP (Proposition 68 Grant Application, Component 2, Task d5)

In accordance with SGMA Regulation §356.2, the SVBGSA will submit annual reports to DWR starting on April 1, 2020 for the 180/400-Foot Aquifer Subbasin GSP. M&A will draft and submit annual reports for the 180/400-Foot Aquifer Subbasin.

Deliverables: Three draft annual reports. Three final annual reports incorporating comments from SVBGSA Board members and staff.

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M&A Contract Budget 2020-2022 SVBGSA

Component 1. Grant Administration

Task 1. Invoicing Task 2. Quarterly and Final Grant Reporting

Montgomery & Associates Estimate of Hours, Fee and Expenses

Senior Staff/PM ($260/hr), Technical Staff ($120/hr), Montgomery & Associates Montgomery & Associates

Hours Fees Hours Fees

64 $16,640 0 $0 32 $8,320 $0

32 $8,320 $0

Expenses/L ump sum

costs

$0

Task Totals

$16,640 $8,320

$8,320

Component 2. SVBGSA GSP Development

(b) Stakeholder Engagement/ Outreach Task 3. Public Outreach on GSP

2464 $648,960 228 $27,360 $29,550 $705,870

Task 4. Strategic Partnership Scoping DACs and SDACs

80 $20,800 $0 $1,440 $22,240

90 $23,400 $120 $23,520

Task 5. Subbasin Committee Meetings

512 $133,120 128 $15,360 $5,760 $154,240

Task 6. Coordination with ASGSA 50 $13,000 $13,000

Task 7. Advisory Committee Meetings

768 $199,680 $0 $8,640 $208,320

Task 8. Seawater Intrusion Working Group Meetings 96 $33,280 100 $12,000 $3,960 $49,240

Task 9. Board Meetings

768 $199,680 $0 $8,640 $208,320

Task 10. SVIHM Stakeholder Training and Incorporation of Stakeholder Feedback 100 $26,000 $0 $990 $26,990

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SVBGSA

(c) GSP Development Task 11. GSP SVBGSA/Consultant Coordination and GSP Project Management

Task 12. Development of GSPs for Four Subbasins Task 13. Editing and Revision of GSPs According to Public Comments for 4 Subbasins

Montgomery & Associates Estimate of Hours, Fee and Expenses Senior Staff/PM ($260/hr), Technical Staff ($120/hr), Expenses/L

Montgomery & Associates Montgomery & Associates ump sum Hours Fees Hours Fees

3,953 $1,048,000 4,498 $539,840 $101,080

490 $127,400 $0 360

2240 $582,400 3938 $472,640 $100,000

320 $83,200 280 $33,600

Task Totals

$1,688,920

$127,760

$1,155,040

$116,800

Task 14. GSP Submission for 4 Subbasins

80 $20,800 160 $19,200 $40,000

Task 15. Run and Review SVIHM Task 16. 2-year Update to 180/400-Foot Aquifer Subbasin GSP and

411 $107,000 $0 $107,000

Subbasin Integration 412 $107,200 120 $14,400 720 $122,320

Task 17. Comparison between ASGSA and SVBGSA GSPs

77 $20,000 $20,000

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SVBGSA

(d) Monitoring / Assessment Task 18. Update Data Management System (including Arroyo Seco)

Montgomery & Associates Estimate of Hours, Fee and Expenses Senior Staff/PM ($260/hr), Technical Staff ($120/hr), Expenses/L

Montgomery & Associates Montgomery & Associates ump sum Hours Fees Hours Fees

180 $256,800 520 $62,400 $2,370

50 $13,000 $0

Task Totals

$321,570

$13,000

Task 19. Implement Monitoring Data from Ag Order 4.0

40 $10,400 200 $24,000 $34,400

Task 20. Collaborate on Expansion of GEMs with MCWRA

40 $10,400 120 $14,400 $24,800

Task 21. Expand groundwater level monitoring network (180/400)

50 $13,000 200 $24,000 2370 $39,370

Task 22. Annual Reporting for the 180/400 GSP

$210,000 $0 $210,000

Total $1,970,400 $629,600 $133,000 $2,733,000

Total reimbursible from grant (including professional fees and $100,000 subcontract, not annual reports) $2,490,000 Annual Reports

$210,000 Total expenses that are non-reimbursable from grant (e.g. not $100,000 subcontract) $33,000

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February 28, 2020

Mr. Gary Petersen/General Manager and Ms. Donna Meyers/Deputy General Manager

Salinas Valley Basin Groundwater Sustainability Agency 1441 Schilling Place Salinas, CA 93901

Subject: M&A Contract to Develop the Corral de Tierra Sections of the Monterey Subbasin Groundwater Sustainability Plan

Dear Mr. Petersen and Ms. Meyers:

The Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) is working with Marina Coast Water District (MCWD) to develop the Monterey Subbasin Groundwater Sustainability Plan (GSP) for submittal by January 31, 2022. The SVBGSA is responsible for developing the GSP sections related to the Corral de Tierra Area. To maintain continuity and leverage the existing work already completed, the SVBGSA has requested the assistance of E.L. Montgomery & Associates (M&A) to prepare the GSP. Attached is a proposed Scope of Work and budget for that work. The scope and budget are based on MCWD’s Round 2 Sustainable Groundwater Management Act Planning Grant, which includes the SVBGSA work in the Corral de Tierra area.

Proposal Objectives and Tasks

The activities in this SOW are designed to achieve the following objectives:

Work with MCWD to develop and integrate Corral de Tierra Groundwater Sustainability Plan (GSP) components into a coordinated, transparent, and technically robust GSP for the Monterey Subbasin of the Salinas Valley

Actively involve Corral de Tierra stakeholders in the development and implementation of the Monterey Subbasin GSP

The Scope of Work in this proposed contract includes two tasks: stakeholder outreach and coordination, and GSP development. The tasks are further described in the attached Scope of Work.

Professional Fees

Costs to complete Tasks 1 and 2 have been estimated on a time and reimbursable expenses basis, in accordance with M&A’s 2020 fee schedule. M&A revises its Fee Schedule on an annual basis with an annual increase of 3%. Estimated costs and reimbursable expenses are presented in Table 1. The total cost of $242,840 is identical to the technical consultant fee for the Corral de Tierra work identified in MCWD’s Round 2 Monterey Subbasin Grant Proposal. 54

Table 1: Estimated Cost for Corral de Tierra Portion of the Monterey Subbasin GSP

Task Number Task Hours

Task Subtotal

Task 1 Stakeholder Outreach and Coordination 140 $37,960

Task 2 GSP Development 785 $204,880

Total $242,840

Work will be conducted on a time and materials basis and invoiced monthly. If the actual scope of work varies from the described scope of work, actual costs may vary from these estimated costs. However, the total estimated cost of $242,840 will not be exceeded without prior authorization by SVBGSA.

We continue to be grateful for the opportunity to assist SVBGSA. We would be happy to discuss details or respond to questions regarding this proposal, and we look forward to hearing from you soon.

Sincerely,

Derrik Williams E.L. MONTGOMERY & ASSOCIATES

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M&A Contract - Monterey Subbasin GSP - Budget

Task Number Task Hours Rate Expenses

Task Subtotal

Task 1 Stakeholder Outreach and Coordination 140 260 1520 37960

Task 2 GSP Development 785 260 760 204860 Total 242820

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Page 1 of 5

Before the Board of Directors of the Salinas Valley Basin Sustainable Groundwater Management Agency

Resolution No. 2020 - Approving Amendment No. 3 to the Agreement for professional services with Errol L. Montgomery & Associates, Inc.

) ) )

WHEREAS, the Salinas Valley Basin Groundwater Sustainability Agency (“SVBGSA”) and HydroMetrics WRI (“HydroMetrics”) entered into an Agreement for Professional Services (“Agreement”) on or about March 8, 2018, wherein HydroMetrics agreed to provide certain professional services to the SVBGSA regarding the preparation of one or more groundwater sustainability plans as required by the California Sustainable Groundwater Management Act; and, WHEREAS, the SVBGSA approved an amendment No. 1 to and assignment of the Agreement to Errol L. Montgomery & Associates, Inc. (“Montgomery”) effective as of July 1, 2018, and approved amendment No. 2 to the Agreement in May 9, 2019; and, WHEREAS, the SVBGSA has approved and submitted to the Department of Water Resources a groundwater sustainability plan for the 180/400 foot aquifer subbasin; and WHEREAS, the SVBGSA and Montgomery now desire to further amend the Agreement to provide generally for the continued services of Montgomery to finish the groundwater sustainability plans for the remaining subbasins in the Salinas Valley Groundwater Basin that require a groundwater sustainability plan by January 31, 2022, provide updates to and expand the monitoring network for the 180/400 foot aquifer subbasin, prepare the groundwater sustainability plan for the Corral de Tierra area of the Monterey subbasin in cooperation with the Marina Coast Water District Groundwater Sustainability Agency, and assist the SVBGSA in the processing and reporting on the Round 3 of the Sustainable Groundwater Management Act Planning Grant; NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency as follows:

1. The above recitals are true and correct.

2. The Chair of the Board of Directors is hereby authorized and directed to execute for

and on behalf of the SVBGSA the Amendment No. 3 to the Agreement for Professional Services Errol L. Montgomery & Associates, Inc., the form of which is attached hereto as Attachment 1.

3. The General Manager is hereby authorized and directed to take such other and further actions as may be necessary or appropriate to implement the intent and purposes of this resolution.

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Page 2 of 5

PASSED AND ADOPTED on this ___ day of ___________, ______, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: I, Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Directors duly made and entered in the minutes thereof of Minute Book_____ for the meeting on _______________. Dated: Ann Camel, Clerk of the Board of Directors of the Salinas Valley Basin Groundwater Sustainability Agency, County of Monterey, State of California _____________________________________

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Page 3 of 5

AMENDMENT NO. 3 TO AGREEMENT FOR PROFESSIONAL SERIVCES

between THE SALINAS VALLEY BASIN GROUNDWATER SUSTAINABILITY AGENCY

And ERROL L. MONTGOMERY & ASSOCIATES

WHEREAS, the Salinas Valley Basin Groundwater Sustainability Agency (“SVBGSA”) and HydroMetrics WRI (“HydroMetrics”) entered into an Agreement for Professional Services (“Agreement”) on or about March 8, 2018, wherein HydroMetrics agreed to provide certain professional services to the SVBGSA regarding the preparation of one or more groundwater sustainability plans as required by the California Sustainable Groundwater Management Act; and, WHEREAS, the SVBGSA approved an amendment No. 1 to and assignment of the Agreement to Errol L. Montgomery & Associates, Inc. (“CONTRACTOR”) effective as of July 1, 2018, and approved amendment No. 2 to the Agreement on May 9, 2019; and, WHEREAS, the SVBGSA and Montgomery now desire to further amend the Agreement to provide generally for the continued services of Montgomery to finish the groundwater sustainability plans for the remaining subbasins in the Salinas Valley Groundwater Basin that require a groundwater sustainability plan by January 31, 2022, provide updates to and expand the monitoring network for the 180/400 foot aquifer subbasin, prepare the groundwater sustainability plan for the Corral de Tierra area of the Monterey subbasin in cooperation with the Marina Coast Water District Groundwater Sustainability Agency, and assist the SVBGSA in the processing and reporting on the Round 3 of the Sustainable Groundwater Management Act Planning Grant; NOW, THEREFORE, For good and valuable consideration, the sufficiency of which is hereby acknowledged, the SVBGSA, and Montgomery agree as follows:

1. The above recitals are true and correct.

2. Section 1 of the Agreement is amended to read: 1. SERVICES TO BE PROVIDED. The GSA hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, in addition to the services previously contracted for, the services described in Exhibits A – D in conformity with the terms of this Agreement. The services are generally described as follows: Finish the groundwater sustainability plans for the remaining subbasins in the Salinas Valley Groundwater Basin that require a groundwater sustainability plan by January 31, 2022, provide updates to and expand the monitoring network for the 180/400 foot aquifer subbasin, prepare the groundwater sustainability plan for the Corral de Tierra area of the Monterey subbasin in cooperation with the Marina Coast Water District Groundwater Sustainability Agency, and assist the SVBGSA in the processing and reporting on the Round 3 of the Sustainable Groundwater Management Act Planning Grant.

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Page 4 of 5

3. Section 2 of the Agreement is amended to read:

2. PAYMENTS BY GSA. GSA shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit A, subject to the limitations set forth in this Agreement. The total amount payable by GSA to CONTRACTOR under this Agreement shall not exceed the sum of $4,813,360.

4. Section 3 of the Agreement is amended to read: 3. TERM OF AGREEMENT. The term of this Agreement is from the date last executed by one of the parties, which date is March 12, 2020, to approval of Groundwater Sustainability Plans by the California Department of Water Resources for the all subbasins of the Salinas Valley Groundwater Basin that require sustainability plans by January 31, 2022, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both CONTRACTOR and GSA and with GSA signing last, and CONTRACTOR may not commence work before GSA signs this Agreement.

5. Section 4 of the Agreement is amended to read: 4. ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:

Exhibit A Scope of Work to Provide Groundwater Sustainability Planning and Plan Preparation Services for 5 Subbasins

Exhibit B Budget to Develop Groundwater Sustainability Plans for 5

Subbasins

Exhibit C Scope of Work to Develop the Corral de Tierra Sections of the Monterey Subbasin Groundwater Sustainability Plan

Exhibit D Budget to Develop the Corral de Tierra Sections of the

Monterey Subbasin Groundwater Sustainability Plan

6. Except as specifically set forth herein, all other terms and conditions of the Agreement remain the same.

7. This Amendment No. 3 may be executed in counterparts and shall be effective on the date last signed by any of the parties.

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Page 5 of 5

SALINAS VALLEY BASIN GROUNDWATER SUSTAINABILITY AGENCY By________________________________________ Ron Stefani, Chair of the Board of Directors Dated: March ____, 2020 APPROVED AS TO FORM __________________________________________ Leslie J. Girard, Agency Counsel ERROL L. MONTGOMERY & ASSOCIATES, INC. By________________________________________ Dated: March ____, 2020

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Salinas Valley Basin Groundwater Sustainability Agency

BOARD OF DIRECTORS FUTURE AGENDA ITEMS

April 9, 2020

• Budget adoption 60 days prior to the end of FY (JPA § 10.3b) May 14, 2020 – Soledad Council Chambers

• Resolution to County Auditor-Controller June 11, 2020

• Oath of Office for newly appointed Board Members • Election of Chair • Committee Appointments • RGS renewal expires 6/30/20

July 9, 2020 August 13, 2020 September 10, 2020 October 8, 2020 November 12, 2020 December 10, 2020

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