Page 6 - Beaumont Basin Watermaster

C. Adoption of the 2015 Consolidated Annual Report and Engineering Report
[Memorandum No. 16-16, Page 25 of 97]

Recommendation: That the Watermaster Committee adopts the 2015
Consolidated Annual Report and Engineering Report

Member Fraser moved to adopt the 2015 Consolidated Annual Report and
Engineering Report, with the understanding that the shape files are updated.
The motion was seconded by Member Zoba and passed 5-0.

D. Concept for the Formation of a Groundwater Sustainability Agency for the San
Timoteo Basin 8-2.08 [Memorandum No. 16-17, Page 26 of 97]

Recommendation: Pending

Member Zoba provided background information on the reasons for creating a
Groundwater Sustainability Agency (GSA) for the San Timoteo Basin that
would involve the Yucaipa Valley Water District, Beaumont-Cherry Valley
Water District, and the San Gorgonio Pass Water Agency with additional
stakeholders being the Morongo Band of Mission Indians and the Watermaster
Committee. He stated that management of the GSA would be very similar to
what the Watermaster does already.

Chairman Vela proposed having two GSAs, one of which would be the
Watermaster, which has exclusive rights over the adjudicated portion of the
Beaumont Basin. The second GSA would have exclusive rights over the
remaining portion of the San Timoteo Basin. Member Zoba explained that the
end result would be the same because the Watermaster is already considered
to be sustainable by virtue of the stipulated judgment.

Member Zoba stated that no decision is needed unless there are strong feelings
one way or the other. Chairman Vela asked Legal Counsel Montoya whether
he see sees any inconsistencies or issues between newly formed GSA and the
Watermaster. Legal Counsel Montoya replied in the negative, stating he
couldn’t foresee any issues arising between the two entities.

E. Application by the San Gorgonio Pass Water Agency (SGPWA) for a Groundwater
Storage Agreement in the Beaumont Basin [Memorandum No. 16-18, Page 28 of 97]

Recommendation: Pending

Member Zoba reported that he had met with the General Manager of the
SGPWA since the most recent Watermaster Committee meeting to discuss the
Agency’s application for a groundwater storage agreement. As a result of that
meeting, Member Zoba stated that he devised five stipulations or conditions
to a potential agreement. He noted that these conditions had not yet been
vetted by the SGPWA, and went on to explain each of those conditions.

Member Fraser voiced his support of the five conditions outlined, and
suggested that they be sent to the SGPWA Board of Directors to be formally
reviewed and at that point Legal Counsel could draft a final resolution granting
a storage account with the stipulated conditions.

Beaumont Basin Watermaster - December 7, 2016 - Page 6 of 16