1. Welcome PRAAGS & PRO WATER EQUITY JOINT PUBLIC MEETING JAN. 13, 2014 PRAAGS & PRO Water Equity Jan. 13, 2014 v3

2. Introductions SUE LUFT PRO WATER EQUITY PRESIDENT JERRY REAUGH PRAAGS CHAIRMAN PRAAGS & PRO Water Equity Jan. 13, 2014

3. Both groups have come together by agreeing to a governance structure for the proposed Paso Robles Groundwater Basin. This structure will provide representation to landowners off all sizes including agriculturists and rural residents. Agreement PRAAGS & PRO Water Equity Jan. 13, 2014

4. Agenda  WHERE WE ARE NOW  RECENT NEWS  THE AGREEMENT  MOVING FORWARD PRAAGS & PRO Water Equity Jan. 13, 2014

5. 1. Do nothing and get a State mandated plan 2. 3. 4. Where We Are Now PRAAGS & PRO Water Equity Jan. 13, 2014

6. PRAAGS & PRO Water Equity Jan. 13, 2014 “When a basin is at risk of permanent damage, and, after having been provided the needed authority, local agencies do not make sufficient progress to correct the problem in a timely manner; the state should have carefully-defined authority to protect the basin and its users until an adequate local program is established.”

7. PRAAGS & PRO Water Equity Jan. 13, 2014 “SACRAMENTO — The nearly $107 billion spending plan proposed by Gov. Jerry Brown on Jan. 9 includes $7.8 million for groundwater management and could lead to restrictions on pumping from wells, officials say. The plan includes 10 employees of the State Water Resources Control Board who would “act as a backstop when local or regional agencies are unable or unwilling to sustainably manage groundwater basins,” the governor’s budget summary explains.”

8. 1. Do nothing and get a State mandated plan 2. Do nothing and get a County mandated plan 3. 4. Where We Are Now PRAAGS & PRO Water Equity Jan. 13, 2014

9. PRAAGS & PRO Water Equity Jan. 13, 2014

10. 1. Do nothing and get a State mandated plan 2. Do nothing and get a County mandated plan 3. Pursue legal remedies via current or new lawsuits 4. Where We Are Now PRAAGS & PRO Water Equity Jan. 13, 2014

11. A judge from somewhere in the State will...  Tell you how much water you are allotted  Appoint a “Water Master” to administer the Basin And you will:  Spend millions of dollars in attorney fees  Wait for years, maybe even a decade to get a decision  Have no more water available than you did when it started Adjudication PRAAGS & PRO Water Equity Jan. 13, 2014

12. 1. Do nothing and get a State mandated plan 2. Do nothing and get a County mandated plan 3. Pursue legal remedies via current or new lawsuits 4. Create a locally managed water district to balance supply and demand Where We Are Now PRAAGS & PRO Water Equity Jan. 13, 2014

13. A locally managed governance structure to oversee the affairs of the basin Landowners and registered voters vote for Directors Landowners vote for Funding Water District PRAAGS & PRO Water Equity Jan. 13, 2014

14. Recent News  Dec. 5 ◦ PRO Water Equity and PRAAGS announce agreement on basic governance structure for proposed Paso Robles Basin Water District PRAAGS & PRO Water Equity Jan. 13, 2014

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20. PRAAGS & PRO Water Equity Jan. 13, 2014 Recent News  Jan. 6 o Recognizing the urgency of a solution and need for compromise and cooperation, PRO Water Equity and PRAAGS announce further refinement of governance structure, including acreage categories and 9-member board of directors

21. The Agreement  9-member board of directors elected from throughout the district  Separate slate of candidates for each director position  Directors are split into two categories:  Directors elected directly by registered voters within the district  Directors elected according to land ownership PRAAGS & PRO Water Equity Jan. 13, 2014

22.  The voting structure of the first category will be as follows: o 3 directors elected by registered voters within the district o One vote per registered voter The Agreement PRAAGS & PRO Water Equity Jan. 13, 2014

23.  The voting structure of the second category will be as follows: o Vote will be based on land ownership with one vote per acre owned o Landowners will only vote in one of the three classes listed below o 2 directors elected by “small” landowners (total of >0 to <40 acres) o 2 directors elected by “medium” landowners (total of 40 to <400 acres) o 2 directors elected by “large” landowners (total of 400+ acres) The Agreement PRAAGS & PRO Water Equity Jan. 13, 2014

24. Eligibility  To vote: o Registered Voters – All registered voters registered within the boundaries of the Water District will cast votes on a basis of one vote per registered voter. o Landowner Voters – Any person or entity owning land within the boundaries of the Water District are eligible to vote. Votes shall be cast by one of the owners of the deed, a current trustee if the land is owned by a trust or a designated officer if the land is owned by a corporation. PRAAGS & PRO Water Equity Jan. 13, 2014

25. Eligibility (continued)  To run as a Director of the District: o The directors must be landowners within the district and must live within the district boundaries or within two miles of those boundaries or within the City of Paso Robles or the service areas of the Atascadero Mutual Water Company, Templeton CSD, San Miguel CSD or Shandon CSA-16 PRAAGS & PRO Water Equity Jan. 13, 2014

26.  The voting structure will be used for all future elections of the Board of Directors  The formation vote will be conducted per Water Code with landowners voting based on acreage  The proposed district would have the ability to enact enhanced AB 3030 powers (Water Code Sections 10750-10755.4)  The intent of the district will be to manage and balance the basin. The Agreement PRAAGS & PRO Water Equity Jan. 13, 2014

27. Moving Forward  Existing petition will be withdrawn from LAFCO  New, revised petition will be refiled for two reasons: o There is likely to be some redrawing of district lines o We will be changing some wording to make language in the Special Legislation match language in the LAFCO petition  PRAAGS and PRO Water Equity will jointly review the district map to determine what changes to the boundaries are needed  PRAAGS and PRO Water will jointly work on the initial funding plan for the district with the assistance of the Flood Control and Water Conservation District staff PRAAGS & PRO Water Equity Jan. 13, 2014

28. Moving Forward  Special legislation must go through the county’s legislative platform  Development of the district will still require working with SLO County LAFCO and special legislation  The LAFCO process will offer additional opportunities for the public to weigh in  A revised petition will be circulated to obtain signatures for holding an election to form the Paso Robles Basin Water District PRAAGS & PRO Water Equity Jan. 13, 2014

29. Learn More At: PRAAGS.ORG PROWATEREQUITY.ORG PRAAGS & PRO Water Equity Jan. 13, 2014

30. Next Public Meeting: WEDNESDAY JANUARY 22 nd, 2014 10am to Noon PEAR VALLEY VINEYARDS PRAAGS & PRO Water Equity Jan. 13, 2014

31. QUESTIONS & ANSWERS PRAAGS & PRO Water Equity Jan. 13, 2014