Santa Cruz Mid-County Groundwater Agency

This document outlines implementation activities for the Santa Cruz Mid-County Groundwater Agency's Groundwater Sustainability Plan. It details efforts to estimate the water impact of future required development, analyzes Regional Housing Needs Assessment (RHNA) projections for 2023-2031, and reviews water demand forecasts for the Soquel Creek Water District and Santa Cruz Water Department through 2050. The plan also addresses the ineligibility of development impact fees for the Agency's operating expenses, clarifying their restriction to capital expenditures that directly offset development impacts.

The Board of Directors discussed various administrative and financial matters, including the Treasurer's Report and the adoption of the Annual Statement of Investment Policy for the upcoming fiscal year. Key actions included the approval of contract amendments for legal support related to the Sustainable Groundwater Management Act and contract time extensions for grant administration. Additionally, the Board addressed groundwater sustainability plan implementation, audited financial statements for the previous fiscal year, and reviewed member agency updates regarding compliance funding options.

This Technical Memorandum provides a preliminary evaluation of potential funding mechanisms to support the Santa Cruz Mid-County Groundwater Agency's ongoing compliance with the Sustainable Groundwater Management Act and implementation of its approved Groundwater Sustainability Plan. The document reviews legal, financial, and policy considerations for establishing a long-term, reliable, and equitable funding strategy. It outlines various funding methodologies, including volumetric, land-based, irrigated acreage, and hybrid approaches, discussing proportionality, equity, administrative feasibility, and legal defensibility to guide the development of a recommended funding approach for the agency's sustainability and governance needs.

The document contains public comments submitted to the Board regarding the agency's website dashboard metrics and a proposed private well monitoring plan. Residents expressed concerns regarding the negative framing of sustainability dashboard labels, suggested reclassifying the aquifer to reduce costs, and proposed a compromise for private well monitoring involving a limited fee with a sunset clause to avoid the installation of meters or complex infrastructure.

The board received an update on the Sustainable Groundwater Management Act compliance funding options, including an analysis of fee methodologies used by other agencies. Appointments were made for two Private Well Owner Director positions. The board approved a cost-sharing agreement for the Small Groundwater Sustainability Agencies Coalition to help reduce compliance costs. Furthermore, the board reviewed a presentation on the use of Airborne Electromagnetic surveys for seawater intrusion assessment and received updates on groundwater sustainability planning implementation and grant status.