South American Basin Governance Negotiations The three party logo’s will be inserted at the bottom? of this slide Update to SCGA and OHWD Boards on progress of negotiations March 13, 2019

Summary of Presentation Update on Negotiations Overview of “Points of Agreement” Discuss Outstanding Items Review and Discussion Next Steps Our region has been proactive in planning for our water future: both for water supply and the environment. But we have had challenges.

South American Subbasin Setting South American Subbasin OHWD and SRCD Overlap Areas County White Space https://sgma.water.ca.gov/webgis/index.jsp?appid=gasmaster&rz=true

Timeline Sep 2015 to Aug 2017- Overlapping GSA filings- Initial effort to resolve overlap. Dec 2017 to April 2018- Supervisor Nottoli hosted two public meetings. Dec 2017-Two way meetings involving three parties OHWD, SRCD and SCGA. May 2018- Briefing on status and progress to SCGA Board July 2018- Active County involvement to advise and support Aug 2018- SRCD withdraws from negotiations, pursues Basin Boundary modification request August 2018 to February 2019- Bi-lateral SCGA-OHWD with County support

Multi-Party Discussions OHWD SRCD

Key Issues SGMA Coordination and Compliance Regional Cooperation Basin Boundary Modification Support for Alternative Submittal Alignment of Jurisdictional Boundaries Development of a Single GSP for the Sub Basin OHWD and Sacramento County as GSAs Financial, Regulatory & Administrative Coverage

Low Hanging Fruit Shared Commitment to Achieve Sustainable Groundwater Management Cooperative approach to Basin Management: Probably lead to an MOU Recognize each other’s jurisdictional boundaries

Complex Points of Agreement Each become exclusive GSAs SCGA will withdraw GSA application over OH County will be GSA for undeclared areas All support Alternative Submittal If Alternative Submittal is rejected: all will support single GSP Will need to develop a coordination agreement with other GSAs No Basin Boundary Modification - rather Jurisdictional Boundary Adjustment to remove overlaps

Complex Points of Agreement Resolves a fundamental issue which drives these negotiations: Removes overlapping GSA claims on OHWD area within the sub basin Recognizes OHWD as the GSA for their District area in SOAM Basin Each become exclusive GSAs SCGA will withdraw GSA application over OH County will be GSA for undeclared areas All support Alternative Submittal If Alternative Submittal is rejected: all will support single GSP Will need to develop a coordination agreement with other GSAs No Basin Boundary Modification - rather Jurisdictional Boundary Adjustment to remove overlaps

Complex Points of Agreement OHWD will stepdown from SCGA; JPA will require modification Each GSA will adopt GSP or Alternative Create GSP Working Group: SCGA (7), Sac. Co. (1), OH (2) GSP Working Group will guide GSP development Voting: SCGA (70%), Sac. Co. (10%), OH (20%) Final GSP approval by each Board SCGA will be Administrative Entity Prop 1 Grant funds will support GSP prep for entire Subbasin

Remaining Topics Specifics on GSP development and adoption Durability of financial obligations and funding mechanisms Compliance with SGMA Administrative reporting GSP Implementation Managing Undesirable Results Developing a formal agreement/MOU Responsibilities Severability Timing and process of required actions Additional coordination agreements: SRCD & North Delta GSAs

Next Steps Presentations to Boards of SCGA & OHWD Finalize and adopt Points of Agreement Address Board(s) feedback and remaining Issues Develop formal Agreement/MOU Implement actions called for in Agreement/MOU Engage with SRCD and North Delta GSAs OHWD will work with SRCD to resolve overlap